In OneStream, intercompany eliminations are performed at which level of the hierarchy?

In OneStream, intercompany eliminations are performed at which level of the hierarchy?

• A. Eliminate at the first common parent-level entity of the two base-level entities.
• B. Eliminate at the root of the hierarchy.
• C. Eliminate at the two base-level entities independently.
• D. Eliminate at the lowest common child-level entity.

Answer: (A)

Intercompany eliminations are performed at the first common parent-level entity of the two base-level entities. In other words, the elimination happens at the lowest level in the hierarchy that contains both entities, the common parent where their data are consolidated together. This placement ensures the intercompany balances cancel where the two entities are actually part of the same consolidated group. If you tried to eliminate at the base-level entities independently, the counterparties wouldn’t be netted correctly. If you eliminated at the root, you’d affect the entire hierarchy and risk distorting sub-unit results. Conversely, eliminating at a lower, shared child wouldn’t cover the full intercompany relationship between the two base entities. Therefore, the correct level is the first common parent.

Intercompany eliminations are performed at the first common parent-level entity of the two base-level entities. In other words, the elimination happens at the lowest level in the hierarchy that contains both entities, the common parent where their data are consolidated together.

This placement ensures the intercompany balances cancel where the two entities are actually part of the same consolidated group. If you tried to eliminate at the base-level entities independently, the counterparties wouldn’t be netted correctly. If you eliminated at the root, you’d affect the entire hierarchy and risk distorting sub-unit results. Conversely, eliminating at a lower, shared child wouldn’t cover the full intercompany relationship between the two base entities. Therefore, the correct level is the first common parent.