What is the role of a parent account in the OneStream COA?

In OneStream's Chart of Accounts, the principal function of a parent account is to consolidate the balances of the child accounts that are associated with it. This hierarchical structure allows organizations to group related accounts together, thereby enabling a streamlined view of financial data. When child accounts post their transactions, those balances flow up to the corresponding parent account, making it easier to track total sums for categories of accounts such as revenue, expenses, assets, or liabilities.

This consolidation is crucial for generating accurate financial reports and providing insights into various aspects of the organization's financial health. As such, parent accounts effectively summarize the financial information of their child accounts, allowing stakeholders to easily understand the bigger picture without needing to sift through each individual child account's details.