Spend

Course Manual and Activity Guide

This booklet is for the personal use of only the individuals who have enrolled in this specific Workday training course. You may
make copies only as necessary for your own use. Any distribution, even within your organization, is strictly prohibited unless
Workday has authorized such distribution in writing.

© 2017 Workday, Inc. All rights reserved. Workday, the Workday logo, Workday Enterprise Business Services, Workday Human
Capital Management, Workday Financial Management, Workday Resource Management and Workday Revenue Management are
all trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective
holders. Version 29 (November 2017)
Spend for Workday 29

CONTENTS
Overview for Spend ................................................................................................................11

Description.............................................................................................................................11

Goals & Objectives ................................................................................................................11

Activity Overview ...................................................................................................................11

Course Structure....................................................................................................................12

Chapter 1 – Procurement and Supplier Management ...........................................................13

Overview................................................................................................................................13

Objectives ..............................................................................................................................13

Procurement Touchpoint Diagram .........................................................................................14

Terms and Definitions ............................................................................................................15

Video 1.1 – Procurement Overview (Free) ..........................................................................16

Procurement Steps ................................................................................................................17

Optional Features ..................................................................................................................18

Activity 1.1 – Create a Reorganization ................................................................................19

Activity 1.2 – Create a Cost Center .....................................................................................20

Activity 1.3 – Assign Cost Center to a Cost Center Hierarchy .............................................22

Activity 1.4 – Maintain Worktag Usage ...............................................................................23

Activity 1.5 – Update Ledger Period Status.........................................................................25

Types of Spend......................................................................................................................26

Video 1.2 – Supplier ...........................................................................................................28

Supplier Configuration and Setup ..........................................................................................29

Supplier Accounts Touchpoint Diagram .................................................................................30

Supplier Setup .......................................................................................................................31

Supplier Options ....................................................................................................................32

Supplier Business Processes.................................................................................................34

Spend for Workday 29

2 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Demo 1.1 – Maintain a Supplier Inventory and Create Suppliers ........................................36

Activity 1.6 – Maintain Supplier Category ...........................................................................37

Activity 1.7 – Create a Supplier...........................................................................................38

Activity 1.8 – Create a Supplier Change & Supplier Connection .........................................42

Activity 1.9 – Create Supplier Request ...............................................................................44

Spend Categories ..................................................................................................................46

Activity 1.10 – Maintain Spend Category ............................................................................49

Activity 1.11 – Create a Purchase Item ...............................................................................51

Activity 1.12 – Edit Posting Rule .........................................................................................54

Supplier Contracts Configuration ...........................................................................................55

Supplier Contracts Touchpoint Diagram ................................................................................56

Supplier Contract Types Example ..........................................................................................60

Video 1.3 – Supplier Contracts ...........................................................................................61

Supplier Catalog ....................................................................................................................62

Activity 1.13 – Create Supplier Catalog ..............................................................................66

Demo 1.2 – Create Supplier Contract .................................................................................68

Activity 1.14 – Create Supplier Contract .............................................................................69

Supplier Contracts for Procurement .......................................................................................71

Activity 1.15 – Amend Supplier Contract .............................................................................78

Activity 1.16 – View Supplier Contract ................................................................................80

Schedules and Installments for Supplier Contracts ................................................................81

Chapter 1 Knowledge Check .................................................................................................86

Chapter 2 – Process Procurement .........................................................................................87

Overview................................................................................................................................87

Objectives ..............................................................................................................................87

Overview................................................................................................................................88

Spend for Workday 29

Confidential © 2017 Workday, Inc. 3
Spend for Workday 29

Requisitioning Goods Overview .............................................................................................89

Requisitioning Deliverable Services .......................................................................................91

Requisition Deliverable Services Process Flow......................................................................92

Review Requisition Business Process ...................................................................................93

Activity 2.1 – Requisition Goods Via Punchout ...................................................................94

Activity 2.2 – Add New Spend Categories..........................................................................96

Activity 2.3 – Requisition Purchase Items ...........................................................................97

Demo 2.1 – Requisition Goods Via Punchout .....................................................................99

Activity 2.4 – Requisition Non-Catalog Item ......................................................................100

Activity 2.5 – Create Requisition Worktags Template .......................................................102

Activity 2.6 – Requisition Goods From a Catalog .............................................................103

Requisition Template ...........................................................................................................105

Activity 2.7 – Create a Requisition Template ....................................................................108

Activity 2.8 – Create a Requisition From a Requisition Template ......................................109

Sourcing Goods and Services..............................................................................................111

Activity 2.9 – Create Purchase Order................................................................................114

Configuration Considerations for Sourcing ...........................................................................116

Activity 2.10 – Manually Source a Requisition ..................................................................118

Activity 2.11 – Source from Storage using Requisition Sourcing Console .........................120

Purchase Orders..................................................................................................................122

Demo 2.2 – Issue a Purchase Order.................................................................................123

Activity 2.12 – Issue a Purchase Order .............................................................................124

Create Change Order ..........................................................................................................126

Create Change Order Results..............................................................................................126

Receiving Goods Overview ..................................................................................................127

Activity 2.13 – Receive Goods In Full ...............................................................................129

Spend for Workday 29

4 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Activity 2.14 – Under Receive Goods ...............................................................................131

Return Goods to Supplier ....................................................................................................133

Procuring Project-Based Services .......................................................................................139

Requisitioning Project-Based Services ................................................................................140

Activity 2.15 – View Project ..............................................................................................141

Activity 2.16 – Requisition Project-Based Services ...........................................................142

Sourcing Services ................................................................................................................144

Activity 2.17 – Source Project-Based Services .................................................................145

Issuing a Services Purchase Order ......................................................................................146

Activity 2.18 – Issue a Purchase Order .............................................................................147

Log Tasks (Receive) ............................................................................................................148

Activity 2.19 – Log Tasks (Receive) Services ...................................................................149

Activity 2.20 – Receipt Accrual .........................................................................................150

Contingent Worker Procurement ..........................................................................................152

Requisitioning Contingent Labor ..........................................................................................154

Sourcing Contingent Labor ..................................................................................................157

Demo 2.3 – Create Job Requisition ..................................................................................159

Activity 2.21 – Create a Job Requisition For a Contract Contingent Worker......................160

Issuing a Contingent Labor Purchase Order ........................................................................166

Log Time for Contingent Labor (Receive) ............................................................................167

Activity 2.22 – Log Time For Contingent Worker ...............................................................168

Activity 2.23 – Configure Contingent Worker Workday Acount..........................................170

Activity 2.24 – Log Time As Contingent Worker ................................................................171

Chapter 2 Knowledge Check ...............................................................................................173

Chapter 3 – Request For Quote............................................................................................174

Overview..............................................................................................................................174

Spend for Workday 29

Confidential © 2017 Workday, Inc. 5
Spend for Workday 29

Objectives ............................................................................................................................175

Request for Quote ...............................................................................................................176

Activity 3.1 – Maintain Request for QUote (RFQ) Types ...................................................177

Activity 3.2 – Create Request for Quote............................................................................178

Request for Quote (RFQ) Responses ..................................................................................181

Activity 3.3 – Request for Quote (RFQ) Response............................................................182

Request for Quote Award ....................................................................................................184

Activity 3.4 – Request for Quote (RFQ) Comparison ........................................................185

Activity 3.5 – Request for Quote (RFQ) Award .................................................................186

Request for Quote To Purchase Order ................................................................................188

Activity 3.6 – Approve & Issue Purchase Order ................................................................189

Activity 3.7 – Receipt of Services ......................................................................................190

Chapter 3 Knowledge Check ...............................................................................................191

Chapter 4 – Matching Overview and Setup .........................................................................192

Overview..............................................................................................................................192

Objectives ............................................................................................................................192

Supplier Invoice Matching ....................................................................................................193

Workday Business Documents needed to Facilitate Matching .............................................194

Configuring Match Rules in Workday ...................................................................................195

Video 4.1 – Supplier Contracts: Matching .........................................................................201

Activity 4.1 – Supplier Accounts Match Condition Rules ...................................................202

Activity 4.2 – Supplier Accounts Match Exception Reasons ..............................................203

Activity 4.3 – Supplier Accounts Match Rules ...................................................................204

Activity 4.4 – Supplier Accounts Match Rule set ...............................................................205

Activity 4.5 – Supplier Accounts Match Override Reasons................................................206

Activity 4.6 – Review Supplier Accounts Match Business Process....................................207

Spend for Workday 29

6 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Activity 4.7 – Review Supplier Accounts Match Exception Override Business Process.....208

Chapter 4 Knowledge Check ...............................................................................................209

Chapter 5 – Supplier Invoicing .............................................................................................210

Overview..............................................................................................................................210

Objectives ............................................................................................................................210

Supplier Accounts Touchpoints............................................................................................211

Financial Accounting Touchpoints........................................................................................212

Supplier Invoices and Adjustments ......................................................................................213

Demo 5.1 – Create Supplier Invoice and Invoice Adjustment............................................217

Activity 5.1 – Create Supplier Invoice for Goods From Purchase Order ............................218

Activity 5.2 – Create Supplier Invoice for Goods From Receipt .........................................219

Activity 5.3 – Create Supplier Invoice for Goods From Receipt .........................................222

Activity 5.4 – Create Supplier Invoice for Project-Based Services From Task Log ............223

Activity 5.5 – Create Supplier Invoice Split........................................................................224

Activity 5.6 – Create a Supplier Invoice Request ..............................................................226

Activity 5.8 – Create Recurring Supplier Invoice Template ...............................................228

Activity 5.9 – Schedule Supplier Invoice Auto-Create .......................................................230

Prepaid Supplier Invoices ....................................................................................................231

Prepaid Spend Amortization Schedule .................................................................................237

Accounting Overview ...........................................................................................................243

Activity 5.10 – Prepaid Supplier Invoice ............................................................................244

Routing of Match Exceptions/Errors .....................................................................................246

Chapter 5 Knowledge Check ...............................................................................................249

Chapter 6 – Procurement Cards, Banking and Settlement of Payments ..........................250

Overview..............................................................................................................................250

Objectives ............................................................................................................................250

Spend for Workday 29

Confidential © 2017 Workday, Inc. 7
Spend for Workday 29

Video 6.1 – Procurement Cards........................................................................................251

Procurement Card Process ..................................................................................................252

Procurement Card Configuration .........................................................................................253

Intercompany for Procurement Card ....................................................................................258

Demo 6.1 – Create a Corporate Credit Card Account and Worker Credit Card .................268

Cash Management ..............................................................................................................269

Banking and Settlement Touchpoints...................................................................................270

Banking ...............................................................................................................................271

Activity 6.1 – View Financial Institution .............................................................................273

Activity 6.2 – Create Bank Account ...................................................................................274

Activity 6.3 – Edit Bank Routing Rule................................................................................275

Settlement Overview ............................................................................................................276

Activity 6.4 – Create Settlement Run ................................................................................280

Activity 6.5 – Settlement Work Area..................................................................................283

Activity 6.6 – Print Checks ................................................................................................284

Chapter 6 Knowledge Check ...............................................................................................285

Chapter 7 - Supplier Collaboration ......................................................................................286

Overview..............................................................................................................................286

Objectives ............................................................................................................................286

Supplier Portal Worklets ......................................................................................................287

Activity 7.1 – Create Supplier Contact ..............................................................................289

Activity 7.2 – Configure Supplier Contact Landing Page ...................................................291

Log Time as Suppliers and Contingent Workers ..................................................................292

Activity 7.3 – Log Task as Supplier ...................................................................................293

Chapter 8 – Business Assets and Business Asset Accounting ........................................294

Overview..............................................................................................................................294

Spend for Workday 29

8 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Objectives ............................................................................................................................294

Video 8.1 – Business Assets Overview (Free) ..................................................................295

Business Asset Tracking......................................................................................................296

Configure Asset Tracking .....................................................................................................297

Business Asset Lifecycle .....................................................................................................300

Business Asset Setup ..........................................................................................................301

Activity 8.1 – Asset Book Rules ........................................................................................303

Activity 8.2 – Edit Account Posting Rules .........................................................................304

Activity 8.3 – Register Business Asset ..............................................................................305

From Purchase to Asset ......................................................................................................308

Asset Accounting Overview .................................................................................................309

Activity 8.4 – Register and Assign Accounting ..................................................................312

Activity 8.5 – Register and Assign Accounting ..................................................................313

Activity 8.6 – Issue a Business Asset................................................................................314

Activity 8.7 – Place Business Assets in Service ................................................................315

Activity 8.8 – Record Depreciation ....................................................................................316

Activity 8.9 – Transfer Business Assets ............................................................................317

Activity 8.10 – View Business Asset History .....................................................................318

Chapter 8 Knowledge Check ...............................................................................................319

Chapter 9 – Manage Reports and Analytics ........................................................................320

Overview..............................................................................................................................320

Objectives ............................................................................................................................320

Workday Standard Reports ..................................................................................................321

Activity 9.1 – View Workday Standard Reports .................................................................322

Delivered Reports by Worktags ...........................................................................................324

Trial Balance........................................................................................................................324

Spend for Workday 29

Confidential © 2017 Workday, Inc. 9
Spend for Workday 29

Activity 9.2 – Procurement Dashboard..............................................................................325

Activity 9.3 – Supplier Accounts and Settlement Dashboards ...........................................326

Activity 9.4 – Spend by Category ......................................................................................327

Activity 9.5 – Top Suppliers by Spend ..............................................................................328

Supplier Reports ..................................................................................................................329

Configuring and Processing 1099-MISC ..............................................................................330

Business Intelligence and Reporting Tools (BIRT) Print Layouts .........................................336

Video 9.1 – BIRT Overview for Financials.........................................................................339

Create Custom Business Form Layouts for Purchase Orders ..............................................340

Configure BIRT Check Printing for Financials Overview ......................................................342

Activity 9.6 – Create Purchase Order Print Layouts ..........................................................348

Activity 9.7 – Run Reports ................................................................................................349

Video 9.2 – Custom Reports for Suppliers ........................................................................350

Chapter 9 Knowledge Check ...............................................................................................351

Final Exam...........................................................................................................................352

Spend for Workday 29

10 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

OVERVIEW FOR SPEND

DESCRIPTION
Workday Procurement supports the acquisition of goods, services, and contingent labor – all
from a single, comprehensive indirect spend management system. And with multi-dimensional
reporting and analytics, you gain real-time visibility into spending trends across your
organization. Upon completion of this training, participants will be able to execute the major
Procurement events (transactions), perform administrative activities, and perform setup of the
core system functionality.

Covered Topics:

• Supplier Contracts
• Requisitions
• Purchase Orders
• Contingent Worker Procurement
• Request for Quote
• Supplier Invoice Matching
• Invoicing
• Procurement Card
• Banking and Settlement
• Business Assets
• Custom Reports

GOALS & OBJECTIVES

This course is intended to give you an understanding of the set up and concepts of Workday's
Procurement functionality. The goal is to make you familiar with transactions to assist you in
making decisions for your Procurement implementation.

ACTIVITY OVERVIEW
This course includes various activities, demonstrations, and videos in a Workday training tenant
to provide practice configuring Spend processes and reports.

Note: Completing these activities is required to ensure a successful learning

experience.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 11
Spend for Workday 29

COURSE STRUCTURE
In this course, we’re going to begin with an overview of Procurement and Supplier Management
and the types of data that it contains. We will discuss how supplier configuration is set up and
then demonstrate how to create supplier contracts. Next, we will highlight Procurement
Processes including requisitions, sourcing, purchase orders, and contingent worker
procurement. In Request for Quote, we will look at the bid process used to acquire goods or
services, supplier responses to the request, through awarding the request to a supplier. Next,
we will explain how to use Supplier Invoice Matching, and then in Supplier Invoices, how to
create supplier invoices, make invoice adjustments, and create prepaid invoices. Procurement
Cards, Banking and Settlement of Payments introduces P-card functionality, and reviews
banking and settlement of payments. Business Assets is used to maintain accounting rules and
you will begin processing intangible assets from supplier contracts. Finally, we will discuss
considerations for Managing Reports and using analytics to identify spend patterns. We will
review custom reports, Report Writer, and processing forms. Let’s get started!

Procurement
Procurement Request for
and Supplier
Processes Quote
Management

Supplier P-Cards,
Supplier
Invoice Banking and
Invoices
Matching Settlement

Manage
Business
Reports and
Assets
Analytics

Spend for Workday 29

12 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 1 – PROCUREMENT AND SUPPLIER

MANAGEMENT
OVERVIEW
This chapter will introduce procure-to-pay functionality which addresses spend for goods,
contingent workers, and deliverable services. You can manage supplier contracts, place
requisitions, purchase and change orders, verify receipts, and source goods and services.
Additionally, you can maintain purchase items, catalogs, supplier links, and a supplier portal.
You can configure requisition access to spend categories, catalogs and supplier links. And, you
can create receipt accruals for approved un-invoiced receipts.

OBJECTIVES

By the end of this chapter, you will be able to:

• Identify the procurement process.

• Identify the key features of Spend.
• Describe the types of Spend.
• Identify the attributes needed to setup suppliers.
• Describe how worktags can be associated with suppliers.
• Explain supplier event business processes.
• Identify key differences between domains and business processes.
• Identify ways to configure supplier contract types.
• Explore various supplier contract type setup options.
• Explain the supplier catalog work area.
• Identify the process to use catalog load request task.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 13
Spend for Workday 29

PROCUREMENT TOUCHPOINT DIAGRAM

Because Workday is a unified solution, you must consider the cross functional impact of certain
configuration decisions.

This touchpoints diagram provides insight into how one area of the product impacts another.
There are configuration decisions that need to be made with current and possibly future phases
of implementation in mind. Your consultants will work with you to identify and plan for these
touchpoints.

This diagram represents the touchpoints for the current Workday release.

Spend for Workday 29

14 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

TERMS AND DEFINITIONS

The following terms appear frequently in the activities, handouts, and videos created for this
spend class.

Term Definition
Supplier Vendor that provides goods or services includes contingent
workers and companies that provide contingent labor.
Requisition Internal transaction to request goods or services:
Catalog – Goods or services from an internal or external
(Punchout) catalog
Deliverable Service – request for service associated to a project
where milestone payments are made (e.g. landscaping, new
construction, marketing campaign)
Ad Hoc Request – request for a good that is needed for a
specific, non-continuing purpose, and is not a known item
Purchase Order (Po) External transaction to request goods or services from
suppliers.
PO Issue Dispatch/send the purchase order to the supplier.
Supplier Invoice Transaction in Workday that accrues liability and generates a
payment to the supplier.
Requester Worker requesting the good or service.
Buyer Worker who sources the requisition to a PO and “owns” the PO
from the supplier’s perspective.
Punchout The electronic catalog of items for a supplier. Enables buyers to
click a link that goes to a supplier’s catalog, search for items on
the supplier’s site, and return those items directly to the buyer’s
shopping cart.
Item Catalog The catalog of items for a supplier.
Sourcing Determining how the requisition will be fulfilled. E.g. a
requisition can be sourced by creating a PO or by sourcing the
item from storage.
Recurring Supplier Framework to create fixed and variable amount recurring
Invoice invoices.
Supplier Contract The framework used to support the supplier’s item catalog.
Purchase orders and invoices can be tracked against a Supplier
Contract.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 15
Spend for Workday 29

VIDEO 1.1 – PROCUREMENT OVERVIEW (FREE)

Introduction: Check out the video presentation.

NOTES

Note: You will have a series of required videos and demonstrations to watch
throughout this course. When you are ready to watch a video, please log into the
Workday Learning Center, find the video in the Spend curriculum and click the
Launch link.

Watch the videos and/or demonstrations until the conclusion or click the Complete
button at video end (if provided).

Spend for Workday 29

16 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

PROCUREMENT STEPS
Generally, the procurement process involves six broad stages; the process flows from creating
a requisition through the final payment for the goods or services. This process is common to all
categories of procurement. Spend is designed to provide organizations with control and visibility
over the entire lifecycle of a transaction. The organization identifies how an item is ordered, and
how it is sourced. Once a supplier is identified, typically a purchase order will be sent to the
buyer indicating what product or service is needed, and where it is to be received. The buyer
receives an invoice from the supplier, and once matched, the final invoice is paid. This provides
full insight into a company’s cash flow, identifies spend transactions, and highlights financial
commitments.

Requisition •Request to purchase goods, services, contingent labor.

•Determining where requested items will come from. A purchase

Source (Buyer) order is created unless sourced from internal storage or
resources.

•Getting purchase order information to the supplier. Can be

Issue Purchase automatic or manual. Depending on a customer's internal
Order (Buyer) business process, a purchase order can be created without a
requisition.

Receive •Verification that the quantity/amount that was ordered was

(Warehouse / actually received. Business process can be set up to have 2, 3,
Requestor / or 4-way matching. Can be completed via Goods receipt,
Administrator) Deliverable Task Log, or Contingent Worker timesheet.

•Creation of Supplier Invoice for items requested and purchased.

Invoice
Can be completed by Accounts Payable staff or Supplier Self-
(Accounts Payable)
Billing (Evaluated Receipt Settlement - ERS).

Settle Payment •Payment of invoice occurs in settlement run by Accounts

(Accounts Payable) Payable staff.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 17
Spend for Workday 29

OPTIONAL FEATURES
Procurement has several optional features that add to its basic ability to create requisitions and
generate purchase orders. When the goods arrive or it's time to pay for services, you can
generate a receipt, prepare an invoice, and send it to the settlement engine for payment. You
can record supplier-delivered goods, timesheets, and tasks against the purchase order to match
what you ordered with what you received.

You can also:

• Create a Workday account for suppliers, which enables them to load their own catalog
items, approve purchase orders, log time and tasks, and submit invoices.
• Create supplier contracts with specified items, payment terms, and other details. Then
you can order goods and services against the contract and the terms follow the order
from requisition to payment.
• Use Punchout configuration to order from a catalog on a supplier's website.
• Contract contingent workers, independently or through a supplier, or contract for
deliverables services.
• Load purchase items into the catalog with no specified supplier.
• Create requisition templates for ordering common goods and services.
• Create change orders for issued purchase orders.

Spend for Workday 29

18 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 1.1 – CREATE A REORGANIZATION

Business Case: Create a reorganization to use when creating organizational changes.

TASK #1: CREATE REORGANIZATION:

1. Sign in as Organization Administrator Teresa Serrano (tserrano).

2. Enter cr reorg in the search box.

3. Select the Create Reorganization task.

4. Enter Reorganization Name, GMS Procurement Implementation.

5. Enter Reorganization Date, 01/01/2017

6. Enter Description, “To track all organizational changes associated with the
implementation of Workday Procurement.”

7. Click OK to continue.

8. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 19
Spend for Workday 29

ACTIVITY 1.2 – CREATE A COST CENTER

Business Case: This new cost center will be used in later transactions for both security
purposes and as a worktag to track the spend against it.

TASK #1: CREATE A COST CENTER

1. Sign in as Costing Administrator Teresa Serrano (tserrano).

2. Enter cr cos cen in the search box.

3. Select the Create Cost Center task.

4. Select Reorganization, GMS Procurement Implementation.

5. Click OK to continue.

6. Enter the following information:

Field Name Entry Value

Availability Date 01/01/2017
Name Office Catering
Code 34100
Include Code in Name (Checked)
Subtype Cost Center
Visibility Everyone

7. Select the Assign Roles tab.

8. Click the Add Row icon to assign the following Organization Role:

Field Name Entry Value

Role Cost Center Financial Analyst
Assigned To Controller - Teresa Serrano

9. Click the Add Row icon to assign the following Organization Role:

Field Name Entry Value

Role Cost Center Manager

Spend for Workday 29

20 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Assigned To Controller - Teresa Serrano

10. Click OK.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 21
Spend for Workday 29

ACTIVITY 1.3 – ASSIGN COST CENTER TO A COST

CENTER HIERARCHY

Business Case: Associate the new cost center with an existing hierarchy to facilitate
reporting.

TASK #1: ASSIGN COST CENTER TO A COST CENTER HIERARCHY

1. Sign in as Costing Administrator Teresa Serrano (tserrano).

2. Enter org: facilities in the search box.

3. Click the Facilities (Cost Center Hierarchy) link.

4. Click the Related Action icon.

5. Select Reorganization > Assign Included Organizations.

6. Select Reorganization > GMS Procurement Implementation.

7. Click OK.

8. Select Includes Organizations > Add 34100 Office Catering.

9. Click OK.

10. Click the Related Action icon off Facilities, and click the Org Chart button to view the
updated Facility cost center hierarchy.

Note: After assigning cost centers to a cost center hierarchy the roles from that hierarchy
will be automatically inherited by the assigned cost centers, if these roles were not
already assigned at the cost center level.

Spend for Workday 29

22 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 1.4 – MAINTAIN WORKTAG USAGE

Business Case: Define the Cost Center worktag as the Primary Worktag for procurement
transaction types of Purchase Order, Supplier Invoice and Request for Quote.

TASK #1: PURCHASE ORDER WORKTAG USAGE

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter main work usa in the search box.

3. Click the Maintain Worktag Usage report.

4. In the left column, select the Purchase Order transaction type.

5. Click the Edit Worktag Usage button.

6. In the Primary Worktag Types section, mark the Required checkbox for Cost Center.

7. Click OK.

TASK #2: SUPPLIER INVOICE WORKTAG USAGE

1. In the left column select the Transaction Type, Supplier Invoice.

2. Click the Edit Worktag Usage button.

3. In the Primary Worktag Types section, to make the Cost Center required, select the
Required checkbox.

4. Click OK.

TASK #3: REQUEST FOR QUOTE WORKTAG USAGE

1. In the left column, select the Transaction Type, Request for Quote.

2. Click the Edit Worktag Usage button.

3. In the Primary Worktag Types section, verify that Cost Center is listed and mark the
Required checkbox, if it is not already included.

4. In the Additional Worktag Types section, if they are not already included, select
Location and Region from the list (and neither will be required).

5. Click OK.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 23
Spend for Workday 29

6. Click Done.

Spend for Workday 29

24 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 1.5 – UPDATE LEDGER PERIOD STATUS

Business Case: Verify whether the current year has all Open periods for Global Modern
Services (USA) to enter transactions.

Sign in as Teresa Serrano (tserrano)

UPDATE COMPANY AND LEDGER PERIODS

1. Enter mass upd into the search box.

2. Select Mass Update Ledger Period Status task.

3. Enter the following information:

Field Name Entry Value

Year Current Year – Standard Corporate
Schedule
Company Global Modern Services, Inc. (USA)
All Periods (Selected)

4. Click OK.

5. If all periods are Open for the current year, click Cancel.

6. If all periods have a current status of Created, Mark the Select All checkbox under
Apply to All.

7. Select Open in the New Status field.

8. Click OK and Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 25
Spend for Workday 29

TYPES OF SPEND
Spend types provide an understanding of what a company spends on goods and deliverable
services, with whom, and for what.

Deliverable
Services

Contingent
Goods
Workers

Types of
Spend

GOODS
Goods procurement tracks spend for physical objects, which can be expensed or capitalized, as
well as issued to a worker.

Examples of goods:

• Office supplies
• New worker configuration
Purchase orders for goods will display information related to a purchase item including item
description, unit of measurement, and unit price.

