SECTIONS
A reporting hierarchy is a means by which you can consolidate your general ledger accounts. You achieve this by placing each general ledger account into one or more user-defined hierarchical reporting structures. See Setting up a Reporting Hierarchy for more information.
Creating your own custom reporting hierarchies, and assigning each of your general ledger accounts to the appropriate hierarchies, are both essential prerequisite steps in the process of creating your balance sheet and profit and loss statement for the year.
As an example, you might expect to see the following sections on your balance sheet report:
- Current Assets
- Fixed Assets
- Intangible Assets
- Current Liabilities
- Long Term Liabilities
- Shareholders Funds
You might also want to further categorize your fixed assets into:
- Fixtures, Fittings and Equipment
- Land and Buildings
And your current assets into:
- Bank and Cash
- Accounts Receivable
- Provisions
- Inventory
- Prepayments and Accrued Income
FinancialForce applications have sample reporting hierarchies already set up. These are examples on which you can base your own customized reporting hierarchies to reflect your own business environment.