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FCCS Ownership Management – Legal Owner Is Not the Direct Parent in the Entity Hierarchy

We are implementing FCCS with Ownership Management enabled and would like to confirm the recommended design when the Entity hierarchy is intentionally structured for reporting, consolidation, and intercompany elimination purposes rather than legal ownership.

For example, assume the FCCS hierarchy is:

Reporting Parent A
   |
   Entity X

Entity X is intentionally placed under Reporting Parent A because that is where we want it to consolidate and where related intercompany eliminations should occur.

However, the actual legal/economic ownership is:

Legal Entity B ---- 30% ----> Entity X
External / NCI ---- 70% ----> Entity X

Legal Entity B is located in a different branch of the FCCS Entity hierarchy. Entity X is controlled by the group and should therefore be fully consolidated, but the direct parent in the FCCS hierarchy is

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