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Workday Adaptive Planning KB

Basic Attribute Eliminations

Starting with a fairly simple organization structure:

  • Hydra International

    • Trask Robotics

    • Advanced Idea Mechanics

Trask Robotics and Advanced Idea Mechanics are engaged in intercompany activity. Trask Robotics has purchased $100,000 of goods from Advanced Idea Mechanics. When Trask Robotics generates its financial reports, it shows an intercompany liability of $100,000. When AIM generates its financial reports, it shows an intercompany receivables of $100,000.

Hydra International must generate its financial statements. On its own, Hydra Interna­tional has $200,000 in receivables and $50,000 in payables:

  • Hydra International
    Intercompany Payable: $50,000
    Intercompany Receivable: $200,000

    • Trask Robotics
      Intercompany Payable: $100,000

    • Advanced Idea Mechanics
      Intercompany Receivable: $100,000

When rolled up to Hydra International, the intercompany activity between the subsidiaries is merely a transfer of funds and goods within the same organization, no sale or liability outside of Hydra International has occurred. If the subsidiaries’ intercompany amounts aren’t eliminated, then Hydra International will report receivables of $300,000 and pay­ables of $150,000, overstating each by $100,000. Before Hydra International can generate its reports, the activity between Trask Robotics and Advanced Idea Mechanics must be eliminated.

To handle this, the administrator for the Hydra International Consolidation instance marks the intercompany accounts as intercompany and creates an elimination rule pairing the intercompany receivables account from Advanced Idea Mechanics with the intercompany pay­ables account at Trask:

  1. Modeling > Elimination Rules.

  2. Click New Rule.

  3. Fill out the fields accordingly:

  • Definition tab:

    • Name: Interco Payables/Receivables

    • Intercompany Receivable - Due from Trask

    • Intercompany Credit Accounts: Trask Intercompany Payable - Due to AIM

    • Intercompany Difference Account: Intercompany AR Balance

  •  Scope

    • Applies to Versions: Actuals, 2014 Working Budget

    • Actuals Version: Source Actuals: Actuals. Target Actuals: Eliminations

    • Rule Period: Start of Version, End of Version

    • Optional Matching Dimensions: None

  1. Click Save.

The $100,000 receivable is canceled out by the $100,000 payable. The Intercompany Eliminations screen will show the offsetting payables and receivables accounts balances eliminating for any period in the selected version.

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