Changes to your reporting structure

Over time, sites come and go and the hierarchy of entities may change. As these changes occur, the historical consolidated financial data will not change, and a historical time-phased site/entity structure will be maintained. This allows prior period reporting and drill-downs to yield identical results, even after the structure has changed. On the date of a reporting structure change, a large transaction is posted to close out all accounts for all selected subordinate sites, computing the account balance of each account. Half of this transaction is immediately consolidated to the existing structure, effectively zeroing the balances from the books. After the hierarchy is changed, the other half of the transaction is consolidated to the new structure, creating opening balances for all the accounts. At the site level, this has no effect, since a debit and credit for the same amount is posted to the same account on the same date.

Be aware of the these rules when changing the reporting hierarchy:

• Financial statement reporting at entities only shows data for transactions that occurred during the time period that the hierarchy was in place.
• When you change an entity's Reports To mapping, there is no historical audit trail of how it was formerly set up.
• Transactions are consolidated to the current structure only, regardless of effective date of the hierarchy change or the ledger transaction date.