Entity hierarchy and consolidation

Open the Mid-Market Group demo (Demo library) to follow along.

Environments can form a tree. Each environment may have a parent, and a group is a parent together with everything beneath it. A consolidation then rolls the whole subtree up into one view, while removing the flows that only move cash inside the group, so the group total is not double-counted. This is the same idea as projecting a group scope (see *Intercompany transfer and scope*), made explicit as a worksheet with an eliminations column.

The hierarchy

• Give an environment a parent to place it in the tree; an environment with no parent is a root. Mid-Market Group - Parent (Demo) is a root, with Mid-Market Group - Subsidiary (Demo) beneath it.
• The consolidation scope is a node and all of its descendants, so consolidating the parent pulls in every subsidiary under it in one step.

The consolidation worksheet

Consolidate a parent and the worksheet sums each side across the subtree and shows an Eliminations column: the intra-group flows that are netted out. The consolidated total and the consolidated projection are both after eliminations, so the group view is the real outside-the-group cash.

What gets eliminated

• Transfer elimination: an intercompany transfer between two environments in the subtree, like Intercompany funding to the subsidiary, nets to zero at the group, because the cash never left the group.
• Invoice elimination (eliminate-by-link): a party can carry a counterparty environment, linking it to another environment in your group. An invoice whose party links to an in-subtree environment has its invoice-derived forecast flow eliminated. There is no pairing rule: each side eliminates its own flow through its own link, so a one-sided intra-group invoice is still eliminated and nothing is matched heuristically. See *Enterprise: invoice roll-up and drill-down* for the invoice roll-up the elimination sits on.

Eliminations compose without double-counting: a transfer and an invoice between the same two in-group environments each eliminate once. An invoice whose party is not linked, or is linked outside the subtree, is left untouched, so consolidating changes only the intra-group flows.

In-app documentation, version 5. Generated from the product documentation source, so this matches the app exactly.