DELIVERABLE SERVICES
Deliverable Services procurement tracks spend for a project or task oriented endeavors.

Examples of deliverable services:

• Marketing campaign
• Landscaping project
Purchase orders for deliverable services will display information related to a project including
tasks and phases.

Spend for Workday 29

26 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CONTINGENT WORKERS
Contingent Workers spend tracks contract labor expenses.

Examples of contingent labor:

• Consultants
• Independent contractors
• Freelancers
Purchase orders for contingent workers will display information related to a worker including job
profile, job description, and start and end dates.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 27
Spend for Workday 29

VIDEO 1.2 – SUPPLIER

Introduction: Check out the next video presentation.

NOTES

Spend for Workday 29

28 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER CONFIGURATION AND SETUP

INTRODUCTION
Workday Supplier Management supports the processes and information necessary to effectively
manage your vendors while providing comprehensive supplier information to people across your
organization. Supplier Management uses web-based business communication, transaction
processing and settlement options to:

• Efficiently process supplier invoices

• Manage payables and settlement
• Provide cash optimization
• Maintain strong internal controls with insight into all aspects of enterprise spend

SUPPLIERS
A supplier is a business entity from whom you purchase goods or services. Workday’s Supplier
Management allows you to setup and maintain your entire set of vendors. Supplier Requests
streamline the Supplier creation process providing necessary segregation of duties. There are
different ways to set-up your suppliers depending on what they provide, and how they provide
the goods or services you purchase. Supplier-related setup tasks vary, depending on the type of
supplier.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 29
Spend for Workday 29

SUPPLIER ACCOUNTS TOUCHPOINT DIAGRAM

Because Workday is a unified solution, you must consider the cross functional impact of certain
configuration decisions.

This touchpoints diagram provides insight into how one area of the product impacts another.
There are configuration decisions that need to be made with current and possibly future phases
of implementation in mind. Your consultants will work with you to identify and plan for these
touchpoints. Below is the touchpoint diagram representing all the touchpoints between Supplier
Accounts and other Workday functional areas.

This diagram represents the touchpoints for the current Workday release.

Spend for Workday 29

30 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER SETUP
SUPPLIER PREREQUISITES
Prior to creating a supplier, the following attributes need to be established:

Supplier Supplier Payment Payment

Category Group Type Terms

SUPPLIER CATEGORY
Suppliers can be assigned to a supplier category to facilitate organizing them, searching for
them, and reporting on them. For example, supplier categories may include: IT Distributers,
Office Supply Distributer, Food and Beverage Distributor, etc. This is especially useful if you
have many suppliers.

All suppliers can have only one supplier category. You will also use supplier categories when
selecting or searching for suppliers and while editing posting rules.

SUPPLIER GROUP
Supplier groups are a way to organize suppliers of different goods and services into any groups
that you find useful. A supplier can be part of multiple supplier groups. Supplier groups are used
primarily for reporting and selection. An example of suppliers’ groups would be:

• Suppliers A-L
• Suppliers M-Z

PAYMENT TYPE
A valid form of payment is required to pay invoices, payment elections, and other payments.

Payment types are: Cash, Check, Credit Card, Debit Card, Direct Debit, Direct Deposit, EFT,
Manual, and Wire. These are user configured, and each payment type is mapped to a payment
method, whose values are delivered by Workday. For example, a credit card payment method
could be mapped to the payment types, such as Visa, MasterCard, and American Express.

PAYMENT TERMS
Payment terms are used to specify a payment due date and, optionally, a discount percent and
discount due date. Standard payment terms enable you to specify payments, such as
Immediate or Net 30. Advanced payment terms vary discount percentages based on the due

Spend for Workday 29

Confidential © 2017 Workday, Inc. 31
Spend for Workday 29

date. For example, you might grant a 5% discount to suppliers who pay within 10 days, and a
2% discount to suppliers who pay between 11 and 30 days. Payment terms include: Discount
Percent, Discount Days, Grace Days, and Usage Count.

SUPPLIER OPTIONS
1099 SUPPLIER
A 1099 supplier is any supplier with whom you have done business, and to whom you must
issue a U.S. IRS form 1099 at year end to summarize payments for the year. Workday includes
these suppliers and their applicable payments in your 1099 reporting. An applicable payment is
one paid to a 1099 supplier from a supplier invoice, ad hoc payment, or ad hoc bank transaction
that includes lines with spend categories mapped to 1099 categories. Ad hoc bank transactions
must be withdrawals flagged for inclusion in IRS 1099.

SUPPLIER REQUEST
There is a supplier request business process available to authorized users, which requires the
initiators to enter minimal information about the suppliers they wish to add, such as name and
contact information. Requests will route to the supplier administrator for approval/completion.
You can request a supplier through the Create Supplier Request task.

SUPPLIER HIERARCHIES
Workday enables you to define parent/child relationships between suppliers. For example, you
may have a primary supplier to whom you want to assign a dependent, local subsidiary. By
defining these relationships, Workday can provide reporting based on parent/child relationships.
For example, child activity can roll up to a report on totals for a parent. Workday can also
support application of a payment from a parent to the invoices of a child, and vice versa.

SUPPLIER STATUS CHANGE

You can classify each of your suppliers as having one of the following statuses: Active, Hold,
and Inactive. You can select a reason for placing a supplier on hold or inactive status
(Duplicate, Merged, Not Used, or Out of Business), and optionally enter a description. Changes
to the supplier status takes effect immediately.

Setting a supplier status to Hold or Inactive affects supplier behavior in other places. Refer to
the table below for details.

• YES – means you can perform this task (or the report shows) suppliers with this status.

Spend for Workday 29

32 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

• NO – means you cannot perform this task (or the report does not show) suppliers with
this status.

Task or Report Hold Status Inactive Status

Create Purchase Order Yes Does not appear in prompt
and not returned in a
search
Edit Purchase Order Yes Can cancel, but not edit
Contract Contingent Worker Yes Appears in prompt as
inactive. You cannot create
a PO on an inactive
supplier.
Create/Edit Change Order Yes Yes
Create/Edit Receipt Yes Yes
My Receipts Show receipts for these Show receipts for these
suppliers suppliers
Create Requisition, Requisition Yes No; neither supplier nor its
Template, or Requisition Shared catalog items appear
Template
Edit Requisition Yes Yes; edit and submit, but
no auto sourcing
Checkout Yes Checkout allowed, but
cannot save and submit or
save for later once in
requisition
Search Catalog or Create Ad Yes No; neither supplier nor its
Hoc Requisition catalog items appear
Request Contingent Worker Yes No
Copy from Templates and Yes Copies all lines, but does
Requisitions not allow lines with inactive
suppliers to be submitted
or saved for later when
doing a checkout
Request Deliverable Service Yes No
Sourcing Yes No
Punchout to Supplier Catalog Yes No

Spend for Workday 29

Confidential © 2017 Workday, Inc. 33
Spend for Workday 29

Task or Report Hold Status Inactive Status

PO Console, Find Purchase Yes Yes
Orders
Requisition Console, Yes Yes
Requisition Summary
Create Order Contract Yes No
Edit Order Contract Yes Yes
Create Recurring Supplier Yes No
Invoice
Edit Recurring Supplier Invoice Yes Yes
Schedule Supplier Invoice Auto- Yes No
Create
Create Ad Hoc Payment Yes Can create an ad hoc
payment for seasonal
suppliers

SUPPLIER BUSINESS PROCESSES

The supplier business processes enable you to manage suppliers and facilitates the supplier
audits and compliance reviews. The Supplier Event business process allows control over and
approval of the suppliers prior to processing transactions. Additionally, there are two other
business processes, Supplier Change Event, to formally approve changes to an existing
supplier and allow all revisions and history to be monitored, and Supplier Request, to create
requests for suppliers not currently set up in Workday.

Suppliers are available for procurement documents and transactions after the supplier has been
approved through the business process.

Setup Process Description

Create Suppliers Use the Create Supplier task to set up new suppliers.
Maintain Payment Establish the payment terms for your suppliers.
Terms
Create a Supplier Manage the agreements you make with suppliers, define purchase
Contract order and invoice schedules, and generate installments.

Spend for Workday 29

34 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Setup Process Description

Automatic Sourcing A goods requisition for catalog and
Punchout line items can be automatically
sourced if you choose a supplier that has a
contract with your company.
Maintain Supplier Categories Assign suppliers to a supplier category to
organize them for searching and reporting
purposes.
Create Supplier Catalogs and Load Load catalog items and connect them to a
Catalog Items supplier contract with the Catalog Load
Request task.
Prepaid Supplier Invoices Prepay and amortize supplier spend to
generate accounting for goods and services
you pay for in an accounting period prior to
the period you use them.
Update Supplier Logo Include a supplier logo to display for supplier
goods and services.
Supplier Group Organize suppliers into groups to help
workers select the suppliers they need and
for reporting purposes. You create supplier
groups with the Maintain Supplier Groups
task.
Independent Contingent Worker If you have contingent workers who are not
working through an agency, the independent
contingent worker (ICW) acts as a supplier.
You hire them as contingent workers. ICWs
appear in many reports and selection lists.
Contingent Worker If you have contingent (contract) workers
who are working through an agency or other
third-party business that pays the worker,
setup is a two-step process: Create the
agency as a supplier, then contract the
worker as a contingent worker.
Supplier Change Event Configure the Supplier Change Event
business process and security policy to
require approvals for changes to existing
suppliers.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 35
Spend for Workday 29

DEMO 1.1 – MAINTAIN A SUPPLIER INVENTORY AND

CREATE SUPPLIERS

Introduction: Check out the demonstration.

Spend for Workday 29

36 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 1.6 – MAINTAIN SUPPLIER CATEGORY

Business Case: These supplier categories will be used to classify our new suppliers.

TASK #1: MAINTAIN SUPPLIER CATEGORY

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter main sup cat into the search box.

3. Choose the Maintain Supplier Categories task.

4. Add a row by clicking on the Add Row icon.

5. Enter Supplier Category Name, Vending Services.

6. Add a row by clicking on the Add Row icon.

7. Enter Supplier Category Name, Corporate Swag.

8. Click OK to save.

9. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 37
Spend for Workday 29

ACTIVITY 1.7 – CREATE A SUPPLIER

Business Case: Create two new suppliers. The first supplier will be tied to a catalog for
specific goods, and the second is for use in a non-catalog item requisition.

TASK #1: CREATE SUPPLIER

1. Sign in as Supplier Administrator Teresa Serrano (tserrano).

2. Enter create supplier into the search box.

3. Select the Create Supplier task.

4. Enter the following information:

Field Name Entry Value

Supplier Name CorporateCloud.com
Supplier Category Corporate Swag
Supplier Group Suppliers A-L
Default Payment Terms Immediate
Payment Type Check; and EFT
Default Payment Type Check
Accept All Currencies (checked)
Default Currency USD

5. Click OK to continue.

6. Click the Add Address button.

7. Enter the following information:

Field Name Entry Value

Effective Date Today’s Date
Address 1 3500 Franklin
City New York
State New York
Postal Code 10035
Primary Usage (Checked)

Spend for Workday 29

38 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

8. Click the Add Email button.

Field Name Entry Value

Email Address [email protected]
Primary Box (Checked)

9. Click the Settlement Bank Account tab.

10. Click the Add Row icon to add the Account Information and Details.

11. Enter the following information:

Field Name Entry Value

Account Nickname CorporateCloud.com Payment Account
Account Type Checking
Country United States of America
Bank Name Bank of America
Bank Code 263181384
Account Number 87654321

12. Click Submit.

13. Expand the Details and Process section to review your entry.

TASK #2: CREATE A SECOND SUPPLIER

1. At the top of the completion page click Create Supplier in the Do Another section.

2. Enter the following information:

Field Name Entry Value

Supplier Name Tri Valley Vending
Supplier Category Vending Services
Supplier Group Suppliers M-Z
Default Payment Terms Immediate
Payment Type Check
Default Payment Type Check

Spend for Workday 29

Confidential © 2017 Workday, Inc. 39
Spend for Workday 29

Accept All Currencies (Checked)

Default Currency USD

3. Click OK to continue.

4. Click the Add Address button.

5. Enter the following information:

Field Name Entry Value

Effective Date Today’s Date
Address Line 1 100 Santa Rita Road
City Pleasanton
State California
Postal Code 94588
Primary Usage (Checked)

6. Click the Add Email button

Field Name Entry Value

Email Address [email protected]
Primary Box (Checked)

7. Click the Procurement Options tab.

8. Enter Email in the Issue Option field.

9. Click Submit to save.

10. Expand the Details and Process section to review your supplier.

11. Click Done on the confirmation page.

12. Sign out.

TASK #3: APPROVAL OF SUPPLIERS

1. Sign in as Supplier Administrator Ava Gonzalez (agonzalez).

2. Open Ava's Inbox.

Spend for Workday 29

40 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

3. From the Actions tab, approve both suppliers: CorporateCloud.com and Tri Valley
Vending.

4. Click Approve.

5. Click Done on the confirmation page.

6. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 41
Spend for Workday 29

ACTIVITY 1.8 – CREATE A SUPPLIER CHANGE &

SUPPLIER CONNECTION

Business Case: The Corporate Express supplier will be updated with a second address. To
add the second address, we will create a supplier contact change. Supplier connections will
be setup for use with the supplier invoice.

TASK #1: CREATE A SUPPLIER CHANGE & SUPPLIER CONNECTION

1. Sign in as Supplier Administrator Teresa Serrano (tserrano).

2. Enter Corporate Express into the search box.

3. Access the Related Actions and Preview.

Hint: Click the ellipsis next to Corporate Express.

4. From the Corporate Express supplier related action choose Supplier > Change
Supplier Contact Information task.

5. Click OK.

6. Click the Add button in the Address region.

Field Name Entry Value

Effective Date Today’s Date
Address Line 1 550 Broadway Avenue
City Oakland
State California
Postal Code 94610
Primary Usage (Unchecked)

7. Click Submit.

8. Click Done.

TASK #2: CREATE SUPPLIER CONNECTIONS:

1. Enter Corporate Express in the search box.

Spend for Workday 29

42 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

2. From the Corporate Express related action choose Supplier Connections > Edit
Supplier Connections task

3. For the 1st Supplier Connection – add the following information:

Field Name Entry Value

Supplier Connection Name Corporate Express Colorado
Remit To Supplier Corporate Express
Default Check On
Accepted Payment Types Check
Default Payment Types Check
Remit-To Address 1 Environmental Way, Broomfield

4. Click the Add Row sign to add a new row

5. For the 2nd Supplier Connection – add the following information:

Field Name Entry Value

Supplier Connection Name Corporate Express California
Remit To Supplier Corporate Express
Default unchecked
Accepted Payment Types Check
Default Payment Types Check
Remit-To Address 550 Broadway Avenue, Oakland

6. Click Submit to save.

7. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 43
Spend for Workday 29

ACTIVITY 1.9 – CREATE SUPPLIER REQUEST

Business Case: Create a request for a supplier not currently set up in Workday.

TASK #1: CREATE SUPPLIER REQUEST

1. Sign in as Supplier Administrator Teresa Serrano (tserrano).

2. Enter cr sup req into the search box.

3. Select Create Supplier Request task.

Field Name Entry Value

Supplier Name CorporatePromo.com
DUNS Number 001119999
Supplier Category Professional Services
Tax Authority Form Type 1099 MISC
TIN Type 2 – SSN or ITIN
Tax ID 987654321
Justification Discount Designs

4. Click the Add Address button.

Field Name Entry Value

Effective On Today’s Date
Country USA
Address (Multiple Lines) 111 Main Street, New York, New York
10018
Type Business
Primary Box (Checked)

5. Click the Add Email button.

Field Name Entry Value

Address [email protected]
Type Business
Primary Box (Checked)

6. Click OK to continue.
Spend for Workday 29
44 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

7. Expand the Details and Process section to review your supplier request. Select the
Process tab.

Note: Was the status of your supplier request successful or did it fail? What is the
OFAC? How might you resolve this configuration issue?

Spend for Workday 29

Confidential © 2017 Workday, Inc. 45
Spend for Workday 29

SPEND CATEGORIES
SPEND CATEGORIES
All items that you can track must have a spend category. It is likely that the business asset or
purchase item you want to track is already associated with a spend category. Spend categories
are a prerequisite for capitalizing business assets and tracking custodianship. For capitalized
business assets, make sure that the spend category has a depreciation profile associated with
it.

Spend category is also used to derive the correct ledger account that should be used for the
operational journal. You can specify this in the posting rules for spend and business assets.

Spend categories define the financial characteristics of business assets and purchase items.
This includes:

• Whether it can be selected during procurement

• Whether it can be listed in an expense report
• Whether it can be used on an ad hoc payment
• Whether it can be used on a supplier invoice
• Whether it is tracked
• Commodity Code, (UNSPSC or NIGP code), if applicable

SPEND CATEGORY HIERARCHY

Spend categories can be grouped into hierarchies. Hierarchies can be used to roll up spend
categories for purposes of:

• Searching
• Reporting
• Security
• Account Posting Rules

ACCOUNT POSTING RULE SET

Account posting rules designate the ledger accounts that will be used for posting journals
originating from operational transactions. These rules allow you to specify the conditions and
the ledger accounts to use. These rules eliminate the need to specify a ledger account each
time a journal is entered.

You can assign posting rules to a default ledger account, or create conditions for posting to a
specified account. For each condition, you select from a predefined list of dimensions for the
transaction type. For certain dimensions, such as various types of groups and accounting
categories, you can select from a list of values that you have predefined. For example, in the
SPEND posting rule you can create a rule condition that requires any transaction with spend

Spend for Workday 29

46 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

category of OFFICE EQUIPMENT to post to the FURNITURE, FIXTURES, AND EQUIPMENT

account.

Place posting rule conditions in order from most to least restrictive by using the Evaluation
Order. Workday evaluates conditions from the top down, posting transactions to the ledger
account associated with the first matching condition that it finds. For example, let's say you post
transactions to Account A based on company and cost center and Account B based on the
same company, the same cost center, and a region. You must place the latter, more restrictive
condition first. Otherwise, Workday will post matching transactions to Account A because that's
the first match it finds.

If no conditions match, then Workday posts the transaction to the rule's Default Ledger Account
or, if no default exists, flags the transaction as having an error.

Workday limits the allowable dimensions for any posting rule to ones that make sense for each
specific type of transaction. The available values depend on the selected dimension. Many of
the dimensions display values that you have defined, such as values for companies, types of
groups, and accounting categories.

You may add as many dimensions as necessary to establish the posting rule condition.

Note: If you prefer that Workday flag transactions that do not match any account
posting rule conditions then leave the default ledger account blank. You might do
this; for instance, if you are anticipating that the non-matching transactions indicate
an invoice or rule error. If such is the case, it is easier to find and fix such errors
(using the View Operational Journals with Errors report) than it is to discover and
reverse journal entries in the default account.

CUSTOM VALIDATIONS

Custom validations allow you to define validation logic to control data quality on your financial
transactions. For example, one custom validation might ensure that a Supplier Invoice
transaction includes both a cost center worktag and region worktag. Another custom validation
might issue a warning when a Customer Invoice transaction doesn’t have a Course Number
worktag associated with it.

A rule defines a failed condition. If the transactional event does not meet the condition, it will
pass. The custom validation is built on the concept of a negative condition.

Custom validations can be configured as either Critical or Warning severity type. Both types are
executed when the transaction is submitted, not during data entry.

• Critical: An error is triggered and must be resolved before the user can continue.
• Warning: An alert message is triggered, but the transaction may continue.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 47
Spend for Workday 29

Using the existing Maintain Custom Validations task, you can create or edit critical errors and
warning messages for transactions based on rule conditions that you establish. When your
users perform these transactions, Workday validates them against the current custom validation
conditions.

• New Validation: You can create a new custom validation. It can generate a Critical Error
or a Warning Alert.
• Maintain Validations button: You can change or delete existing custom validations. This
will not affect existing transactions; it will only affect new transactions.

Tip: Approvers also see any warnings in the transaction they receive for review.

IMPORTANCE OF CUSTOM VALIDATIONS

Custom validations help users catch transaction issues up front. You can configure logic to
require or prevent field population, enforce specific Worktag combinations, and allow or disallow
specific values based on the value of another field based on the transaction type i.e. supplier
invoice, customer invoice, customer payment.

The financial accounting and reporting is driven by what appears on a transaction. For example,
if you know that you will run period close reports by Cost Center you will need a cost center on
every transaction that might affect period close. If you know that expense accounting is
determined by a project number, you need to make sure that a project number is included on
each supplier invoice and supplier invoice adjustment. You cannot make a field required, only
Workday can do that, but you can write a custom validation indicating to the user what must be
entered before they can complete a transaction.

You build custom validations around what you need on an account posting rule and/or what you
will need for a specific report.

Spend for Workday 29

48 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 1.10 – MAINTAIN SPEND CATEGORY

Business Case: We will define two new spend categories for use in the accounting rules and
as additional reporting dimensions.

TASK #1: MAINTAIN SPEND CATEGORY

1. Sign in as Procurement Administrator or Finance Administrator Teresa Serrano

(tserrano).

2. Enter main spe cat into the search box.

3. Choose the Maintain Spend Categories task.

4. Select the Maintain Spend Categories without Hierarchy option.

5. Click OK.

6. Add a row by clicking the Add button.

Hint: Look at the upper left corner.

Field Name Entry Value

Spend Category Name Company Logo Gear
Spend Category Usage Ad hoc Payment
Expense
Procurement
Supplier Invoice

7. Click the Add button.

Field Name Entry Value

Spend Category Name Vending Machines
Spend Category Usage Procurement
Supplier Invoice
Allocate Freight (Checked)
Allocate Other Charges (Checked)
Track Items (Checked)

8. Click OK.
Spend for Workday 29
Confidential © 2017 Workday, Inc. 49
Spend for Workday 29

9. Click Done.

Spend for Workday 29

50 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 1.11 – CREATE A PURCHASE ITEM

Business Case: GMS has determined that all executives will receive a 16 GB Tablet. Since
this item will be used often, we will be creating a new independent purchase item.
We will be creating a purchase item that is a service item for HVAC Yearly Maintenance.
We will create generic purchase items that will be tied to specific catalog items.

TASK #1: CREATE A PURCHASE ITEM

1. Sign in as Procurement Administrator or Finance Administrator Teresa Serrano

(tserrano).

2. Enter cr purch item into the search box.

3. Choose the Create Purchase Item task.

4. Enter details as follows:

Field Name Entry Value

Item Name Tablet 16 GB

Spend Category Mobile Office Assets

Default Ordering Unit of Measure Each

Unit Price 500.00

Currency USD

5. Click OK.

6. Click the Tablet 16 GB Related Actions icon, and Click Item > Update Image.

7. Select tablet.jpg in the Image field.

8. Click OK to save.

9. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 51
Spend for Workday 29

TASK #2: CREATE A SECOND PURCHASE ITEM

1. Enter cr purch item into the search box.

2. Choose the Create Purchase Item task.

3. Enter details as follows:

Field Name Entry Value

Item Name HVAC Maintenance

Spend Category Equipment Repair

Item Description Annual HVAC Maintenance

Default Ordering Unit of Measure Each

Unit Price 3000.00

Currency USD

Default as Service Request (Checked)

4. Click OK and Done.

TASK #3: CREATE THREE GENERIC PURCHASE ITEMS

1. Enter cr purch item into the search box.

2. Choose the Create Purchase Item task and enter details as follows:

Field Name Entry Value

Item Name Mug

Spend Category Company Logo Gear

3. Click OK and Done.

4. Repeat to add the following purchase item.

Field Name Entry Value

Item Name Golf Shirt

Spend Category Company Logo Gear

5. Click OK and Done.

Spend for Workday 29

52 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

6. Repeat to add the following purchase item.

Field Name Entry Value

Item Name Backpack

Spend Category Company Logo Gear

7. Click OK.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 53
Spend for Workday 29

ACTIVITY 1.12 – EDIT POSTING RULE

Business Case: We are adding the two new spend categories to accounting rules so that the
supplier invoice operational journal will be recorded to the correct expense account.

TASK #1: EDIT POSTING RULE

1. Sign in as Finance Administrator Teresa Serrano (tserrano)

2. Enter view post into the search box.

3. Choose View Account Posting Rule Set report.

4. Select the Corporate Account Posting Rule.

5. Click OK.

6. Select the Spend Posting Rule (left column).

7. Click the Edit Posting Rule button.

8. Locate the 6850 Employee Relations row and add the value of Company Logo Gear to
the already existing Spend Category list of values.

9. Locate the 1550 Furniture, Fixtures, and Equipment row and add the value of Vending
Machines to the already existing Spend Category list of values.

10. Click OK to save.

11. Click Done.

Spend for Workday 29

54 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER CONTRACTS CONFIGURATION

INTRODUCTION
You use supplier contracts to implement and leverage your company's procurement practices.
You can define preferred suppliers, implement contractual spend, negotiate and enforce
discounts and other supplier terms, and analyze spend for better control and standardization.
When you set up supplier contract types you can define business documents, catalogs, and
receiving requirements you need for supplier contracts.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 55
Spend for Workday 29

SUPPLIER CONTRACTS TOUCHPOINT DIAGRAM

Because Workday is a unified solution, you must consider the cross functional impact of certain
configuration decisions.

This touchpoints diagram provides insight into how one area of the product impacts another.
There are configuration decisions that need to be made with current and possibly future phases
of implementation in mind. Your consultants will work with you to identify and plan for these
touchpoints. Below is the touchpoint diagram representing all the touchpoints between Supplier
Contracts and other Workday functional areas.

This diagram represents the touchpoints for the current Workday release.

Spend for Workday 29

56 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CREATE SUPPLIER CONTRACT TYPES

You define your security in the Supplier Contract functional area when you navigate to Set Up:
Supplier Contracts domain.

You can configure supplier contract types to:

• Automatically generate invoices or purchase orders based on an installment schedule

you define.
• Allow manual invoices or purchase orders to be applied against the contract balance.
• Receive directly against contract lines and generate invoices from contracts instead of
issuing a purchase order for the invoice.
• Create obligations for supplier invoices that apply to contracts.
• Define multi-supplier contracts.
Once you access the Maintain Supplier Contract Types task, you can add rows for each
supplier contract type you need and select the required options.

Reminder: You must select either Manual Invoices or Scheduled Invoices for each
supplier contract type.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 57
Spend for Workday 29

Option Description
Name Specify a name that identifies the type of
contract, such as Multi-Supplier Manufacturer
Contract or Multi-Supplier Conference Event.
Scheduled Invoice Create invoices based on scheduled
installments. You cannot select scheduled
invoices for supplier contract types with
Manual Invoices or Scheduled Purchase
Orders.
Scheduled Purchase Order Create purchase orders based on scheduled
installments.
Note: You cannot select this with Manual
Purchase Orders or Scheduled Invoices.
Manual Invoices Allow manual invoices to be applied against
the supplier contract.
The Manual Invoices option allows you to
generate both purchase order and non-
purchase order invoices.
Note: You cannot select this with Scheduled
Invoices.
Manual Purchase Orders Allow manual purchase orders to be applied
against the supplier contract.
Note: You cannot select this with Scheduled
Purchase Orders or Receive Contract Lines.
Allow Catalogs Allow a link to one or more supplier catalogs
to the contract.
Receive Contract Lines Allow receipts against contract lines.
Note: You cannot select contract types with
Manual Purchase Orders or Scheduled
Purchase Orders.
Create Obligations Enables the creation of obligations used in
commitment accounting for supplier invoices
that apply to supplier contracts.

