The purpose of the Tax Return Rollover process is to roll Tax Returns from one year to the next. The Rollover can be performed in bulk, by using filter criteria or at an individual Return level once the Standard Tax Matter for the new year (2021) has been created.
The Rollover process must be managed and done by a staff member who understands why the Rollover is performed and what the results of the Rollover should be. If the person performing the Rollover understands the implications on the Tax Matters and their attached Returns the process is straightforward. We highly recommend an experienced staff member, preferably the Tax Administrator perform this process. We recommend you contact the Reckon Support Team if the person who manages your Tax Return rollover is unsure of the implications the roll options they select will have on the New Year’s Tax Ledger transaction dates and values.
The key of the Rollover is to ensure that the Returns are rolled at the appropriate time. The Rollover process impacts on the values available for the IR901 letters and needs to be fully understood.
Best practice is to complete the Tax Return rollover in stages.
- Firstly, roll all completed 2020 returns.
- Any returns completed after the initial rollover can then be rolled periodically; daily, weekly or fortnightly.
- Some practices choose to leave this process until just before the new Tax season starts and they roll all Returns at once. However this will have an impact on early balance date returns as there will be no Provisional instalments available to populate the letters.
What the Rollover Does
The Rollover process creates the client Tax Return matter, the Tax Return and the Provisional instalment ledger records for each client who has a Tax Return 2020 Matter and Return. (Lodgement of the 2021 Tax Returns is not available until the April software is released).
Creation of the Provisional instalments
The 2021 Provisional Tax instalments for all Return types are calculated as follows:
If the 2020 RIT value is equal to or greater than $5000, the system will multiply the value by 110%, and the total will then be pro-rated across the number of Provisional instalments on each client.
The Provisional instalment ledger transactions are determined by either the clients GST Duration on the GST Return, or the GST Attribute in Central Console or their having a Ratio percentage.
- Clients who file 6 monthly GST Returns only have two Provisional instalments.
- Clients who file 1 monthly and 2 monthly GST Returns have the standard three Provisional instalments.
The Rollover for 2021 assumes you have read the Installation Instructions 2021.Q2, run the Version Control that relates to April 2021.Q2 and you have the installed the prerequisite version of the Tax Management software. To check all has been done see below;
The following software must be installed before the Tax Return Rollover from 2020 to 2021 is performed on the database:
• Tax Management 2021.Q2
Depending on how many Returns are being rolled over at the time, the process may take a couple of hours to complete. For this reason it is highly recommended that the Rollover is performed out of working hours or while no other users are in and using the ReckonAPS software. This includes Timesheets, Fees and Tax Return data entry.
While we test the Rollover prior to release we cannot guarantee that the Rollover is not interrupted by other factors i.e. power surges or computer crashes. If this is the case a restore from a backup would be required and any data entered while the Rollover was processing would be lost. So please ensure your database is backed up before each rollover is performed, particularly if you are doing your rollover in stages.
GST Duration attribute
The GST “Duration” attribute is chosen when a user creates a GST Return in the GST Console.
Setting new GST attribute
A new method of setting the GST Duration attributes was implemented in the previous April release 2020.04. This superceded the previous setting and the Period Cycle attribute that was present in the console. The system administrator will be required to perform a one-off task to assign the correct number of months for each attribute value.
1. Go to Tax Manager > Sys Admin > GST tab.
If you have already completed these steps previously, you may skip this section as no further changes have been made in this area. It is included here for reference.
In releases August 2018 and prior, the below screen was displayed.
For August, this is implemented as per below.
2. Select GST Duration > ‘GST Frequency’
- This may be named GST type or something else depending on how this was originally set.
3. For each entry, choose the number of months from the dropdown menu on the right. Set all the attribute month values required
4. Click Save.
If these selections are not correctly made, there may be adverse effects when rolling returns into subsequent tax years. We recommend you update these selections immediately after installing this release.
