What are the Unclassified tax group options in the Tax Grouping Update Wizard (TGUW)?

The CCH ProSystem fx Tax Grouping Update Wizard (TGUW) may automatically classify account groups in a Tax Grouping List. Classifying the account groups in an account grouping list will allow the Trial Balance to correctly calculate Net Income, and make it possible to create Classified Trial Balance Reports.

Any groups that are currently classified will not be modified. This provides the option to customize classifications without having to worry that the Tax Grouping Update Wizard will modify classifications.

Option 1 - Do not assign account classifications

  • Account classifications will not be assigned to groups and subgroups that are not already classified.
  • Account classifications will not be assigned to new groups and subgroups.
  • Account classifications already assigned to existing groups and subgroups will not be modified.
  • Any Net Income calculations will be affected by this option until the subgroups are reclassified. 

Option 2 - Assign existing account classifications

  • Account classifications will be assigned to any new groups and subgroups. 
  • Account classifications will be assigned to default groups and subgroups that are not already classified.
  • If an account classification does not already exist in the trial balance, the classification will not be assigned.

Option 3 - Assign existing and any previously deleted system-defined account classifications

  • Account classifications will be assigned to any new groups and subgroups
  • Account classifications will be assigned to default groups and subgroups that are not already classified. 
  • If an account classification does not already exist in the trial balance, the classification will be assigned and will be added to the trial balance.

An Example:
I have a 2013 year end binder. In the binder, there is a trial balance with a 2012 C-Corp ProSystem fx tax grouping from the prior year that is not classified. Last year, I decided that I did not need the Revenue classification and deleted it from the trial balance. Now, I am ready to use the Tax Grouping Update Wizard to update this tax grouping.

  • If I select Option 1 the Tax Grouping Update Wizard will update the tax grouping to 2013 only. Unclassified account groups will remain unclassified.
  • If I select Option 2 the Tax Grouping Update Wizard will update the tax grouping to 2013, and the account groups will be classified. Any groups that would be classified as Revenue will remain un-classified.
  • If I select Option 3 the Tax Grouping Update Wizard will update the tax grouping to 2013, 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.

 

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