Spend for Workday 29

58 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Option Description
Multi-Supplier Enables you to define a list of suppliers to
service the contract, or you can open the
supplier contract to any supplier that
meets your criteria.
Note: The Receive Contract Lines,
Scheduled Purchase Orders, and
Scheduled Supplier Invoices options
aren't available for multi-supplier contract
types.

Note: If supplier contract lines include spend categories with the Intangible asset
tracking option, you must select Scheduled Invoices and Receive Contract Lines in the
supplier contract type.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 59
Spend for Workday 29

SUPPLIER CONTRACT TYPES EXAMPLE

Workday validates the compatibility of the options before you use contract types in supplier
contracts. Supplier contract types are available to select in supplier contracts.

Supplier Contract Types sample setup:

Spend for Workday 29

60 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

VIDEO 1.3 – SUPPLIER CONTRACTS

Introduction: Check out the next video presentation.

NOTES

Spend for Workday 29

Confidential © 2017 Workday, Inc. 61
Spend for Workday 29

SUPPLIER CATALOG
INTRODUCTION
Supplier contracts help you to implement and leverage your company's procurement practices.
You can define preferred suppliers, implement contractual spend, negotiate and enforce
discounts and other supplier terms, and analyze spend for better control and standardization.
When you set up supplier contract types you can define the business documents, catalogs, and
receiving requirements you need for supplier contracts.

CATALOG ITEMS
Catalog items are associated with a supplier contract. You can search the catalog for them from
the View Cart task. When you select these items in a requisition, Workday automatically issues
the PO to the supplier and the Buyer requisition review is bypassed.

CATALOG LOAD
Catalog items are loaded using the Catalog Load Request task, which associates the items you
load with a supplier contract.

CREATE SUPPLIER CATALOG

You can access the Supplier Catalog Work Area to manage supplier catalogs and catalog
items. To create new supplier catalogs, a supplier must be set up in Workday.

1. For each supplier catalog, you can see:

A. The Catalog Name and associated Supplier.

Spend for Workday 29

62 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

B. The Currency used for the catalog and line items.

C. The number of Catalog Items currently in the catalog.

D. The number of Supplier Contracts using the catalog.

2. To create a new catalog, click the Create New Catalog button.

3. From the Create New Catalog option, you can click Load Items to access the Catalog
Load Request task.

4. Click Load Items to update, add, or remove catalog items.

CREATE SUPPLIER CATALOGS AND LOAD CATALOG ITEMS

You must initially configure the Catalog Load business process and Self-Service: Supplier
Contract - Catalogs and Process: Supplier Catalog security policies.

CATALOG LOAD REQUEST STEPS

1. Access the Create Supplier Catalog task and specify header information including, the
Catalog Name, Supplier, and Currency.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 63
Spend for Workday 29

2. Click OK.

3. Click Load Items, or access the Catalog Load Request task.

You can use the Catalog Load Request task to manually enter items into the catalog and
associate them with a supplier contract.

Items loaded are in the catalog. You can search the catalog for them from your workcart, or you
can search for them from the Search window.

When you select these items in a requisition, Workday automatically issues the PO to the
supplier and bypasses the buyer requisition review.

1. Select the Effective Date for the catalog items you are creating, updating, or inactivating.

2. In the Default Lead Time in Days field, specify the number of days between the date the
purchase order is issued and the date the items are expected for delivery. Workday uses
the lead time you specify to calculate due dates on purchase orders.

3. Add new items, change items, and load existing items into the catalog.
Spend for Workday 29
64 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

A. To add a catalog item, enter an Item Identifier in the Catalog Items grid.

B. To change an existing catalog item, select a Catalog Item from the prompt.

Workday defaults update in the Action field, which you can override:

Action Description
Inactive The catalog item is inactive as of the effective date of the catalog load request
and cannot be selected in new requisitions or purchase orders.
No The catalog item has not changed since the last catalog load and no further
Change processing is required on the effective date.

Complete the following:

Option Description
Item Identifier Defaults from the catalog item unless it is New.
Item Name / Item Enter the Item Name and provide an Item Description.
Description
Unit Price Include the price for a quantity of 1 unit as specified in the Unit of
Measure field.
Unit of Measure Select the unit of measure, such as Each or Case.
Lead Time Enter the lead time for this catalog item if it varies from the Default
Lead Time in Days in the catalog load request header.
Item URL (Optional) Enter a URL when the supplier has a website to access
more details about the catalog item.
Spend Category Select the spend category for this item.

After the catalog load request is approved, the catalog load displays:

• Whether items are new, updated, inactive, or no change was made.

• The Price Variance Percent, if applicable.
You may then:

• Route catalog load requests for approval.

• Link the catalog to supplier contracts.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 65
Spend for Workday 29

ACTIVITY 1.13 – CREATE SUPPLIER CATALOG

Business Case: The Supplier Catalog ties the catalog items to the Supplier. Our catalog load
will add three products to our new catalog.

TASK #1: CREATE SUPPLIER CATALOG

1. Sign in as Procurement Administrator Teresa Serrano (tserrano).

2. Enter suppl cat into the search box.

3. Choose the Create Supplier Catalog task and enter the following information:

Field Name Entry Value

Catalog Name Internal Company Marketing
Supplier CorporateCloud.com
Currency USD

4. Click OK to continue.

5. Click the Load Items button.

6. Click OK.

TASK #2: CATALOG LOAD REQUEST

1. Verify the Default Lead Time in Days is 0.

2. Complete the information as follows:

Field Name Entry Value

Supplier Item Identifier GMS-MUG-WT
Item Name GMS Logo Mug White
Item Description 20 oz. logo mug
Spend Category Company Logo Gear
Unit Price 16.00
Unit of Measure Each

3. Click the Add Row icon to add a row.

Spend for Workday 29

66 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

4. Complete the information as follows:

Field Name Entry Value

Item Identifier GMS-GSH-BL

Item Name GMS Logo Golf Shirt

Item Description Large Blue Golf Shirt

Spend Category Company Logo Gear

Unit Price 28.00

Unit of Measure Each

5. Click the Add Row icon to add a row.

6. Complete the information as follows:

Field Name Entry Value

Item Identifier GMS-BPAK

Item Name GMS Logo Backpack

Item Description Black Backpack with Orange and Blue

Logo

Spend Category Company Logo Gear

Unit Price 45.00

Unit of Measure Each

7. Click Submit.

8. Click Done on the confirmation page.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 67
Spend for Workday 29

DEMO 1.2 – CREATE SUPPLIER CONTRACT

Introduction: Check out the next demonstration.

Spend for Workday 29

68 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 1.14 – CREATE SUPPLIER CONTRACT

Business Case: A new contract will be created for one of our new suppliers and supplier
catalogs. The supplier contract will be used by employees to purchase our company’s logo
products from the catalog.

TASK #1: CREATE SUPPLIER CONTRACT

1. Sign in as Buyer / Supplier Contract Specialist Teresa Serrano (tserrano).

2. Enter Create Supplier Contract into the search box.

3. Select Create Supplier Contract task.

4. Complete the information as follows:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Supplier CorporateCloud.com
Contract Type Catalog Contract
Create Blank Supplier Contract (selected)

5. Click OK to continue.

6. Complete the information as follows:

Field Name Entry Value

Contract Name CorporateCloud.com Contract

Contract Reference GMS Logo Store
Start Date January 1st of current year
Contract Signed Date January 1st of current year
End Date December 31st of current year
Currency USD

7. In the Catalog Item Pricing section select the Catalogs for Supplier > Internal
Company Marketing

8. Click Submit.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 69
Spend for Workday 29

9. Click Done on the confirmation page.

10. Sign out.

TASK #2: APPROVAL OF SUPPLIER CONTRACT

1. Sign in as Supplier Contract Specialist Arjun Bhat (abhat).

2. Open Arjun's Inbox.

3. Select the Supplier Contract.

4. Click Approve.

5. Click Done on the confirmation page.

6. Sign out.

Spend for Workday 29

70 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER CONTRACTS FOR PROCUREMENT

Supplier contracts provide a framework for defining agreements between buying organizations
and their suppliers. Supplier contracts are the counterpart of a customer contract.

The agreements with the supplier contract govern the terms of the procurement of goods and
services.

Agreement types may include:

• Leases
• Maintenance Agreements
• Purchasing Contracts
• Blanket Purchase Orders
• Licensing Rights
When contract terms change, customers can enter amendments and can optionally route them
for approval and review. Spend against Supplier Contracts is tracked, and analysis is available
through drill-downs when viewing contracts.

You can create supplier contracts with specified items, payment terms, and other details. Then
you can order goods and services against the contract and the terms follow the order from
requisition to payment.

Supplier contracts document the operational details of supplier agreements such as

procurement items or deliverable services, contract start and end dates, invoice and purchasing
schedules. The solution also manages each step of the contract lifecycle from draft to
completion. Contracts can be routed for approval for optimal control.

CONTRACT TYPES
The contract types allow you to manage your contracts in accordance to your contract terms,
such as scheduled invoicing, scheduled purchasing, and renewal terms.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 71
Spend for Workday 29

You can configure contract types that best suit your needs. Options include:

• Generating supplier invoices or purchase orders based on a schedule.

• Allowing manually created invoices or purchase orders against a contract.
• Linking supplier contracts to catalogs.
• Receiving directly against a contract without purchase order.
• Creating obligations related to commitment accounting.
• Multi-supplier for consortium procurement.
• Renewal terms for automatic supplier contract renewals.

RELATED BUSINESS DOCUMENTS

Business Uses
Document
Requisition A written order or formal demand created by users and directed to a
company’s purchasing department. It generally includes items, brands or
models, descriptions, and quantities.
Purchase A buyer-generated document that authorizes a purchase transaction. When
Order accepted by the seller, it becomes a contract binding both parties.
Supplier A commercial document issued by a supplier to a buyer, relating to a sales
Invoice transaction and indicating the products, quantities, and agreed prices for
goods or services the seller has provided the buyer.

Spend for Workday 29

72 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Business Uses
Document
Receipt Formal, written acknowledgment that something of value has been received.
Catalog The list of items you can buy from a certain supplier; includes the cost of the
item.
Return Numbered authorization provided by a (usually distant) seller to permit the
buyer to return an item for refund. Creates Supplier Invoice Adjustment if
already paid for.

SUPPLIER CONTRACT WITH SCHEDULED PURCHASE ORDERS OR INVOICES

The chart above is a beginning-to-end process flow that illustrates creating a supplier contract
and creating a purchase order or invoice based on a schedule.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 73
Spend for Workday 29

SUPPLIER CONTRACT
First, you create a supplier contract. Then, there is a business process for the approval of the
supplier contract. Once the supplier contract is approved, you can then create schedules.

SCHEDULE
From the schedules, you can generate installments for your supplier contract. For example, you
may have a twelve-month lease and the schedule has terms where you pay monthly on the
15th. There are twelve installments through the end of a calendar year. You can spread even
the amount for each of the monthly installments. If you have custom installments, you can
maintain installment amounts. There is a business process for approving the schedule, including
the installments for further review and approval.

PURCHASE ORDERS AND INVOICES

Once you have an approved schedule, you can then generate the business documents from the
installments. These documents are either purchase orders or supplier invoices. You can
schedule them to be created on a regular basis.

Spend for Workday 29

74 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER CONTRACT AMENDMENT WITH SCHEDULES

The chart above is a beginning-to-end process flow that illustrates creating a supplier contract
amendment and updating the corresponding purchase order or invoice schedule.

SUPPLIER CONTRACT AMENDMENT

If you create a supplier contract amendment there is business process in place for approval.
Once the amendment is approved a new version of the contract is created.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 75
Spend for Workday 29

SCHEDULE
You then can regenerate installments, because the amounts may have changed when the
amendment was created. You may also have to delete some unused installments and create
new ones.

PURCHASE ORDERS AND INVOICES

Once you have an approved schedule, the process then flows all the way to the creation of the
business documents.

SUPPLIER CONTRACT LINE RELATIONSHIPS

The chart above shows the relationships of all the parts of a supplier contract line and how they
fit together; it shows a supplier contract that has three different contract lines.

MULTIPLE SCHEDULES FOR A SUPPLIER CONTRACT

Once the contract is approved, you can create multiple schedules for the same contract. For
example, Contract Line 1 and Contract Line 2 will get applied to Schedule 1. However, Contract
Line 3 gets applied only to Schedule 2. In this example, perhaps Contract Line 1 and Contract
Spend for Workday 29
76 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Line 2 require purchase orders to be generated weekly, whereas Contract Line 3 is for goods
that are only ordered once a month.

You can have a single installment line or use multiple lines depending on the schedule.

BUSINESS DOCUMENT GENERATION

When you create your purchase order or invoice, it will have the same number of lines reflected
in whatever was defined in the installment line generation.

BUSINESS PROCESSES
Supplier Contract
• Supplier Contract Event Business Process
• Supplier Contract Amendment Business Process
Supplier Invoice/Purchase Order Schedules
• Supplier Contract Invoice Schedule Business Process
• Supplier Contract Purchase Order Schedule Business Process

Spend for Workday 29

Confidential © 2017 Workday, Inc. 77
Spend for Workday 29

ACTIVITY 1.15 – AMEND SUPPLIER CONTRACT

Business Case: An amendment for the new contract will be created.

TASK #1: CREATE SUPPLIER CONTRACT AMENDMENT

1. Sign in as Buyer / Supplier Contract Specialist Teresa Serrano (tserrano).

2. Enter find suppl contr into the search box.

3. Select the Find Supplier Contracts report.

4. Complete the information as follows:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Supplier CorporateCloud.com

5. Click OK.

6. From the Supplier Contract Related Actions select Supplier Contract > Amend
Supplier Contract.

7. Complete the information as follows:

Field Name Entry Value

Amendment Type Extension

Amendment Date Today’s Date
End Date December 31st of next year

8. Click Submit to save.

9. Expand the Details and Process section to review your work.

10. Click Done on the confirmation page.

11. Sign out.

Spend for Workday 29

78 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

TASK #2: APPROVAL OF SUPPLIER CONTRACTS BY CONTRACT SPECIALIST

1. Sign in as Supplier Contract Specialist Arjun Bhat (abhat).

2. Open Arjun's Inbox.

3. Review the action for the contract.

4. Click Approve.

5. Click Done on the confirmation page.

6. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 79
Spend for Workday 29

ACTIVITY 1.16 – VIEW SUPPLIER CONTRACT

Business Case: An existing contract with Staples is used with Punchout. The supplier
contract is used by employees to purchase goods through Punchout.

TASK #1: FIND SUPPLIER CONTRACTS

1. Sign in as a Buyer / Supplier Contract Specialist (tserrano).

2. Enter fi suppl contr into the search box.

3. Choose the Find Supplier Contracts report.

4. Complete the information as follows:

Field Name Entry Value

Supplier Staples
Status Approved

5. Click OK.

6. Click the magnifying glass for the CON-1056: Staples purchase contract.

7. Review the contract information.

8. Repeat the steps for Dell, CON-1099: Dell Master GMS USA contract.

Spend for Workday 29

80 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SCHEDULES AND INSTALLMENTS FOR SUPPLIER CONTRACTS

You can create supplier contract schedules and set up installments to generate purchase orders
or supplier invoices on a scheduled basis.

Tip: You can create multiple schedules for each supplier contract. For example, you can
associate different lines with different schedules and group multiple lines for another
schedule.

SUPPLIER CONTRACTS WITH CONTRACT TYPES THAT ALLOW FOR SCHEDULED

INVOICES
If you choose a contract where the schedule invoice is checked, you see a group box where you
can define Supplier Invoice Defaults that you create on a schedule; they can be overwritten later
if necessary.

SUPPLIER CONTRACTS WITH CONTRACT TYPES THAT ALLOW FOR SCHEDULED

PURCHASE ORDERS
If you choose a contract type that allows for purchase order schedules, you can specify PO
defaults. You can identify the Bill-To or Ship-To address information that defaults onto the
purchase order.

SUPPLIER CONTRACT SCHEDULES AND INSTALLMENTS

The system supports supplier contract schedules for Purchase Order or Supplier Invoice
schedules.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 81
Spend for Workday 29

SCHEDULE METHODS: CUSTOM, SPREAD EVEN, DEFINED INSTALLMENTS

Select a Method for the contract installments:

Option Description
Custom Select to custom define your own installments.
Defined Select to specify the First and Last installments amounts and subtract those
Installment from the total of the lines you include in the schedule. Divide the remaining
balance of the contract lines total included in this schedule by the remaining
installments and enter that amount in the Regular field.
Spread Workday divides the total amount or quantity by the number of installments
Even and equally distributes the total to each installment.
Select Spread Even to enable automatic processing of supplier contract
schedules and installments after supplier contract amendments are
approved.

DISTRIBUTED BY QUANTITY OR AMOUNT

For purchase orders, you can distribute by quantity only (amount based schedules are not
supported). For supplier invoices, you can distribute by quantity or amount.

Note: Supplier Invoice Lines generated for amount-based schedules will not have a
Quantity or Unit Cost.

DEFINE FREQUENCY, SCHEDULE FROM DATE, AND NUMBER OF INSTALLMENTS

Select a Frequency for generating installments, such as Quarterly or Monthly. You can identify
at what intervals you want to generate the installments. You can specify a From and To date, or
just a From Date and the number of installments to generate. They do not need to be done all at
once.

In the From Date field, select a date to start generating installments. Select one of the following:

Option Description
Number of Specify the total number of installments for this contract schedule. Once the
Installments total number of installments is reached, no further installments can be
generated.
To Date Enter the date when installments are to be completed for this schedule.
Additional installments cannot be generated after this date.

Spend for Workday 29

82 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

DEFINE DATE OPTIONS

Define the date on the document that you want use for scheduling the purchase order or
invoice. You can specify, for example, the 15th of each month. This does not need to coincide
with the installment date, so you can pick a document date for the resulting business
documents.

Option Description
Defined • Contract Line Start Date
Date
If multiple contract lines are in the schedule, Workday uses the earliest start date
from the contract lines.
• Contract Signed Date
• Contract Start Date
• Receipt Date
If multiple receipts are applied to supplier contract lines, Workday uses the
earliest receipt date.
• Schedule From Date
• Schedule To Date

Day of Select a day to generate installments each month.

Month For example, select 10 to generate installments on the tenth of each month.

OVERRIDE DEFAULTS FOR SUPPLIER INVOICES OR PURCHASE ORDERS

When you create a schedule, you have an opportunity to create or override defaults for the
resulting supplier invoices or purchase orders. For example, there may be a subset of purchase
orders or invoices where you want something to change that may not have been defined in the
contract. This provides additional flexibility.

DEFINE AUTO-SUBMIT OPTION FOR POS/INVOICE

You can specify on the schedule whether you want to send the invoice or PO into the business
process depending on whether you mark the checkbox. If it is not checked, the documents will
get generated in draft mode. Typically, you do not want to have to touch all the resulting
documents and then submit them, so using auto-submit expedites the process for you.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 83
Spend for Workday 29

ADD CONTRACT LINES

You can also add specific contract lines to your schedule by marking the Add Contract Lines
checkbox.

You can define multiple schedules for supplier contracts and include different lines on each
schedule.

INSTALLMENTS
You can generate installments and re-generate them if edits are required.

• Use the Define Installments button for the Defined Installments schedule method.
• Use the Generate Installments button for Spread Even schedule method.
• Use the Customize Installments button for Custom schedule method.
• Click Submit to send the schedule with installments for approval.
o Schedules can be edited and installments can be regenerated if related POs or
Invoices have not yet been created.
o Canceled POs and Invoices will not prevent regeneration of installments.

INSTALLMENTS – SPREAD EVEN EXAMPLE

If you use the spread even method to generate installments, the system does everything for
you.

• Review generated installments for Spread Even.

• For Defined Installments, define Regular, First and Last Installment.
• For Custom, define all installments.

Spend for Workday 29

84 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ADDITIONAL NOTES
• After the supplier contract schedule is approved, installments are available to create
supplier invoices or purchase orders.
• If you selected Schedule on Hold, your invoices or purchase orders are scheduled but
not available to process.
• When supplier invoices are generated from contract installments, Workday extends tax
details from supplier contact lines to the invoice lines.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 85
Spend for Workday 29

CHAPTER 1 KNOWLEDGE CHECK

Please complete the Procurement and Supplier Management quiz in the Workday Learning
Center.

Spend for Workday 29

86 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 2 – PROCESS PROCUREMENT

OVERVIEW
Currently, companies are more service oriented and therefore ‘people’ based. Workday has
responded to that shift by providing a ‘shopping’ look and feel to entering a requisition, which
can then be automatically routed for management review and approval. Workday’s Procurement
solution provides the ability to procure deliverable services and contingent labor in addition to
goods. These types of spend have unique aspects, therefore each type of spend has a unique
document layout, as well as unique matching. A receipt for goods is the equivalent of a task log
for deliverable services or a timesheet for contingent labor.

Workday Procurement delivers built-in spend analytics that give you full visibility into your
organization's spend.

OBJECTIVES

By the end of this chapter, you will be able to:

• Identify the requisition process.

• Define unions between requisitions and workcart concepts.
• Describe the differences of requisitioning based on deliverable services versus goods.
• Explain requisition template options.
• Identify the steps in sourcing a requisition from storage.
• Explain configuration considerations for storage.
• Describe the purchase order issue event process.
• Explain an evaluated receipt settlement.
• Explain limits and constraints of returning goods to suppliers.
• Describe the agreements types that govern the terms of a supplier contract.
• Identify ways that supplier contracts can be configured.
• Explain various process flows that illustrate supplier contract creation to business
document creation.
• Identify ways that Workday Procurement supports the end to end business process for
contingent labor spend.
• Explain how to create a job requisition for a contingent worker.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 87
Spend for Workday 29

OVERVIEW

•Workcart
•Punchout
Requisition •Search Catalog
•Ad Hoc Requests
•Copy Template or Existing Requisition

Purchase •Source from Requisition

Order •Internally Source
•Create Purchase Order
and Issue

Receive •Receive Goods

•Copy from Purchase Order

Invoice •Copy from Receipt
•Self Billing

SECURITY GROUPS
A requisition can be created by anyone in the company unless otherwise restricted.

The worker’s manager and the cost center manager can review and approve the requisition.
Other forms of approval can be configured based on amount or category of spend. For example,
IT Equipment may require approval from an IT Specialist while services may require approval
from the project manager.

BUSINESS PROCESSES
• Requisition Event
• Source from Storage Event
• Receipt
• Receipt Accrual Event

Spend for Workday 29

88 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

REQUISITIONING GOODS OVERVIEW

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment
REQUISITION AND WORKCART CONCEPTS
Creating a requisition for goods or deliverable services starts with your workcart. As you select
goods and services from various places, they are listed in the workcart. You can request
physical goods (such as a chair), contingent workers (contract workers), or deliverables services
(such as a new website) for yourself or on behalf of another worker.

When all the items you want to request are in your workcart, you can "check out" to generate
the requisition. You can remove items from your workcart or close it at any time without creating
a requisition, and return to it later. When you click the Checkout button, all the items in your
workcart are moved into a new requisition. You can edit, save, or process the requisition.

To request contingent worker services, use the Job Requisitions option.

CHECKOUT
The Checkout button creates a requisition from the entries in your workcart and empties your
workcart.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 89
Spend for Workday 29

SEARCH CATALOG
Use this option to search your own organization's catalog of available goods as well as supplier
catalog items.

PUNCHOUT
Supplier Punchout connects you to a supplier's website so that you can browse the supplier's
catalog, select items to purchase, and bring the items back into your workcart without leaving
Workday. When you click the Punchout link from your workcart, Workday opens the supplier
website and displays the catalog items that are applicable to your company. After you make
your selections and complete your order, Workday adds the items to your workcart. When you
have returned to the workcart, you can either connect to another supplier catalog or check out of
the workcart. After you create a requisition from the Punchout session and generate a purchase
order, Workday sends a cXML (commerce eXtensible Markup Language) version of it directly to
the supplier.

Two integration systems facilitate end-to-end procurement for each Punchout supplier. A single
integration establishes a connection from Workday to the Punchout catalog on the supplier's
website, and the other integration submits purchase orders to the supplier based on your
requisitions.

You can select from Workday's preconfigured Punchout suppliers or create Punchout
integrations with the suppliers of your choice. Suppliers in the Workday list include: CDW, Dell,
Guest Supply, and Staples.

Generic integration templates are available for you to create integrations to other suppliers who
support the Punchout standard.

CONNECT TO SUPPLIER WEBSITE

If you have set up connections to supplier websites, you can select this option to access one of
their catalogs, select items to purchase, and return them to your workcart.

AD HOC REQUISITION
The Ad Hoc option is used when the item requested is not a standard item found in a catalog. If
you do not know all the details, the buyer can fill them in later when processing the requisition.

TEMPLATE AND COPY

Requisition templates make the process for requisitioning goods and services simpler, faster,
and more manageable.
Spend for Workday 29
90 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

REQUISITIONING DELIVERABLE SERVICES

Services spend visibility is often lost in the details of Accounts Payable. Workday Procurement
supports the end-to-end business process for Services Spend providing far more visibility into
how your organization acquires and consumes services.

Deliverable services are based on projects. Typically, they would be used in situations where
you want to track service projects based on tasks completed.

The requisition, purchase order, and invoice will have a layout that is geared toward project
information rather than goods.

•Workcart
Requisition •Request Deliverable Services

Purchase
•Source from Requisition
Order •Create Purchase Order
and Issue

Receive •Log Time and Tasks

•Copy from Purchase Order

•Copy from Task Log
Invoice •Self Billing (ERS)
•Supplier Invoice Workbench

Spend for Workday 29

Confidential © 2017 Workday, Inc. 91
Spend for Workday 29

REQUISITION DELIVERABLE SERVICES PROCESS FLOW

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

A deliverable services requisition can begin with the workcart, or by navigating directly to the
Request Deliverable Services task. All requisitions and purchase orders are associated with
projects.

SECURITY ROLES
• Services Coordinator - Perform services sourcing functions for assigned organizations.
Examples include requisitions, purchase orders, and receipts. Has approval authority for
procurement business processes.
• Supplier as Self - Perform self-service supplier tasks such as load catalog, approve
purchase orders, and log time and tasks.

Spend for Workday 29

92 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

REVIEW REQUISITION BUSINESS PROCESS

1. Enter bp: requisition into the search box.

2. Choose the Requisition Event for Global Modern Services, Inc. (USA) task.

3. Review steps.

4. Click the View Diagram button to view the steps in a flowchart.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 93
Spend for Workday 29

ACTIVITY 2.1 – REQUISITION GOODS VIA

PUNCHOUT

Business Case: Using an existing supplier, we will order an item via punch-out, allowing us
to browse their online catalog for items we can purchase from Staples while displaying our
corporate pricing.

