Consolidations and Multicurrency Guide
Workday's Prescribed Consolidations Approach
Workday provides a comprehensive solution for Consolidations built into Financials. This allows companies to take advantage of features like currency translation adjustments, intercompany and investment in subsidiary eliminations, noncontrolling interest calculations, and equity pickup. While these features are quite powerful in their own right, we're constantly striving to improve these features to allow for greater automation, auditability, and controls. Until these upgrades are completed over the next few release cycles, there are certain methodologies we recommend as a best practice guide for consolidations in its current state.
This guide contains the recommended setup for proper consolidation and translation.
Consolidation and Multicurrency Setup
Here are the key areas to consider when setting up consolidation and multicurrency in Workday:
Entity Setup:
See New Company Checklist and Company Conversion Guide for Customers for the full list of steps when creating new companies.
Company Ownership - Company ownership details are used for the calculations for NCI and Equity Pickup.
- Setup Company Ownership Details (Administrator Guide)
- Assign Company Accounting Details (Administrator Guide)
Intercompany Relationships - The intercompany profiles determine which entities can transact with each other.
Company Hierarchies - Company Hierarchies are used for consolidated reporting. The elimination entries are invoked when the company and intercompany affiliate are both in the hierarchy for which the report is run.
When there are company ownership changes, review the following documentation:
- Company Hierarchy Changes - Company moves to a different hierarchy
- Direct Ownership Changes - Company ownership % changes but stays in hierarchy
Rule Setup:
GL Conversion for Historical Data
Review these guides for tips on converting historical data.
- Troubleshooting: Analyze Elimination Balances Variances (Administrator Guide)
- Conversion Tips for Historical CTA
- Conversion Tips for Multicurrency Intercompany Accounts