Define Intercompany Balancing Rules for Balancing Worktags
- Set up on-behalf intercompany transactions. See Steps: Set Up On-Behalf Intercompany Transactions.
- Configure worktag balancing for journals and your tenant. See Steps: Configure Worktag Balancing for Journals.
- Security: TheSet Up: Accounting Rulesdomain in the Common Financial Management functional area. See Steps: Set Up Security Permissions.
You can create:
- An intercompany balancing rule to configure a balancing worktag to apply on intercompany operational journals for each company that can initiate intercompany transactions.
- A rule that only applies when cost center restrictions conflict when cost center is the balancing worktag type.
- Multiple rules. You can activate up to 2 of these rules.
Workday doesn't support cash basis accounting for allocations and allocation pool transactions.
- Access theMaintain Intercompany Balancing Rule for Balancing Worktagtask.
- As you complete the task, consider:
Option Description Balancing Worktag TypeSelect from the worktag types you've previously configured for journals or your tenant.Intercompany Clearing WorktagSelect 1 balancing worktag to use for all intercompany payables and receivables and companies in the rule.Default Balancing WorktagWorkday uses the default balancing worktag on the initiating company accounting.Only Replace Worktags for Invalid Company and Worktag CombinationsWorkday displays this check box when you selectCost Centeras theBalancing Worktag Type.Select this check box to make balancing worktag replacements when company restrictions for the cost center are invalid. When you leave the check box unchecked, Workday makes balancing worktag replacements in all intercompany transaction accounting using the configured rule.When you have 2 active rules and one is Cost Center, you can't select this check box.
Workday uses your intercompany balancing rule configurations on intercompany transactions.
When the
Balancing Worktag Type
is also configured as an optional balancing worktag, Workday applies the intercompany balancing rule when there’s no optional balancing worktag on the transaction line. When the optional balancing worktag is Cost Center
, Workday applies the same logic when the Only Replace Worktags for Invalid Company and Worktag Combinations
check box is unchecked.