Types of Hierarchies Explained

Finance

This is the foundation hierarchy which represents your chart of accounts. A Finance hierarchy is generally created for each financial segment you define on the Define Financial Segments page

Required

Attribute

An Attribute Hierarchy can be used as an alternative common chart of accounts hierarchy.

Not Required

Alternate

It's important that Alternate Hierarchies are not confused with Multiple Set of Book Hierarchies. Alternate hierarchies provide information on a segment of your hierarchy and in some cases only certain members of that segment (based on how you set up the hierarchy). Alternate hierarchies use the same set of books for the alternate hierarchy and the segment the alternate hierarchy is based off.

Not Required

Multiple Set of Books (MSOB)

For MSOB, you will create a sibling hierarchy (to the main hierarchy versus a segment only). You might use MSOB when you need to provide financial statements for GAAP as well as IFRS.

Not Required

Dated

With Dated Hierarchies, you can manage a hierarchy based on periods, allowing you to create a new version of a hierarchy and take a snapshot of the existing version. This hierarchy is useful when you need to manage multiple versions of hierarchies which exist during different periods in time and you need to generate reports using different versions of organizational hierarchies which represent different reporting positions of individual entities.

Not Required