Set Up Intercompany and Interworktag Rules

Create a hierarchy that includes all companies that are part of the consolidation.

Complete ownership details for each company in the company hierarchy.

Security: Set Up: Consolidation
domain in the Financial Accounting functional area.

You can configure rules for all intercompany and intercompany worktag ledger accounts that you want to eliminate upon consolidation.

Example: You can create separate rules to eliminate:

Intercompany receivable and intercompany payable accounts.

Intercompany revenue and intercompany expense accounts.

Interworktag receivable and interworktag payable accounts.

Access the

Maintain Elimination Rules

task.

Select the

Account Set

for which you’re defining elimination rules.

Create 1 or more elimination rules for the account set.

As you complete the

Intercompany/Interworktag

tab, consider:

Option	Description
Elimination Ledger Accounts	Select the consolidation intercompany or interworktag ledger accounts you want to eliminate. Consider the account translation method of the ledger accounts. If you've different translation methods, it can result in translation variances.
Variance Ledger Account	Select the variance amounts if the intercompany or interworktag ledger accounts don't eliminate on consolidation. Workday recommends that you: Select a different variance ledger account for each elimination rule. Don't define intercompany or interworktag accounts as the variance ledger account.

Workday calculates and displays the elimination entries in an elimination column on each consolidated financial report, when you select 1 or more of these prompts:

Eliminations Only

Perform Intercompany Eliminations

You can use the

Intercompany Elimination Out of Balance

report to reconcile:

Intercompany accounts in an elimination rule.

Differences with the suspense account in the

Consolidated Trial Balance

report.