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Setup

Building the Engagement Foundation

Project setup is the critical first phase after creating an engagement. This process establishes the core data structures—Entities, Chart of Accounts, and Mappings—that will power all downstream calculations and adjustments. Following these steps carefully ensures data integrity and a smooth workflow.

The Setup Workflow

The setup process follows a logical, four-step sequence within the project workspace. You must complete each step before moving to the next.

The main Project Setup screen showing the four steps.

  • 1. Entities

    Define the legal entities and reporting units for the engagement.

  • 2. Chart of Accounts

    Import the client's complete list of accounts.

  • 3. Account Maps

    Link client accounts to the standard tax taxonomy.

  • 4. Trial Balance

    Import the period-end balances for all accounts.

1. Entities

This step defines the legal structure of the engagement.

The Import Entity Data screen

System Bug

The ability to add entities via a modal pop-up does not appear since the platform consolidation. You must use the template import process. The option to manually add or edit entities will only appear after at least one entity has been imported via the template.

Workflow:

  1. Click Download Template.
  2. Complete the entity information in the Excel file.
  3. Drag and drop or choose the file to Import.

Template Fields

  • Reporting Period: This typically auto-populates when using the modal; (unavailable due to system bug). Ensure that it matches the period defined during the initial project creation.

  • Reporting Units:

    • Create a new Reporting Unit with a clear name and code (e.g., entity codes). Do not use the EIN as the code.
    • Keep the Form Type and Jurisdiction at their default settings ("Corporate", "USA").

    Understanding Reporting Units

    A Reporting Unit should be created for the lowest level at which a trial balance is received. Think of it as the unique identifier that aligns to a single locator in OneSource. For example, a parent company with two disregarded entities (DREs) that consolidate into one trial balance would share the same Reporting Unit.

2. Chart of Accounts (COA)

This step builds the master list of every potential account in the client's general ledger.

Chart of Accounts Configuration screen

  1. Select the Import client accounts option.
  2. On the next screen, click Download Template to get the required .xlsx file.

Import Client Accounts screen

  1. Complete the template columns and import the file.

Template Columns

  • Account Number / Description: Enter as provided by the client.

  • Account Type & Natural Balance: Assign the appropriate Account Type. The Natural Balance is a fixed value based on this type.

    • Account Type Natural Balance
      Current Asset Debit
      Non-Current Asset Debit
      Current Liability Credit
      Non-Current Liability Credit
      Equity Credit
    • Account Type Natural Balance
      Operating Income Credit
      Cost of Goods Sold Debit
      Other Income Debit
      Other Expense Debit

  • Tax Sensitive

System Bug

Due to a system bug following the platform consolidation, all accounts must be marked 'Yes' for Tax Sensitive. If an account is not marked as sensitive, tax adjustments associated with that account will not populate correctly in later steps.

Tips

Using AI: For initial year engagements, you can significantly accelerate this process. Paste the client's account list into a tool like ChatPwC (using the latest Opus or GPT Pro model) and ask it to suggest both the Account Type and the corresponding Natural Balance for each account.

Using Excel: Alternatively, you can automate the Natural Balance column directly in Excel. Create a small legend mapping each Account Type to its balance (Debit/Credit). Then, use a function like XLOOKUP to populate the entire column instantly. For more details on this and other functions, refer to the Excel guides in the practitioner tool-kit.

3. Account Maps

This step connects the client's COA to the firm's standard tax chart of accounts (taxonomy), which drives the automation of tax adjustments.

Generate Account Map button

  1. Click Generate Account Map. A dialog box will appear.
  2. In the "Generate Account Map" modal, select New Map and choose the Chart of Client Accounts you just uploaded.
  3. Fill in the remaining details (Account Map Name, Return Type, etc.) and click Generate.

Generate Account Map modal

Critical Review Required: Mapping is the Engine

The account mapping review is one of the most critical and underrated tasks in the entire process. The map is the engine that runs the tax adjustment machine. If an account is mapped incorrectly, the system will either calculate the wrong adjustment or miss it entirely.

  • Multi-Level Review

    For initial year engagements, the mapping must be reviewed in detail by the Senior Associate and the Manager/Senior Manager before proceeding.

  • Export for Efficiency

    Use the Export to Excel function to review the full map. This allows for easier filtering, sorting, and commenting.

  • Compare to Prior Year

    If available, compare the current year's mapping against prior year classifications to quickly spot deviations or new accounts.

  • Involve the Client

    For complex or very large trial balances, consider providing the client's accounting team with the exported map for their review and confirmation.

  • Subsequent Years

    In future years, the review can focus primarily on new accounts added to the client's COA since the last engagement.

4. Trial Balance

The final setup step is to import the actual trial balance data (the account numbers and their period-end balances.

The process is identical to the COA and Entity imports:

  1. Navigate to the "Trial Balance" section.
  2. Click Download Template.
  3. Copy/paste the client's trial balance data into the template.
  4. Import the completed file.

Import screen for the Trial Balance