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:
You might also want to further categorize your fixed assets into:
And your current assets into:
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.
Related Concepts
What is a General Ledger Account?
What is a Chart of Accounts Structure?
What is an Intersect Definition?
Related Tasks
Creating General Ledger Accounts
Managing General Ledger Accounts
Creating a Chart of Accounts Structure
Mapping Corporate and Local GLAs
Setting up a Statement of Cash Flows
Reference