Modify the existing subsidiary structure to add additional roll-up/parent subsidiaries, a new subsidiary becomes the parent entity or you wish to move a subsidiary higher up in the hierarchy.
- Permissions needed to all subsidiaries if not using an administrator role.
- Download and export all consolidated exchange rates (Lists > Accounting > Consolidated Exchange Rates)
- Download and export consolidated financial statements for reconciling after modifying the subsidiary structure
Step 1: Enabling Modification Feature
Navigate to Setup > Company > General Preferences. Halfway down the screen on the right-hand side, you will see an option to “Allow subsidiary hierarchy to be modified”. In this field, you must enter the date in which you would like to allow the hierarchy to be modified through. You can allow set it for up to 30 days from the current day at a single time. However, this can be extended as many times as needed.
Step 2: Modifying the Subsidiary Structure
After enabling the modification feature, navigate to the subsidiary record you wish to modify (Setup > Company > Subsidiaries). After opening the record, you will now see that the “Subsidiary of” field is no longer disabled. Simply select the new subsidiary you wish to make it a sub of and save the record.
You will be prompted to “Accept” the legal notice that notifies you of the irreversible effects of modifying the structure. Please read this notice carefully before clicking “Accept”.
Step 3: Validate Updates
After modifying the subsidiary structure it is important to validate your changes. Validate the consolidated exchange rates and financial statements against your exported files. If any of the consolidated exchange rates are different, update with the values from your exported results to ensure the consolidated reports will tie out to historical financial statements. Lastly, validate the overall subsidiary structure via the Subsidiary landing page or subsidiary navigator tool.
Step 4: Results
Successfully modified and reconciled subsidiary hierarchy.