Entity Aggregation

Entity Aggregation provides the speed and flexibility required for Budgeting, Planning and Forecasting. Unlike consolidation processes, entity aggregation is simpler and faster because it does not roll up financial data - heavily driven by financial and accounting rules - to a parent level for reporting.

Consider this: "Consolidations are usually crafted to satisfy internal management and external regulatory agency reporting requirements. The most common, effective way to understand the core requirements of a consolidation system is to begin with the end in mind and look at the reports produced by the legacy (or current) system. These usually involve an Income Statement (Profit & Loss), a Balance Sheet, and a Cash Flow Statement” – OneStream Architect Factory

How Entity Aggregation Works

Entity Aggregation bypasses most statutory financial and accounting rules to quickly consolidate / aggregate data the entity dimension for fast, what if scenario modeling. Entity Aggregation uses the Entity and the Consolidation dimension (Aggregated member) to aggregate data with minimal rules.

For base level entities, the Aggregated member displays the data that is stored in the “Local” member.

For parent entities, the Aggregated member stores the results of the Entity Aggregation process that occurs on its children.

Aggregation Algorithm:

• Execute chart logic (business rules and member formulas) on the Local Consolidation member for all base entities.

• Execute these steps recursively for each Parent and its direct children, from lower-level entities to the parent entities:

  • For each child:

    • Translate stored data in memory.

    • Calculate the share amount in memory

  • Add the data cells from each child in memory.

  • Store the results in the Aggregated member for the parent entity.