--- title: "B/S Comparison" description: "Besides the \"Loss carried forward\" workspace, the \"B/S Comparison\" workspace is the central workspace for determining deferred taxes." source_url: https://support.lucanet.com/en/documentation/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison language: en last_updated: 2026-05-28 --- # B/S Comparison ## Overview Besides the **Loss carried forward** workspace, the **B/S Comparison** workspace is the central workspace for determining deferred taxes. The B/S Comparison consists of several tabs. The structure of the balance sheet corresponds to the structure stored in the master data for the selected period. The structure of the tabs in the B/S Comparison is identical. ## Navigation The **B/S Comparison** folder is displayed under **Company | Deferred Taxes | B/S Comparison**. The **Local GAAP - Tax Balance** workspace is displayed as follows, for example: ![B/S Comparison, Local GAAP - Tax Balance](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison/_images/en/balance-sheet-comparison.png) B/S Comparison, Local GAAP - Tax Balance ## Workspaces in the 'B/S Comparison' Workspace The following workspaces are available in the **B/S Comparison** folder: - [Local GAAP - Tax Balance](#hgb-stb) - [IFRS - Local GAAP](#ifrs-hgb) - [Total: IFRS - Tax Balance](#totalifrsstb) - [Other Deferred Taxes](#otherdeftaxes) For companies configured as partnerships in the master data and assigned to the German tax law, the [Supplementary tax balance sheet](#supbalsheet) workspace is additionally displayed. For companies not assigned to German tax law in the master data (foreign companies), the [Additional tax](#addtax) workspace can be additionally activated in the [Companies](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/master-data-income-taxes/companies.md) master data workspace. The workspaces are described in detail in the following sections: ### 'Local GAAP - Tax Balance' Workspace The **Local GAAP - Tax Balance** workspace is displayed as follows, for example: ![B/S Comparison, Local GAAP - Tax Balance](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison/_images/en/balance-sheet-comparison.png) B/S Comparison, Local GAAP - Tax Balance The following columns are displayed in the **Local GAAP - Tax Balance** workspace: - **Local GAAP**: representation of the local balance sheet (for German companies: balance sheet in accordance with commercial law). - **Tax balance (EUR)**:shows the result from the **Local balance** and **Correction to tax balance sheet** columns. Tax balance values always result from the two preceding columns and cannot be entered directly. - **Correction to tax balance sheet**: contains, in the case of German companies, the deviations in accordance with **Section 60 (2) EStDV**. - **Import**: shows the balance sheet values imported via the interface – these values cannot be edited. - **Manually**: column for manual entries by the user. This allows, for example, reclassifications or adjustments to the imported values. > **Note:** The use of the **Manually** column must be activated in the master data in the [Company](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/master-data-income-taxes/companies.md) workspace for each company. > > This setting is activated by default and the balance sheet comparison can be edited manually. - **Total**:Calculates the totals of the previous columns, which are relevant for determining the balance sheet differences ( **Relevant gross difference** column). - **Relevant gross difference**: The **Relevant gross difference** column is calculated automatically and shows the differences between the local balance (or local balance sheet) and the tax balance. These differences must be assigned to the corresponding **Thereof** columns in the next step and serve as the basis for calculating the deferred taxes. ### 'IFRS - Local GAAP' Workspace In the **IFRS - Local GAAP** workspace, the IFRS balance is compared with the local GAAP \[or local balance sheet\]. The **IFRS - Local GAAP** workspace is displayed as follows, for example: ![IFRS - Local GAAP](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison/_images/en/ifrs-hgb.png) IFRS - Local GAAP The following columns are displayed in the **IFRS - Local GAAP** workspace: - **Local GAAP**: Taken from the **Local GAAP - Tax Balance** workspace. - **IFRS**: The IFRS balance sheet is represented here. - **Import**: Shows the balance sheet values imported via the interface – These values cannot be edited. - **Manually**: column for manual entries by the user. This allows, for example, reclassifications or adjustments to the imported values. > **Note:** The use of the **Manually** column must be activated in the **Company** master data dialog for each company. > > This setting is activated by default and the balance sheet comparison can be edited manually. - **Total**: Calculates the totals of the previous columns, which are relevant for determining the balance sheet differences ( **Relevant gross difference** column). - **Relevant gross difference**: The **Relevant gross difference** column is calculated automatically and shows the differences between the Local GAAP (or local balance sheet) and the tax balance. These differences must be assigned to the corresponding **Thereof** columns in the next step and serve as the basis for calculating the deferred taxes. ### 'Supplementary Tax Balance Sheet’ Workspace The **Supplementary tax balance sheet** workspace is displayed only in the B/S Comparison for German partnership companies. The entries are optional and apply to partner-specific corrections