Before proceeding with any modifications to the Subsidiary Hierarchy, it’s imperative to thoroughly understand the potential legal and financial ramifications associated with such changes.
License Agreement Overview:
Modifying entries in the Subsidiary Hierarchy can have profound legal and financial implications.
Ensure authorization and consult stakeholders before proceeding.
Review relevant documents such as Financial Statements, audited reports, and Consolidated Exchange Rates.
Test modifications in a Sandbox Environment before deploying to Production.
Consequences of modifications fall outside the scope of Oracle support.
Areas potentially affected include financial statements, subsidiary status, exchange rates, role restrictions, and reporting accuracy.
Common Reasons for Modification:
Establishing a new headquarters subsidiary due to acquisitions.
Changing the headquarters subsidiary within the hierarchy.
Elevating a subsidiary’s position within the hierarchy.
Required Permissions for Modification:
Admin permissions are required to set permissions for Subsidiary Hierarchy Modification.
Edit or full level Subsidiaries permission is necessary to modify the hierarchy structure.
Full level Set Up Company permission is required to set the “Allow Subsidiary Hierarchy to be Modified” preference.
Full level Subsidiary Hierarchy Modification permission is needed to modify the hierarchy structure.
Access to all subsidiaries is required for both permissions and modifications.
Modifying the Subsidiary Hierarchy is a critical decision that warrants careful consideration and adherence to proper procedures. By acknowledging the license agreement and ensuring the necessary permissions are in place, organizations can proceed with confidence, knowing they have taken the appropriate steps to mitigate risks and ensure compliance.