TASK #1: REQUISITION GOODS VIA PUNCHOUT

1. Sign in as Employee Jared Ellis (jellis).

2. Enter vie car into the search box.

3. Choose the View Cart task.

4. Click OK.

5. Click the Connect to Supplier Website link.

6. Click the Connect button for Staples.

7. Enter docking station into the Staples search box.

8. Select any Docking Station.

9. Click the Add button.

10. Click the Review & Checkout button.

11. Click the Submit Order button.

12. The Workday View Cart appears. Click Checkout.

13. Review the line item and details. Click the Next button to advance through the Shipping
Address, Information, Attachments, and Line Defaults tabs.

14. On the Review and Submit tab, note the Spend Category in the Goods region is empty.
Enter Computer Accessories in the field.

15. Click Submit.

16. Expand the Details and Process section. Review the Details and Process tabs.

17. Click Done.

Spend for Workday 29

94 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

18. Sign out.

TASK #2: APPROVAL OF GOODS REQUISITION

1. Sign in as Manager Anthony Rizzo (arizzo).

2. Open Anthony’s Inbox.

3. Select the Requisition.

4. Click Approve.

5. Click Done.

6. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 95
Spend for Workday 29

ACTIVITY 2.2 – ADD NEW SPEND CATEGORIES

Business Case: We need to add the new spend categories to segmented security to
request them.

TASK #1: SEGMENT SECURITY - SPEND CATEGORY

1. Sign in as Procurement Administrator Teresa Serrano (tserrano).

2. Enter ed req sec seg into the search box.

3. Choose the Edit Requisition Spend Category Security Segment task.

4. Select Requisition Spend Category Security Segment > Unrestricted Spend

Category Segment.

5. Click OK.

6. Add the following Spend Categories to the list: Company Logo Gear; Vending
Machines.

7. Click OK to save.

8. Click Done on the confirmation page.

9. Sign out.

Spend for Workday 29

96 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.3 – REQUISITION PURCHASE ITEMS

Business Case: The IT department is purchasing new tablets for executives.

TASK #1: REQUISITION PURCHASE ITEMS

1. Sign in as employee Jared Ellis (jellis).

2. Enter vie car into the search box.

3. Select the View Cart task.

4. Click OK.
Note: If the OK button is not visible, select Continue Shopping > Search Catalog from
the dropdown list.

5. Click Search Catalog.

6. Enter tablet in the field and click the Search button .

7. Select the Tablet 16 GB to add the item to the Cart.

8. Click Add to Cart and OK.

9. Click the Cart icon.

10. Click Checkout.

11. Change Ship To Address to the 3939 The Embarcadero San Francisco address (from
the Shipping Address tab).

12. Click the Review and Submit tab to: Change Quantity to 5 and change the Deliver To:
San Francisco and Location: San Francisco.

13. Click Submit.

14. Expand the Details and Process section. Notice an approval is needed.

15. Click Done.

16. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 97
Spend for Workday 29

TASK #2: APPROVAL OF GOODS REQUISITION

1. Sign in as Manager Anthony Rizzo (arizzo).

2. Open Anthony’s inbox.

3. Review Jared’s requisition.

4. Click Approve.

5. Click Done on the confirmation page.

6. Sign out. We will source the requisition later.

Spend for Workday 29

98 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

DEMO 2.1 – REQUISITION GOODS VIA PUNCHOUT

Introduction: Check out the next demonstration.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 99
Spend for Workday 29

ACTIVITY 2.4 – REQUISITION NON-CATALOG ITEM

Business Case: The non-catalog option is used when the item being requested is not a
standard item found in a catalog. Facilities will be making a one-time request for a snack
machine.

TASK #1: REQUISITION NON-CATALOG ITEM

1. Sign in as Employee James Mason (jmason).

2. Enter vie car into the search box.

3. Select the View Cart task.

4. Click OK.

5. Click the Request Non-Catalog Items link.

6. Complete the information as follows:

Field Name Entry Value

Item Description Snack Machine with Credit Card Swipe

Spend Category Vending Machines
Supplier Tri Valley Vending
Quantity 1
Unit Cost 5000.00
Unit of Measure Each

7. Click Add to Cart. Click OK.

8. Click the Cart icon. Click Checkout.

9. On the Review and Submit tab, change Cost Center Worktag to 34100 Office
Catering.

10. Verify Additional Worktags:

A. Location: San Francisco

B. Region: US - West

11. Click Submit.

Spend for Workday 29
100 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

12. Click Done on the confirmation page.

13. Sign out.

TASK #2: APPROVAL OF GOODS REQUISITION

1. Sign in as Manager Catherine Gibson (cgibson).

2. Open Catherine’s Inbox.

3. Review the requisition.

4. Click Approve.

5. Click Done.

6. Sign out. We will source the requisition later.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 101
Spend for Workday 29

ACTIVITY 2.5 – CREATE REQUISITION WORKTAGS

TEMPLATE

Business Case: Create a requisition worktag template to use on requisitions for default
worktags.

TASK #1: CREATE A REQUISITION WORKTAGS TEMPLATE

1. Sign in as a Buyer (tserrano).

2. Enter cr req work templ into the search box.

3. Choose the Create Requisition Worktags Template task.

4. Enter the following:

Field Name Entry Value

Template Name Facilities

Create Worktags Template (Checked)
Cost Center 34000 Facilities
Additional Worktags Location: San Francisco
Region: Headquarters - Corporate

5. Click OK to save.

6. Click Done.

7. Sign out.

Spend for Workday 29

102 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.6 – REQUISITION GOODS FROM A

CATALOG

Business Case: Rachel Knight's Administrative Assistant will purchase company logo gear
from the new catalog.

TASK #1: REQUISITIONING CATALOG ITEMS

1. Sign in as Employee Aidan Mitzner (amitzner).

2. Enter cr req into the search box.

3. Choose the Create Requisition task.

4. Click OK.

5. Click the Search Catalog link.

6. Select the Internal Company Marketing catalog.

7. Select the checkboxes for all three items: GMS Logo Mug White; GMS Logo Golf Shirt
Blue; GMS Logo Backpack. (May use the Select All checkbox).

8. Click the Add to Cart button. Click OK.

9. Click the Cart icon. Click Checkout.

10. On the Review and Submit tab, in the Goods region change Quantity of all three rows
to 10.

11. Verify Location and Region Worktags:

Location = New York
Region = Headquarters - Corporate

12. Click Submit.

13. Expand the Details and Process section.

14. Click Done.

15. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 103
Spend for Workday 29

TASK #2: APPROVAL OF GOODS REQUISITION

1. Sign in as Rachel Knight (rknight).

2. Open Rachel's Inbox.

3. Select the Requisition.

4. Click Approve.

5. Click Done.

6. Sign out.

Spend for Workday 29

104 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

REQUISITION TEMPLATE
CREATE A REQUISITION TEMPLATE
You can create requisition templates when you plan to requisition the same goods repeatedly.

Use the Requisition Templates report to see a list of available templates. This report lists all the
templates that you created, plus any shared templates that can be seen by your user account or
security groups you are in, along with templates that are visible to everyone.

CREATE A REQUISITION TEMPLATE TASK

By default, this task is available to all employees so they can each create their own templates
for their own repeat requisitions. Only the creator can see a requisition template created with
this task.

Tip: Punchout items cannot be included in templates or copies of requisitions. Users

must add Punchout items to their final requisitions manually to get the most up-to-
date items and prices.

Access the Create Requisition Templates task.

Provide a suitable Requisition Template Name.

Choose the currency in which the items in

this requisition are priced.

On the Goods Line tab, use the plus icon to add

a line.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 105
Spend for Workday 29

Column Description
Item Specify (or create) the item for this line.
Item Specify the item description if the line is for an ad hoc item.
Description
Spend Specify a spend category if the purchase item does not fill one in
Category automatically.
Supplier Specify the supplier. If you choose a supplier with whom your company has
a contract, your request bypasses the buyer and goes straight to the
supplier after the requisition is approved. All goods requests with a non-
contract supplier go through a buyer before being issued to a supplier. If
you do not choose a supplier on a requisition, the buyer will.
Quantity Specify the quantity.
Unit of Specify the units of measure. For items that are individual units, use Each.
Measure
Unit Cost Specify the cost per unit of measure.
Extended The extended amount is automatically calculated from the quantity and unit
Amount cost.
Memo You can optionally add a memo for each line item.
Worktags Specify appropriate worktags.
Splits Specify appropriate split information.

CREATE SHARED REQUISITION TEMPLATE TASK

By default, this task is restricted to select users to control the proliferation of public templates.
These templates enable you to set who has access, but the creator can always see a requisition
created with this task.

One difference for this task is the option to specify a job profile in the New Hire Template for Job
Profile field. You can specify one or more job profiles and use this template whenever you are
creating a requisition for a worker with that job profile.

The other difference is a set of Template Access options, which are not available on the other
task. The options are:

Spend for Workday 29

106 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Public •The template is available to everyone.

Security •You can select one or more security groups whose members
have access to this template.
Group

•You can select one or more users who have access to this
User template.

Not •The template is only available to the creator.

This creates a template like those created with the Create
Shared Requisition Template task.

Tip: Keep in mind when creating templates and copies of requisitions that the prices
in the original requisition are not dynamically updated to match supplier price
changes. As the template or copy ages, its prices might become inaccurate. You
should remind users to check and update prices before using requisitions made
from templates or copied from older requisitions.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 107
Spend for Workday 29

ACTIVITY 2.7 – CREATE A REQUISITION TEMPLATE

Business Case: Typically building access cards and VPN Tokens are purchased together
and provided to new employees and contract workers. A template will ensure all items are
included while simplifying requisitioning.

TASK #1: CREATE A REQUISITION TEMPLATE

1. Sign in as Buyer Teresa Serrano (tserrano).

2. Enter cr sh templ into the search box.

3. Select the Create Shared Requisition Template task.

4. Verify that the Company is Global Modern Services, Inc. (USA).

5. Enter Access Cards in the Requisition Template Name field.

6. Verify that the Registered Currency is USD.

7. Select the Public radio button.

8. Click the Add Row icon in the Goods Lines section and enter the following:

Field Name Entry Value

Item Secure Building Access Card

Quantity 1

9. Click the Add Row icon and enter the following:

Field Name Entry Value

Item VPN Token

Quantity 1

10. Click OK.

11. Click Done.

12. Sign out.

Spend for Workday 29

108 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.8 – CREATE A REQUISITION FROM A

REQUISITION TEMPLATE

Business Case: Enter a requisition for a newly hired employee using the requisition
template.

TASK #1: CREATE A REQUISITION FROM A REQUISITION TEMPLATE

1. Sign in as Employee Christine Nguyen (cnguyen).

2. Enter view cart into the search box.

3. Choose the View Cart task.

4. Click OK.

5. Click the Add From Templates and Requisitions link.

6. Select the New Hire Requisition Templates.

7. Click Add to Cart.

8. Click the Trash Can icon associated with the Secure Building Access Card.

9. Click Checkout.

10. Click Line Defaults link.

11. Select the Use Default Worktags option.

12. Verify the following:

Spend for Workday 29

Confidential © 2017 Workday, Inc. 109
Spend for Workday 29

Field Name Entry Value

Cost Center 34000 Facilities

Additional Worktags Location: San Francisco
Region: Headquarters - Corporate

13. Click Next.

14. Click Submit.

15. Expand the Details and Process section.

16. Click Done.

17. Sign out.

TASK #2: APPROVAL OF GOODS REQUISITION

1. Sign in as Manager Maximilian Schneider (mschneider).

2. Open Maximilian's Inbox.

3. Review the requisition.

4. Click Approve.

5. Click Done on the confirmation page.

6. Sign out. We will source the requisition later.

Spend for Workday 29

110 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SOURCING GOODS AND SERVICES

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Purchase orders are issued to suppliers for goods and services for fulfillment.

A purchase order is created by either:

• Sourcing a requisition.
• Independently creating a standalone Purchase Order without a requisition.
A goods requisition is automatically sourced if you use a catalog item or Punchout item,
because these items are associated with a supplier that has a contract with your company.
When sourcing a requisition, buyers and service coordinators can choose to source only some
of the lines in the requisition, leaving the others to be completed later.

SOURCING REQUISITIONS FOR GOODS

Approved requisitions can be automatically sourced if all the goods are being purchased
through a supplier contract.

Generally, buyers review requests for goods that are not automatically sourced and services
coordinators review requests for services.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 111
Spend for Workday 29

The reviewer must:

• Specify a supplier, if there isn't one.

• Specify a fulfillment source (whether the goods will be provided via a purchase order or
internally). If you fulfill the requisition internally, the process ends here; otherwise, you
must issue a purchase order to the supplier.

SOURCING A REQUISITION FROM STORAGE

Requisition using the Workcart Checkout

1. Search for and select Create Requisition.

2. Verify that the Company and Requester fields are correct, and then click OK.

3. Click Search Catalog.

4. Enter the appropriate search criteria for the requisition you are searching for. You can
search for multiple items if you wish.

5. Click Search. Your search results appear.

6. Mark the Add checkbox next to the item.

7. Click the Checkout button when done. Upon checkout, the items in the workcart display
on the requisition.

8. Enter appropriate information in the Supplier and Quantity fields.

9. Change the Ship-To Address field to the storage location that was selected in the
purchase order. This identifies sourcing from storage.

10. Click Submit. Depending on your business process, you may have an approval step.
The approval of the requisition leads to the next task, the sourcing of goods.

SOURCING GOODS REQUISITIONS

After receiving manager approval, an approval step is required by the buyer that has been
designated through your system setup. The buyer will receive an alert in her inbox and then can
view the Source Goods Requisition page.

Spend for Workday 29

112 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SOURCING SERVICES
Generally, a services coordinator reviews and sources requests for deliverable services. Then,
the reviewer must check the service requisition lines for each line that you want to source. You
can choose to source only some of the lines in this requisition, leaving the rest to be completed
later. If the service request is to be internally sourced, the process stops here, otherwise you
must manually source services requests.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 113
Spend for Workday 29

ACTIVITY 2.9 – CREATE PURCHASE ORDER

Business Case: Purchase IT equipment and supplies on a purchase order without a

supporting requisition.

TASK #1: CREATE PURCHASE ORDER

1. Sign in as Buyer Sherry Voigt (svoigt).

2. Enter cr purch ord into the search box.

3. Choose Create Purchase Order task and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Supplier Hewlett Packard

4. Select the Create Blank Purchase Order radio button.

5. Click OK.

6. Change Ship To Address to the Chicago address.

7. Note the Default Tax Code of Chicago (10.25%).

8. Click the Add Row icon to add a row to the Goods Lines.

9. Enter the information as follows:

Field Name Entry Value

Item HP Pro Liant DL500 Rack Mount Server

Quantity 2

Location Chicago

Cost Center 61100 IT Services Mgmt

10. Click the Add Row icon to add a row to the Goods Lines.

11. Enter the information as follows:

Spend for Workday 29

114 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Field Name Entry Value

Item Printer Toner

Quantity 3

Location Chicago

Cost Center 61100 IT Services Mgmt

12. Click Submit.

13. Click Done.

14. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 115
Spend for Workday 29

CONFIGURATION CONSIDERATIONS FOR SOURCING

You should consider the following when configuring for sourcing goods from storage.

LOCATION AND LOCATION HIERARCHY

Edit Location
Sourcing goods from storage requires locations. You can create locations and location
hierarchies to fit your business needs. For each location, select Business Asset and Business
Site in the Location Usage field. The two fields are required for sourcing goods from storage.

STORAGE LOCATION HIERARCHY

If you have configured location hierarchies, you can use the Storage Location Hierarchy task to
view the entire hierarchy.

SOURCE FROM BUSINESS PROCESS

Consider configuring the Source from Storage business process. The process is required. A
default business process is delivered.

BUSINESS PROCESS SECURITY: SOURCE FROM STORAGE EVENT

Also, consider configuring the Source from Storage business process security. It is required to
identify who can perform actions and edits.

To access this security:

Spend for Workday 29

116 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

1. Search for and select the Business Process Security Policies for Functional Area report.

2. Enter Business Asset Tracking in the Functional Area field.

3. Click OK.

4. Select Source from Storage Event.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 117
Spend for Workday 29

ACTIVITY 2.10 – MANUALLY SOURCE A

REQUISITION

Business Case: View purchase orders that were automatically sourced. Source remaining
two items manually.

TASK #1: FIND PURCHASE ORDERS

1. Sign in as Buyer Teresa Serrano (tserrano).

2. Enter find purch ord into the search box.

3. Choose the Find Purchase Orders report and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Document Date On or After Today’s date

4. Click OK.

5. Review the purchase orders. Have the requisitions that were created already been
sourced to a PO?

TASK #2: MANUALLY SOURCE A REQUISITION (VENDING MACHINE)

1. Open Teresa's Inbox.

2. Click James Mason's requisition ($5000) and enter the following:

Field Name Entry Value

Fulfillment Source Purchase Order

Supplier Tri Valley Vending

3. Click OK.

4. Expand the Details and Process section.

5. In the Sourced column of the Goods Line table, click the Purchase Order – Line 1 link.

6. Click the Purchase Order link.

Spend for Workday 29

118 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

7. Review the Purchase Order.

TASK #3: MANUALLY SOURCE A REQUISITION (TABLET)

1. Open Teresa's Inbox.

2. Click Jared Ellis' requisition ($2500) and enter the following:

Field Name Entry Value

Fulfillment Source Purchase Order

Supplier Corporate Express

3. Click OK.

4. Expand the Details and Process section.

5. In the Sourced column of the Goods Line table, click the Purchase Order – Line 1 link.

6. Click the Purchase Order link.

7. Review the Purchase Order.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 119
Spend for Workday 29

ACTIVITY 2.11 – SOURCE FROM STORAGE USING

REQUISITION SOURCING CONSOLE

Business Case: View requisitions that need to be sourced via the Requisition Sourcing
Console.
The newly requisitioned item (iPad) was previously purchased and exists in storage
locations. Teresa sources the iPad from storage, a purchase order will not be created.

TASK #1: VIEW ITEMS BY LOCATION

1. Sign in as a Buyer (tserrano).

2. Search for and select the Items by Location report.

3. Click OK. Explore the items stored in locations.

TASK #2: REQUISITION SOURCING CONSOLE TO MANUALLY SOURCE ITEMS

FROM STORAGE

1. Sign in as a Buyer (tserrano).

2. Enter req sour con into the search box.

3. Choose the Requisition Sourcing Console report and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Requisition Date On or After Monday of this week

4. Click OK.

5. To source Christine's New Hire requisition click on the Open button for the requisition.

6. Select the iPhone row to source, and enter the following:

Field Name Entry Value

Fulfillment Source Purchase Order

Verify Supplier AT&T

Spend for Workday 29

120 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

7. Select the iPad row to source.

8. Select Storage as the Fulfillment Source.

9. Click OK to save.

10. Click Open on the Source from Storage task.

11. Select the first business asset.

12. Change the Issue To field to Amanda Baker.

13. Remove all the Additional Worktags.

14. Click OK and Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 121
Spend for Workday 29

PURCHASE ORDERS

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Purchase orders must be issued to receive the goods or create an invoice.

Workday initiates the Purchase Order Issue Event business process to route purchase orders
using the issue option you specified.

When purchase order issue events are approved, Workday sends email notifications to
suppliers with printable purchase order versions (PDF) for the email issue type.

After purchase orders are issued, Workday updates the Approved status to Issued.

When you submit XML Auto purchase orders, the Purchase Order XML Issue business process
automatically issues purchase orders, which eliminates issuing them through Workday.

Spend for Workday 29

122 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

DEMO 2.2 – ISSUE A PURCHASE ORDER

Introduction: Check out the next demonstration.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 123
Spend for Workday 29

ACTIVITY 2.12 – ISSUE A PURCHASE ORDER

Business Case: Our purchase orders must be issued to the suppliers to receive and invoice
the items.

TASK #1: ISSUE A PURCHASE ORDER

1. Sign in as Buyer Teresa Serrano (tserrano).

2. Enter issue purch ord into the search box.

3. Choose the Issue Purchase Orders task and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Document Date On or After Today’s Date

4. Click OK.

5. Select the Select All checkbox.

6. Click OK.

7. Click the Issue Orders and Refresh button (Wait until “Printing Run Percent Complete”
is 100% and the “Issue Event Status” is Successfully Completed).

8. Click Finish.

9. Click Done.

TASK #2: VIEW PRINTABLE PURCHASE ORDER

1. Open Teresa’s W: drive.

2. Click the PDF for the Purchase Orders.

3. Review goods purchase order.

TASK #3: FIND PURCHASE ORDERS

1. Search for and select the Find Purchase Orders report and enter the following:

Spend for Workday 29

124 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Document Date On or After Today

2. Click OK and review the report criteria. What is the status of the purchase orders?

3. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 125
Spend for Workday 29

CREATE CHANGE ORDER

You can create change orders for issued purchase orders. You can also control a supplier's
ability to accept change orders in the PO Options tab in the Create Supplier and Create Supplier
Change tasks.

1. Access the Create Change Order task.

2. Update Summary, Terms and Taxes, and Contact Information as necessary. For
example, change the ship-to address, buyer, or payment terms.

3. Modify information in lines tabs:

A. Goods Lines

B. Contingent Worker Lines

4. Access the Goods Line tab to Cancel PO Line, change line information, and add new
purchase order lines. You also can change information on existing lines such as
amounts or prices.

5. You can access the Prepaid Details tab to create or modify supplier prepaid criteria.

6. Click Submit.

CREATE CHANGE ORDER RESULTS

Workday processes the change order per the definition in the Change Order business process.
An appended version number is processed so you and your supplier can track change orders
separately from related purchase orders.

For example, if your original purchase order number is PO-3005, the first change order number
is 3005-1.

If you canceled line items, they are crossed out and display with zero values for Quantity and
Price in the Goods Line section.

Once you issue the change order, you can access the View Purchase Order task and select the
Version History tab to see the original purchase order and the change order.

Tip: If you are matching change orders to supplier invoices, you must configure the
Supplier Accounts Match Event business process.

Spend for Workday 29

126 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

RECEIVING GOODS OVERVIEW

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Workday Receiving allows you to track receipt activity against your Purchase Orders. Receipts
can encompass standard goods receiving (which can flow to business asset tracking),
contingent worker timesheets and deliverables activity logs. These traditionally different types of
consumption leverage a common business process that provides configurable steps as well as
support for Evaluated Receipt Settlements (ERS).

ERS is a process of paying for goods and services from a receipt, or a packing slip rather than
from a separate invoice document. The payee uses data in the packing slip to apply the
payments. The supplier ships goods, and the purchaser, upon receipt, confirms the existence of
a corresponding purchase order or contract, verifies the identity and quantity of the goods, and
then pays the supplier.

You can automate the process of creating an invoice based on the receipt of goods or services
(whether the receipt is created internally or through the self-service time and deliverables logs).
Then, when a receipt is created, the role you specify in the business process receives an Inbox
notification to create a supplier invoice via the Create Supplier Invoice from Receipt task. This
invoice is automatically populated with information from the receipt, thereby making it simpler
and faster to create the invoice.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 127
Spend for Workday 29

Routing receipts of goods and services for approval is useful in cases where the completion of
services or the receipt of goods is time recorded. The Receipt business process definition
applies to both receipts created internally and receipts based on contingent worker self-service
time and deliverables logs.

Spend for Workday 29

128 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.13 – RECEIVE GOODS IN FULL

Business Case: One vending machine was ordered and only one was received. We will be
receiving the purchase order in full.

TASK #1: RECEIVE GOODS IN FULL (TRI VALLEY VENDING)

1. Sign in as Buyer Sherry Voigt (svoigt).

2. Enter cr rec in the search box.

3. Choose the Create Receipt task.

4. Select Purchase Order radio button.

5. Click the prompt icon and select Goods PO’s.

6. Select Tri Valley Vending supplier.

7. Select the purchase order.

8. Click the Fully Receive checkbox.

9. Click OK.

Note: The Quantity to Receive is 1.

10. Click Submit to save.

11. Expand the Details and Process section.

12. Click Done.

TASK #2: RECEIVE GOODS IN FULL (HEWLETT PACKARD)

1. Enter cr rec in the search box.

2. Choose the Create Receipt task.

3. Select Purchase Order radio button.

4. Click the prompt icon and select Goods PO’s.

5. Select Hewlett Packard supplier.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 129
Spend for Workday 29

6. Select the purchase order.

7. Click the Fully Receive checkbox.

8. Click OK.

9. Click Submit to save.

10. Expand the Details and Process section.

11. Click Done and sign out.

Next step is to review trackable receipt lines.

TASK #3: REVIEW TRACKABLE RECEIPT LINES

1. Sign in as Business Asset Accountant Andrew Walton (awalton).

2. Open Andrew's Inbox.

3. Click the Review Trackable Lines task for Tri Valley Vending.

4. Verify the Trackable checkbox is checked for the line to add as an asset.

5. Change the Accounting Treatment to Depreciable Capital Asset.

6. Click Approve.

7. Click Done.

8. Click the Review Trackable Lines task for Hewlett Packard.

9. Verify the Trackable checkbox is checked for the line to add as an asset.

10. Note the Accounting Treatment to Depreciable Capital Asset.

11. Click Approve.

12. Click Done.

13. Sign out.

Spend for Workday 29

130 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.14 – UNDER RECEIVE GOODS

Business Case: We will partially receive the company logo products. Out of the 5 tablets
ordered only 2 were received.

TASK #1: UNDER RECEIVE GOODS (CORPORATECLOUD.COM)

1. Sign in as Employee Aidan Mitzner (amitzner).

2. Enter cr receipt into the search box.

3. Choose the Create Receipt task.

4. Select the Purchase Order radio button.

5. Click the prompt and select Goods PO’s > CorporateCloud.com

6. Select the PO.

7. Click OK.

8. Enter the following quantities to receive:

Field Name Entry Value

Logo Mug Quantity 2

Logo Shirt Quantity 2
Logo Backpack Quantity 2

9. Click Submit.

10. Click Done.

11. Sign out.

TASK #2: UNDER RECEIVE GOODS (CORPORATE EXPRESS)

1. Sign in as Employee Jared Ellis (jellis).

2. Enter cr receipt into the search box.

3. Choose the Create Receipt task.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 131
Spend for Workday 29

4. Select the Purchase Order radio button.

5. Click the prompt and select Goods PO’s > Corporate Express.

6. Select the PO.

7. Click OK.

8. Enter 2 as the Quantity to Receive.

9. Click Submit.

10. Click Done.

11. Sign out.

Next step is to review trackable receipt lines.

TASK #3: REVIEW TRACKABLE RECEIPT LINES

1. Sign in as Business Asset Accountant Andrew Walton (awalton).

2. Open Andrew's Inbox.

3. Click the Review Trackable Lines task.

4. Verify the Trackable checkbox is checked for the line to add as an asset.

5. Click Approve.

6. Click Done.

7. Sign out.

Spend for Workday 29

132 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

RETURN GOODS TO SUPPLIER

You can return goods to suppliers after you approve receipts for purchase orders or supplier
contract lines, and optionally process supplier invoice adjustments for returned goods. You need
to configure the Return to Supplier Event business process and security policy.