Client Ratio Percentage
Entering a Ratio
Those clients accepted by IRD to use the provisional ratio method, and have received notification of the ratio percentage and effective date, need to have these details entered prior to rolling to the 2018 Tax Returns.
This can be done in the Tax Manager application or the GST Console.
1. Select the required client at the client selection screen.
2. Select the GST/prov ratio button under Clients GST settings:
This will open the Client Provisional Ratio form. Enter the effective date and the Ratio percent. The date entered must be prior to the client’s 2021 Tax Return period i.e. if the balance month is March then the effective date should be prior to the 1st April 2021.
If the clients Ratio percentage changes the new effective date and ratio can be entered one the second line as shown below.
The Ratio percentage can also be added via the GST Console within a GST Return in two ways.
First from within the GST Return | Calc.Details | Action menu
Or via the GST Worksheet form.
It will open the same form that we saw in Tax Manager.
Make sure the Ratio percentage and effective date details are entered prior to rolling the 2020 Tax Returns to 2021.
Use NOA RIT when set?
This setting determines whether the Tax Returns are rolled over based on the NOA (Notice of Assessment) RIT or the Returns (calculated) RIT. If there is no Notice then the Returns RIT will be used.
This is a Practice wide setting and cannot be set per user or per client. This setting applies to all Returns for the Rollover process.
The initial default setting for the ‘Use NOA RIT when set?’ is unticked. If left unticked the Tax Returns will be rolled using the Return’s calculated RIT.
Go to Tax Manager > Sys.Admin > Utilities > Rollover Utilities > Use NOA RIT when set?
If the checkbox is ticked (as above) the Tax Returns will be rolled using the Assessed RIT value from the NOA tab within the Tax Return. This form is activated by inputting an ‘Assessed on’ date.
If there is no ‘Assessed on’ date then the return RIT figure will be used for the calculation.
The data in the NOA Tab must be filled out correctly.
The “Assessed on” date has to be populated and the RIT value should be in the “ASSESSED” column.
The “Det of Losses” and “Excess Imp. Cred.” values will also be taken from the NOA tab if they are populated on Rollover.
The above scenario may occur if the System and User Setting: View Settings | System | NZ Tax | “Automatically set NOA Assess Date” = TRUE.
This means when the NOA letters come through from IRD, the date of the Assessment will automatically appear in the NOA tab when the user goes into it.
How to check that the Tax Returns' NOA tab is completed correctly before rollover?
To ensure both the Date and Assessed fields are populated correctly for all Returns, let’s set up a new Filter Criteria in Tax Lists with the following:
Tax: Return: Tax Period > Is: 2020
Set the following Output Fields:
Click the "Data" icon , to run the report and the results will appear in a sharp grid.
In the sharp grid, sort by the NOA RIT and Assessed On date columns and search for Returns where one is blank but not the other.
- If the ‘Assessed On’ date is blank but the Assessed RIT value is populated, the rollover will use the Return’s RIT instead;
- If the Assessed RIT value is blank, i.e. zero, but the ‘Assessed On’ date is populated the rollover will use zero as the basis for the Interim Provisional tax calculation.
Where a Tax Return 2021 Matter and Return are not required the option ‘Disable Rollover’ can be ticked on the 2020 Return.
In Tax Manager > Client selection form choose the required client from the Client picklist.
Highlight the 2020 year and tick the ‘Disable Rollover’ checkbox as shown below.
This part must be completed before Rollover can commence. The user will need rights to the Standard Matters console and is therefore often setup by the PM Administrator. If this is the case in your Practice, please ensure that the PM Administrator has read this section on setting up the 2021 Standard Matter.
