What will Financial Consolidation and Close (FCCS) do when adding a new member that is an expense type account under a parent that is set as an income type account?

When adding a new member that is an expense type account under a parent that is set as an income type account, the core functionality of Financial Consolidation and Close (FCCS) dictates that the values associated with the expense will be deducted from the parent's income.

This behavior stems from the fundamental accounting principle that expenses reduce income. Thus, when financial data is consolidated, the system recognizes the relationship between an expense type member and its parent income type account. Consequently, FCCS will subtract the amounts associated with the new expense account from the parent's total, accurately reflecting the financial position of the entity in question.

The process ensures that consolidated results represent a true and fair view of the financial state, adhering to standard accounting procedures. This automatic handling of the accounting hierarchy allows organizations to maintain reliable and interpretable financial reporting while managing complex corporate structures. The accounting structure's integrity is preserved, and the financial reports produced align with both internal reporting needs and regulatory compliance.