Dynamic Hierarchies 
You define dynamic hierarchies in the system to set up and report on entity hierarchies that cannot be managed by a fixed hierarchy.
While management reporting entity structures are fixed, and children roll up 100% to their associated parent, dynamic hierarchies support the legal structure of statutory consolidations that cannot be managed by a fixed hierarchy.
Features
The static hierarchies exist above the dynamic portion of a hierarchy, which is attached below a base-level member in the static hierarchy. The Groups dimension is used to identify consolidation sequences and for reporting.
The ownership relationships required for legal reporting may exceed a one-to-one relationship in their reporting structure, or they may change frequently.
There are two scenarios where you should define dynamic entity hierarchies:
If a child member is owned by more than one parent
If the child is partially owned by a parent (not 100%)
You use the Dynamic Hierarchy Editor (DHE) to define a dynamic hierarchy entity structure. The editor is a graphical tool that allows you to create period-specific hierarchies of corporate entities to use in statutory consolidation, or in cases where hierarchy changes for an application need to be tracked by Category and Time.
When you set up a Statutory application, the system tracks hierarchies for statutory reporting. Statutory applications have an upper-level static hierarchy associated with a Group or Currency-type dimension, called Groups.