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Administrator Guide
Last Updated: 2023-06-23
Troubleshooting: Elimination Balance Variances

Troubleshooting: Elimination Balance Variances

You're getting out-of-balance accounts when eliminating intercompany balances using the
Investment in Subsidiary/Subsidiary Equity (To Be Retired)
 tab on the
Maintain Elimination Rules
 task.
Workday recommends that you:
  • Eliminate intercompany and interworktag balances using the
    Intercompany/Interworktag
     tab on the
    Maintain Elimination Rules
     task.
  • Troubleshoot out-of-balance accounts using the
    Intercompany Elimination Out of Balance Report
    .
  1. Ensure that you’ve assigned a unique variance account and not a suspense account to each elimination rule. Example: Investment in Subsidiary - Variance.
    A unique variance account makes it easier to identify the account with an out of balance amount.
  2. Run the
    Consolidated Trial Balance
    report and identify the out-of-balance amount.
  3. In the
    Total
     column, drill down on the out of balance amount.
  4. In the
    View by:
     field, select
    Company
    .
  5. In the
    and then by:
     field, select
    Intercompany Affiliate
    .
  6. Click
    Refresh
    .
    Workday analyzes the ledger accounts you selected on the
    Investment in Subsidiary/Subsidiary Equity (To Be Retired)
     tab on the
    Maintain Elimination Rules
     task.
    Workday displays:
    • The equity balance of each subsidiary in the
      (Blank)
       column.
    • Investment of the parent in each subsidiary in each affiliate column.
    Example: Company by Intercompany Affiliate Grid
    Company
    Inter- Company Affiliate Subsidiary 1
    Inter- Company Affiliate Subsidiary 2
    (Blank)
    Elimination Amount
    (Parent)
    100,000
    250,000
    350,000
    Subsidiary 1
    Blank
    Blank
    110,000
    Equity of Subsidiary 1.
    (110,000)
    Subsidiary 2
    Blank
    Blank
    250,000
    (250,000)
    Total
    100,000
    Investment of parent in Subsidiary 1
    250,000
    (360,000)
    (10,000)
    Difference between the equity of Subsidiary 1 and investment of parent in Subsidiary 1.
  7. Compare the equity balance of each subsidiary with the investment of the parent in each subsidiary.
    The balances should net to zero.
  8. For balances that don’t net to zero, drill down to review and correct the journal entries.
  9. If you've more than 20 companies in the hierarchy, create a custom variance report to identify the elimination variances.