Caution: Promoting a Base Entity to a Parent Entity

Promoting a base entity to a parent entity in Hyperion Financial Management application should be avoided. Parent data are normally the summation of all the “Contribution Total” from its children. Parent entities do not have its own data in HFM other than adjustments if entity dimension attributes allow adjustments at parent level.

In an existing client application, one of their base entities acquired a group of companies. To reflect this acquisition, they would like to show that the existing base entity has become a parent entity. The plan was to simply add children to the existing base entity.

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Since we were supporting the client, we were consulted to make sure that this could be done properly. We explained that simply adding children to an existing base company will not work. When the application is deployed, the base entity becomes a parent and all its data as a base entity will be lost.

The preferred solution is to create a new parent entity with a name different from the base entity but close enough to identify it as related to the base entity. The existing base entity together with the newly acquired group of companies become children of this new parent entity.

Needless to say, reports and links to the base entity should be reviewed to ensure that these changes are appropriately reflected.

About the Author

I have a bachelor's degree in Accounting, MBA, and CPA. I have 6 years experience in HFM/FDMEE involving manufacturing, service, and marketing industries.

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