Common Lifecycle of Tax Forms
The base product supplies a parent business object for tax forms that defines the following lifecycle:
Pending
The tax form is created in an initial state where processing rules are not yet executed. This allows the form to be saved as work-in-progress.
Validated
A validation step verifies the information on the tax form. Validation form rules specific for the form type are executed to check the validity of the form data. Any issues detected at this step usually causes form processing to stop.
Suspended
A tax form goes into this state when the validation step detects errors on the form that a user may be able to investigate and resolve. Exceptions are stored in the system so that a user can resolve the issues accordingly. The form needs to be re-validated after the issues are resolved.
Waiting for Information
A tax form goes into this state when the validation step detects missing information, thus preventing the system from further proceeding with form processing. Exceptions are stored in the system so that a user can track the issues accordingly. In addition, this state usually triggers correspondence to the taxpayer, requesting for the missing information. The form is usually re-validated after the missing information is received.
Ready for Posting
When a tax form passes validation, it transitions to Ready for Posting. From here a user may choose to make further changes by re-editing the form. Or the form can transition to Posted.
Note: For implementations that use form control functionality, the tax form is only progressed to Posted by linking it to a form control that gets approved. Refer to The Big Picture of Form Control for more information.
Re-edited
When a user is creating or correcting a form and it passes validation, there may still be a need to review and correct the data further. A form in the Ready for Posting state may be updated by transitioning it to Re-edited. The form needs to be re-validated once it is re-edited.
Posted
When a tax form passes validation, it can be posted in the system. The posting of a form typically causes other data in the system to be added or updated. For example, adjustments are created for the assessments. Taxpayer data may also get updated based on newer information from the form. Posting form rules specific to the form type are responsible for the posting logic.
Adjusted
A posted tax form can be adjusted for any of the following common reasons:
Correcting data capture errors or data entry errors
Line item adjustments initiated by the taxpayer
Adjustments initiated from an audit
When a tax form is adjusted, the financial effect of the existing tax form is canceled and new financial transactions are created for the updated line items. Note that the effects of adjusting a form are controlled by form rules.
Transferred
A tax form can be transferred to a different taxpayer/obligation if it previously posted to the incorrect taxpayer/obligation.
When a tax form is transferred, the current tax form transitions to Transferred and a new tax form is created, allowing a user to indicate the correct taxpayer / obligation. The financial effect of the existing tax form is removed from the current obligation using form rules. The new form goes through the same lifecycle of validation and posting and new financial transactions are created for the 'transfer to' obligation via the new form's posting rules.
Reversed
Some exceptional cases may require that the financial effect of a tax form be canceled, without necessarily creating new financial transactions. A tax form reversal is a way of voiding a tax form that has already posted.
Canceled
Forms that are not yet posted may be canceled if a user determines that the form was created incorrectly.
The base package provides a tax form business object C1-ParentTaxForm that has the lifecycle described above. Specific form business objects created using form generation are child forms for a common parent form BO so that the lifecycle is consistent for all forms. The base parent BO may be used or an implementation may create a custom business object. Refer to the business object meta-data for more details on the lifecycle, including the allowed transitions and the algorithms provided.
The base product supplies a parent business object for tax forms that defines the following lifecycle:
Pending
The tax form is created in an initial state where processing rules are not yet executed. This allows the form to be saved as work-in-progress.
Validated
A validation step verifies the information on the tax form. Validation form rules specific for the form type are executed to check the validity of the form data. Any issues detected at this step usually causes form processing to stop.
Suspended
A tax form goes into this state when the validation step detects errors on the form that a user may be able to investigate and resolve. Exceptions are stored in the system so that a user can resolve the issues accordingly. The form needs to be re-validated after the issues are resolved.
Waiting for Information
A tax form goes into this state when the validation step detects missing information, thus preventing the system from further proceeding with form processing. Exceptions are stored in the system so that a user can track the issues accordingly. In addition, this state usually triggers correspondence to the taxpayer, requesting for the missing information. The form is usually re-validated after the missing information is received.
Ready for Posting
When a tax form passes validation, it transitions to Ready for Posting. From here a user may choose to make further changes by re-editing the form. Or the form can transition to Posted.
Note: For implementations that use form control functionality, the tax form is only progressed to Posted by linking it to a form control that gets approved. Refer to The Big Picture of Form Control for more information.
Re-edited
When a user is creating or correcting a form and it passes validation, there may still be a need to review and correct the data further. A form in the Ready for Posting state may be updated by transitioning it to Re-edited. The form needs to be re-validated once it is re-edited.
Posted
When a tax form passes validation, it can be posted in the system. The posting of a form typically causes other data in the system to be added or updated. For example, adjustments are created for the assessments. Taxpayer data may also get updated based on newer information from the form. Posting form rules specific to the form type are responsible for the posting logic.
Adjusted
A posted tax form can be adjusted for any of the following common reasons:
Correcting data capture errors or data entry errors
Line item adjustments initiated by the taxpayer
Adjustments initiated from an audit
When a tax form is adjusted, the financial effect of the existing tax form is canceled and new financial transactions are created for the updated line items. Note that the effects of adjusting a form are controlled by form rules.
Transferred
A tax form can be transferred to a different taxpayer/obligation if it previously posted to the incorrect taxpayer/obligation.
When a tax form is transferred, the current tax form transitions to Transferred and a new tax form is created, allowing a user to indicate the correct taxpayer / obligation. The financial effect of the existing tax form is removed from the current obligation using form rules. The new form goes through the same lifecycle of validation and posting and new financial transactions are created for the 'transfer to' obligation via the new form's posting rules.
Reversed
Some exceptional cases may require that the financial effect of a tax form be canceled, without necessarily creating new financial transactions. A tax form reversal is a way of voiding a tax form that has already posted.
Canceled
Forms that are not yet posted may be canceled if a user determines that the form was created incorrectly.
The base package provides a tax form business object C1-ParentTaxForm that has the lifecycle described above. Specific form business objects created using form generation are child forms for a common parent form BO so that the lifecycle is consistent for all forms. The base parent BO may be used or an implementation may create a custom business object. Refer to the business object meta-data for more details on the lifecycle, including the allowed transitions and the algorithms provided.