To create the Tax Return 2020 Standard Matter
1. Open the Standard Matters Console.
2. Click on the Add icon.
3. Enter the description Tax Return 2021 (change the Entity if required)
4. Click on the Add button.
Setting the Standard Matter Details
1. Click the Edit Mode icon and enter the relevant values as described below.
The fields that are compulsory are in bold italics below and have an asterisk on the description, these must be set for the Tax Rollover process. The other fields are set at the discretion of the Practice. Fill in the fields as follows:
|ID||System generated unique ID.|
|Description||The Matter name. This is field is set during the Add process.|
|Code||This field is not often used but is set at the discretion of the Practice.|
|Year||2021 - Type in the year. Tip- highlight the entire field by double clicking|
|Launch Method||Select: aTNAdmin.advStartApp from the pick list.
It is very important that this value is chosen.
|Rollover Type||Select: atnAdmin.advRollTax from the picklist.
It is very important that this value is chosen.
Three options are available.
One option must be selected.
|When No Milestones is selected, no milestones are rolled. If the practice does not put timesheet entries to the Tax Return matter this option would be suitable.
When Roll Prior Year Milestones is selected, all the milestones
currently attached to the client’s Tax Return 2019 Matter will roll to the Tax
Return 2020 matter.
When Standard Matter Template is selected, the milestones that are in
the Milestone Template which will be selected at the next field will be added
to the new Tax Return Matter created by the Rollover.
|Milestone Template||Choose the applicable Template for the Tax Return Matter. This Template will be added to the tax return matter when it is added to a client via Rollover or individually.|
|Target Date||Used for Workflow Tracking. Three options are available: No Date, Previous Actual Date and Previous Target Date.
Only required if the Tax Return client matter is to be workflow tracked.
|Budgeted Hours And Amount||Used for Workflow Tracking. Two options are available: Previous Actual Value or Previous Budget Value.
Only required if the Tax Return client matter is to be workflow tracked.
|Budgeted Amount Adjustment %||Used for Workflow Tracking. This field allows a percentage to be added to the budgeted $ value (from the field above).|
|Roll Responsibility||This field determines whether the Responsibility is rolled on the matter, choose either Yes or No.|
|Date Closed||Allows for a Date on which the matter was closed. As we are just about to open the matter this field is not relevant to this process.|
|Allow Timesheets||Indicates whether this matter will be available in the Timesheet application.|
|Allow Disbursements||Indicates whether this matter will be available in the Disbursement application.|
|Roll From Matter||Select the tax return matter for the previous year from the drop down list.|
|Service Line||Service Line is used to group matters together that are for the same type of service.
Only use this option if your practice is using Service lines.
|Entity||Choose the Entity for this matter. This field is set during the Add process.|
The Tax Return 2021 Standard Matter has now been added and is available for the roll from the 2020 Matter
Below is an example of the Standard Matter created, with the compulsory fields complete.
Important points to be read and understood
• The Rollover will NOT create 2021 Tax Returns for clients who do NOT have a 2020 Tax Return. The Returns for these clients need to be created manually in Tax Manager or Tax Console.
• As the Rolling of Returns uses the RIT figure in the previous year’s Return to create the Interim Provisional Instalments, if the Return is not complete the RIT figure may be inaccurate. You may therefore choose to roll only completed Returns at this stage. This would be any Returns with a Return Status equal to “Efile Lodged” or higher.
• For clients that have changed Balance Dates or GST Frequency and have filed their 2020 Returns, they have to have the provisional dates or number of instalments manually tweaked. For example a client that has a March balance date and for 31/03/21 is filing GST Returns 6mthly, the database has them recorded as 6 monthly so that the GST letters happen at the correct time, and this can’t be changed until the 2mthly return for 31/03/21 has been done. But at 01/04/2021 (i.e. the start of the 2022 year) they will be changing to 2 mthly GST. So for 2021 there are 2 prov dates and for 2022 there will be 3. Knowing that at Rollover there maybe a few that cause issues like this, it is good to collect copies of the GST and Balance date change letters X IRD for the last 12mths so that they can be dealt with individually when it comes to rollover.
