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    Financial Hierarchies
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    Financial Hierarchies

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    Article summary

    Set up a hierarchy for each financial segment/dimension that you added on the Financial Segments Configuration Task page. You will load members to Planful for each dimension. For example, if you created a Company segment, you can load all company data to build a financial hierarchy.

    Setup for Finance Type Hierarchies

    Clicking Setup displays the Financial Hierarchies Setup page. You can add hierarchies based on the dimension you select by clicking the Add icon.
    You can add an Attribute, Alternate or Dated hierarchy to a selected dimension.

    Note:
    You must have Dated Hierarchies enabled on the Define Financial Segments Configuration Task page in order for the option to be available.

    You cannot edit a hierarchy once its' members are in use. For example, you can't edit an Attribute hierarchy if the members are used in reporting.

    The icons/options in the ribbon of the Financial Hierarchies Setup page are explained below.

    Add - Click to add a new Attribute, Alternate or Dated Hierarchy
    Edit - Edit an existing hierarchy if not in use (i.e. used in reporting).
    Copy - Make a duplicate copy of a selected hierarchy. For example, let's say you want to duplicate the Department Main hierarchy and save it as an Alternate hierarchy where you can make modifications based on your reporting needs. To do so:

    1. Select the Department Main hierarchy as shown below.

      coreimage273.png

    2. Click Copy.

    3. Hierarchy Type is defaulted to Alternate Hierarchy.

      coreimage283.png

    4. Enter a Name and Description for your copied Alternate Hierarchy and click Save.

      coreimage296.png

    More - There are two options available; Report Categories and Attribute Setup. For Attribute Setup, see the Defining Attributes section. For Report Categories, see Understanding Report Categories.

    Understanding Reporting Members

    Using the Segment Hierarchy page, you can create user-defined Reporting members used in the Consolidation module. The value of the Reporting members can be converted in multiple ways to achieve different calculations and meet reporting requirements. Independently create a Reporting member, assign a currency for values to be converted, choose currency exchange rates to be used for the conversion, and choose the calculation type to be used for the conversion. You can add a rollup child to a reporting member and then define calculation parameters by adding a Leaf Child to the New Rollup Child. An example of a Reporting hierarchy is provided below.

    coreimage2932.png

    Important Notes:

    • You can create up to five reporting members. If you would like to create more than five, contact Support. The maximum number of reporting members is twelve.

    • Once a reporting member is created, it cannot be deleted.

    • You can modify the settings of the reporting member and use it for another set of calculations. A reporting member can be modified any number of times.

    • If the Consolidation process is run after modifying the reporting member settings, data is automatically recalculated based on new settings.

    Note:
    A rollup child will not be saved without the creation of a Leaf child.

    The Leaf member becomes a Reporting member, available for selection on the Currency Exception and Calculation Exception pages.

    The Properties pane contains Segment Properties configuration functionality, where you can define calculation parameters around the reporting member.

    Use each of the fields under Segment Properties to map the reporting member to new currency parameters, used specifically to generate a Cash Flow report with a common currency, local currency, or other currency, when multiple entities are assigned to different local currencies.

    Currency Type

    Select a Currency Type to associate with the new reporting member:

    • AVG - Average Monthly Rate
    • PYAvg - Prior Year Average Rate
    • BOY - Beginning of Year Rate
    • PYBOY - Prior Year Beginning of Year Rate
    • EOM - End of Month
    • LYEOM - Last Year End of Month
    • PYEOM - Prior Year End of Month
    • HistAvg - Historical Average Rate
    • HistEOM - Historical End of Month
    • NT - Not Translated. This means that the value entered in Local Currency will not be converted during the Currency Conversion process. Therefore, you will have a value in Local Currency, but NOTHING in Common Currency. An example where this might be used is a statistical account, which doesn't need to be converted as it is not numerically based.
    • SAME - Same Rate for Override Accounts. Select SAME unless you want the headcount statistical accounts used in Dynamic reporting translated using the FX rate. Selecting SAME will not translate and display the same number in both Local and Common currencies.
    • YAvg - Average Year-to-Date Rate

    • Account based – Uses Account segment properties defined settings. The calculations will be performed when the Consolidation process is executed.

    Note:

    Currency types are defined on the Add Currency Type page.

    Currency Code

    Common Currency is selected by default. All values will be converted to the common currency for reporting purposes.

    Entity Currency allows you post a Local Currency to the reporting member with the proper Local Currency calculation. This can be used when you need to generate cash flow reports in Local Currency.

    Currency Exception

    Select Yes if the currency exception rates defined apply for all currency conversions.

    Select No if the currency exception rates defined do not apply for all currency conversions.

    Note:

    Use the Currency Exception Setup page to set currency exceptions for defined reporting members. 

     see Also: Currency Exception Page

    Calculation Type

    Select Flow to convert all accounts associated with the reporting member to a Cash Flow account. For Cash Flow reporting, select this option so that all accounts will be converted based on the Cash Flow calculation.

    Select Account Based to convert all accounts associated with the reporting member to Balance Accounts.

    Calculation Exception

    Select Yes to set exceptions to the calculation type based on currency conversions for each account and entity combination.

    Select No if you don’t want to set exceptions to calculation type based on currency conversions for each account and entity combination.

    Do Not Consider Opening BalanceSelect if you want YTD values calculated in first period to exclude the opening balance of the previous period.
    Do Not Consider CC DataSelect if you do not want Common Currency value to be converted and reported in Local Currency.
    Note:
    Overwrite default CTA is available for CTA Sets.

    Adding a Calculated Member to an Account Dimension

    1. Navigate to Maintenance > Hierarchy > Hierarchy Management.

    2. Select the Account Dimension and Hierarchy.

    3. Click Show.

    4. Select the rollup node to place the new formula member under that node in the hierarchy. The middle pane now displays members.

    5. Click Add.

    6. Select Leaf Node for Node Type and Calculated Member for Node Sub Type.

    7. Enter the new member Code and Name in the Right pane.

    8. Click the Formula icon. Enter the formula using the Formula Wizard.

    9. Click the Set button in the member toolbar.

    10. Click Save.

    11. Select the newly created calculated member from the hierarchy.

    Calculated Member- Creating a Member and Including it in a Dynamic Report

    In this example, a calculated member is created in the Account Finance Hierarchy and named Gross Sales.
    coreimage1122.png

    Property fields are completed and a formula is added via Rule Builder. In this case, the new Gross Sales account will be equal to gross revenue for all products minus returns.
    coreimage1142.png
    coreimage1132.png

    In Dynamic Reports, the new Gross Sales account is mapped at the page level.
    coreimage1152.png

    Run the Dynamic Report and all data is displayed for Gross Sales.
    coreimage1162.png

    Editing Hierarchy Members

    There are some cases when you cannot edit a hierarchy member (for example, such as the code).
    You cannot edit a member when:

    • The member is being used in Templates (both budget and Data Integration) with mappings using the segment code set
    • The member is being used in Data Integration as default
    • The member is being used in Translations
    • The member is being used in Reclassifications (if consolidation module is being used)
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