CFP Data processing - Tax down payment

Through this data process, the system generates down payments for both “notional” taxes and “entity” taxes”.

Entities which have been associated with a fiscal policy in the entity list and for which the “Direct taxes payment type” has been set in the execution plan as “Calculate Down payment on actual and balance” or “Calculate Down payment on budget and balance”.

The system:

  • Calculates the down payment:
  • “down payment on actual and balance calculation”:
  • applies the percentage indicated in the tax rules (tax definition) to the taxes for the previous year
  • for the first year, the relative tax is saved in Initial Balance Sheet on the “Prev. Year P&L tax (statistical account)”
  • for subsequent years, the tax for the year is saved in entries on the “P&L taxes: credit” account
  • “down payment on budget and balance calculation”:
  • applies the percentage to the forecast profit before down payments; the following formulas are applied:

A1 = (C1*V1/100) / 1+ (T/36500 * ((C1*D1) + (C2*D2) + (C3*D3) + (C4*D4)))

A2 = (A1*C2) / C1

A3 = (A1*C3) / C1

A4 = (A1*C4) / C1

Where:

A1...A4 = First...Fourth down payment

C1...C4 = Percentage first...fourth down payment

V1 = Net result for the year before the down payment calculated from the P&L

T = Reference rate

D1...D4 = Length of time in days between payment of the first...fourth down payment and the end of the year

  • creates the tax down payment events:
  • event “$GBL” - Accounting, with the following characteristics
  • account equal to the “Down payment: payment variation account” account
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the entity currency
  • event date equal to the down payment date indicated in the tax rules (tax definition)
  • reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
  • currency amount equal to the down payment account
  • origin equal to CFP_TAXES_DOWN_PAYMENT - CFP - Taxes - Down payment
  • event “$GBL” - Accounting, with the following characteristics
  • account equal to “bank account: credit variation”
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the entity currency
  • event date equal to the down payment date indicated in the tax rules (tax definition)
  • reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
  • currency amount equal to the down payment account, reversed in sign
  • origin equal to CFP_TAXES_DOWN_PAYMENT - CFP - Taxes - Down payment
  • if, the “Tax fund” account is in credit at the down payment creation date, the following events are created:
  • event “$GBL” - Accounting, with the following characteristics
  • account equal to the “Down Payment: write off variation account per Credit Balance” account
  • reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
  • currency amount equal to the amount of the down payment, reversed in sign if the balance of the “Tax fund” is greater than the “down payments” account; otherwise it is equal to the balance of the “Tax fund” account, reversed in sign
  • origin equal to CFP_TAXES_DOWN_PAYMENT_DEBT - CFP - Taxes - Debit Down payment
  • event “$GBL” - Accounting, with the following characteristics
  • account equal to “bank account: debit variation”
  • reference account for cash flow calculation equal to the “P&L taxes: credit” account specified in the tax rules (tax definition)
  • currency amount equal to the amount of the down payment, if the balance of the “Tax fund” is greater than the “down payments” account; otherwise it is equal to the balance of the “Tax fund” account
  • origin equal to CFP_TAXES_DOWN_PAYMENT_DEBT - CFP - Taxes - Debit Down payment
  • if “Holiday” has been indicated on the fiscal policy, it is not possible to create events on dates defined as public holidays: the process moves the balance date to the date indicated as the “Operation date”.