What happens when you add a new expense-type account under a parent that is an income-type account?

• A. this setting will not affect additions or subtractions to the next parent
• B. subtract amounts consolidated to the parent
• C. add amounts consolidated to the parent
• D. you can't load data to this account

Answer: (A)

In FCCS, each account has a type (for example, income or expense) that determines how its balance behaves in consolidation, but simply adding a new child under a parent does not change the way amounts roll up to higher levels. If you add an expense-type account under an income-type parent, the new child will contribute to the parent’s total according to its own balance, yet the path and manner in which the parent’s consolidated balance flows up to the next level follow the standard consolidation rules. The higher-level totals reflect the parent’s consolidated value, not a special new behavior triggered by the child’s type.

For example, if the income-type parent has +100 and you add an expense-type child with -20, the parent’s balance becomes +80, and the amount passed up to the next parent is based on that +80, consistent with the normal consolidation process. This is why the behavior described fits: the setting in question does not alter how additions or subtractions are consolidated to the next parent.

Data can still be loaded into this new account as usual; the fact that it’s under an income-type parent does not prevent data loading or create an automatic additional consolidation effect beyond the normal flow.