Organizational structures can change for many reasons, including acquisitions, disposals, mergers, and reorganizations. The organization by period functionality enables the most recent consolidation structure to coexist with past structures in the same application.

To support organizational changes, Financial Management uses the Active system account to reflect the active or inactive consolidation status of a child into its parent. The Active account is an intercompany account that stores data at the parent level and uses the ICP dimension to store information about children. This account acts as a filter of the entity hierarchy.

For an ICP member that corresponds to a child of a parent, the Active account indicates to the system whether the child should be considered as an active consolidation member for the current year, scenario, and time period. Children that correspond to ICP members for which the Active account equals 0 are considered to be inactive children and are not consolidated. Children that correspond to ICP members for which the Active account equals 1 are considered to be active children and are consolidated. Active account values can be viewed or changed. Changes to active child data affect the parent, while changes to inactive child data do not affect the parent.

The Default Value For Active property controls the status of children for which the Active account is blank, so, every parent-child intersection does not need to be specified as active or inactive. By default, every child entity is active in relation to its parent unless otherwise specified.