Sibling Hierarchies - Multiple Set of Books Overview

While there are use cases where you might want to create a second set of books based off a main hierarchy, there are also use cases where you might want to create a sibling hierarchy based off another sibling hierarchy. For example, let’s say the Main Company hierarchy below is your original hierarchy used to generate all GAAP financial statements. The Sibling IFRS hierarchy represents your second set of books. Adjustments are made to the members of your second set of books to generate financial statements that comply with IFRS. This hierarchy is generated based off the Main Company (GAAP) hierarchy.

Now, you need a third hierarchy for tax purposes. You want to generate this hierarchy based on the IFRS hierarchy (not the GAAP hierarchy) because you want to include the adjustments made to the IFRS hierarchy. In addition, you make even further adjustments to the Tax hierarchy prior to generating those financial statements.

To create a sibling hierarchy using the main company as the source, do the following:

1. Navigate to Maintenance > Hierarchy > Hierarchy Management. Open the hierarchy management in Edit mode.

2. Select Finance Hierarchies for the Type and Entity as Dimension from the Hierarchy Selection section.

3. Click Apply Selection.

4. Now navigate to the More menu then select Create Sibling Hierarchy. The Create Sibling Hierarchy screen appears.

   

5. For Source Hierarchy, select the main company hierarchy.

6. For Source Hierarchy Group, select from pre-defined system populated options.
   

7. For Target Hierarchy, select to create the sibling hierarchy under the parent (Main Company).

8. For Target Hierarchy Group, select the type of hierarchy you want to create. For example, an IFRS hierarchy to generate IFRS financial statements.

9. For Suffix, enter an identifier to prepend each member in the hierarchy for identification purposes.

   

10. Click Save. Clicking save prompts the system to create the duplicate hierarchy which is then available on the Hierarchy Management page.

11. Navigate to the Consolidation Control Panel.

12. Select the hierarchy just created.

13. Click the Consolidation Process.

14. Click the Process action.

15. Review the posted data by selecting the Consolidation Status report in the Consolidation Control Panel.

16. Post adjustments to the sibling IFRS hierarchy journals, for example, then run the Consolidation Process again.

Note:

When you use ICSegment as an additional segment, then you cannot use an IFRS hierarchy. Similarly, when IFRS is enabled, the Reuse ICSegment as Additional Segment checkbox is disabled when you try to add a segment in Configuration Tasks > Define Financial Segments.

Perform all of the same steps under the Creating a Sibling Hierarchy Using the Main Company Hierarchy as the Source topic EXCEPT select the sibling hierarchy as the Source Hierarchy.