of the tax balance sheet values of assets or liabilities of the partnership company. ![Complementary tax balance sheet](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison/_images/en/supplemental-balance-sheet.png) Complementary tax balance sheet The supplementary tax balance sheet is maintained for each partner or shareholder. The shareholders are managed in the master data under **Company** and displayed in the selection list. You can enter the tax balance sheet value corrections in the **Supplementary tax balance sheet** column. The **Gross difference, Supplementary tax balance sheet** column is calculated automatically. These differences must be assigned to the corresponding **Thereof** columns in the next step and serve as the basis for calculating the deferred taxes. Only temporary and permanent P/L effects are available for the **Thereof** columns. An allocation to **OCI** is not possible. ### 'Additional Tax' Workspace The **Additional Tax** workspace is available only for companies to which German tax law does not apply. The display of the workspace also depends on whether the display is activated in the **Additional Tax** field in the company master data. The purpose of the **Additional Tax** workspace is to take into account deviating assessment bases for a second type of income tax. ![B/S Comparision - 'Additional Tax'](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison/_images/en/additional-tax.png) B/S Comparision - 'Additional Tax' The **Correction to tax balance sheet II** column can be edited by the user. All other balance sheet columns are linked to the corresponding workspaces (e. g. the IFRS balance sheet to the **IFRS - Local GAAP** workspace). Using the workspace also requires that columns are created for the purpose of dividing the differences by means of the **Maintain columns** function. The balance sheet differences are determined between the **Correction to tax balance sheet II** and **IFRS balance** columns. > **Note:** Using the **Additional Tax** workspace must be activated in the [Company](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/master-data-income-taxes/companies.md) master data workspace for each company. > > You can select **Additional Tax** under **Application parameter - Tax calculation**. The following options are available here: > > - No additional Tax (default) > - Based on Tax base > - Based on Local GAAP ### 'Total' Workspace The **Total** workspace provides an overall view of all assets and liabilities across the IFRS balance sheet, Local GAAP, and tax balance. The balance sheets are taken from the individual workspaces and cannot be edited here. The **Relevant gross difference** column is based on the comparison between the IFRS balance and the tax balance ( **tax balance value** minus **IFRS balance** value). !['Total' workspace](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison/_images/en/total.png) 'Total' workspace The values in the **Total** workspace are linked to the following workspaces: - Local GAAP - Tax Balance - IFRS - Local GAAP The following workspaces of the balance sheet comparison are not included in **Total**. However, they are used for the calculation of deferred taxes and displayed in the [Summary](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/company/deferred-taxes/result-sheet.md) workspace: - Supplementary tax balance sheet - Additional tax - Other Deferred Taxes ### 'Other Deferred Taxes’ Workspace The **Other Deferred Taxes** workspace allows deferred taxes to be entered directly for each balance position (e. g. adjustments from audit issues) and is displayed, for example, as follows: ![B/S Comparison - Other Deferred Taxes](https://support.lucanet.com/assets/docs-images/income-taxes/income-taxes/company/deferred-taxes/balance-sheet-comparison/_images/en/other-deferred-taxes.png) B/S Comparison - Other Deferred Taxes The **Other Deferred Taxes** workspace works without balance sheet differences. The deferred taxes to be entered can be entered either in the **affecting P&L** or **affecting OCI** column. The classification of deferred taxes with regard to maturity is based on the settings in the [CoA Group](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/master-data-income-taxes/coagroups.md) master data workspace _._ ## Options in the B/S Comparison Workspaces The following table describes the functions in the B/S Comparison workspaces. Note that some functions are not available in all workspaces. #### Save All inputs must be saved after entry. This applies also if the values are only imported and no manual adjustments are made. #### Import Opens the workspace for importing values into the balance sheet comparison and, if necessary, into the detailed tax workspaces. #### Comments Comments can be added here to specific balance sheet positions, and Excel files uploaded and their values imported. #### Split differences The **Split differences** function is available in the **Local GAAP - Tax Balance** and **IFRS - Local GAAP** workspaces. The **Split differences** function depends on the settings made in the [CoA Group](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/master-data-income-taxes/coagroups.md) master data workspace for dividing the calculated balance sheet differences. Whether any balance sheet differences that occur at the selected balance sheet position are temporary or permanent is predefined for automation in the master data. Furthermore, it must be defined whether the value movement is to be treated through profit or loss (P/L) or through OCI. The **Split differences** function uses this information