Sites that report to an entity
The majority of operations at sites reporting to an entity remain the same as at a non-reporting site, including the financials. However, if a site reports to an entity, the site's Chart of Accounts is now owned by the entity and is copied from it. In the site’s local copy of the Chart of Accounts, you can delete records in order to use a subset of the entity’s accounts.
The site must use the domestic currency of its entity, but it may use its own rates.
Journal entries must be made at the site level in order to properly recognize expenses, etc. No transactions are allowed at the entity level. All distribution journals must be posted at the sites.
Consolidation utilities must be run at the reporting sites to copy the posted ledger transactions and budgets into the entities all the way up the hierarchy.
A site is not required to report to an entity, in which case its financials are not consolidated.