• Goods may be damaged, incorrect items may have been shipped, too many items may
have been shipped, items may no longer be needed, etc.
• You may need to record the return of goods to suppliers to accurately reflect quantities
of items that you must pay a supplier for, and will generate receipt accruals for.
• Reasons why goods are returned need to be tracked to determine if there are issues
with the suppliers providing the items.
• Often, a Return Material Authorization (RMA) is needed from the supplier to return items.
• You can create a return to suppliers for goods that have been ordered against a supplier
contract, if the contract allows for receipts and has approved receipts.

MAINTAIN RETURN REASONS

You can create reasons for returning goods to suppliers and specify which return reasons
should create a supplier invoice adjustment.

• Only Returns that have a reason with the Create Invoice Adjustment checked will create
Supplier Invoice Adjustments.
• Invoice Adjustment Reason will default on the resulting Supplier Invoice Adjustment.
• Invoice Adjustment Reasons must have the Payables Use checked.

1. Access the Maintain Return Reasons task.

2. Specify a return reason, such as damage, wrong item, or exchange.

3. If a return with the associated return reason should initiate an invoice adjustment, check
Create Invoice Adjustment.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 133
Spend for Workday 29

For example, returns with the Damaged Goods return reason create a supplier invoice
adjustment.

For return reasons with invoice adjustments, optionally select an Invoice Adjustment Reason.

This results in return reasons displaying on the View Return report.

CREATE RETURNS
You can create returns to return goods to suppliers from a purchase order, supplier contract, or
receipt lines.

Purchase orders, supplier contracts, and receipts:

• Must have goods lines.

• Must have approved receipts.
• Must not be cancelled or closed.
• Must have a return reason.
• Will have a supplier invoice reference showing existing supplier invoices (not
cancelled/denied) for purchase order/supplier contract.
• Optionally, will have a supplier return merchandise authorization (RMA).
Note: Suppliers provide this, Workday does not generate RMAs.
• Will have default goods lines for purchase orders or supplier contracts that have
approved receipts.
• Will have a Quantity Already Returned that includes all Returns that have not been
cancelled or denied.
• Must have Quantity To Return that is less than or equal to the Approve Receipts
Quantity.

Spend for Workday 29

134 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

1. Access the Create Return task.

2. Specify the Company for returning goods and optionally specify the Supplier.

3. Select the business document that includes the goods you are returning:

A. Purchase Order

B. Supplier Contract

C. Receipt

Spend for Workday 29

Confidential © 2017 Workday, Inc. 135
Spend for Workday 29

Tip: Purchase orders or supplier contracts much have at least one approved receipt
before you can process a return.

1. Select the return reason and return date.

2. If an invoice was generated, select the Supplier Invoice Reference.

3. If the supplier requires a return material authorization, enter the Supplier RMA.

4. Specify the quantity to return in the To Return field for each document line with returned
goods.

5. Provide supporting information in the Attachments tab.

Tip: You can attach documents with the file types listed in the Edit Tenant Setup -
System task.

The return, the Quantity Received and Quantity Returned amounts are recalculated to subtract
returns.

Spend for Workday 29

136 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

PROCESS INVOICE ADJUSTMENTS FOR RETURNED GOODS

Optionally, you can initiate supplier invoice adjustments for returned goods.

Tip: You need to update the return reason if the Payables Use is unchecked on the
associated invoice adjustment reason.

1. Complete invoice adjustment information.

2. The Reference Return field displays the return document and related purchase order or
supplier invoice.

3. After you submit the invoice adjustment, it routes for processing.

VIEW RETURN
Quantity Returned includes all returns for the purchase order/supplier contract that have not
been cancelled or denied.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 137
Spend for Workday 29

RETURNS FOR SUPPLIER CONTRACTS

You can only return against supplier contracts that have approved receipts.

REVIEW REPORTS
Your return reasons display on the View Return report.

You can access the following reports to review returns to suppliers and related business
documents:

• View Returns
• Find Returns
• My Returns (for self-service workers)

Spend for Workday 29

138 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

PROCURING PROJECT-BASED SERVICES

Services spend visibility is often lost in the details of Accounts Payable. Workday Procurement
supports the end to end business process for Services Spend providing far more visibility into
how your organization acquires and consumes services.

Project-Based services are based on projects. Typically, this would be used in situations where
you want to track service projects based on tasks completed.

The requisition, purchase order, and invoice will have a layout that is geared toward project
information rather than goods which are items.

•Workcart
Requisition •Request for Project-Based Services

Purchase
•Source from Requisition
Order •Create Purchase Order
and Issue

Receive •Log Time and Tasks

•Copy from Purchase Order

•Copy from Task log
Invoice •Self Billing - Evaluated receipt settlement (ERS)
•Supplier Invoice Workbench

SECURITY ROLES
• Services Coordinator - Perform services sourcing functions for assigned organizations.
Examples include requisitions, purchase orders, and receipts. Approval authority for
procurement business processes.
• Supplier as Self - Perform Self-Service supplier tasks such as load catalog, approve
purchase orders, and log time and tasks.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 139
Spend for Workday 29

BUSINESS PROCESSES (REFRESHER)

• Requisition Event
• Source from Storage Event
• Receipt
• Receipt Accrual Event

REQUISITIONING PROJECT-BASED SERVICES

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

A project-based services requisition can begin with the workcart or by navigating directly to the
Request Project-Based Services task. All requisitions and purchase orders are associated with
a project.

Spend for Workday 29

140 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.15 – VIEW PROJECT

Business Case: Projects are required for requisitioning project-based services. Job Fairs is
a project that will be billed to us based on tasks performed.

TASK #1: VIEW PROJECT

1. Sign in as a Project Administrator (tserrano).

2. Enter view proj into the search box.

3. Choose the View Project report.

4. Select the Job Fairs Project.

5. Click OK.

6. Review Project.

7. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 141
Spend for Workday 29

ACTIVITY 2.16 – REQUISITION PROJECT-BASED

SERVICES

Business Case: The IT department is requisitioning the first task of the Job Fairs.

TASK #1: REQUISITION PROJECT-BASED SERVICES

1. Sign in as Employee Jared Ellis (jellis).

2. Enter vie car into the search box.

3. Choose the View Cart task.

4. Click OK.

5. Select the Request Project-Based Services link.

6. Enter the information as follows:

Field Name Entry Value

Project Based Service Detail

Spend Category Trade Show & Events

Project Projects > Job Fairs

Location Remove Location: Dallas

Phases and Tasks for Project

Phase 1 - Plan and Strategize

Task Define Budget

Subtask Description Preparation for steering committee

meeting

Amount 8,000.00

7. Click Add to Cart.

8. Click Checkout.

9. Click the Review and Submit tab.

10. Review data.

Spend for Workday 29
142 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

11. Click Submit.

12. Click Done.

13. Sign out.

TASK #2: APPROVAL OF PROJECT-BASED SERVICES REQUISITION

1. Sign in as Manager Anthony Rizzo (arizzo).

2. Open Anthony’s Inbox.

3. Select the Requisition.

4. Click Approve.

5. Click Done.

6. Sign out.

TASK #3: APPROVAL BY PROJECT MANAGER

1. Sign in as Project Manager Robin Sanders (rsanders).

2. Open Robin’s Inbox.

3. Select the Requisition.

4. Click Approve.

5. Click Done.

6. Sign out.

We will source this requisition in the next step.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 143
Spend for Workday 29

SOURCING SERVICES

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Generally, Services Coordinators review and source requests for project-based services. The
reviewer must:

Check the service requisition lines for each line that you want to source. You can choose to
source only some of the lines in this requisition, leaving the rest to be completed later. If the
service request is to be internally sourced, the process stops here, otherwise you must manually
source services requests.

Spend for Workday 29

144 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.17 – SOURCE PROJECT-BASED

SERVICES

Business Case: The Services Coordinator will review the requisition and include a supplier
to result in the creation of a purchase order.

TASK #1: SOURCE PROJECT-BASED SERVICES

1. Sign in as Services Coordinator Michael Choi (mchoi).

2. Open Michael's Inbox.

3. Select the Project-Based Services requisition for Jared Ellis ($8000).

4. Update the Supplier to RF Consulting.

5. Click OK.

6. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 145
Spend for Workday 29

ISSUING A SERVICES PURCHASE ORDER

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Spend for Workday 29

146 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.18 – ISSUE A PURCHASE ORDER

Business Case: The services coordinator will issue the purchase order to the vendor which
will enable us to receive and invoice the services.

TASK #1: ISSUE A PURCHASE ORDER

1. Sign in as Services Coordinator Michael Choi (mchoi).

2. Enter iss purch ord into the search box.

3. Select the Issue Purchase Orders task and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Supplier RF Consulting

4. Click OK.

5. Select the RF Consulting purchase order.

6. Click OK.

7. Click the Issue Orders and Refresh button (Wait until “Printing Run Percent Complete”
is 100% and the “Issue Event Status” is Successfully Completed).

8. Click the Finish button.

9. Click Done.

TASK #2: VIEW PRINTABLE PURCHASE ORDER

1. Open Michael’s W: drive.

2. Click the PDF for the Purchase Order.

3. Review project-based services purchase order.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 147
Spend for Workday 29

LOG TASKS (RECEIVE)

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Spend for Workday 29

148 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.19 – LOG TASKS (RECEIVE) SERVICES

Business Case: The Services Coordinator has been notified that work has been completed
on the 1st task of the website. Sherry will create a receipt for the task.

TASK #1: CREATE RECEIPT

1. Sign in as Services Coordinator Michael Choi (mchoi).

2. Search for and select the Find Purchase Orders report.

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Supplier RF Consulting

3. Click OK.

4. Click the Related Actions of the $8000 PO and choose Receipt > Create

5. Click OK.

6. Enter an Amount to receive of 7,000.

7. Click Submit.

8. Expand the Details and Process section.

9. Click Done and sign out.

TASK #2: APPROVAL OF RECEIPTS

1. Sign in as Teresa Serrano (tserrano).

2. Open Teresa's Inbox.

3. Click the Receipt in the Inbox to approve.

4. Click Approve.

5. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 149
Spend for Workday 29

ACTIVITY 2.20 – RECEIPT ACCRUAL

Business Case: Receipt accruals are created for those goods, services and project-based
services that have been received however, are not invoiced. Therefore, we will look at the
receipt accruals for the company and create the receipt accrual entry.

TASK #1: RECEIPT ACCRUAL BY COMPANY AND LEDGER PERIOD

1. Sign in as a Company Financial Analyst (tserrano)

2. Search for and select the Receipt Accrual by Company report and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Open Ledger Periods Current Period

3. Click OK.

TASK #2: CREATE RECEIPT ACCRUAL

1. Search for and select the Create Receipt Accrual task and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Open Ledger Periods Current Period

2. Click OK.

3. Click Submit to create the receipt accrual.

4. Expand the Details and Process section to review.

5. Click Done.

TASK #3: RECEIPT ACCRUAL JOURNAL

1. Search for and select the Find Journals report and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Spend for Workday 29

150 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Year Current Year

Period Current Period and next period
Journal Sources Receipt Accrual

2. Click OK.

3. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 151
Spend for Workday 29

CONTINGENT WORKER PROCUREMENT

In legacy systems, contingent labor spend visibility is often disconnected between HCM and
Financials. Workday Procurement supports the end-to-end business process for contingent
labor spend.

Job requisitions can be used to contract contingent workers and automatically generate
purchase orders, log time against purchase orders, and issue supplier invoices.

If your staffing model is position management, create a contingent worker job requisition and
specify the Cost Information.

In the Contract Contingent Worker task, verify the Create Purchase Order option is checked.
Review contract details and make modifications as needed.

Requisition •Job Requisition

Purchase
Order •Contract Contingent Worker
and Issue

Receive •Log Time

•Copy from Purchase Order

•Copy from Timesheet
Invoice •Self Billing - Evaluated receipt settlement (ERS)
•Supplier Invoice Workbench

The workflow you use to enable contingent worker staffing and procurement starts by creating
contingent worker job requisitions in HCM and routing them for approval, and then continues
once a contingent worker is selected for the position. From there, you can automate the creation
of purchase orders when contracting contingent workers, track time against purchase orders,
and automatically create invoices from approved timesheets. In addition to your internal users,
contingent workers or suppliers can enter timesheets which can be tracked against purchase

Spend for Workday 29

152 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

orders, and initiate invoices based on the contingent worker's time and pay rate. You can use
staffing suppliers for contracting contingent workers, or contract them directly as 1099 workers.

SECURITY ROLES
• Manager - Requisition’s manager, typically used for approvals.
• Services Coordinator - Performs services sourcing functions for assigned organizations,
such as requisitions, purchase orders, and receipts. Has approval authority for
procurement business processes.
• Contingent Worker as Self - Performs self-service worker tasks.
• Supplier as Self - Performs self-service supplier tasks such as load catalog, approve
purchase orders, and log time and tasks.
BUSINESS PROCESSES
• Job Requisition Event
• Contract Contingent Worker Event
• Receipt Event

Spend for Workday 29

Confidential © 2017 Workday, Inc. 153
Spend for Workday 29

REQUISITIONING CONTINGENT LABOR

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Before you can hire, transfer, promote, or demote workers into a supervisory organization, you
must open jobs or positions and apply hiring restrictions to job profiles to control which jobs and
positions can be filled, the worker types who can fill them, the location of jobs and positions, and
other conditions of employment.

If you are using job requisitions, you must have an open and approved job requisition before
you fill a vacant position in a supervisory organization that uses position management as the
staffing model. You can either create a new position or associate an existing position when you
create a job requisition.

Spend for Workday 29

154 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

You can create classification types for contingent workers, such as contractors or consultants.

Recruiting Qualification Attachment Cost

Job
Information s s Information

When you create a job requisition for a contingent worker, you will navigate from tab to tab to
provide the needed information for the position.

1. On the Recruiting Information tab, provide general information for the requisition.

Option Description
Replacement If you're creating a requisition in a job management organization or
For creating a new position in a position management organization, you can
select an active or terminated worker. This field defaults to the position's
current or previous incumbent, if the position is currently or was
previously occupied.
Recruiting For open positions with a previous job requisition, the date must be later
Start Date than the previous job requisition.
For filled positions, the recruiting start date must be after the fill date of
the current incumbent.
Target Hire This date must be on or after the recruiting start date.
Date
Target End The employment end date applies to fixed-term employees and
Date contingent workers.

1. Complete the fields in the Job and Qualifications tabs as necessary. If the job requisition
is for an existing position, most of this information is automatically populated.

2. Optionally, add any supporting documents as Attachments.

3. If the job requisition is for a contingent worker and you plan to create a purchase order,
complete the Cost Information tab.

Tip: If you create purchase orders for this contingent worker type, all fields except
Supplier and Worktags are required.

Workday automatically transfers this cost information to the contingent worker's

contract and purchase order.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 155
Spend for Workday 29

MAINTAIN CONTINGENT WORKER TYPES

In the Maintain Contingent Worker Types task, check Require Cost Information on Job
Requisition for each contingent worker type to use in the procurement process. This option
indicates you require additional procurement-related information on contingent worker job
requisitions.

Spend for Workday 29

156 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SOURCING CONTINGENT LABOR

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

STEPS

1. Access the Contract Contingent Worker business process and specify approval routing
steps and other company requirements.

2. Add the Create Purchase Order from Contingent Worker Contract sub-process step to
the Contract Contingent Worker business process.

3. Access the Create Time Code task to set up time codes for contingent worker
timesheets.

4. Optionally, add the Create Supplier Invoice from Receipt sub-process step to the
Receipt business process. This automatically creates supplier invoices from approved
timesheets against purchase orders.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 157
Spend for Workday 29

BASIC SUPPLIER WORKTAG

A supplier is a business entity from whom you purchase goods or services.

Supplier Management allows you to setup and maintain your entire set of vendors. Workday's
unique approach to contingent worker management precludes the need to create a supplier
record for each independent contractor. Purchase orders, invoices, and payments can interact
directly with independent contingent workers.

Basic supplier worktags provide a quick and easy way to create basic definitions for customers,
projects, sales items, and suppliers when you want to use them as worktags in HCM, payroll,
financial management, and spend but don't need the complexity of their full-featured definitions.
For example, you might want to tag a contingent worker contract with a supplier name without
having to fully define the supplier.

Setup is simplified because you don't need to create detailed definitions or enable numerous
financial-specific domains. You can convert from basic to full-featured versions any time. The
Maintain Basic Suppliers task requires a unique name for each basic worktag so that they are
distinguishable in prompts.

You can select basic supplier worktags for:

• All financial transactions

• Requisitions
• Spend authorizations
• Expense reports
• Contingent worker contracts

Spend for Workday 29

158 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

DEMO 2.3 – CREATE JOB REQUISITION

Introduction: Check out the next demonstration.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 159
Spend for Workday 29

ACTIVITY 2.21 – CREATE A JOB REQUISITION FOR A

CONTRACT CONTINGENT WORKER

Business Case: A new job is to be created for a contract position in the IT department.

TASK #1: CREATE A JOB REQUISITION FOR A CONTRACT CONTINGENT WORKER

1. Sign in as HCM Administrator Logan McNeil (lmcneil).

2. Enter cr job req into the search box.

3. Select the Create Job Requisition task.

4. Select Supervisory Organization > Supervisory Organizations > IT HelpDesk

Department.

5. Select the Create New Position radio button.

6. Select Worker Type > Contingent Worker.

7. Click OK.

8. Click the Edit icon .

9. On the Recruiting Information tab enter the information as follows:

Field Name Entry Value

Reason Administrative > Non-competitive fill

Recruiting Start Date Today’s Date

Target Hire Date Today’s Date

10. Click Next.

11. Click the Edit icon.

12. On the Job tab enter the information as follows:

Field Name Entry Value

Job Posting Title Contract IT Help Desk Specialist

Spend for Workday 29

160 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Job Profile IT HelpDesk Specialist

Worker Sub-Type Contractor

Time Type Full Time

Primary Location Dallas

Scheduled Weekly Hours 40

13. Click Next.

14. On the Qualifications tab review the Competencies information.

15. Click Next.

16. Click the Edit icon.

17. On the Organizations tab, verify that 61120 IT HelpDesk is the Cost Center.

18. Click Next.

19. On the Attachments tab, you can add supporting documenting to your requisition, such
as IT certification or degree transcripts.

20. Click Next.

21. Click the Edit icon.

22. On the Cost Information tab enter the information as follows:

Field Name Entry Value

Supplier Manpower

Currency USD

Pay Rate 46.00

23. Click Next until you reach the Summary page.

24. The Summary page is a preview page, where you can review information prior to
submitting the job requisition. We will add information in Cost Information.

25. Scroll down to the Cost Information region, click the Edit icon.

26. In the Frequency field enter Hourly.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 161
Spend for Workday 29

27. Click Submit.

28. Expand the Details and Process section.

29. Click the Process tab and review the information.

30. Click Done on the confirmation page.

TASK #2: CREATE A CONTRACT CONTINGENT WORKER

1. Enter contract contingent worker into the search box.

2. Select the Contract Contingent Worker task.

3. Select Supervisory Organization > My Organizations > IT HelpDesk Department.

4. Select the Create a New Pre-Hire radio button.

5. Click OK.

6. Select Source > Advertising > Broadcast

7. On the Legal Name Information tab enter the information as follows:

Field Name Entry Value

First Name Samantha

Last Name Green

8. Click the Contact Information tab.

9. Click the Add Email button.

10. Enter [email protected].

11. Select Type > Work.

12. Click OK.

13. Enter the Job Details information as follows:

Spend for Workday 29

162 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Field Name Entry Value

Contract Start Date Today’s Date

Reason New Contingent Worker > New Position

Position Contract IT Help Desk Specialist

Contingent Worker Type Contractor

Job Profile IT HelpDesk Specialist

Time Type Full Time

Location Dallas

14. In the Contract Details region select the Create Purchase Order checkbox.

15. Enter the information as follows:

Field Name Entry Value

Supplier Manpower

Default Payment Terms Net 30

Spend Category Contract Labor

Contract End Date One year from today’s date

Currency USD

Frequency Hourly

Contract Amount $96,048.00

Worktag Projects > Project: IT Help Desk

16. Click Submit.

17. Expand the Details and Process section to review your work.

18. Click the Open button.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 163
Spend for Workday 29

19. On the Create Purchase Order from Contract Contingent Worker page enter Global
Modern Services, Inc. (USA) in the Company field.

20. In the Contact Information region change the Buyer, Bill-To Contact, Bill-To Contact
Detail, Ship-To Contact, and Ship-To Contact Detail to Sherry Voigt.

21. In the Time Code region select the Regular Billable Time (billable) prompt.

22. Click Submit.

23. Expand the Details and Process section. Note your PO number: __________

24. Click Done.

25. Sign out.

TASK #3: REVIEW AND ISSUE CONTRACT CONTINGENT WORKER PURCHASE

ORDER

1. Sign in as Sherry Voigt (svoigt).

2. Enter issue purch in the search box.

Spend for Workday 29

164 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

3. Select the Issue Purchase Orders task.

4. Company > Global Modern Services Inc. (USA).

5. Document Date On or After > Today.

6. Click OK.

7. If it's not already selected, click the Select checkbox on the Purchase Order row.

8. Click OK.

9. Click Issue Orders and Refresh (Wait until “Printing Run Percent Complete” is 100%
and the “Issue Event Status” is Successfully Completed).

10. Click Finish.

11. Click Done.

12. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 165
Spend for Workday 29

ISSUING A CONTINGENT LABOR PURCHASE ORDER

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

Contingent worker purchase orders will be issued either to the suppliers or to the contingent
workers if they are independent contingent workers.

The body of the purchase order does not display items, quantity, and unit of measurement like
the goods purchase order.

The contingent labor purchase order layout displays worker- and job-related information.

Spend for Workday 29

166 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

LOG TIME FOR CONTINGENT LABOR (RECEIVE)

Requisition

Source

Issue Purchase Order

Receive

Invoice

Payment

A purchase order for a supplier or contingent worker must be issued and have a balance
available to log time and invoice against it.

Optionally, add the Create Supplier Invoice from Receipt step to the Receipt business process
to automatically generate invoices from approved timesheets.

Receiving for contingent labor is based on a timesheet.

You can log time against issued purchase orders on behalf of contingent workers, and suppliers
and contingent workers with Workday access can also log time.

You can also log time for contingent workers using the Receipts task.

Suppliers or contingent workers will use the Log Time and Tasks task.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 167
Spend for Workday 29

ACTIVITY 2.22 – LOG TIME FOR CONTINGENT

WORKER

Business Case: Logan will enter the time Samantha Green worked.

TASK #1: LOG TIME FOR CONTINGENT WORKER

1. Sign in as Services Coordinator Logan McNeil (lmcneil).

2. Enter cr receipt in the search box.

3. Click the Create Receipt task.

4. Select the Purchase Order radio button.

5. Click the prompt icon and select Purchase Orders by Suppliers > Manpower >
Select PO.

6. Click OK.

7. In the Contingent Worker Lines region enter the following information:

Field Name Entry Value

Period Start Date Today’s Date

Period End Date 1 Week from today
Regular Billable Time Hours > 40

Tip: You can enter an amount to be paid in the Additional Amount field, for example,
a charge for a one-time travel expense.

8. Click Submit.

Tip: Note that there is an Approval by Services Coordinator required.

9. Expand the Details and Process section.

10. Click the Process tab.

Spend for Workday 29

168 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

11. In the Process History region, you can see the Services Coordinators listed. We will use
Sherry Voigt.

12. Click Done on the confirmation page.

13. Sign out.

TASK #2: APPROVE TIME FOR CONTINGENT WORKER

1. Sign in as Sherry Voigt (svoigt).

2. Open Sherry’s Inbox.

3. Review the receipt for Samantha’s invoice.

4. Click Approve.

5. Expand the Details and Process section.

6. On the Process tab, you can ensure that the receipt is Approved by the Services
Coordinator.

7. Click Done on the confirmation page.

8. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 169
Spend for Workday 29

ACTIVITY 2.23 – CONFIGURE CONTINGENT

WORKER WORKDAY ACOUNT

Business Case: Create a Workday account for contingent worker Samantha Green so she
can enter her own time each week. The timesheet will then be routed to her manager.

TASK #1: CONFIGURE WORKDAY ACCOUNT

1. Sign in as a Security Administrator (lmcneil).

2. Enter samantha green into the search box.

3. From Samantha’s Related Actions icon, select Security Profile, Edit Workday
Account.

4. Enter the following:

Field Name Entry Value

Username sgreen
New Password Tenant Password
New Password Verify Tenant Password
Require New Password at Next Sign In Uncheck

5. Click Submit.

6. Click Done.

Spend for Workday 29

170 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 2.24 – LOG TIME AS CONTINGENT

WORKER

Business Case: Samantha will log time against the Manpower contingent worker purchase
order.

TASK #1: LOG TIME AS CONTINGENT WORKER

1. Sign in as Samantha Green (sgreen).

2. Enter log time into the search box.

3. Select Log Time and Tasks.

4. Click on the Select PO prompt.

5. Choose the PO.

6. Click OK.

7. Enter the following:

Field Name Entry Value

Period Start Date Monday of next week

Period End Date Friday of next week
Regular Billable Time Hours > 40

8. Click Submit.

5. Sign out.

6. Sign in as a Manager (lmcneil).

7. Open Logan’s Inbox.

8. Select the receipt for Sarah’s time.

9. Review the receipt for Logan’s approval.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 171
Spend for Workday 29

Spend for Workday 29

172 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 2 KNOWLEDGE CHECK

Please complete the Process Procurement quiz in the Workday Learning Center.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 173
Spend for Workday 29

CHAPTER 3 – REQUEST FOR QUOTE

OVERVIEW
The ability to manage sourcing activities is necessary for many customers. Workday
Procurement supports the end to end business process for a simple request for quote (RFQ)
process for the procurement of either goods or services. The RFQ process provides visibility
into how your organization manages the bid process and acquires goods or services.

The Request for Quote is a standard business process and document that invites suppliers to
bid on specific goods and services through the procurement process.

•Workcart
Requisition •Request Project-Based Services

Request for •Goods

Quote •Services

Purchase
•Source from Requisition
Order and •Create Purchase Order
Issue

Receive •Log Time and Tasks

•Copy from Purchase Order

•Copy from Task Log
Invoice •Self Billing (ERS)
•Supplier Invoice Workbench

SECURITY ROLES
• Buyer
• Services Coordinator
• Supplier Contract Specialist

Spend for Workday 29

174 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

BUSINESS PROCESSES (REFRESHER)

• Request for Quote Event
• Request for Quote Response Event
• Request for Quote Award Event
• Requisition Event

OBJECTIVES

By the end of this chapter, you will:

• Maintain Request for Quote Types

• Create and Post a Request for Quote
• Create Request for Quote Responses
• Create a Request for Quote Award
• Issue Purchase Order

Spend for Workday 29

Confidential © 2017 Workday, Inc. 175
Spend for Workday 29

REQUEST FOR QUOTE

Requisition

Source

Request for Quote

Issue Purchase Order

Receive

Invoice

Payment

The Request for Quote (RFQ) process includes the ability to:

• Define Request for Quote Types

• Define the Request for Quote print layouts for the printable RFQ document
• Creation and management of RFQ sourcing activities
• Creation of a Request for Quote from an existing RFQ, requisition, purchase order or
supplier contract or create an ad hoc RFQ
• Generate a printable version of the Request for Quote
• Record the supplier responses
• Award the Request for Quote to one or more suppliers with either a purchase order or
supplier contract

Spend for Workday 29

176 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 3.1 – MAINTAIN REQUEST FOR QUOTE

(RFQ) TYPES

Business Case: View the Request for Quote (RFQ) Type setup. May have different RFQ
types for a Public RFQ and another for Invitation for Bid where the specific suppliers are
invited to bid on the RFQ.