for automatic allocation of the balance sheet differences to the **thereof columns**: - P/L differences (calculation of deferred taxes, through profit or loss) - OCI differences (calculation of deferred taxes, through OCI) - Permanent P/L differences (no calculation of deferred taxes, TRR effect) - Permanent OCI differences (no calculation of deferred taxes) The **thereof columns** preset based on the master data are displayed with a black border for each balance sheet position. This allows the user to identify the individual target columns before executing the function. Manual adjustment is possible at any time afterwards. Manual entry or reallocation of the differences is possible at any time. This allows special to be processed first by manual input and then the **Split differences** function used to automatically split the remaining differences. #### Calculate Local GAAP The **Calculate Local GAAP** function is available in the **Local GAAP - Tax Balance** workspace. This function copies the IFRS balance sheet completely into the Local GAAP in the **Local GAAP - Tax Balance** workspace. #### Reset values The **Reset values** function is available in all subordinate workspaces of the B/S Comparison folder except in the **Total** workspace. Allows the contents of selected columns to be reset to the value **zero**. > **Warning:** **Caution**: It is not possible to restore the reset data. #### Maintain columns After clicking **Maintain columns**, the **Tax Rate Maintenance** dialog is displayed. The **Maintain columns** function is used, among other things, to display national specifics in the calculation of deferred taxes. In some countries, certain balance sheet differences must be assessed with a different tax rate – for example if capital gains from real estate are subject to a special tax rate. **Maintain columns** can be used to specifically take such different tax effects into account. For more information, see [CoA Group](https://support.lucanet.com/en/documentation/income-taxes/income-taxes/master-data-income-taxes/coagroups.md). #### Expand/collapse balance sheet positions Balance sheet positions can be expanded and collapsed either selectively (per position) or completely (for the entire balance sheet tree). #### Export as Excel/Export as PDF Exports the balance sheet comparison to MS Excel or to a PDF document. #### the incometaxes zero values icon Show/hide all cells without values Hides or shows all rows in the balance sheet structure that do not contain any values and are not total positions. This is helpful for large balance sheet structures if only the balance sheet positions with values are to be displayed. > **Tip:** **Signs of Balance Sheet Values** > > The balance sheet comparison follows SAP logic with regard to signs. Therefore, all assets must be entered with a positive sign. Liabilities are entered with a negative sign. ## Validations in the 'B/S Comparison' workspace A number of **validations** are implemented in the **B/S Comparison**. Error messages are displayed in the event of any discrepancies. It is not possible to close the **Deferred Taxes** milestone if validation errors exist. The validation rules are carried out for each workspace, i. e. for all subordinate workspaces in which data can be entered (with exception of the **Total** workspace). The following messages can be displayed: - **The balance sheet has not been saved.**\ \ The balance sheet is saved, as throughout income taxes, by clicking the **Save** button. - **The balance sheet is not balanced.**\ \ An unbalanced balance sheet (total of **assets** not equal to total of **liabilities**) leads to an error message. Furthermore, an exclamation mark is displayed in the top row of the balance sheet comparison. The values in the top row of the balance sheet must equal zero (corresponds to a balanced balance sheet). An exception to this is the **Relevant gross difference** column. Values other than zero can also be displayed here in the top balance sheet row without resulting in a validation error. - **Allocation of difference incomplete**\ \ Caculated balance sheet differences must be allocated to the various **thereof columns**. The **Allocation of difference incomplete** validation rule checks this requirement. The row with the relevant balance sheet position is highlighted in red in the event of unallocated differences. ## Technical Notes on B/S Comparison In principle, four scenarios that lead to temporary differences or deferred taxes are conceivable: Asset side of the balance sheet: 1. **IFRS value > Tax value** \[taxable temporary difference or deferred tax liability\] 2. **IFRS value < Tax value** \[deductible temporary difference or deferred tax asset\] Liability side of the balance sheet: 1. **IFRS value < Tax value** \[taxable temporary difference or deferred tax liability\] 2. **IFRS value > Tax value** \[deductible temporary difference or deferred tax asset\] Values on the asset side are entered with a positive sign in Income Taxes. Values on the liability side of the balance sheet have a negative sign. Based on the **Relevant gross difference** column, this results in the following scenarios: | Balance sheet side | Sign of the 'Relevant gross difference' column | |---------|---------| | Assets | \[-\] deferred tax liability \[DTL\] | | Assets | \[+\] deferred tax asset \[DTA\] | | Equity and liabilities | \[-\] deferred tax liability \[DTL\] | | Equity and liabilities | \[+\] deferred tax asset \[DTA\] | A positive sign in the **Relevant gross difference** column results in deferred tax assets, a negative sign in deferred tax liabilities.