Improved Financial Consolidation and Reporting with Workday Implementation

Challenge

A Real Estate Investment Trust (REIT) had acquired over 150 legal entities complicating their financial operations. The client’s financial consolidation and elimination of entities across multiple financial systems had become complex, time-consuming, and manual. Each operating entity functioned in a silo. Data was exchanged through data extracts and mappings, and the client lacked a common data model to drive consolidation and financial reporting. Furthermore, all elimination and financial adjustments occurred as topside adjustments at the parent company level.  

 

Approach

Guidehouse led a multiphase Workday Implementation to merge all parent company financial operations into a subsidiary’s Workday environment. The Guidehouse solution included,

• A common Foundation Data Model (FDM) to merge chart of accounts data between entities
• Establishment of elimination rules and validations to automate balanced intercompany elimination for intercompany sales, notes, and asset transfers
• Integration of the Treasury Management System, Kyriba, to automatically generate accounting for external and internal movement of cash between entities and/or third parties
• Implementation of an accounts payable business process to automate recording of liabilities and accruals previously tracked in a spreadsheet
• Data conversion of over 150 legal entities into Workday  

 

Impact

The client now has a common financial system and data model to perform consolidation and automate elimination entries. This integrated approach streamlines period end close while enhancing compliance, accuracy, and substantiation of the client’s financial statements. Through the Workday Foundation Data Model (FDM), the client can scale quickly to meet future growth objectives, mergers, and acquisitions.