TASK #1: MAINTAIN REQUEST FOR QUOTE TYPES

1. Sign in as Procurement Administrator Teresa Serrano (tserrano).

2. Enter main req type into the search box.

3. Choose the Maintain Request for Quote (RFQ) Types task.

4. Review the request for quote type(s).

5. Click OK.

6. Click Done.

7. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 177
Spend for Workday 29

ACTIVITY 3.2 – CREATE REQUEST FOR QUOTE

Business Case: Create a Request for Quote from an existing requisition for yearly HVAC
maintenance. After the Request for Quote is approved, it must be Posted for the RFQ
document to be open for bidding from the suppliers.

TASK #1: CREATE REQUEST FOR QUOTE

1. Sign in as a Buyer (svoigt).

2. Enter cr req quo into the search box.

3. Choose the Create Request for Quote (RFQ) task.

4. Enter the information as follows:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

RFQ Type Directed Request for Quote
RFQ Title Annual HVAC Maintenance

5. Select the Create Ad Hoc RFQ option.

6. Click OK.

7. Enter the following:

Field Name Entry Value

Document Date Today’s Date

Start Date Today’s Date
End Date Week from today

8. Verify the Exclude Target Price checkbox is selected.

9. On the Lines tab, enter the information as follows:

Field Name Entry Value

Service Line (selected)

Item HVAC Maintenance

Spend for Workday 29

178 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Amount 3,000.00
Price Required (checked)
Cost Center 34000 Facilities

10. Click the Proposed Suppliers tab to enter suppliers to bid on the maintenance.

11. Click the Add Row icon twice to enter in the following suppliers:

A. CenterCal Property Management (Issue Option = Print)

B. Federal Realty (Issue Option = Print)

12. Click Submit.

13. Expand the Details and Process section and note the status of “In Progress.”

14. Click Done.

TASK #2: APPROVAL BY SUPPLIER CONTRACT SPECIALIST

1. Sign in as a Supplier Contract Specialist (abhat).

2. Open Arjun’s Inbox.

3. Select the Request for Quote.

4. Click Approve.

5. Click Done.

6. Sign out.

TASK #3: POST THE REQUEST FOR QUOTE (RFQ)

1. Sign in as Procurement Administrator / Buyer (svoigt).

2. Enter fin req quo into the search box.

3. Choose the Find Request for Quotes (RFQ) report.

4. Select the Global Modern Services, Inc. (USA) Company.

5. Enter HVAC in the RFQ Title field.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 179
Spend for Workday 29

6. Click OK.

7. Review the RFQ information and note the status of “Approved.”

8. Click the magnifying glass’s Related Actions icon > Request for Quote > Post.

9. Keep the default Posted Date and enter HVAC RFQ in the Posting Memo field.

10. Click OK.

Spend for Workday 29

180 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

REQUEST FOR QUOTE (RFQ) RESPONSES

Requisition

Source

Request for Quote

Issue Purchase Order

Receive

Invoice

Payment

The supplier responses can be recorded once the Request for Quote is in a Posted status as
this opens the RFQ document for bids to be received.

A supplier response may be for all or individual lines on the RFQ. The response may include:

• Response Price
• Lead Time
• Response Memo
• Bid Response (Header and/or Line)
• Response Attachments (Header and/or Line)

Spend for Workday 29

Confidential © 2017 Workday, Inc. 181
Spend for Workday 29

ACTIVITY 3.3 – REQUEST FOR QUOTE (RFQ)

RESPONSE

Business Case: The suppliers will submit their responses to be reviewed for the award of
the Purchase Order or a Supplier Contract.

TASK #1: CREATE REQUEST FOR QUOTE RESPONSE

1. Sign in as a Buyer / Procurement Administrator (svoigt).

2. Enter cr req quo into the search box.

3. Choose the Create Request for Quote (RFQ) Response task.

4. Enter the information as follows:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Request for Quote Annual HVAC Maintenance
Supplier CenterCal Property Management
Response Date Tomorrow’s date
Recorded by Sherry Voigt

5. Click OK.

6. From the Lines tab, enter in the Response Price of 2950.00.

7. Click Submit.

TASK #2: CREATE A SECOND REQUEST FOR QUOTE RESPONSE

1. At the top of the completion page click Create Request for Quote (RFQ) Response in
the Do Another section.

2. Enter the information as follows:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Spend for Workday 29

182 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Request for Quote Annual HVAC Maintenance

Supplier Federal Realty
Response Date Tomorrow’s date
Recorded by Sherry Voigt

3. Click OK.

4. From the Lines tab, enter in the Response Price of 3100.00.

5. Click Submit.

6. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 183
Spend for Workday 29

REQUEST FOR QUOTE AWARD

Requisition

Source

Request for Quote

Issue Purchase Order

Receive

Invoice

Payment

After the bidding process is complete, the Request for Quote (RFQ) will be awarded to a
supplier using either a purchase order or a supplier contract. When the RFQ is awarded to a
supplier all lines or some individual lines from the RFQ may be placed on the procurement
document.

A Request for Quote line can be partially awarded to multiple suppliers or a split award when
creating a purchase order. The RFQ attachments may be included on the purchase order if
chosen.

A Request for Quote may be awarded to a supplier by creating a Supplier Contract. A Supplier
Contract will be created in a “draft” status and the RFQ line may not be partially awarded when
creating a Supplier Contract.

Spend for Workday 29

184 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 3.4 – REQUEST FOR QUOTE (RFQ)

COMPARISON

Business Case: The RFQ responses will be reviewed and compared prior to the award of
the Request for Quote to a supplier.

TASK #1: COMPARE RFQ RESPONSES

1. Sign in as a Buyer (svoigt)

2. Enter fin req quo into the search box.

3. Select the Find Request for Quote (RFQ) report.

4. Select Global Modern Services, Inc. (USA) as the Company.

5. Click OK.

6. Click the Related Actions icon for the Request for Quote to be reviewed, select
Request for Quote > Compare RFQ Responses.

7. Select the Select All checkbox and click OK.

8. Review the response information by the following three tabs: Comparison Summary,
Line Responses, and Lowest Quote per Line.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 185
Spend for Workday 29

ACTIVITY 3.5 – REQUEST FOR QUOTE (RFQ) AWARD

Business Case: The Request for Quote is awarded to a supplier using a purchase order or
a supplier contract. This activity will award the RFQ to CenterCal Property Management
using a Purchase Order.

TASK #1: CREATE RFQ AWARD

1. Sign in as a Buyer (svoigt).

2. Enter cr req award into the search box.

3. Select the Create Request for Quote (RFQ) Award task.

4. Enter the information as follows:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Request for Quote Annual HVAC Maintenance
Supplier CenterCal Property Management
Award Date A week from tomorrow’s date
Award Type Purchase Order

5. Click OK.

6. Select the Request for Quote Line to be awarded to the supplier.

7. Click OK.

8. Review the Award Information and the Purchase Order Defaults.

9. Select the Auto-submit Award Outcome for Approval checkbox.

10. Click Submit.

TASK #2: APPROVAL BY SUPPLIER CONTRACT SPECIALIST

1. Sign in as a Supplier Contract Specialist (abhat).

2. Open Arjun’s Inbox.

Spend for Workday 29

186 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

3. Select the Request for Quote.

4. Click Approve.

5. Click Done.

6. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 187
Spend for Workday 29

REQUEST FOR QUOTE TO PURCHASE ORDER

Requisition

Source

Request for Quote

Issue Purchase Order

Receive

Invoice

Payment

Spend for Workday 29

188 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 3.6 – APPROVE & ISSUE PURCHASE

ORDER

Business Case: The Purchase Order generated from the RFQ Award will go through the
Purchase Order approval process and the Purchase Order will be issued to the supplier.

TASK #1: ISSUE PURCHASE ORDER

1. Sign in as a Buyer (svoigt).

2. Enter find purch ord in the search box.

3. Select the Find Purchase Orders report and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Supplier CenterCal Property Management

4. Click OK.

5. Click the Related Actions icon of the Purchase Order and select Purchase Order >
Issue.

6. Click OK.

7. Click the Issue Orders and Refresh button (Wait until “Printing Run Percent Complete”
is 100% and the “Issue Event Status” is Successfully Completed).

8. Click Finish.

9. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 189
Spend for Workday 29

ACTIVITY 3.7 – RECEIPT OF SERVICES

Business Case: The HVAC Maintenance is received after the service is completed.

TASK #1: RECEIVE SERVICES IN FULL

1. Sign in as a Buyer (svoigt).

2. Enter fin pur ord in the search box.

3. Choose the Find Purchase Orders report and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Supplier CenterCal Property Management

4. Click OK.

5. Click the Related Actions icon by the Purchase Order and select Receipt > Create.

6. Select the Fully Receive checkbox.

7. Click OK.

8. Set the Receipt Date to a week from tomorrow.

Note: The Amount to Receive is 2950.00.

9. Click Submit.

10. Expand the Details and Process section.

11. Click Done.

Spend for Workday 29

190 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 3 KNOWLEDGE CHECK

Please complete the Request for Quote quiz in the Workday Learning Center.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 191
Spend for Workday 29

CHAPTER 4 – MATCHING OVERVIEW AND SETUP

OVERVIEW
The term "matching" is used to describe how documents used in the procurement process are
matched against each other to ensure accuracy of prices negotiated and quantities received.
Many companies will not consider an invoice to be payable until the invoice matches the related
PO and receipt. In Workday, a receipt document can be created for goods, for
acknowledgement of services performed or for time worked.

OBJECTIVES

By the end of this chapter, you will:

• Identify various ways to use supplier invoice matching.

• Determine which match conditions to use.
• Associate match condition rules with exception reasons.
• Verify a supplier accounts match rule set.
• Add a supplier accounts match override reason.

Spend for Workday 29

192 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER INVOICE MATCHING

The following are ways in which supplier invoice matching can occur:

2-Way Matching

3-Way Matching

4-Way Matching

Matching by Amount

Matching by Quantity

Matching by Tolerances

Routing of Match Exceptions

The most common method of matching is the 3-Way match; this compares the PO, Receipt and
Invoice. The 3-Way match is often the method companies use to recognize a valid financial
obligation. It relies on the receipt of goods, though in some cases a receipt of goods is not
needed, e.g. smaller dollar amount purchases such as office supplies. In these cases, only the
PO and invoice documents are matched; this is a called a 2-Way match. In the case of high
value items, an inspection of the goods may be required before they can be considered
received. Matching of the PO, receipt, inspection and invoice is known as a 4-Way match. The
2-, 3- and 4-Way match comparisons in Workday can be made at the document line split, line,
or header levels, or a combination of all three.

Some companies may be willing to pay a Supplier Invoice without having an exact match on
price or quantity if the price or quantity differences fall within a pre-defined tolerance. Matching
can be defined with a +/- tolerance, the tolerance being a percentage or a dollar amount.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 193
Spend for Workday 29

To have complete matching, in addition to defining match rules and tolerances, users can
override these match exceptions. This document describes how to establish match rules,
routing and overriding match exceptions in Workday.

WORKDAY BUSINESS DOCUMENTS NEEDED TO FACILITATE MATCHING

Prior to being able to perform matching, a supplier invoice, a purchase order and possibly a
receipt need to be created. A receipt is not needed for a 2-Way match, but is needed for a 3-
Way and 4-Way matching.

4-Way matching involves an additional inspection step after receiving goods. Invoices cannot be
paid until items have passed inspection. This can be achieved in Workday by including the
inspection step as an additional step in the Receiving BP so that the receipt cannot be
completed until the inspection is completed. Where inspection has not been completed but an
invoice is processed, a match error will occur due to an exception.

PURCHASE ORDER
In Workday, a purchase order can be created directly or can be generated from a requisition.
Purchase orders can be created for goods, services, or project-based services. In Workday,
services and project based services are amount-based only, whereas goods can be quantity- or
amount-based.

Prior to receiving or invoicing, the purchase order must be issued via the Issue Purchase Order
task or from the related action of the PO. Once a PO has been issued, any changes will
generate a PO change order. The change order is not a different document from the original
PO, but rather the most current version of the PO on which changes/edits were made. During
matching, the most current version of the PO is used to compare against the supplier invoice.

RECEIPT
A receipt is required to facilitate a 3-Way or 4-Way match. Receiving of goods is performed by
receiving a quantity of goods. Receiving of services, when using deliverable services, is
achieved by receiving milestone amounts (no quantities). Receiving of services that have not
been created using deliverable services orders are received by receiving a quantity, the same
way goods are received.

When a PO for contingent labor is created, contingent worker time is "received" when the
contingent worker records their time for each period by using the Log Time and Tasks task. As
time is logged against the PO, the available amount on the PO is reduced by the time logged,
multiplied by the contingent worker's rate. Log Time and Tasks works in a very similar way to

Spend for Workday 29

194 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

the project-based services PO, where no quantity or unit price is recorded. This is important
when matching these types of invoices.

For contingent worker time, rather than matching the time logged to a supplier invoice provided
by the supplier, the receiving business process can be set up (to use the "Create Invoice from
Receipt" Action) so that once the time logged by a contingent worker is approved a supplier
invoice is generated in Workday, meaning that an invoice from the supplier is not needed and
matching does not need to be performed. Payment is based on the approved time logged. The
"Create Invoice from Receipt" Action is not limited to contingent worker time logged and can
also be used for all other receipts.

SUPPLIER INVOICE
The final document needed for matching is the supplier invoice. Typically, as a best practice, a
supplier invoice that has a match exception is held up, and does not move along unless the
exception is cleared. In Workday, this kind of supplier invoice is given ‘in progress’ status and is
waiting in match exception to be reviewed by someone defined in the Supplier Invoice BP. Once
required action is taken to either clear or override the exception, the matching process is run
again and the system allows the invoice to complete the additional steps in the process you
defined for the Supplier Invoice BP.

OVER RECEIVING
Over-receiving can occur when there is a supplier shipping error and the same order is shipped
twice, or when the requestor contacts the supplier requesting additional quantities after the
order has been placed.

CONFIGURING MATCH RULES IN WORKDAY

Workday uses the business process condition rule framework for implementing matching so
match rules are defined and applied in either custom validations or in the Supplier Invoice
business process. Because of this, matching in Workday is performed in real time and not in
batch. Real time match processing allows each invoice document to be analyzed for matching
as it is created.

Workday utilizes the BPF condition rule framework process or setup for matching. For matching
to happen, you need to create a condition rule by specifying the CRFs and creating a rule set for
using those CRFs. After you have your rules created, you can associate them with an actual
match rule, which then allows you to tie it to an exception code. Then you can assign those
rules to steps in a business process.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 195
Spend for Workday 29

You can create a condition rule using any CRF in the system that is in the context of the
Supplier Invoice, Supplier Invoice Line, Supplier Invoice Line Distribution, and Supplier Invoice
Line Splits. Then you can create a match rule set for using these CRFs, tie them to an exception
code, and assign these rules to business process steps in a company. You can create simple or
complex condition rules.

Keep in mind that rule sets are company-specific, so if matching is configured in the Supplier
Invoice BP for a company, when the matching job is initiated, it retrieves all the active rule sets
and executes the condition rules for that invoice. The rule sets can be associated with more
than one company, but you must associate at least one rule set with a company.

Workday delivers several match rule CRFs, all prefixed with "MR” that can be used in customer
defined condition rules.

WORKDAY MATCH RULE DELIVERED CRFS:

Workday delivers several matching specific CRFs which can be used in condition rules. To find
all the Matching CRF’s that Workday delivers, search by ‘Field: MR’ (prefix with MR). In addition
to finding the list of delivered matching CRF’s you can also look at the logic behind the CRF’s.
Workday continues to update and deliver new match rule CRFs.

Workday MR CRFs Workday CRF Description Sample Use of MR

MR Any Supplier Invoice Can be used in a match rule Used to determine if item
Lines with Item that does to detect supplier invoices substitution occurred.
not match PO Line Item having any line item that
does not match its
associated Purchase Order
Line item.
It only finds Invoice Lines
where both the item is
defined and an associated
PO Line Item is defined.

Spend for Workday 29

196 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Workday MR CRFs Workday CRF Description Sample Use of MR

MR Any Supplier Invoice Can be used in a match rule Used to determine where a
Lines with Item where PO to detect invoices with lines specific item has been
Line does not include an having an item but its provided for an ad hoc
Item associated Purchase Order request.
Line is missing an item.
If the Supplier Invoice line
does not have an item, but
its Purchase Order Line
does, the same line is
automatically added to the
Supplier Invoice Line.
Existing Supplier Invoice
Line's item will not be
overridden with the
Purchase Order Line's Item.
MR Any Supplier Invoice Can be used in a match rule Used to determine if item
Lines with Spend Category to detect invoices with lines substitution occurred (at the
that does not match PO that do not match their PO spend category level).
Line Spend Category line item's spend category.
MR Invoice has Lines that Use to detect if an invoice Used to determine that no
exceed Amount or has lines that exceed receipts exist or that the
Quantity Received amounts or quantities quantity invoiced is greater
received. than the quantity received.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 197
Spend for Workday 29

Workday MR CRFs Workday CRF Description Sample Use of MR

MR Max Invoice to PO Line This field compares for each Used to determine unit price
Unit Cost Variance line on the invoice the Unit tolerance as an amount.
Cost for each purchase
order and invoice line and
returns the maximum.
Use to set an amount
threshold or tolerance for
invoice lines where the unit
cost does not match the
purchase order line unit cost.
MR Max Inv to PO Line This field compares the Unit Used to determine unit price
Unit Cost Percentage Cost for each purchase tolerance as a percentage.
Variance order and invoice line for
each line on the invoice and
returns the maximum %
variance.
Use to set a percent
threshold or tolerance for
invoice lines where the unit
cost does not match the
purchase order line unit cost.
MR Total Invoice to PO This field compares the Unit Can be used in the case
Line Unit Cost Variance Cost for each purchase where each line is within
order and invoice line. It then tolerance but the total of the
sums the differences as a invoice is outside tolerance.
total. E.g. Tolerance on each line
Use to set a maximum is $5 and total header
amount threshold or tolerance is $10.
tolerance for a unit cost Supplier submits a 6-line
variance for the entire invoice where each line is
invoice. outside of tolerance by $3
(no exceptions on any of the
lines). However, because the
tolerance on all lines is $18,
this invoice is in exception.

Spend for Workday 29

198 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Workday MR Workday CRF Description Sample Use of MR

CRFs
MR Total of This field sums up the amount of all The supplier is charging for items
Non-PO invoice lines that were not that were not on the PO.
Supplier referenced on the purchase order
Invoice Lines from which the invoice was created.
Use to set an amount threshold or
tolerance for invoice lines that were
not referenced on the purchase
order.
MR Total This field adds up all invoice lines The supplier is charging for items
Non-PO that were not included on the that were not on the PO. Value is a
Invoice purchase order from which the percentage.
Amount invoice was created. It then divides
Percentage by the total of all lines and multiplies
by 100 to calculate a percentage.
Use to set a tolerance percentage
for invoice lines that were not
included on the purchase order.

APPLYING MATCHING RULES

As Workday matching relies on condition rules, the conditions can be applied as a custom
validation (warnings or errors) on the supplier invoice; or they can be applied as condition rules
on a business process.

All PO related invoices in Workday are created by copying a PO or receipt, thereby reducing the
need to key data and hence reducing data entry errors. Obviously, copied prices and quantities
may need to be updated to reflect the values on the supplier's invoice, thereby introducing the
potential of data entry errors, but these can be mitigated by enforcing invoice control totals. In
addition, Workday has some built-in controls. When creating a supplier invoice, for example,
when copying from a receipt it is not possible to invoice for greater than the quantity received,
thereby aiding in reducing data entry errors.

The best way to resolve match exceptions/errors is to quickly get the invoice to the correct
person who was involved in the price negotiations, ordering of the goods/ services and
receiving, so that they can assist in resolving the exception. This can best be accomplished by
setting up match rules as condition rules on the Invoice Event BP. More detail about routing
match exceptions is provided below. The advantage of Workday's real time matching means
invoices are matched and routed as soon as they are created rather than waiting for a matching
batch process to be run, something which often occurs at the end of the day once invoices are
entered.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 199
Spend for Workday 29

ADDITIONAL INFORMATION
Tip: For more details on how to configure the Supplier Accounts Match Process,
please refer to Community.

Spend for Workday 29

200 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

VIDEO 4.1 – SUPPLIER CONTRACTS: MATCHING

Introduction: Check out the next video presentation.

NOTES

Spend for Workday 29

Confidential © 2017 Workday, Inc. 201
Spend for Workday 29

ACTIVITY 4.1 – SUPPLIER ACCOUNTS MATCH

CONDITION RULES

Business Case: The supplier accounts match condition rules are set up to determine the
match conditions that apply for supplier invoice and procurement business documents. Let’s
review a condition rule that defines the unit price difference between a Purchase Order and
the Supplier Invoice.

TASK #1: REVIEW CONDITION RULES

1. Sign in as a Finance Administrator (tserrano).

2. Enter sup mat con into the search box.

3. Select View Supplier Accounts Match Condition Rule.

4. Select the Price Difference PO/Supplier Invoice Condition Rule.

5. Click OK.

6. Review Condition Rule.

Spend for Workday 29

202 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 4.2 – SUPPLIER ACCOUNTS MATCH

EXCEPTION REASONS

Business Case: The supplier accounts match exception reasons are set up to help
determine why the supplier invoices are in a match exception. Let’s review the match
exception reasons defined and used in the match rules.

TASK #1: REVIEW EXCEPTION REASONS

1. Sign in as a Finance Administrator (tserrano).

2. Enter sup mat exc into the search box.

3. Select View Supplier Accounts Match Exception Reasons.

4. Review Exception Reasons.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 203
Spend for Workday 29

ACTIVITY 4.3 – SUPPLIER ACCOUNTS MATCH

RULES

Business Case: The Supplier Accounts Match Rules associates the match condition rules
with the exception reasons that apply for each match rule. Let’s review the match rule
where the unit price variance is greater than or equal to 5% or the total price variance is
greater than or equal to 10%.

TASK #1: REVIEW MATCH RULES

1. Sign in as a Finance Administrator (tserrano).

2. Enter sup mat rul into the search box.

3. Select View Supplier Accounts Match Rule.

4. Select the Price Difference PO/Supplier Invoice Supplier Accounts Match Rule.

5. Click OK.

6. Review Match Rule.

Spend for Workday 29

204 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 4.4 – SUPPLIER ACCOUNTS MATCH RULE

SET

Business Case: The Supplier Accounts Match Rule Set links the Companies or company
hierarchies to the match rules and defines the processing order for the match rules. Let’s
review the GMS Match Rules set which contains five match rules.

TASK #1: REVIEW MATCH RULE SET

1. Sign in as a Finance Administrator (tserrano).

2. Enter sup mat rul into the search box.

3. Select View Supplier Accounts Match Rule Set.

4. Select the GMS Match Rules Supplier Accounts Match Rule Set.

5. Click OK.

6. Review Match Rule Set.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 205
Spend for Workday 29

ACTIVITY 4.5 – SUPPLIER ACCOUNTS MATCH

OVERRIDE REASONS

Business Case: The supplier accounts match override reasons define the reasons to
override the supplier invoices that are in a match exception. Let’s review the match override
reasons defined and add one new override reason to use in the match exceptions.

TASK #1: ADD MATCH OVERRIDE REASONS

1. Sign in as a Finance Administrator (tserrano).

2. Enter sup mat over into the search box.

3. Select Maintain Supplier Accounts Match Override Reasons.

4. Click the Add Row icon and enter the following:

Field Name Entry Value

Match Override Reason Name Invoice Cost Adjustment

Match Override Reason Description Higher invoice cost approved.

5. Click OK and Done.

Spend for Workday 29

206 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 4.6 – REVIEW SUPPLIER ACCOUNTS

MATCH BUSINESS PROCESS

Business Case: Review the Supplier Accounts Match Event.

TASK #1: REVIEW THE BUSINESS PROCESS

1. Sign in as a Finance Administrator (tserrano).

2. Enter bp: sup acc mat into the search box.

3. Select Supplier Accounts Match Event for Company Hierarchy business process.

4. Review the business process.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 207
Spend for Workday 29

ACTIVITY 4.7 – REVIEW SUPPLIER ACCOUNTS

MATCH EXCEPTION OVERRIDE BUSINESS
PROCESS

Business Case: Review the Supplier Invoice Event and discuss applicable match rules.

TASK #1: REVIEW BUSINESS PROCESS

1. Sign in as a Finance Administrator (tserrano).

2. Enter bp: sup acc mat into the search box.

3. Select Supplier Accounts Match Exception Override Event (Default Definition)

business process.

4. Review the business process.

Spend for Workday 29

208 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 4 KNOWLEDGE CHECK

Please complete the Matching Overview and Setup quiz in the Workday Learning Center.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 209
Spend for Workday 29

CHAPTER 5 – SUPPLIER INVOICING

OVERVIEW
Workday uses the Supplier Invoice Workbench to create invoices that record purchase events
and create the ensuing liability. Supplier invoices use information you enter directly or from a
purchase order, receipt, timesheet, or task log that reflects the receipt of physical goods or
acknowledgement of services provided. You can also create a supplier invoice manually or copy
an existing supplier invoice. Editing a supplier invoice uses essentially the same page as
creating one manually regardless of how the invoice was originally created.

In this chapter, we will investigate the key elements of supplier invoices and practice creating
and reviewing invoices to meet various business needs.

OBJECTIVES

By the end of this chapter, you will be able to:

• Create invoices from a purchase order

• Create invoices from receipts
• Create invoices from task logs
• Create a manual invoice
• Create a supplier invoice request

Spend for Workday 29

210 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER ACCOUNTS TOUCHPOINTS

Because Workday is a unified solution, you must consider the cross functional impact of certain
configuration decisions.

This touchpoints diagram provides insight into how one area of the product impacts another.
There are configuration decisions that need to be made with current and possibly future phases
of implementation in mind. Your consultants will work with you to identify and plan for these
touchpoints.

This diagram represents the touchpoints for the current Workday release.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 211
Spend for Workday 29

FINANCIAL ACCOUNTING TOUCHPOINTS

Because Workday is a unified solution, you must consider the cross functional impact of certain
configuration decisions.

This touchpoints diagram provides insight into how one area of the product impacts another.
There are configuration decisions that need to be made with current and possibly future phases
of implementation in mind. Your consultants will work with you to identify and plan for these
touchpoints.

This diagram represents the touchpoints for the current Workday release.

