How does Workday ensure proper intercompany eliminations?

Workday ensures proper intercompany eliminations through the use of intercompany worktags and elimination journals. This approach allows the system to accurately identify and track intercompany transactions that need to be eliminated during consolidation.

Intercompany worktags serve to classify and facilitate the identification of transactions that occur between different legal entities within an organization. By tagging these transactions, Workday can automate the elimination process, thereby reducing the potential for errors that may arise from manual reconciliation.

Elimination journals are specifically designed to standardize the process of eliminating these intercompany transactions from financial reporting. By leveraging these tools, Workday streamlines the consolidation process, ensuring that the financial statements reflect accurate figures by removing any double counting of revenues or expenses that originate from intercompany dealings. This combination of worktags and elimination journals enhances the efficiency and accuracy of financial reporting across the organization.