Can you explain the Account Classification assignment options in the Tax Grouping Update Wizard (TGUW) for CCH® ProSystem fx® Engagement or Workpaper Manager?

The Tax Grouping Update Wizard has had the option to automatically classify the account groups in the Tax Grouping List. Classifying the account groups in an account grouping list will enable the program to correctly calculate the net income as well as make it possible to create Classified Trial Balance Reports.

Any groups that are already classified in the tax grouping list will not be modified. This provides for customizing the classifications without worry that the Tax Grouping Update Wizard will modify the classifications.

  • Option 1 - Do not modify account classifications.
    • Account classifications will not be assigned to groups and subgroups that do not already have an account classification assigned. The account classifications will also not be assigned to new groups and subgroups. The account classifications already assigned to existing groups and subgroups will not be modified.
  • Option 2 - Assign system-defined account classifications (currently existing in the trial balance) to unclassified groups/subgroups.
    • Account classifications as per the AOPTX.mdb will be assigned to any new groups and subgroups and any existing groups and subgroups that do not already have an account classification assigned. If the account classification in the AOPTX.mdb does not already exist in the trial balance, the classification will not be assigned
  • Option 3 - Assign system-defied account classifications to unclassified groups/subgroups .
    • Deleted system-defined account classifications will be added back to the trial balance and assigned accordingly.
    • Account classifications as per the AOPTX.mdb will be assigned to any new groups and subgroups and any existing groups and subgroups that do not already have an account classification assigned. If the account classification in the AOPTX.mdb does not already exist in the trial balance, the classification will be assigned and will be added to the trial balance.

An Example.

Bob has a 2014 binder. In the binder is a Trial Balance with a 2013 C Corp Prosystem fx Tax grouping from the prior year that is not classified. Last year Bob decided that he did not need the Revenue classification and deleted it from the trial balance. Now Bob is ready to use the Tax Grouping Update Wizard to update his tax grouping.

  • If Bob selects the first option the Tax Grouping Update wizard will update the tax grouping to 2014 only, the account groups will remain un-classified.
  • If Bob selects the second option the Tax Grouping Update Wizard will update the tax grouping to 2014 and the account groups will be classified. Any groups that would be classified as Revenue will remain un-classified.
  • If Bob selects the third option the Tax Grouping Update Wizard will update the tax grouping to 2014 and the account groups will be classified. The Revenue classification will be re-added and any groups that would be classified as Revenue will be classified as Revenue.
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