Spend for Workday 29

212 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER INVOICES AND ADJUSTMENTS

Workday is optimized for paperless operation from receipt of supplier invoices through
electronic payments to maximize processing efficiency.

Supplier Invoice is a business process. As such your requirements regarding segregation of

duty, approval, or review tasks can generally be configured within Workday.

Invoicing works seamlessly with procurement to support standard two and three way matching
as well as with financial accounting for appropriate accruals and accounting.

SECURITY ROLES
• Accounts Payable Data Entry Specialist: This role can perform most the transactions
performed within Supplier Management, including creating supplier invoices and supplier
adjustments. This role is assigned at the company or company hierarchy level.
• Accounts Payable Analyst: This role is used to view reports and transactions related to
supplier accounts for analysis and reporting. It is assigned at the company or company
hierarchy level.
• Accounts Payable Settlement Specialist: This role can perform transactions related to
the payment of supplier accounts.

BUSINESS PROCESS
• Supplier Invoice Event
• Supplier Accounts Match Event
• Supplier Accounts Match Exception Override Event

Spend for Workday 29

Confidential © 2017 Workday, Inc. 213
Spend for Workday 29

The following are ways in which supplier invoices can be created:

Without Purchase Order

From Purchase Order

From Receipts

From Timesheets

From Task Logs

From Supplier Contracts

From Supplier Contract Invoice Schedules

From Supplier Invoice Request

Supplier invoices can be managed after the invoice has been submitted.

SUPPLIER INVOICE WORKBENCH

The Supplier Invoice Workbench allows you to create a single supplier invoice from multiple
business documents. You can use the supplier invoice workbench to create a single supplier
invoice from purchase orders, supplier contracts, receipts, time sheets, or task logs. You can
also add additional invoice lines that were not included in the original business documents.

Supplier invoices can be created automatically or manually.

Automatically created invoices are handled, by adding the Create Supplier Invoice from Receipt
step to the Receipt business process and routing the draft invoice for review.

Manually created invoices are done, by using the Supplier Invoice Workbench to copy purchase
order or timesheet data into an invoice.

Spend for Workday 29

214 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

TASKS FOR MANAGING SUPPLIER INVOICE WORKFLOW:

Task Description
Cancel Cancel invoices and invoice adjustments that have not
been paid.
Change Change an invoice or adjustment that has already been
submitted, but has not been paid.
Correct Finance administrators can correct the supplier invoice after
it has been submitted.
Approve, Enrich, Route the supplier invoice for approval by adding an
Revise approval step to the Supplier Invoice Event business
process. Allow the supplier invoice to be changed during
the approval step.
Hold Make the invoice unavailable for payment.
Rescind Restore all Workday data to the state it was in before you
created the invoice.

SUPPLIER INVOICE REQUEST

The Supplier Invoice Request is a payment request for goods or service by a user outside of
accounts payable. This allows the user to add the supplier invoice information along with the
line details to the request. After the payment request is approved, Workday converts it into a
supplier invoice.

SUPPLIER INVOICE ADJUSTMENT

You can create a supplier invoice adjustment, which is commonly known as a credit memo that
decreases your liability to the supplier. You can also create one that increases your liability. You
do not need to reference an existing supplier invoice.

RECURRING SUPPLIER INVOICES

Recurring Supplier Invoices allow you to model recurring payments for things like rental
agreements, leases and utility bills. Intervals are fully configurable and consumption amounts
are tracked and reportable.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 215
Spend for Workday 29

Note: This is a two-part process. Setting up a recurring supplier invoice template on

its own will not generate an invoice. Once you’ve setup a recurring supplier invoice
you must then create an invoice referencing the template. This can be done
manually or automatically using a scheduler.

Spend for Workday 29

216 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

DEMO 5.1 – CREATE SUPPLIER INVOICE AND

INVOICE ADJUSTMENT

Introduction: Check out the next demonstration.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 217
Spend for Workday 29

ACTIVITY 5.1 – CREATE SUPPLIER INVOICE FOR

GOODS FROM PURCHASE ORDER

Business Case: The Accounts Payable clerk will create a supplier invoice by copying the
purchase order line for the HVAC Yearly Maintenance from CenterCal Property
Management.

TASK #1: CREATE SUPPLIER INVOICE FOR GOODS FROM PURCHASE ORDER

1. Sign in as an Accounts Payable Data Entry Specialist (nmoore).

2. Enter workbench into the search box.

3. Choose the Supplier Invoice Workbench task.

4. Enter the following:

Field Name Entry Value

Company Name Global Modern Services, Inc. (USA)

Supplier Name CenterCal Property Management

5. Click OK.

6. Select Purchase Orders button.

7. For the Document Date on or After field, select Monday of this week.

8. Click Search.

9. Select the Purchase Order Line to include on invoice.

10. Click OK.

11. Click the Complete Supplier Invoice button.

12. Click Submit.

13. Expand the Details and Process to review.

14. Use the Related Action on the invoice and select Accounting > View Accounting.

Spend for Workday 29

218 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 5.2 – CREATE SUPPLIER INVOICE FOR

GOODS FROM RECEIPT

Business Case: The Accounts Payable clerk will create a supplier invoice by copying
receipt lines for two of the Tablets received from Corporate Express. The unit cost of the
tablets increased from $500 to $550. A Match Exception override will be done.

TASK #1: CREATE SUPPLIER INVOICE FOR GOODS FROM RECEIPT

1. Sign in as Accounts Payable Data Entry Specialist Nathan Moore (nmoore).

2. Enter workbench into the search box.

3. Choose the Supplier Invoice Workbench task.

4. Enter the following:

Field Name Entry Value

Company Name Global Modern Services, Inc. (USA)

Supplier Name Corporate Express

5. Click OK.

6. Select Receipts button.

7. For the Receipt Date on or After field, select Monday of this week.

8. Click Search.

9. Select the Receipt to include on invoice.

10. Change Unit Cost to 550.

11. Click OK.

12. Click the Complete Supplier Invoice button. Notice the match alert.

13. Click Submit.

14. Click Done.

15. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 219
Spend for Workday 29

TASK #2: REVIEW SUPPLIER ACCOUNTS MATCH EXCEPTIONS

1. Sign in as a Buyer (tserrano).

2. Open Teresa's Inbox.

3. Click the Supplier Accounts Match Event for the Supplier Invoice and note the match
exceptions.

4. Click the Request Match Exception Override button.

5. Select the Invoice Cost Adjustment Match Exception Override Reason.

6. Click OK and Done.

7. Sign out.

TASK #3: APPROVAL BY ACCOUNTING MANAGER - MATCH EXCEPTION

OVERRIDE

1. Sign in as an Accounting Manager (sgoldstein).

2. Open Sara's Inbox.

3. Click the Supplier Accounts Match Event for the Supplier Invoice and note the match
exceptions.

4. Click Approve and Done.

5. Sign out.

TASK #4: APPROVAL BY REQUESTOR - MATCH EVENT

1. Sign in as a Requestor (jellis).

2. Open Jared's Inbox.

3. Click the supplier invoice. Notice the match alert.

4. Click Approve and Done.

5. Sign out.

Spend for Workday 29

220 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

TASK #5: APPROVAL BY BUYER - MATCH EVENT

1. Sign in as a Buyer (svoigt).

2. Open Sherry's Inbox.

3. Click the Supplier Invoice.

4. Click Approve.

5. Expand the Details and Process to review.

6. Note the Statuses on the invoice. Status (Invoice) is Approved; Match Status is
Override and Payment Status is Unpaid.

7. Click Done.

8. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 221
Spend for Workday 29

ACTIVITY 5.3 – CREATE SUPPLIER INVOICE FOR

GOODS FROM RECEIPT

Business Case: The Accounts Payable specialist will create a supplier invoice by copying
receipt lines for the Vending Machine from Tri Valley Vending.

TASK #1: CREATE SUPPLIER INVOICE

1. Sign in as an Accounts Payable Data Entry Specialist (nmoore).

2. Enter workbench into the search box.

3. Select the Supplier Invoice Workbench task and enter the following:

Field Name Entry Value

Company Name Global Modern Services, Inc. (USA)

Supplier Name Tri Valley Vending

4. Click OK.

5. Click Receipts.

6. For the Receipt Date On or After field, select Monday’s Date.

7. Click Search.

8. Select the Receipt to include on the invoice.

9. Click OK.

10. Click the Complete Supplier Invoice button.

7. Click Submit.

8. Expand the Details and Process to review.

13. Use the Related Action on the invoice and select Accounting > View Accounting.

14. Sign out.

Spend for Workday 29

222 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 5.4 – CREATE SUPPLIER INVOICE FOR

PROJECT-BASED SERVICES FROM TASK LOG

Business Case: The Accounts Payable Data Entry Specialist will create a supplier invoice
by copying task log lines for the project tasks completed.

TASK #1: CREATE SUPPLIER INVOICE FOR PROJECT-BASED SERVICES FROM

TASK LOG

1. Sign in as Accounts Payable Data Entry Specialist (tserrano).

2. Enter rf consulting into the search box and Click the RF Consulting link.

3. Select the Contracts and Purchase Orders tab.

4. Select the Purchase Orders sub tab.

5. Click the Related Actions icon of the Receipt ($8000 PO line) in the Business
Document column, select Supplier Invoice > Create.

6. Review the invoice information.

7. Click Submit.

8. Expand the Details and Process to review.

9. Use the Related Action on the invoice and select Accounting > View Accounting.

10. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 223
Spend for Workday 29

ACTIVITY 5.5 – CREATE SUPPLIER INVOICE SPLIT

Business Case: Create a manual supplier invoice without a supporting procurement

document, then split the invoice line quantity and select specific worktags for each line split.

TASK #1: CREATE SUPPLIER INVOICE

1. Sign in as Buyer Teresa Serrano (tserrano).

2. Enter cr sup inv into the search box.

3. Select the Create Supplier Invoice task.

4. Enter the following information:

Field Name Entry Value

Company Name Global Modern Services, Inc. USA

Supplier Name Office Depot

Supplier Reference Number OD456

5. Enter the following Invoice Line:

Field Name Entry Value

Item Printer Toner

Quantity 16

6. Click the Splits button. Hint: Scroll to the last column.

7. Split by Quantity.

8. Enter the following split information:

Field Name Entry Value

Quantity 10

Cost Center 36000 Consulting Services

9. Click the Add Row icon to insert a new row.

Spend for Workday 29

224 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

10. Enter the following split information:

Field Name Entry Value

Quantity 6

Cost Center 33100 Global Support – North America

11. Click Done.

12. Click Submit.

13. Expand the Details and Process to review.

14. Select the Process tab. Note that based on the way the business process is defined no
cost center manager approval of the invoice is required.

15. Use the Related Action from the invoice number and select Accounting > View
Accounting.

16. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 225
Spend for Workday 29

ACTIVITY 5.6 – CREATE A SUPPLIER INVOICE

REQUEST

Business Case: Create a payment request for an invoice received by a cost center and not
by the Accounts Payable Department. Accounts Payable will receive the supplier invoice
request and from there will generate the supplier invoice and ready it for payment.

TASK #1: CREATE SUPPLIER INVOICE REQUEST

1. Sign in as Boris Müller (bmuller).

2. Enter cr sup inv req into the search box.

3. Select the Create Supplier Invoice Request task.

4. Enter the following information:

Field Name Entry Value

Company Name Global Modern Services SA (France)

Supplier Name Bruneau
Supplier Reference Number B2653

5. Enter the following Invoice Line:

Field Name Entry Value

Item Desk Lamp

Quantity 10
Cost Center 36300 Consulting Services - EMEA

2. Click Submit.

3. Click Done.

7. Sign out.

TASK 2: CREATE SUPPLIER INVOICE FROM REQUEST

1. Sign in as Gwen Carlisle (gcarlisle).

2. Enter find sup inv req into the search box.

Spend for Workday 29

226 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

3. Select the Find Supplier Invoice Request report.

4. Enter the following information:

Field Name Entry Value

Company Name Global Modern Services SA (France)

5. Click OK.

6. Use the Related Action from the magnifying glass and select Supplier Invoice >
Create.

7. Click Submit.

TASK 3: VIEW ACCOUNTING

1. Enter find sup inv into the search box.

2. Select the Find Supplier Invoice report to find supplier invoices for Global Modern
Services SA (France).

3. Click OK.

5. Use the Related Action from the invoice and select Accounting > View Accounting.

6. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 227
Spend for Workday 29

ACTIVITY 5.8 – CREATE RECURRING SUPPLIER

INVOICE TEMPLATE

Business Case: Create a recurring supplier invoice to automatically create and record
invoices on a frequency.

TASK #1: CREATE RECURRING SUPPLIER INVOICE TEMPLATE

1. Sign in as Accounts Payable Data Entry Specialist Nathan Moore (nmoore).

2. Enter cr sup inv in the search box.

3. Select the Create Recurring Supplier Invoice task.

4. Enter the following information:

Field Name Entry Value

Company Global Modern Services, Inc. USA

Supplier Flower Power

Name Daily Carnations

Reference FP10

Fixed/Variable Fixed

Frequency Type Monthly

Effective Date Tomorrow’s Date

First Invoice Date Tomorrow's Date

End Date One year from today

5. Add the following Recurring Invoice Line:

Field Name Entry Value

Spend Category Flowers

Extended Amount 100

Cost Center 34000 Facilities

6. Click Submit.

Spend for Workday 29

228 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

7. Expand the Details and Process to review.

8. Click Done.

9. Sign out.

TASK #2: APPROVE RECURRING SUPPLIER INVOICE

1. Sign in as Manager Christine Nguyen (cnguyen).

2. Open Christine's Inbox.

3. Click the Recurring Supplier Invoice notification for the recurring supplier invoice.

4. Click Approve.

5. Click Done.

6. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 229
Spend for Workday 29

ACTIVITY 5.9 – SCHEDULE SUPPLIER INVOICE

AUTO-CREATE

Business Case: Run the auto-create invoice generation process.

TASK #1: SCHEDULE SUPPLIER INVOICE AUTO-CREATE

1. Sign in as Accounts Payable Data Entry Specialist Nathan Moore (nmoore).

2. Enter sup inv aut into the search box.

3. Select the Schedule Supplier Invoice Auto-Create task.

4. Select Run Now.

5. Click OK.

6. Enter 1 in the Calendar Days Prior to Scheduled Date field.

7. Click OK.

8. Click Refresh.

9. Click the Supplier Invoice number to review the invoice that you just created.

10. Expand the Related Actions and Preview link.

11. Click the Related Actions icon next to Supplier Invoice.

12. On the Supplier Invoice popup, from the Available Actions list, select Accounting >
View Accounting.

13. You can now review the View Accounting for Supplier Invoice page.

14. Sign out.

Spend for Workday 29

230 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

PREPAID SUPPLIER INVOICES

Create Prepaid Invoice

Select Amortization Type / Parameters

Pay Supplier Invoice

Reconcile Prepaid Spend Accounts

Amortize Spend

Prepayment is a setting on the supplier invoice. If you opt for prepayment, Workday then
facilitates appropriate spend, payables, and amortization accounting.

SAMPLE BUSINESS CASES

1. Company receives a discount for prepaying insurance expense for 2 years in one
upfront payment and wants to expense it monthly for 24 months.

2. Company is planning large customer conference in nine months but will be paying
invoices throughout the months leading up to the event. Invoices will be expensed the
month of the conference.

3. Company will prepay for services but wants to expense them as services are rendered
or milestones reached.

BUSINESS PROCESSES AND SECURITY POLICIES

Configure the following business processes and security policies for each prepaid invoice type
your organization uses:

• Prepaid Spend Amortization Event

• Prepaid Spend Amortization Schedule Event for the Schedule prepaid amortization type
• Receipt to include the Create Supplier Invoice from Receipt action step for the Receipt
prepaid amortization type
Spend for Workday 29
Confidential © 2017 Workday, Inc. 231
Spend for Workday 29

Set up the Prepaid Spend account posting rule for your organization.

To configure commitment accounting for prepaid supplier invoices, define journal sources and
transactions, account posting rules, and other setup requirements needed for commitment
accounting.

PREPAID SUPPLIER SPEND SETUP

Configure Prepaid Spend Account Posting Rule

PREPAID AMORTIZATION TYPES

You specify prepaid invoice details for procuring goods and services during accounting periods
that occur before the periods when you will amortize the expenses.

Spend for Workday 29

232 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

PREPAID TYPES AND ADDITIONAL DETAILS

Prepaid Supplier Purchase Receipt Invoice Expense Additional

Types Contract Order Amortization Details
Manual Optional Optional Optional Required Amortized Accounts
when you Payable Data
select the Entry Specialist
Create uses a related
Prepaid action off the
Spend Supplier
Amortization Invoice to
related action amortize the
from the Spend.
supplier
invoice and
specify the
accounting
date.
Manual
prepaid
payments
must be
settled and
paid before
spend can be
amortized.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 233
Spend for Workday 29

Prepaid Supplier Purchase Receipt Invoice Expense Additional

Types Contract Order Amortization Details
Schedule Optional Optional Optional Required Amortized on Accounts
a separate Payable Data
prepaid spend Entry Specialist
amortization creates a
schedule. Schedule using
a related action
off the Supplier
Invoice. This
schedule has
its own
business
process so you
can have a
separate
approval
process than
the Supplier
Invoice. For
example, you
may want the
Cost Center
Manager to
approve the
Schedule.

There is a Job
Definition that
can be
scheduled to
run to process
these
schedules on a
specified
frequency.

Spend for Workday 29

234 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Prepaid Supplier Purchase Receipt Invoice Expense Additional

Types Contract Order Amortization Details
Receipt Either a Either a Required Required Amortize The business
supplier purchase when receipts process to
contract or order or a are created amortize the
a purchase supplier and finished spend will be
order is contract is the completion initiated as
required. required. step in the soon as the
Receipt Receipt has
business reached its
process. completion
step.

STEPS
Create a supplier contract (optional).

Tip: You must include receipts and scheduled invoices in the supplier contract type
for the supplier contract.

Create a supplier invoice schedule for the supplier contract and select Prepaid (optional).

Prepaid Invoice Defaults can be put on the Contract Invoice Schedule by the Supplier Contract
Specialist and will then flow down to the generated invoices.

Create a purchase order and complete information in the Prepaid Details tab (optional).

Tip: When you define prepaid details in purchase orders, you can update them later
in supplier invoices and receipts.

A buyer can detail the prepaid invoice defaults on the Prepaid tab of the purchase
order. They are fully editable on the supplier invoice.

Create a supplier invoice.

Prepaid invoices can be created via the PO, contract, receipt, Supplier Invoice Workbench, or
Create Supplier Invoice task.

The parameters controlling the Prepaid functionality are all on the Prepaid tab.

• To set up prepaid supplier invoices, select the Prepaid Details tab and check Prepaid.
• Select a Prepaid Amortization Type:

Spend for Workday 29

Confidential © 2017 Workday, Inc. 235
Spend for Workday 29

Option Description / Action

Manual Select to manually amortize the prepaid
spend amortization on a future date.
Optionally enter the Expected Amortization
Date for tracking and reporting purposes.
Receipt Select to amortize prepaid spend after the
Receipt business process completes for:
Purchase orders
Supplier invoices generated from POs or
supplier contracts
Schedule Define a schedule for prepaid amortization
installments. Specify:
Frequency
Number of installments
Prepaid amortization date
Invoice date - The schedule begins with the
invoice start date.
Specified date - Amortize spend beginning
on the date you specify.
For example, specify July 1 to amortize the
first installment 7/1 and subsequent
installments on the first of the next
scheduled installment period.

Tip: If supplier invoices are based on a purchase order with prepaid details, use the
related action from the purchase order to create the invoice.

Amortize prepaid spend:

• Using the schedule, you specified in the purchase order or supplier invoice.
• Manually, on a future date.
• After you submit receipts and they complete the Receipt business process.

Tip: You must settle and pay supplier invoices before spend can be amortized from
receipts.

Create receipts for prepaid supplier invoices.

Spend for Workday 29

236 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Tip: If you create receipts from supplier contracts or purchase orders before you
create a supplier invoice, prepaid amortization types must be Schedule or Manual.

PREPAID SPEND AMORTIZATION SCHEDULE

•Create schedule using related action off of the prepaid supplier invoice.
Step 1

•Generate Installments.
•By default they will be created as spread even.
Step 2

•[Optional] You may customize the installments by changing the

accounting date or amount of the installments.
•Validations exist to ensure that both invoice lines and invoice totals
Step 3 balance with the invoice.

•Submit schedule to the business process. After the schedule is

approved, the installments are ready to be processed according to
accounting date.
Step 4

•Schedule job to process prepaid amortization schedule installments.

Step 5

Spend for Workday 29

Confidential © 2017 Workday, Inc. 237
Spend for Workday 29

Step 1

Spend for Workday 29

238 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Step 2

Spend for Workday 29

Confidential © 2017 Workday, Inc. 239
Spend for Workday 29

Step 3

Spend for Workday 29

240 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Step 4

Spend for Workday 29

Confidential © 2017 Workday, Inc. 241
Spend for Workday 29

Step 5

Spend for Workday 29

242 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACCOUNTING OVERVIEW
PREPAID SUPPLIER INVOICE ACCOUNTING JOURNALS

CANCEL
• If a supplier invoice is cancelled, all the accounting related to both the invoice and
associated amortizations will be cancelled or reversed depending upon the periods that
are open at the time.
• If a receipt is cancelled, the amortization processed will be reversed or cancelled.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 243
Spend for Workday 29

ACTIVITY 5.10 – PREPAID SUPPLIER INVOICE

Business Case: Create a prepaid supplier invoice.

TASK #1: PREPAID SUPPLIER INVOICE

1. Sign in as Buyer Teresa Serrano (tserrano).

2. Enter cr sup inv into the search box.

3. Select the Create Supplier Invoice task.

4. Enter the following information:

Field Name Entry Value

Company Name Global Modern Services, Inc. (USA)

Supplier Name Flower Power

5. Enter the following on the Invoice Lines tab:

Field Name Entry Value

Spend Category Flowers

Tax Applicability Taxable Sales

Quantity 1

Extended Amount $5000.00

Prepaid Checked

Cost Center 34000 Facilities

6. Enter the following on the Prepaid Details tab:

Field Name Entry Value

Prepaid Amortization Type Manual

7. Click Submit.

8. Expand the Details and Process to review.

Spend for Workday 29

244 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

9. Verify your Supplier Invoice Number.

10. Click Done.

11. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 245
Spend for Workday 29

ROUTING OF MATCH EXCEPTIONS/ERRORS

The advantage of using matching condition rules in the Supplier Invoice business process is so
the match error can get to the person who can best assist in resolving the issue. Workday's
business process engine allows the configuration of routing rules such that a particular match
error is routed to the correct person who can take action.

When including matching condition rules in the BP, it is recommended that Help Text be
included on each matching step, this will aid the approver in knowing which match rule was
invoked and what action they need to perform to resolve the error. To assist further in resolving
the match error, it is recommended that embedded analytics be included so that the approver
can see all information related to the match error and make an informed decision.

When using match condition rules as part of the Supplier Event BP, it is the invoice document
that is routed to the requestor, buyer, or other role that is responsible for resolving the match
error. Unlike other business processes, where the approver only needs to take action on the
current document, when routing the supplier invoice for matching errors, the approver may need
to take action outside of the invoice document to resolve the match error. This additional action
could be to receive the goods to resolve quantity issues or to request a PO change order to
resolve pricing issues. Once this action is taken, the worker will need to return to the invoice and
approve the invoice document so that the invoice can progress to the next match rule or
become available for payment. It is the action of approving the invoice that confirms the user
has performed the action to resolve the match error. It is possible that the user can approve the
invoice without taking any action to resolve the match error. As such, it is recommended that
each matching step in the BP be followed by another step with the exact same condition rules,
but routed to a different approver. This is needed so that the invoice is not approved without any
action taken to resolve the match error.

In the situation when an invoice is stuck in exception and was routed to a reviewer, the reviewer
can choose to override the exception as part of his review, which means that he is not clearing
the exception but only reviewing it. The invoice cannot be paid even though it is approved.
Then, this invoice will not show up in any settlement logic. To clear an invoice that is in
exception and move it along, the reviewer must enter a reason when he choose to override
match exception. This will trigger a job which in turn kicks off a separate event which could have
more reviews. However, if the review is denied, the invoice stays in exception.

Another option to clear an exception without requiring any intervention is when the requester,
buyer, or other role that is responsible for creating the business document themselves creates
the related document that is required to clear the exception. For example, if there is an issued
PO for which a requester/buyer has tried to create a supplier invoice and the status of the
invoice is ‘In Progress’ and ‘Match Status = Exception’ and turns out that the invoice needs a
receipt and that is what is holding up this invoice, the user can go back to the PO and via the
related actions create a receipt.

The receipt BP then initiates the match and clears the match exception and this invoice no
longer requires a review as the receipt is cleared out and revoked the review. The status of the

Spend for Workday 29

246 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

invoice is changed to approved and ‘Match Status = Matched’. This example shows how a
related document can clear up an exception without requiring intervention from a reviewer.

MATCHING CONDITION RULES WITH TOLERANCES

Several of the delivered match rule CRFs allow for an amount or percentage comparison. The
value entered in the "Comparison Value" of the condition rule is the tolerance. Below is an
example of a 10% tolerance on unit price for items other than Freight and Sales Tax. Given the
flexibility of condition rules it is possible to set up tolerances by spend category, spend category
hierarchy or item; so, that tolerances can be defined system wide or down to a granular level
depending on the business need. In defining how granular tolerances should be, consideration
should be given to maintenance of spend categories, items and tolerances.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 247
Spend for Workday 29

REVIEW CUSTOM VALIDATIONS

You can review custom validations related to matching when you navigate to the Maintain
Custom Validations report in Workday. You click Supplier Invoice from the list of values, and
then you can review the validations.

REVIEW SUPPLIER INVOICE BUSINESS PROCESS

In Workday, in this scenario, when you select Supplier Invoice Event for Global Modern
Services Companies business process, you can review the supplier invoice event and see the
applicable match rules.

You enter bp: supplier in the search box in Workday.

Spend for Workday 29

248 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 5 KNOWLEDGE CHECK

Please complete the Supplier Invoicing quiz in the Workday Learning Center.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 249
Spend for Workday 29

CHAPTER 6 – PROCUREMENT CARDS, BANKING AND

SETTLEMENT OF PAYMENTS
OVERVIEW
In Workday Procurement, using a procurement card can help your company and suppliers benefit
from a streamlined procure-to-pay process. The procurement card (P-Card) is a corporate liability
card issued to an individual. The card is a fast, convenient way for departments to spend money
directly from their designated budgets. With a P-Card, employees purchase items directly from
suppliers using a worker credit card. For example, a worker can order and pay for office supplies via
a supplier’s website. Then the credit card issuer sends credit card transaction files directly to your
company for payment processing.

Workday Cash Management automates administrative and control activities, such as bank
statement reconciliation, while providing embedded business intelligence. Using Workday Banking
and Settlement, companies can automate the coordination and control of cash-flow activity.

