In Workday, how are intercompany due-to/due-from balances managed?

Intercompany due-to/due-from balances are tracked separately in Workday to ensure accurate financial reporting and compliance with accounting standards. This tracking allows organizations to differentiate between transactions occurring between different entities within the same corporate structure.

Managing these balances requires intercompany settlements, which encompass processes wherein amounts owed between entities are reconciled and settled. This function supports accurate consolidation of financial statements, as it ensures that any intercompany transactions do not distort the overall financial position of the organization when reported.

By maintaining clear records and requiring settlements, Workday enables organizations to uphold transparency in their intercompany transactions, preventing discrepancies that could arise when balancing accounts across different legal entities. This is crucial for both internal financial reviews and external audits.