What hierarchy does the Default Calendar in financial planning follow?

The Default Calendar in financial planning adheres to a hierarchy that is structured as Month > Quarter > Year. This framework is essential for organizing financial data and performing time-based analyses.

By prioritizing the month first, the system allows for detailed tracking of financial performance, as many business activities and reports are generated on a monthly basis. Following the month, the quarter hierarchy allows for aggregation of the monthly data into broader time frames, making it easier for financial professionals to assess quarterly performance and trends. Finally, the year serves as the overarching time frame for long-term planning and comparison across multiple years.

Understanding this hierarchy is critical for effective financial modeling, as it determines how data is aggregated and analyzed in the planning process. This logical structure also facilitates clear reporting and ensures that insights drawn from data are timely and relevant to decision-making processes.