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Last Updated: 2026-05-29
Concept: Noncontrolling Interest Calculation in AP&C

Concept: Noncontrolling Interest Calculation in AP&C

To calculate noncontrolling interest (NCI), Workday uses the:
  • Consolidating parent company of a company hierarchy.
  • Company ownership details of that company.
  • NCI elimination rules configured on the
    Maintain Elimination Rules
     task.
  • Run Noncontrolling Interest
     task.
  • Consolidation journal type.
When you access the
Run Noncontrolling Interest
 task, you select a company hierarchy. Workday uses the consolidating parent company of this hierarchy to determine the ownership structure for calculating NCI.
When you submit the task, Workday identifies the subsidiary companies that the consolidating parent company has full or partial ownership of, including subsidiaries in which it has indirect ownership through other subsidiaries. Workday applies the NCI elimination rules you configured on the
Maintain Elimination Rules
 task to create NCI results and NCI consolidation journals for every ownership combination in the ownership structure.
Workday calculates NCI for all ownership combinations, including wholly-owned subsidiaries, to enable accurate reporting on changes in ownership. Example: Company A has 100% ownership of Company B. Company A sells Company B on March 25. Company B remains in the company hierarchy until the end of the quarter, and is removed on April 1 for reporting purposes. By including this ownership in the NCI calculation, Workday can show 100% NCI for Company B for March 25 through March 31 in consolidated reporting.

NCI in Financial Reporting

Though Workday creates NCI results and NCI consolidation journals for every ownership combination in an ownership structure, it doesn’t display them all in financial reports. Workday only displays NCI journals when you run the report for a company hierarchy. Workday evaluates the companies in the selected hierarchy to determine which NCI consolidation journals to display.
Workday displays NCI consolidation journals for ownership combinations where a subsidiary company is in the hierarchy but the owner company isn't.
Workday doesn’t display NCI consolidation journals for ownership combinations when:
  • The owner and subsidiary are both in the hierarchy.
  • The owner is in the hierarchy, but the subsidiary isn't.
  • Neither the owner nor the subsidiary are in the hierarchy.

Example

Global Modern Services owns a majority interest in 2 companies:
  • Prestige Worldwide.
  • Green Planet Solutions.
Another entity, Victoria Services, owns the remaining minority interest in those companies.
Global Modern Services, Prestige Worldwide, and Green Planet Solutions are all part of the same company hierarchy, and Global Modern Services is the consolidating parent company. Victoria Services, however, isn't in the hierarchy.
When you calculate NCI for this hierarchy, Workday generates NCI results for all ownership combinations:
  • Global Modern Services and Prestige Worldwide.
  • Global Modern Services and Green Planet Solutions.
  • Victoria Services and Prestige Worldwide.
  • Victoria Services and Green Planet Solutions.
When you run a consolidated report for this company hierarchy, the report displays NCI results for the ownership combinations of:
  • Victoria Services and Prestige Worldwide
  • Victoria Services and Green Planet Solutions.
The report displays these NCI results because Victoria Services isn't in the company hierarchy.
The report doesn’t display results for the ownership combinations of Global Modern Services and Prestige Worldwide, and Global Modern Services and Green Planet Solutions, because Global Modern Services and the subsidiary companies are all part of the company hierarchy.

Best Practices for Calculating NCI

We recommend that you calculate NCI for all companies that have ownership details. Some exceptions are cases where:
  • Very few companies have minority interests.
  • You don’t expect a wholly-owned company will ever have a minority interest.
  • The ownership structure is relatively simple, such as when there are no intermediary owner companies that have minority ownership.