Account Type Behavior

Each account has an account type. Account types determine how child accounts are aggregated to parent accounts and how account balances accumulate over time. When data is input to base-level accounts, results are automatically rolled up through the hierarchy.

Account types determine whether child values are added to or subtracted from their parent value. This determination enables you to build financial calculations directly into the chart of accounts.

Note:

When you load data, Oracle Hyperion Financial Management assumes that the natural sign for the data is positive.

For example, the ASSET account type does not total across periods. If you debit an ASSET account, the value that you enter is added to the account. If you credit it, the value is subtracted. The default translation for this account type is the value in the DefaultRateforBalance Accounts field.

A REVENUE account provides a year-to-date total. The DYNAMIC account type is needed for correct calculation of parent values for Custom dimensions, time periods, and period-to-date views. You can use the GROUPLABEL account type to group related accounts that do not need to be aggregated to a total. For example, you can create a top-level account named Balance Sheet Accounts that groups balance sheet accounts. All account types, except for GROUPLABEL, store data.

Note:

Scaling does not apply for FLOW, BALANCE, or DYNAMIC account types.

Table 4-2 Account Type Behaviors

Type	YTD Total	Debit	Credit	Default Translation
ASSET	No	Add	Sub	DefaultRateForBalance Accounts
LIABILITY	No	Sub	Add	DefaultRateForBalance Accounts
REVENUE	Yes	Sub	Add	DefaultRateForFlow Accounts
EXPENSE	Yes	Add	Sub	DefaultRateForFlow Accounts
FLOW	Yes	Add	Sub	None
BALANCE	No	Add	Sub	None
BALANCE RECURRING	No	Add	Sub	None
CURRENCYRATE	No	N/A	N/A	N/A
GROUPLABEL	N/A	N/A	N/A	N/A
DYNAMIC	N/A	N/A	N/A	N/A

The following table indicates how an account type behaves when totaled into a specific type of parent account. The columns represent the account type of the parent accounts. For example, when aggregated, ASSET account values are added into parent ASSET and EXPENSE accounts and subtracted from parent LIABILITY and REVENUE accounts.

Note:

The abbreviations represent the first one or two letters of the account types. A No displayed in the column indicates that the account type is not aggregated into the parent account.

Table 4-3 Account Type Behaviors During Aggregation into Parent Accounts

Type	Parent Account
Account Type	A	L	R	E	F	B	BR	C	G	D
ASSET	Add	Sub	Sub	Add	Add	Add	Add	No	No	No
LIABILITY	Sub	Add	Add	Sub	Add	Add	Add	No	No	No
REVENUE	Sub	Add	Add	Sub	Add	Add	Add	No	No	No
EXPENSE	Add	Sub	Sub	Add	Add	Add	Add	No	No	No
FLOW	Add	Add	Add	Add	Add	Add	Add	No	No	No
BALANCE	Add	Add	Add	Add	Add	Add	Add	No	No	No
BALANCE RECURRING	Add	Add	Add	Add	Add	Add	Add	No	No	No
CURRENCYRATE	No	No	No	No	No	No	No	No	No	No
GROUPLABEL	No	No	No	No	No	No	No	No	No	No
DYNAMIC	No	No	No	No	No	No	No	No	No	No

This example illustrates how account types are aggregated into parent accounts:

In this example, Total Assets is an ASSET account and the parent of Fixed Assets (an ASSET account) and Amortization (a LIABILITY account). When the accounts are aggregated into the parent account, the Fixed Assets value of 100 is added, the Amortization value of 20 is subtracted, and the resulting value for Total Assets is 80.