What are Sibling Hierarchies and Why Do I Need to Create Them

There are cases where, based on the type of financial statements you need to generate, that you will need to set up a second or even third hierarchy to represent a second or third set of books.

For example, you might create a sibling hierarchy to:

• Generate financial statements to comply with International Financial Reporting Standards (IFRS)

• Generate financial statements for tax purposes.

Planful offers an automated way of generating a second set of books. The system will generate a sibling hierarchy based off your main company hierarchy (or a sibling hierarchy) and then you’ll run the Consolidation Process. You can makes adjustments as needed to the sibling hierarchy.