• Within Tax Manager >Sys.Admin > Utilities there are queries that can be run after each filtered Rollover, i.e. when not all returns are rolled at the same time. The queries are explained further in this document. These queries should be run each time more returns are completed for 2020 and rolled into 2021. It would also be prudent to set a reminder in MS Outlook Task List to run the checking queries each month until ALL returns have been rolled.
• Tax Return preparation is not available until the April software is released and installed.
• IR526 and IR215 returns are not included in the bulk rollover process and must be created manually as required. As neither of these return types have Tax to pay it is not necessary to roll the returns and create the Ledgers in advance of the returns being completed.
Bulk Rollover based on no filter criteria
1. Go to the Action menu from any console (given you have the correct rights) and select General Matter Rollover from the menu.
2. Select Tax Return 2020 in the “Rollover From” pick list. The “Rollover To” pick list will then automatically display the Tax Return 2021 matter that was previously created in the Standard Matter Console.
3. The Tax Return 2021 Matter Details will appear as set in the Standard Matter Console. These fields can be edited if required by selecting the Edit Mode button and making the changes.
Once the required parameters are set select Next >.
4. The Filtering Options form is used to filter for the clients to be rolled based on certain criteria. If this is the first time that the Rollover is being performed, we advise that a new listing for this year be saved for using again later.
To save the new listing select the Save As button on the toolbar.
Type a name for this new listing, then select OK.
5. This Rollover process is for all clients, so the Filter Criteria remains blank as below, Select Next> then go to Step 4: Performing the Rollover.
Rollover based on Filter Criteria
As mentioned before the Rollover can be done based on certain criteria. I.e. by Partner, where the Return’s Status is equal to Closed and or by Return Type i.e. IR3.
The following instructions step you through how to use filter criteria to select specific clients for the Rollover. (The Tax Administrator must make selections based on practice requirements at the time).
Our following example will filter out a certain Partner, with all Returns that have been filed for a certain Balance Date;
Criteria 1 - Partner
Using the Available Attributes to filter for a specific partner’s Returns to be rolled at this time.
From the Available Attributes on the left go to Matter | Details | Partner node.
Double click on the Partner name required.
Select the relevant Partner from the list – click OK
The Partner name will now appear in the “Filter Criteria” panel on the right hand side under “Select WHERE”.
If you want to add another Partner’s name repeat the Criteria 1 Partner steps above.
Criteria 2 - Status
For the above Partner we are also going to add a Status attribute to filter our Returns to be rolled over according to the Returns status.
From the Available Attributes on the left go to Tax | Return | Tax Status node.
Double click on the Status required.
The Status will now appear in the “Filter Criteria” panel on the right hand side under “Select WHERE”.
If you want to add another Status repeat the Criteria 2 Status steps above.
If you want all “Filed” returns for that Partner, all the Statuses from (3) Ready to Lodge down to (9) Closed need to be chosen, as shown below.
Criteria 3 - Balance Date
We will now select the Balance Date attribute to filter for the Returns to be rolled. (If you want to roll Returns for all balance dates then do not use this filter option). This option would be used to roll early balance dates first.
From the Available Attributes on the left go to Tax | Return | Balance Date, double click on “Balance Date”
Change the date range selector from “On” to “In Month”, select the month required in the list.
Click OK. The Balance Date will now appear in the “Filter Criteria” panel on the right hand side under “Select WHERE”. To add another Balance Date repeat Criteria 3 Balance Date steps above.
Now that we have chosen all the criteria we need for this specific Rollover, click on the Save icon to save the changes we have made and then click Next.
Criteria 4- Exclude terminated clients
We can now set the criteria to exclude any clients that have a termination date set.
Choose this selection from Client, Details in the tree. You can either just use the option for Termination date exists, or if you wish to specify a termination date up to a particular date using the criteria.
Performing the Rollover
Depending on whether you have used a specific filter criteria or have no filter criteria, you will be presented with the list of clients that meet the selected filter criteria.
