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Last Updated: 2025-10-31
Steps: Exclude Wholly-Owned Subsidiaries from Noncontrolling Interest Calculation

Steps: Exclude Wholly-Owned Subsidiaries from Noncontrolling Interest Calculation

You can exclude wholly-owned companies when you calculate noncontrolling interest (NCI) results and NCI consolidation journals. To do this, you:
  • Set up the third-party owner as a company to function as a worktag. This enables you to access a single drill-down menu for all third parties in reporting.
  • Assign the third-party owner as the consolidating parent of its own company hierarchy, which can then be used to calculate NCI for companies in which it has ownership.
  • Calculate NCI for that hierarchy.
You use this hierarchy to avoid calculating NCI for companies that are wholly owned.
To support accurate reporting when ownership changes, Workday recommends that you calculate NCI for all owned companies. We recommend that you only exclude wholly-owned companies in limited circumstances, such as when:
  • Very few companies have minority interests.
  • You don’t expect a wholly-owned company to ever have a minority interest.
  • The ownership structure is relatively simple, such as when there are no intermediary owner companies that have minority ownership.
  1. Set up the third-party owner as a company to function as a worktag.
    1. Create the company and assign roles. See Steps: Set Up Companies.
    3. Create an actuals ledger for the company. See Create Ledgers.
    5. Restrict the periods to allow NCI processing only. Set the periods to
      Close in Progress
       status for the third-party owner company, and leave NCI as the only open activity group.
  2. Create a company hierarchy specifically for calculating NCI.
    Set the third-party entity as the consolidating parent company.
    You don’t need to include any other companies because Workday calculates NCI based on the subsidiaries owned by the consolidating parent company, rather than the company hierarchy itself.
  3. Select the NCI hierarchy you created.
    Workday calculates NCI for any subsidiaries that the third-party entity has ownership in, and excludes any subsidiaries that are wholly owned by other companies.
  4. Access a consolidated financial report and select a different company hierarchy that you want to report on.
Since the third-party owner that you added to the NCI hierarchy is not in the hierarchy you selected on the report, the report displays the NCI results for the ownership combination of the third-party owner and subsidiary companies.