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Administrator Guide
Last Updated: 2023-06-23
Set Up Company Ownership Details

Set Up Company Ownership Details

  • Create a company hierarchy that includes all companies that are part of the consolidation.
  • Security:
    Set Up: Consolidation
     domain in the Financial Accounting functional area.
  • Security:
    Set Up: Financial Accounting
     domain in the Common Financial Management functional area.
You can set up ownership details for your investments in subsidiaries for legal companies that are part of a company hierarchy.
When you change the third party ownership details of a parent company, consider the impact on subsidiaries associated with it. We recommend that you create a separate ownership change snapshot on the date of change.
  1. Access the subsidiary company.
    You can search for a subsidiary company:
    • Using global search.
    • From the
      Edit Consolidation Details
       task, and selecting a
      Consolidating Parent Company
       for the company hierarchy.
    If you don't define a parent company, Workday won't apply any elimination rules that you define for:
    • Investment in subsidiary and subsidiary equity.
    • Noncontrolling Interest (NCI).
  2. From the related actions menu of the subsidiary company, select
    Company
    Edit Company Ownership Details
    .
    Enter an
    Effective Date
    .
    Workday uses this date to calculate net income and prior year retained earnings based on the date that these changes go into effect:
    • Ownership %
    • Income Attribution %
  3. As you complete the
    Edit Company Ownership Details
     task, consider:
    Option Description
    No Owner Companies
    Select when the company is a consolidating parent that doesn’t have any owner companies.
    Owner Company
    Select an owner company or a third party.
    Select
    Create
    Create Third Party
     to create a worktag for owners that don’t have a company within your Workday tenant.
    Third-party worktags enable you to associate third-party owners with their corresponding elimination entries.
    Ownership %
    Enter whole or decimal numbers from zero to 100 that represent ownership in the company. The
    Total
     for all owner companies and third-parties must equal 100.
    If you reduce the ownership percentage of an owner company to zero, don’t remove the value for the fiscal period. You can remove the zero percent ownership line in a subsequent period after Workday records the ownership adjustment.
    Income Attribution %
    Enter a percentage if you’re attributing income that isn’t based on relative
    Ownership %
    . Enter whole or decimal numbers from zero to 100. The
    Total
     for all owner companies and third-parties must equal 100.
You can configure elimination rules for the company hierarchy.