Consolidation setup
For consolidation engagements, create the consolidation hierarchy based on the intended filing structure and reporting requirements.
For example:
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If Parent Co. and Sub Co. A will be filed together, create one Taxflow engagement that reflects this combined consolidation hierarchy.
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If Sub Co. B will be filed separately, create a distinct Taxflow engagement for that entity.
Creating the consolidation hierarchy
When setting up the consolidation:
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Define each entity in the engagement (parent and subsidiaries).
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Establish reporting relationships to ensure that consolidated balances roll up correctly to the parent entity.
Entities must be created prior to importing balances.
Importing balances
Caseware Taxflow now supports importing balances from both parent and internal entities using Import from Caseware Cloud Engagement.
Previously, only balances from parent entities could be retrieved. With this enhancement, users can:
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Import trial balances from any entity in the consolidation hierarchy.
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Maintain data consistency between Taxflow and other Caseware Cloud solutions.
When multiple entities share identical account numbers, an Entity column has been added throughout the application where appropriate. This makes it easy to distinguish balances from different entities during review and reconciliation.
Eliminating entries
Eliminating entries are now correctly incorporated into the calculation of Final consolidated balances. This ensures that intercompany transactions (e.g., intercompany sales, loans, or dividends) do not inflate consolidated results.
Working with consolidated forms
When working in consolidated engagements:
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All relevant forms (e.g., Tax group assignment, Tax reconciliation) now respect the consolidated structure.
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Reconciliations and exports are based on the final consolidated view, including all elimination entries.