1. The first section titled ‘Roll Into Matter: Does Not Exist’ are the clients that do not have a Tax Return 2020 Matter, when the Rollover is performed it creates that Matter as well as the Return for each qualifying client.
2. The tick in the checkbox to the left of the client name indicates those clients to be Rolled in this instance. The ‘Roll Into Matter: Does Not Exist’ section is always ticked by default.
3. If there are some clients in this first section that should NOT be rolled, deselect them by removing the tick to the left of the client name.
4. The second section titled ‘Roll Into Matter: Exists’ are the clients that have existing Tax Return 2020 Matters. Note the last column ‘Roll To Matter’ has a matter name in it. The checkbox for each row in this section is always unticked by default as these matters have been previously created.
5. If for any reason you do want to replace existing Matters click on the “Replace All Existing Matters”. Before using this option ensure you have spoken with the Support team so that you fully understand what it is going to do.
6. The Print button allows the user to print a copy of the list of clients that met the filter criteria.
Close the output form.
7. Click on the Finish button to begin the Rollover.
A progress bar will indicate where the rollover is up to.
8. At the end of the process a message box will indicate that the Rollover has finished.
After Rollover – Verifying Data
After the Rollover routine has finished there are checks that should be performed to verify the integrity of the Rolled data.
Please complete these checks before allowing users back into ReckonAPS. If differences are found please contact the APS Support Team to be advised of the next steps.
Verifying Provisional Tax Calculated
Below are instructions on creating a listing that can be exported to Excel, to verify that data created by the Rollover is correct.
Create a query in Tax Lists
Select the Filter Criteria as shown below ensuring you select the relevant Tax | Details | Tax Period as 2021.
Select the following Output Fields:
Run the Report and export to Excel to create a spreadsheet similar to the one below.
Verifying the spreadsheet data
Insert a new column, we have called ours ‘Our Calculated Prov Amt’, and type the following formula into cell D2: =IF(B2>=5000.00,B2*110%,0) . Now copy this formula for all rows in the spreadsheet. (Please change the row number or column letter in the formula based on the sorting of your spreadsheet.)
An explanation of the formula: =IF(B2>=5000.00,B2*110%,0)
B2 is the Prev_RIT field (i.e. the RIT from the 2018 Return or the 2018 NOA Assessed RIT figure)
>=5000.00 refers to the minimum threshold for calculating provisional tax i.e. greater than or equal to $5,000
B2*110% is multiplying the Prev_RIT value by 110% which is the uplift percentage
The amount calculated in Column D (‘Our Calculated Prov Amt’) should match the Interim Prov Amt shown in Column C.
Any differences would require further investigation.
The following formula is not mandatory but could help to identify any differences that the first formula found: (without the need to manually check every line)
Other checks could be done to add the six Orig_Prov values to ensure they agree to the Interim Prov Amt values.
Note: For clients using the Ratio calculation method, 6 instalments will be created on Rollover with zero provisional amounts.
It is our recommendation that this checking spreadsheet is saved for future reference.
Verifying the correct number of Provisional instalments
The following Tax List can be run to check if any clients with the 6 monthly GST Frequency attribute assigned have had the correct number of provisional instalments created by the Tax Rollover.
This list is the same Tax List used to check the Provisional instalments after rollover.
Add the GST Attribute that is setup in your database that signifies what the clients GST frequency is under Client/Attributes; for this database it is GST Period.
Click on the Data icon below to get the results.
Then click on the Excel icon to export the data to Excel.
Exporting the data into Excel and applying a filter then allows you to check the number of provisional instalments for each client according to their GST Period | Frequency | Type. Check the results for all the GST options.
Clients using the Ratio calculation method, should have 6 instalments.
Clients with the 6 monthly GST Frequency should have 2 provisional instalments.
Clients with any other or no GST Frequency should have 3 provisional instalments.
