FAQs

Do Elimination companies in the main company hierarchy require a new code for the alternate hierarchies? Yes

Are the Elimination companies in the alternate hierarchies non-Elimination companies in the main hierarchy? Yes. The Elimination companies of the alternate hierarchies are in addition to the Elimination companies in the main hierarchy.

What is the main advantage and differences between Main and Alternate hierarchies; as it relates to Elimination companies?

As alternate hierarchies are used for reporting based on a different grouping, the intercompany Elimination company will be different than the main hierarchy. For example, using the image below, the main hierarchy is based on a legal entity and the Alternate hierarchy is based on divisions. The main hierarchy intercompany Eliminations for Company1 and Company2 are done in the Elim 1&2 Elimination company. Whereas, in the Alternate hierarchy, the intercompany Eliminations for Company2 and Company3 are done in the Elim 2&3 Elimination company.

For Sibling hierarchies, different types of financial statements for the same company hierarchy are required and the same Elimination companies are used.

Will Elimination companies in an Alternate hierarchy (which rolls up differently than the main company hierarchy) post different amounts based on the rollup structure? Yes

Do journal entries post the same amounts in an Alternate hierarchy? Transactions are not posted in an Alternate hierarchy. There can be no input to the Alternate hierarchy and the data that is posted to the main hierarchy is just reported differently using the Alternate hierarchy.

Can journal entries be different in Sibling hierarchies? Yes, this is possible as there are different leaf members under the main hierarchy and data posting is allowed under a different company. In addition to the data flowing from the source hierarchy, additional adjustments can be made directly to the Sibling hierarchy.

How do Eliminations in Sibling hierarchies work? Eliminations in Sibling hierarchies will be independent of the source hierarchy. You can post adjustments to sibling hierarchies using journals and then rerun Eliminations.