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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up for Persisting Noncontrolling Interest

Steps: Set Up for Persisting Noncontrolling Interest

  • Review setup considerations for consolidations and eliminations.
  • Configure the
    Noncontrolling Interest Group Run Event
     business process to approve and deny NCI group results at hierarchy level.
  • Security:
    Process: Noncontrolling Interest
     domain in the Financial Accounting functional area.
You can configure noncontrolling interest (NCI) for persisted journals.
If you currently derive NCI and want to perform reporting using NCI journal lines, you must opt in.
  1. (Optional) Set up security for preapproving and denying NCI results for companies and subsidiaries in a hierarchy.
    Configure the
    Noncontrolling Interest Run Event
     business process, which is a subprocess of the
    Noncontrolling Interest Group Run Event
     business process.
  2. (Optional) Set up security for opting in to persist NCI.
    Configure the
    Process: Noncontrolling Interest Opt-in
     domain in the Financial Accounting functional area for unconstrained groups only.
  3. Access the
    Maintain Elimination Rules
     task.
  4. Select the
    Account Set
     for which you’re defining elimination rules.
    Create 1 or more elimination rules for the account set.
  5. (Optional) If you're opting in to persist NCI, remove your configuration details on the
    Investment in Subsidiary/Subsidiary Equity (To Be Retired)
     tab.
  6. Access the
    Noncontrolling Interest Activity
     tab.
    Create a rule for each ledger account and ledger account summary that you want to calculate NCI on.
    As you complete this tab, consider:
    Option Description
    Direct Ownership Only
    If you don't select, Workday calculates NCI for both direct and indirect ownership when you run NCI.
    NCI Source Ledger Accounts/Summaries
    Select the ledger account or ledger account summaries that you want to use for calculating NCI activity.
    These accounts are typically your income statement and equity accounts.
    To prevent double-counting, Workday recommends that when you select ledger account summaries for parent companies in company hierarchies, you:
    • Exclude the earnings in subsidiary accounts in the parent companies from the ledger account summaries.
    • Create separate ledger account summary for the earnings in subsidiary accounts.
    You don't need to apply this recommendation if you select the
    Direct Ownership Only
     check box and opted in previously.
    NCI Attribution Method
    Select either of these methods to calculate NCI activity:
    • Income Attribution %
    • Ownership %
    To change the percentages, select
    Edit Company Ownership Details
     from the related actions menu of the subsidiary company.
    NCI Target Ledger Account
    Select the ledger account that you want to record NCI eliminations to that offsets the NCI equity account.
    Ownership Change Adjustment Account
    Select a ledger account that isn't retired to record the ownership change adjustments.
    When you update ownership details, Workday calculates ownership change adjustments based on the activity posted to date in the source ledger accounts that you define on the NCI rule. It records the ownership change adjustments to the ledger account that you select.
    Workday calculates ownership adjustment separately on prior year activity and current year activity to date.
    If you don't select a ledger account, the
    Run Noncontrolling Interest
     task won't calculate ownership change adjustments even if there are changes in ownership in the period that you're running the task for.
    NCI Offset Ledger Account
    Define the NCI offsetting ledger account that you want to use for balancing NCI target ledger accounts.
  7. Create NCI balances for each period, company hierarchy, and reporting currency that you're reporting on using either the:
    • Run Noncontrolling Interest
       task.
    • Put Noncontrolling Interest Result
       web service. Workday creates the NCI journals when you approve the NCI results.
  8. (Optional) Access the
    Noncontrolling Interest Journal Lines Opt-In
     task to perform reporting using NCI journal lines.
    Ensure you've performed the tasks in the checklist, and select the
    Report noncontrolling interest journal lines
     check box.
    You can opt out of reporting using NCI journal lines by clearing the
    Report noncontrolling interest journal lines
     check box.
Run NCI using the
Run Noncontrolling Interest
 task.