Using Excel 2007 or 2010 - on the Data tab click on the Filter button.
A filter will show at the right hand of each column name in row 1.
Click on the 'tick' beside (Select All) this will unselect everything. Then tick the 6 monthly values and select OK.
The filtered records that are now showing will only have values in 1st Prov and 2nd Prov. If there are records with a value for 3rd Prov please refer to the resolution section.
The same process should be followed for 1 Monthly, 2 Monthly and (Blanks) selected.
All these records should have values for 1st Prov, 2nd Prov and 3rd Prov. If there are records with a value missing for any of the Provisionals please refer to the resolution section.
This example below shows an incorrect record for '6 Monthly' (green highlight) where there is a value in the 3rd Prov column and for '2 Monthly' (blue highlight) where there is no value in the 3rd Prov column.
If you identify a small number of records which need correcting this can be achieved by doing the following for each affected return:
- Open Tax Manager.
- Select the client.
- Delete the 2021 Return.
- Create the 2021 Return again.
- Open the return to verify that the correct number of provisional instalments have been created and that the Interim value has been populated correctly.
If you identify a large number of records please contact Reckon Client Support
Tax Manager Queries
In Tax Manager there are standard queries that can be run after the Rollover is performed. If your Practice does the Rollover in stages then it is recommended to run the queries after each Rollover process. These are found in Sys.Admin | Utilities tab under the heading Rollover Utilities.
The following four queries are not reversible, i.e. they cannot be undone once they have been run. They will update ALL clients that have a Tax Return for 2019. Read the following information carefully to understand the impact on data in the database before any of these queries are run.
The Tax Year picklist sets the year that the queries are to be run against.
Update Physical Address
This query will update the Physical Address on the Details page of the Tax Return with the current address from the Central Console/Addresses page.
It will update with the same address type as previously used. For example if you have an address type of “Tax Address” which has been selected in the Physical Address field of the Tax Return’s Details tab, then this address type will be used to update the 2016 address from the database when running this query.
If the address was typed in manually on the Details tab this will not get updated as it was not selected from a database picklist.'
Update Day-time Phone
This query will update the Day-time Phone number on the Details tab of each Tax Return, from the Primary Phone number in Central Console.
Note: The Attribute name in Client Console may be different in your database.
This query turns off the ability to add timesheet entries against the Tax Return matter. This query will only work if the matter was called Tax Return XXXX (where XXXX is the year). This option is only required in databases that have not yet upgraded to PM10, as there is an attribute at the Standard Matter in PM10 to not allow Timesheets.
This query turns off the ability to add disbursement entries against the Tax Return matter. This query will only work if the matter was called Tax Return XXXX (where XXXX is a year). This option is only required in databases that have not yet upgraded to PM10, as there is an attribute at the Standard Matter in PM10 to not allow Disbursements.
Note: For those Practice’s that have already upgraded to PM V10 there is now an option on the Standard Matter | Details page which replaces the need to run the Disallow Timesheet and Disallow Disbursements queries.
In PM V11 the Default for this option is Blank so if this option is required the field must be populated on Standard Matter setup.
Rollover Exception List Queries
The following queries only produce Lists they DO NOT update the database.
Clients with no 2021 Tax Matter
Prior Matter Exists
Clicking on this button will produce a list of clients with 2020 Tax Matters but no Tax Matter for 2021 (the year selected in the Tax Year picklist). The list contains the Clients Sort Name, IRD number, Client Partner, Client Manager and Client type. These clients will not appear in any Tax lists for 2021 which would be run via Tax Management | Tax Lists.
… Full List
Clicking on this button will produce a list of ALL clients in the database with no Tax Matter for 2021 (the year selected in the Tax Year picklist). The list contains the Clients Sort Name, IRD number, Client Partner, Client Manager, Client Type and Year of last Tax Matter. These clients will not appear in any Tax lists for 2021 which would be run via Tax Management | Tax Lists.