Steps: Set Up Consolidation Companies
- Create a company hierarchy that includes all companies that are part of the consolidation.
- Review setup considerations for consolidations and eliminations.
You can:
- Set up ownership for investments in subsidiaries, noncontrolling interest (NCI), and elimination rules for equity pickup.
- Generate reports to view detailed information about these eliminations:
- Intercompany and interworktag.
- Investment in subsidiary and subsidiary equity.
- NCI.
- Select the legal companies that are part of the consolidation hierarchy, and define either of these percentages:
- Ownership.
- Income attribution.
Security:- Set Up: Consolidationdomain in the Financial Accounting functional area.
- Set Up: Financial Accountingdomain in the Common Financial Management functional area.
- Set up rules for using intercompany affiliate worktags to eliminate ledger accounts for the consolidation.Security:Set Up: Consolidationdomain in the Financial Accounting functional area.
- If you're new to Workday, you don't have access to theInvestment in Subsidiary/Subsidiary Equity (To Be Retired)tab on theMaintain Elimination Rulestask.Security:Set Up: Consolidationdomain in the Financial Accounting functional area.
- Set up your tenant for NCI using either:
- Steps: Set Up for Persisting Noncontrolling Interest (Recommended).
- Set Up for Deriving Noncontrolling Interest.If you're new to Workday, you can't derive NCI.
- Define the equity method accounting rules that consolidation investor and investee companies use to eliminate equity pickup earnings.
- View these eliminations by running the standard composite consolidated trial balance report:
- Investment in subsidiary and subsidiary equity eliminations, including any NCI portion.
- NCI activity.
- Equity pickup.
You can view equity pickup journals in a:- Standard trial balance report.
- Composite consolidated trial balance report.