Usecase Example: Pillar Two

Pillar Two Total at parent ties to children even when children have different pillar-two FX rates.

Note:

Pillar Two works the same way as Current provision, but in Pillar Two you must ensure that your members are in the same Pillar Two jurisdiction.

See the sample Pillar Two Assignment:

Pillar Two Total

  • PillarTwoCA
  • PillarTwoCA3

Both PillarTwoCA and PillarTwoCA3 are under Pillar Two jurisdiction (PILLAR_TWO_CA).

  • FX Rates PillarTwoCA

    FX Rates PillarTwoCA

    PillarTwoCA FX rates are 0.55 (Ending Rate) and 0.5 (Average Rate).

  • FX Rates PillarTwoCA3

    FX Rates PillarTwoCA3

    PillarTwoCA3 FX rates are 0.55 (Ending Rate) and 0.7 (Average Rate).

    Note:

    PillarTwoCA3 has a FX rate of .7 (overridden) instead of .5.
  • Child Entity PillarTwoCA PillarTwo Currency

    Child Entity PillarTwoCA PillarTwo Currency

    Child 1 entity PillarTwoCA PillarTwo entity currency is 43,680.

  • Child Entity PillarTwoCA USD Reporting

    Child Entity PillarTwoCA USD Reporting

    Translated (USD) value is 21840 (43,680*.5=21840)

  • Child Entity PillarTwoCA3 Pillar Two Currency

    Child Entity PillarTwoCA3 Pillar Two Currency

    Entity PillarTwoCA3 PillarTwo currency is 150.

  • Child Entity PillarTwoCA3 USD Reporting

    Child Entity PillarTwoCA3 USD Reporting

    Translated (USD) value is 105 (150*.5=105).

  • Parent Entity Total Pillar Two Currency

    Parent Entity Total Pillar Two Pillar Two Currency

    Total Pillar Two currency is 43830.

  • Parent Entity Total Pillar Two USD Reporting

    Parent Entity Total Pillar Two USD Reporting

    Child contributions translated to USD:

    • PillarTwoCA → USD = 21840
    • PillarTwoCA3 → USD = 105
    Parent USD = Sum of the children->contribution→USD =21840 + 105 = 21945

    This ensures parent totals reflect child-level rate differences even when parent translation is not directly derived from entity-level translation.