Set Up Investment in Subsidiary and Subsidiary Equity

Define elimination rules for elimination ledger accounts or ledger account summaries for account sets.

Select a

Consolidating Parent Company

on the

Edit Consolidation Details

task.

Security: Set Up: Consolidation
domain in the Financial Accounting functional area.

You can set up rules to eliminate investment in subsidiary and subsidiary equity when you're deriving noncontrolling interest (NCI).

If you're new to Workday, you don't have access to the

Investment in Subsidiary/Subsidiary Equity (To Be Retired)

tab on the

Maintain Elimination Rules

task.

Access the

Maintain Elimination Rules

task.

Select the

Account Set

for which you’re defining elimination rules.

You can only create 1 rule for an account set.

Access the

Investment in Subsidiary/Subsidiary Equity (To Be Retired)

tab.

As you complete this tab, consider:

Option	Description
Investment in Subsidiary Ledger Accounts/Summaries	Select the parent investment, equity income, and provision for loss accounts you want to eliminate. Configure the parameters defined on the Edit Consolidation Details task for each company hierarchy that you’re consolidating. Select a ledger account that has an intercompany affiliate worktag that corresponds to the subsidiaries in the hierarchy. Create a new ledger account for any manual entries that you want to make to the currency translation adjustment (CTA) account. Don't include accounts that you assign to the translation gain or translation loss account posting rule set.
Subsidiary Equity Ledger Accounts/Summaries	Select the equity ledger accounts or ledger account summaries of all the subsidiaries that you want to eliminate against the investment accounts of the parent. Don't include intercompany affiliate worktags on subsidiary equity accounts, as Workday eliminates all account balances for the selected ledger accounts. Workday doesn't eliminate balances in the consolidating parent. Workday recommends that you don't include accounts on year-end closing rules. The balances of these equity accounts must equal the balances of the parent investment accounts defined in the Investment in Subsidiary Ledger Accounts/Summaries tab.
Variance Ledger Account	Select a separate variance suspense account. Don't use target accounts associated with the elimination process.

Workday uses the rules to calculate the elimination entries.

To view the investment in subsidiary and subsidiary equity elimination entries, use the standard composite consolidated trial balance report.