Accommodation of branch entity into existing entity structure

Summary:

Hi All,

To accommodate branch entity into existing entity structure, we have explored the following solutions:

1. Alternative Hierarchy:

• We suggested maintaining an alternative hierarchy outside the main hierarchy.
• However, with this approach, the dynamic report would still display the branch and main entity as two separate entities, which does not meet the client’s requirement.

2. Dummy Sub-Consolidation Entity:

• We proposed sharing the main entity under a separate dummy sub-consolidation entity within the main structure and placing the branch entity under it.
• However, this solution does not satisfy the following conditions:
  • No acquisition/disposal movement when changing entity location.
  • Profit & Loss should be transferred on a YTD basis rather than a periodic basis.