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Workday, Inc.

Consolidation Overview

Introduces the key benefits of the consolidation capability.

According to GAAP (generally accepted accounting principles) when a company engages in intercompany transactions, buying or selling between its divisions, departments or entities, these transactions must be eliminated prior to reporting total company results. The following shows financial reports from a multi-national company that shows inaccurately and accurately reported sales.

Intercompany Unacceptable and Acceptable Reporting Practices

 Inaccurately reports internal sales and overstates sales of a subsidiary  – Division A.

 Accurately report internal sales by eliminating transactions between Division A and the parent company. 

If your holdings include an investment in another organization, the following reporting standards must be adhered to:

  • Report ownership interests in other companies or subsidiaries in a single financial statement
  • Report changes in subsidiary ownership when and as they occur
  • Report acquisitions using the exchange rate in effect at the time of acquisition
  • Elimination of stock ownerships

Before You Begin

Required Permission: Access Consolidation

How You Get There

Consolidation > Intercompany Eliminations or Consolidation > Journal Entries

Key Benefits

  • Achieve faster, more accurate, and more transparent close and report cycles
  • Improve visibility, audit, and control during financial consolidations
  • Provide clear and accurate view of financial results
  • Accelerate reporting cycles to internal and external stakeholders
  • Improve data integrity with eliminations that are always in balance
  • Enforce checks and balances by viewing all elimination components in one place
  • Enhance flexibility with date-effective rules
  • Monitor and manage eliminations throughout the consolidation process, at any time, without having to wait for jobs or processes to complete
  • Replace multiple, complex formulas with easy to create and understand allocation rules
  • Improve data accuracy with balanced allocations and built-in avoidance of circular references
  • Streamline effort with the ability to review and modify allocation rules in one place
  • Adapt to changing policy and regulations using date-effective allocation rules
  • Differentiate imported actuals from adjustments, eliminations, and allocations
  • View and report on rolled up actuals from all sources
  • Enforce balanced updates to actuals
  • Allow easy account adjustments and reclassifications with Journal Entries

Key Features

  • Financial consolidation and reporting
  • Multiple currencies and exchange rate types
  • Intercompany eliminations
  • Minority interest / consolidation percentages
  • Allocations
  • Partitioning of actuals data
  • Journal Entries
  • Process tracking
  • Audit trail
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