Multi Dimensional Balance Sheet Structure

4.1.10 Multi Dimensional Balance Sheet Structure

The Multi-Dimensional Balance Sheet Structure or MDBSS is a comprehensive, user-defined, multi-dimensional hierarchy. It replaces the single dimension hierarchy for processing and reporting and allows you to incorporate one or more organizational hierarchies into a single concept. This new framework is designed to be a complete system that persists throughout the Application. This flexible structure supports the following functionalities:

Organize the balance sheet with nodes and leafs of one or more dimensions
Distribute parent dimension attributes down to descendant nodes, including currency
Slot existing data at any node, not just the leaf level
Place rules at any level with automatic inheritance
Assign Forecast Methods (including balances and pricing) at any level
Report on processing results with dimensional identity for both existing and new business

The MDBSS allows you the maximum flexibility to create, organize, plan, and report with your preferred balance sheet according to the key and simple dimensions (and other attributes) inherent in your data.

Note:

For MDBSS Migration, Dimension migration is pre-req step for Hierarchy migration.

Topics

List of supported Dimensions and Hierarchies

Following are the supported dimensions and hierarchies that you can use in defining a Multi Dimensional Balance Sheet Structure:

Organization Unit*
GL Account*
Common Chart of Accounts*
Product*
Legal Entity*
Currency
Credit Rating
Geographic Location
Adjustable type
Amortization type
Product Amenability Category
Customer ID
Segment ID

*Signifies a Key Processing Dimension which supports user-defined hierarchies.

Key Features:

Existing Data Slotting in the Multi Dimensional Balance Sheet Structure
The Multi Dimensional Balance Sheet Structure allows you to load your organization's existing data throughout its framework. Unlike standard single-dimension hierarchies, the MDBSS can support the loading and placement of data at any node. The hierarchical relationship of data between parent and child nodes is preserved depending on the organizational parameters you define. This means that at the reporting level, a parent node will include its own and all its child balances if "collapsed" to that level of detail. No data will ever occupy more than one node, though depending upon how your MDBSS is configured not all data will necessarily be loaded.

The placement of data in an MDBSS depends on several factors, including the number of unique dimension members and their spatial organization with each other. You can consider each MDBSS node as a unique criteria for data placement. Usually, the more unique dimension members in an MDBSS means fewer records per MDBSS node, and vice versa. You can determine what the appropriate level of detail required and organize the MDBSS accordingly. An important feature of the MDBSS is that the same data may slot differently in two different MDBSS, even if they use the same dimension members, depending on how the MDBSS dimension members are organized. This feature allows you to determine what is best given your processing and reporting objectives. As a general rule it is usually best to construct the MDBSS so that most data slots at or near the terminal nodes (or lowest level) of the Structure.

When loading data, the Application takes the specified MDBSS and, starting at the lowest levels of the structure first, work its way up the Structure, placing existing data in every qualifying node. Existing data will never be placed at more than one node anywhere in the MDBSS. Once the data loading process reaches the highest node or nodes, the data loading process ends and existing data will be evaluated accordingly (depending on whether it is a static or dynamic forecast). The Application performs this data loading routine every time a process is executed so that any changes in the underlying data are always represented. All nodes do not need to have existing data slotted to them.

Organizational Rules for the Multi Dimensional Balance Sheet Structure
You can create and organize a Multi Dimensional Balance Sheet Structure according to your organizational objectives, created from one or more of your existing dimensions and hierarchies. There are rules and guidelines for creating and maintaining an MDBSS so that it preserves data integrity and processing efficiency.

Following are the main rules for the MDBSS:
1. The first dimension type placed is the "anchor dimension" and all sibling nodes on this first level must also be the same dimension type.
2. The parent-child relationship of the source hierarchy must also be preserved when placing these dimension members in the MDBSS.
3. On a single MDBSS branch each unique dimension type must be kept adjacent.

Rule Placement for the Multi Dimensional Balance Sheet Structure
The Multi Dimensional Balance Sheet Structure allows you to place rules like Discount Methods or Prepayment & Early Redemption on any of its nodes. If a rule is placed on an MDBSS node that has child nodes then those child nodes will automatically inherit the parent node's rule. You can always modify or remove these inherited rules.

Currency Nodes in the MDBSS
Currency Nodes in the MDBSS are done with single dimension hierarchies. Rules are assigned on the MDBSS node and currency as a page filter of the rule. If your MDBSS also has a currency node, then that node and all of its children will retain this identity regardless of the page filter currency of the rule. For example, if an MDBSS node is a currency type JPY and the rule's page filter currency is INR, then the JPY node of the MDBSS will gray out and not be eligible for modification. The currency of the MDBSS node and the currency of the active page filter currency must be the same (or default currency).

Dynamic Forecasting for the Multi Dimensional Balance Sheet Structure
The Multi Dimensional Balance Sheet Structure allows you to define, price, and forecast dynamic new business at any level of detail in any currency under any contractual features you specify. The balance behaviors of child nodes will be taken into consideration at higher nodes for certain Forecast Method types so that accurate targets are always achieved. All Forecasting rules intended to be used in a Dynamic process must use the same MDBSS.

Reporting for the Multi Dimensional Balance Sheet Structure
The Multi Dimensional Balance Sheet Structure allows you to report both existing and new business with all associated reporting output available. New business results inherits the dimensionality given in the MDBSS at every level of detail, thus reducing the amount of dimensional ambiguity that existed in a single dimension hierarchy. Expanding or collapsing the Structure will automatically calculate the sums and averages of all reporting values.