OBJECTIVES

By the end of this chapter, you will:

• View Procurement Card Accounts

• Create a Settlement Run
• Edit Bank Routing Rules
• Print Checks
• Review Banking Accounts

Spend for Workday 29

250 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

VIDEO 6.1 – PROCUREMENT CARDS

Introduction: Check out the next video presentation.

NOTES

Spend for Workday 29

Confidential © 2017 Workday, Inc. 251
Spend for Workday 29

PROCUREMENT CARD PROCESS

LOAD CREDIT CARD TRANSACTION FILES

The credit card transaction file gets loaded through a secured environment and the credit card
number is replaced with a token in the file. Then, the file is loaded into the Workday tenant. This
is like the process used with expenses.

Once the file is imported into the Workday tenant, you can have an administrator review the
transaction and make limited error corrections. This allows you to connect the transaction to a
credit card; for example, if for some reason the credit card or employee ID that was sent in the
file is not found in the system, it can be corrected.

VERIFY PROCUREMENT CARD TRANSACTIONS

A Procurement Data Entry Specialist can review the credit card transaction and enrich the data.
You can assign a spend category, create splits, and add worktags.

SUBMIT / APPROVALS
If necessary, you can go through an approval process for those verified transactions.

Spend for Workday 29

252 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SETTLEMENTS
A settlement run can be started where you can generate payment for the credit card
transactions.

Tip: P-Card transactions are always corporate liability. There is no personal liability
or shared liability, and funds are never reimbursed to a worker. They are always
paid directly by the company.

SECURITY GROUPS
Procurement Data Entry Specialist
• Perform procurement data entry functions for assigned organizations
• Has approval authority for P-Card verification only
Procurement Settlement Specialist
• Performs procurement settlement functions for assigned organizations
• Examples include generating procurement card transaction payments
• Has approval authority for settlement business processes

PROCUREMENT CARD CONFIGURATION

CREDIT CARD AND SUPPLIER SETUP

Spend for Workday 29

Confidential © 2017 Workday, Inc. 253
Spend for Workday 29

When your company has a relationship with a credit card company, the card company may
have issued your company multiple credit card accounts, which are called corporate accounts or
corporate card accounts within Workday.

Each corporate card account behaves in a certain way, and all the issued credit cards
associated with that account behave per the corporate card account definition.

Worker credit cards are issued to individual named employees to be used for procurement
purchases.

For every worker credit card, there may be multiple individual transactions that relate to the
card.

Corporate Credit Card Account

Worker Credit Card

DUNS Number for Supplier

Credit Card for Supplier

CORPORATE CREDIT CARD ACCOUNT

The P-Card is not personal liability it is always corporate liability. In the Account Details region
of the View Corporate Credit Card Account task, you can identify whether the usage of your
company’s credit card is for expenses or for procurement.

When you select Procurement as the credit card usage, you are required to enter a company
and a default spend category.

Typically, a company using procurement may pay for a transaction before it is verified by a
worker. For P-Card transactions, often a company pays a statement in full, or may pay down the
statement weekly. Later, the credit card transaction can be verified to generate the appropriate
accounting.

Spend for Workday 29

254 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

WORKER CREDIT CARD

The worker credit card can be used for multiple purposes. You can see in the Account Status
region that this card’s usage is for procurement. The displayed usage type is inherited from the
corporate credit card that the worker credit card is attached to.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 255
Spend for Workday 29

DUNS NUMBER FOR SUPPLIER

If the DUNS Number is sent in the transaction file for the P-Card, and the DUNS Number is
populated on the supplier details, Workday will automatically look up the instance of the supplier
during transaction load.

CREDIT CARD FOR SUPPLIER

You can store a credit card on file for a specific supplier. The credit card that is stored on file for
a supplier is still owned by a worker. Every time a purchase is made from that supplier, it is
charged against the credit card on file for that supplier. Your company has the option to pay P-
Card charges before the transactions have been verified.

Spend for Workday 29

256 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Spend for Workday 29

Confidential © 2017 Workday, Inc. 257
Spend for Workday 29

INTERCOMPANY FOR PROCUREMENT CARD

CREDIT CARD PURCHASES ON BEHALF OF OTHER COMPANIES

You have the ability as a buyer to use credit cards to purchase goods or services on behalf of
other companies. When a buyer is reconciling a transaction on a credit card, she may need to
charge a portion of the transaction or perhaps the entire transaction to a different company than
the one holding the credit card.

A transaction is charged on the credit card owned by Company A, in the illustration above. You
can take that credit card transaction and you can split it with another company, like Company B.

In this example, you could either split the transaction with the same company that owns the
credit card, or you can charge it to a completely different company.

PROCUREMENT CARD PROCESS - LOADED CREDIT CARD TRANSACTION FILES

Your company receives a file from the credit card company with all the transactions that were
charged to your credit card.

In Workday, when you navigate to the Find Credit Card Transaction File task, you can search
for all your credit card transactions. You can view credit card transactions for one or more
employees. You can set audit transactions by the specified filter prompt and identify which
transactions have not been verified.

You can search for procurement card transactions using one of more of the following filters:

1. File Date On or After [MM/DD/YYYY]

Spend for Workday 29

258 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

2. File Date On or Before [MM/DD/YYYY]

3. Corporate Credit Card Accounts

4. Usage [Procurement or Expenses]

When you enter the corporate credit card account that is used for procurement, you will get a
result that lists all the files that have been created for that particular credit card procurement
account.

When you drilldown into a specific file, you can see the total number of transactions within that
file. Any credit card transaction file that is identified in Transactions in New Status has not been
paid nor verified by the buyer.

VERIFYING PROCUREMENT CARD TRANSACTIONS

If you are a worker who has been issued a corporate credit card for procurement usage, you will
need to verify the credit card transactions that you charged. In Workday, when you navigate to
the Verify Procurement Card Transactions task, you can select the file you want to view.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 259
Spend for Workday 29

You will see a list of all credit card transactions that have not been verified. For each
transaction, you will see the transaction date, the company that owns the corporate credit card,
the corporate card account company, a description of the charge, the amount of the purchase,
and the currency used. Then, you can click the OK button to see your result prior to verification.

In the Transaction region, if there was a purchase order or a supplier contract linked to your
credit card that information will be populated in the corresponding field. You can link either a
purchase order or a supplier contract to this page if you wish to do so.

Spend for Workday 29

260 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

In the Amount region, you can see the credit card transaction amount.

In the Transaction Details region, you can add more lines to your transaction verification if
needed. For example, you may want to split a portion of this $325.00 transaction to a different
company. If you want to split $200.00 to Global Modern Services, Inc. (USA) and the remaining
$125.00 to Global Modern Services, Ltd (Canada), you will add a line for GMS Canada. You are
required to assign a spend category. Once submitted for verification, the transaction goes
through the business process, which includes approval steps.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 261
Spend for Workday 29

SETTLEMENT OF CREDIT CARD TRANSACTIONS

Once your credit card transaction has been verified and approved, you need to settle the
transaction. In Workday, the settlement run facilitates the payment to the credit card issuer.

On the Create Settlement Run task, you are required to enter a company name which in this
case is the corporate credit card account holder, the currency used for the transaction, and a
settlement run date.

After you click the OK button, the View Settlement Run task opens.

Spend for Workday 29

262 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

From the View Settlement Run task, in the Selection Options region, you will select Credit Cards
and choose Procurement Card from the dropdown menu. The Select Procurement Card
Transactions for Settlement Run task opens.

You have several Selection Criteria available to narrow your search, such as Loaded Date,
Billing Date, Corporate Credit Card Account, and Financial Institution. You can also leave these
fields blank and click the Search button.

The Procurement Card Transaction region has been populated with a Company, a Corporate
Credit Card Account, a Financial Institution, Payment Amount and Currency.

When you Click the Payment Amount link, you can review all the transactions that will be paid.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 263
Spend for Workday 29

After you close the popup window, mark the checkbox and click OK.

Spend for Workday 29

264 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

From the View Settlement Run page, you will click the Process Payment button. When this
payment is processed, Global Modern Services, Inc. (USA) will pay the entire amount for the
$325.00 charge that was split with Global Modern Services, Ltd (Canada).

Now, Global Modern Services, Ltd (Canada) needs to pay $125.00 to Global Modern Services,
Inc. (USA) for its share of the split payment.

You can create a settlement run for this transaction.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 265
Spend for Workday 29

From the View Settlement Run page, you will select the Intercompany button.

On the Select Intercompany Items for Settlement Run page, you can search for intercompany
transactions that need to be paid. You can target your search by selecting additional filters in
the Selection Criteria region. In this example, in the Originating Transaction Type field,
Procurement Card Transaction Verification was selected. You can then click the Search button.

This search returned one intercompany item to be settled for $125.00. You can mark the
checkbox and click OK.

Spend for Workday 29

266 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

To complete the intercompany payment, you will verify the information and click the Process
Payments button.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 267
Spend for Workday 29

DEMO 6.1 – CREATE A CORPORATE CREDIT CARD

ACCOUNT AND WORKER CREDIT CARD

Introduction: Check out the next demonstration.

Spend for Workday 29

268 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CASH MANAGEMENT

Workday Cash Management consists of banking, settlements, and bank reconciliation tools that
enable you to actively manage and optimize the cash inflows and outflows for your organization
on a daily, weekly, and monthly basis.

SECURITY ROLES
• Settlement Specialist – Perform settlement runs and payment processing.
• Cash Manager – Perform ad hoc bank transaction, bank transfers, and bank
reconciliation.
• Cash Analyst – Perform reporting for bank transactions.

BUSINESS PROCESSES
• Settlement Run Event
• Payment Release Event
• Payment Printing Event
• Print Checks Event

Spend for Workday 29

Confidential © 2017 Workday, Inc. 269
Spend for Workday 29

BANKING AND SETTLEMENT TOUCHPOINTS

Because Workday is a unified solution, you must consider the cross functional impact of certain
configuration decisions.

This touchpoints diagram provides insight into how one area of the product impacts another.
There are configuration decisions that need to be made with current and possibly future phases
of implementation in mind. Your consultants will work with you to identify and plan for these
touchpoints.

This diagram represents the touchpoints for the current Workday release

Spend for Workday 29

270 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

BANKING
With Workday’s banking tools, you create financial institutions, define branches for those
institutions, and the bank accounts that your company holds at each institution. You can create
both depository and source bank accounts. Account transfers, voided check recordings, and
reporting give you further control of your cash.

Before setting up banks and other financial institutions, you must define:

• Companies and company hierarchies

• Payment types

It is also a best practice to define the following and associate with bank accounts:

• Preferred currencies
• Check printing layout
Financial Institution - Define the business entities holding the bank accounts your company uses
to receive and make payments. (e.g. Bank of America)

Bank Account - Create or update an account to capture the attributes of a financial account with
which you bank. These accounts enable you to perform various financial activities in Workday.

• Create, make, and receive payments

• Reconcile bank statements
• Manage cash
You can create accounts in Workday for all external operational accounts against which you
perform operational transactions. For non-operational accounts, create an account only if you
need the ability to reconcile.

This diagram illustrates the flow of cash in and out of Workday:

Spend for Workday 29

Confidential © 2017 Workday, Inc. 271
Spend for Workday 29

KEY FEATURES AND FUNCTIONALITY OF WORKDAY BANKING AND SETTLEMENT

INCLUDE:
• Invoices, expense reports, payroll data, and payments flow in and out of Workday
Banking and Settlement for transactions involving goods, services, and people. You
receive supplier invoices, expense reports, payroll data, and customer payments. You
send out customer invoices, expense report reimbursements, payroll payments, and
supplier payments. These transactions post to the bank accounts in your Workday
banking system of record.
• Through settlement processing you settle payments for these transactions. Payments
flow between the bank accounts at the financial institution and Workday’s settlement
processing. For money owed, you can run check print processing to make payments, or
you can use electronic or other forms of payment.
• Through bank reconciliation processing you reconcile bank statement lines against
account transactions. You can manually enter or upload (recommended) these bank
statements into Workday for reconciliation.
• Both settlements and bank reconciliation produce accounting data, which Workday
Banking and Settlement passes to Workday Financial Accounting.
• You can perform reporting within and across these banking, settlements, and bank
reconciliation tools at any time to view and analyze your cash data.

Spend for Workday 29

272 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 6.1 – VIEW FINANCIAL INSTITUTION

Business Case: Review an existing financial institution.

TASK #1: VIEW FINANCIAL INSTITUTION

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter fin ins into the search box.

3. Select View Financial Institution report.

4. Financial Institution > Bank of America.

5. Click OK.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 273
Spend for Workday 29

ACTIVITY 6.2 – CREATE BANK ACCOUNT

Business Case: Create a new bank account for Global Modern Services, Inc. (USA) that will
be used to pay supplier invoices.

TASK #1: CREATE BANK ACCOUNT

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter cr bank acc into the search box.

3. Select Create Bank Account task.

4. Enter Account Name > GMS Bank of America Accounts Payable Checking.

5. Select Bank Account Type > Bank Account.

6. Select Country > United States of America.

7. Click OK.

8. Enter the information as follows:

Field Name Entry Value

Organization Global Modern Services, Inc. (USA)

Account Currency USD

Accept All Currencies (selected)

Allowed Payment Types (select all from prompt)

Financial Institution Bank of America

Routing Transit Number 263181384

Account Number 12345678

Bank Statement Format BAI2

Primary Account Usage (select all from prompt)

9. Click OK. and Done.

Spend for Workday 29

274 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 6.3 – EDIT BANK ROUTING RULE

Business Case: Add the new bank account as the default bank routing rule.

TASK #1: EDIT BANK ROUTING RULE

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter bank rout into the search box.

3. Choose the Edit Bank Routing Rule task.

4. Select Bank Routing Rule > Bank Routing Rule for Global Modern Services, Inc.
(USA).

5. Click OK.

6. Change Default Bank Account > GMS Bank of America Accounts Payable Checking.

7. Click OK.

8. Click Done on the confirmation page.

9. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 275
Spend for Workday 29

SETTLEMENT OVERVIEW
SETTLEMENT
Workday delivers a single settlement engine to manage all payments generated across your
organization’s entire business for any purpose. The result is a rationalized approach to cash
visibility and management that improves upon traditional approaches which are isolated in
unconnected silos.

• Single settlement engine. Workday provides a single settlement engine to cover all
disbursements-including payroll, payables, direct debits, refunds, customer credit card
and expense reimbursement—making the settlement process more efficient with
increased control.
• Settlement analytics. Workday settlement processing provides a view across all your
outstanding in-flows and out-flows, providing the tools necessary to make accurate
decisions about funding, paying, and collecting money. Real-time drill-downs provide
dimensional analysis of the outstanding settlements which provide hard-to-get details in
a few clicks.
• Multiple payment methods. Workday Banking and Settlement supports electronic
payment processing (ACH, EDI, ISO20022), including payment returns, as well as paper
checks and positive pay.
• Support for ad hoc cash transactions. Workday Banking and Settlement provides
facilities to capture and manage "non-bank" cash including petty cash, in-person
customer payments, one-time payments, payments from employees, and acceptance of
hard currency payments.
• Business process. Workday Banking and Settlement processes utilize Workday's unique
business process framework to capture approvals and automate routings, integrations,
and reports from bank statement reconciliation through settlement and payment release.
• Reporting. Workday provides detailed reporting, including the ability to drill down across
and thru the operational transactions—the "raw materials" of cash information.
Workday's unified banking model enables you to settle all incoming and outgoing payments in
one place through a common settlement infrastructure. Within this unified infrastructure, you can
use security to grant your users access to only the types of payments that apply to them. You
also have a better overall picture of the financial inflows and outflows of your enterprise. From
payroll to supplier and customer payments, you have the analytic data necessary to make
informed decisions.

Spend for Workday 29

276 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Within a settlement run, you can include any combination of these unpaid open items and
pending payments:

• Supplier invoices and adjustments from payables

• Customer invoices, payments, and refunds from receivables
• Expense reports from expenses
• Ad hoc payments from cash accounts
• Intercompany items
• Pending payments from regular and off-cycle payroll

When ready, process the settlement run to settle payments. Workday interacts with banks to
send outbound payments and receive inbound payments.

From Settlements, you can initiate check printing, and Workday can send positive pay data to
the bank.

For electronic payments (including credit card), the banks send Workday payment
acknowledgements based on the integration associated with the bank account definition in
Workday.

Once the settlements processing completes payments, it generates the accounting entries
associated with each payment and sends it to Workday's financial accounting.
Note: Before you settle payments, you can create prenote runs that preauthorize
bank accounts by verifying account and routing information for workers, suppliers,
and customers.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 277
Spend for Workday 29

SETTLEMENT WORK AREA

Using the Settlement Work Area report as a home base, you can quickly manage, analyze, and
report on all your recent settlement run activity. To perform settlements, you first create
settlement runs to group payments and open items. Then you view, edit, and process the
settlement run. You can set the processing to run automatically, or you can use a preview mode
to first view and then run manually. By using routing rules, you can define that payments made
for certain transaction types draw from specific accounts. Payments can be direct deposit, cash,
check, or some other form. Key reports help you find invoices and payments, view your check
register, and view your account register.

SETTLEMENT RUN DATE

Specify when you want to settle payments.

• The settlement process retrieves only the unpaid items whose dates fall before this date.
• The process also settles the selected items in the run using this date as the payment
date on checks and advices.
• For electronic payments, the payment date is the date that you process the settlement
run.
• If the payment is generated outside of the settlement run, payroll, ad hoc payments, and
customer payments use the date on the associated transaction as the payment date.

BANK ROUTING RULE

Establish a routing rule for each company to automatically control which bank accounts the
settlement process uses to route payments that you initiate in Workday.

For example, you might route payments coming in for customer invoices paid by direct debit so
that you deposit payments into the correct bank account.

Workday supports these categories of payment: ad hoc, customer, customer refunds, expense,
intercompany, payroll on-cycle and off-cycle, and supplier.

For each condition of the bank routing rule, you specify the characteristics of the payment
and/or worker that determine the bank account with which to make or receive payments. When
you run the settlement process it automatically evaluates the conditions of a company's bank
routing rule from top down, associating the payment with the first applicable bank account for
which it finds a match. If the settlement process does not find a match, it uses the default bank
account that you specify.

Bank routing rules apply only to payments involving standard bank accounts. You cannot define
bank routing rules for petty cash accounts.

Spend for Workday 29

278 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Use the View Bank Routing Rule report to view, by company, the rule that routes payments to or
from specific bank accounts depending on characteristics of the payment and of the worker
being paid. You can edit the rule as a related action off the rule.

PRINT CHECKS
Workday delivers three business form layouts for checks and advices, each of which contain a
metadata xsl style sheet that defines the default placement of fields, company logo, and
signature on checks and advices. The business form layout that Workday uses at print time
depends on whether the printout is a financial check, payroll check, or pay slip.

To customize the default configuration of checks and advices, you can create check print
layouts. Based on the check or advice stock you've selected; you can configure a layout to:

• Print checks at the top, middle, or bottom of the page.

• Establish the print location of items such as dates, payee names, and addresses.
• Specify the placement of additional fields necessary to print on blank check stock.
• Elect to print the company logo and signature on the check.
• Elect to print the company name on the remittance.
• Define both financial and payroll-specific check options.

Business form layouts assume the use of preprinted check stock. If you opt to use the default
business form layout configuration rather than define your own check print layouts, you must
use preprinted check stock. To use blank check stock, you must use check print layouts to
configure the additional fields.

Note: Users can issue a positive pay file to the bank. It is a business process in
Workday and is setup during integrations.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 279
Spend for Workday 29

ACTIVITY 6.4 – CREATE SETTLEMENT RUN

Business Case: Pay invoices for goods, services, and contingent labor.

TASK #1: CREATE SETTLEMENT RUN

1. Sign in as an Accounts Payable Settlement Specialist (nmoore).

2. Enter cr set run into the search box.

3. Choose the Create Settlement Run task and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Settlement Run Name Procurement Payments
Settlement Run Date Today’s Date

4. Click OK.

5. Click the Add pull-down menu and select Supplier Invoices.

6. For the Due On Or After field, select Today’s Date.

7. Click the Search button.

8. Select the supplier invoices for the following suppliers:

A. Tri Valley Vending

B. RF Consulting

C. Corporate Express

D. Flower Power

Spend for Workday 29

280 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

E. Office Depot

F. CenterCal Property Management

9. Click OK.

10. Click the Process button.

11. Click the Refresh button if needed.

12. Sign out.

TASK #2: CREATE A SECOND SETTLEMENT RUN

1. Sign in as an Accounts Payable Settlement Specialist (gcarlisle).

2. Enter cr set run into the search box.

3. Choose the Create Settlement Run task and enter the following:

Field Name Entry Value

Company Global Modern Services SA (France)

Settlement Run Name Procurement Payments
Settlement Run Date Today’s Date

4. Click OK.

5. Click the Add pull-down menu and select Supplier Invoices.

6. For the Due On Or After field, select Today’s Date.

7. Click the Search button.

8. Select the supplier invoice for Bruneau.

9. Click OK.

10. Click the Process button.

11. Click the Refresh button.

12. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 281
Spend for Workday 29

Note: Enter a Settlement Run Name to describe the run for easier identification
later. For example, you might use a standard naming convention for weekly
expenses or monthly payments. You can reuse names because each run also has
an ID that Workday automatically generates to uniquely identify it.

Spend for Workday 29

282 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 6.5 – SETTLEMENT WORK AREA

Business Case: Review status of settlements.

TASK #1: SETTLEMENT WORK AREA

1. Sign in as Accounts Payable Settlement Specialist Nathan Moore (nmoore).

2. Enter set work into the search box.

3. Choose Settlement Work Area report.

4. You can view greater detail by clicking on one of the Settlement Run links.

5. View transactions.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 283
Spend for Workday 29

ACTIVITY 6.6 – PRINT CHECKS

Business Case: Print and review checks from settlement run.

TASK #1: PRINT CHECKS

1. Sign in as Accounts Payable Settlement Specialist Nathan Moore (nmoore).

2. Enter pri check area into the search box.

3. Choose Print Checks Work Area report.

4. Click the Print Check button for our Payment Group.

5. Select the Print Checks radio button.

6. Click OK.

7. Click the Refresh button to view progress until 100% complete.

8. Click the PDF file to view/print check.

9. Sign out.

Note: From the print check area, you can go to the printing runs tab to display the
printing run for the past 10 printing runs processed.

Spend for Workday 29

284 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 6 KNOWLEDGE CHECK

Please complete the Procurement Cards, Banking and Settlement of Payments quiz in the
Workday Learning Center.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 285
Spend for Workday 29

CHAPTER 7 - SUPPLIER COLLABORATION

OVERVIEW
The supplier collaboration is primarily for supplier contacts, who can log in to Workday to
perform catalog loads, approve purchase orders, log time and tasks, create invoices and update
the supplier contact information.

We will look at how the supplier contacts can have a workday account created and add a few of
the tasks the suppliers can use to manage the catalogs and invoices.

You can create a Workday account for suppliers, which enables them to load their own catalog
items, approve purchase orders, log time and tasks, submit invoices and make changes to the
supplier information. They can also review and respond to Request for Quotes.

Catalog loads and price changes and other tasks initiated by the supplier are subject to
approval by the workday customer.

BUSINESS PROCESSES
• Supplier Contact Information Change Event
• Supplier Settlement Bank Account Change Information Event
• Supplier Alternate Name Change Event

OBJECTIVES

By the end of this chapter, you will be able to:

• Understand the Supplier Portal Worklets

• Setup a supplier account
• Understand the supplier functionality

Spend for Workday 29

286 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER PORTAL WORKLETS

A supplier can access the following worklets to manage their information and transactions
through the Supplier Portal:

• Contact and Banking Information

• Purchase Orders and Catalogs
o Most Recent Catalog Loads
o Uninvoiced PO’s
o Most Recent Purchase Orders
• Invoices and Payments
• Most Recent Invoices
• Most Recent Payments
• Request for Quotes
• Find Request for Quotes (RFQ) for Supplier Contact
• Open RFQs by Type
• Open RFQs – Not Responded
• RFQs - Awarded
• Financial Dashboard Reports
• My Key Reports

Spend for Workday 29

Confidential © 2017 Workday, Inc. 287
Spend for Workday 29

Task Definition
Change Supplier Submit new and updated supplier contact information for review and
Contact Information approval.
Change Supplier Submit new and updated supplier settlement bank accounts for
Settlement Bank review and approval.
Account
Change Supplier Submit new and updated supplier alternate names for review and
Alternate Name approval.
Load Catalog Items If there is a supplier contract, a workday supplier contract specialist
or buyer can access the Catalog Load Request task to add or
update Catalog Items for the specified contract. Supplier contacts
can access the Catalog Load Request for Supplier task.
Approve Purchase You are notified in your Inbox when there is a purchase order
Order available for approval.
Log Time and Tasks Use the Log Time and Tasks task to report hours on behalf of one
of your contingent workers or to record completed activities for a
project.
Create Supplier You can create supplier invoices from purchase orders for goods.
Invoices This feature also allows you to add lines that do not appear on the
purchase order, for example for taxes or shipping costs.

Spend for Workday 29

288 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 7.1 – CREATE SUPPLIER CONTACT

Business Case: Roger Farris will be set up as the supplier contact for RF Consulting. Roger
will then manage his business with Global Modern Services.

TASK #1: CREATE SUPPLIER CONTACT

1. Sign in as a Supplier Administrator (tserrano).

2. Enter rf cons into search box.

3. Select the RF Consulting link.

4. Click the Supplier Contacts tab.

5. Click Add.

6. Enter the information as follows:

Field Name Entry Value

First Name Roger

Last Name Farris

7. On the Contact Information tab, enter the following:

Field Name Entry Value

Email Address [email protected]

Type Work
Use For Shipping

8. Click OK.

9. Click the Related Actions icon for Roger Farris, then select Workday Account for
Supplier Contact > Create.

10. Enter the following:

Field Name Entry Value

Username rfarris.supplier
New Password Tenant Password

Spend for Workday 29

Confidential © 2017 Workday, Inc. 289
Spend for Workday 29

Verify Password Tenant Password

11. Click OK.

12. Click Done.

13. Sign out.

Spend for Workday 29

290 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 7.2 – CONFIGURE SUPPLIER CONTACT

LANDING PAGE

Business Case: Roger will add worklets to his Home landing page.

TASK #1: CONFIGURE SUPPLIER CONTACT LANDING PAGE

1. Sign in as Supplier as Self (rfarris.supplier).

2. Click Sign in.

3. Click the Configure This Page icon.

4. Click the Add Row icon four times to add four new rows.

5. Add the following rows:

Notice any warnings, it is okay to proceed.

A. Most Recent Invoices

B. Most Recent Payments

C. Contact and Banking

D. Open RFQs by Type

6. Click OK.

7. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 291
Spend for Workday 29

LOG TIME AS SUPPLIERS AND CONTINGENT WORKERS

The supplier or contingent worker accesses their purchase order for logging time and selects
Time and Tasks as a related action.

In the Period Time Card tab, they enter the Period Start Date and Period End Date.

The supplier or contingent worker enters the number of hours for this time period.

Note: Suppliers will see the rates and amounts on the timecard; contingent workers
do not see this information unless they are contracted directly as a 1099 contractor.

Spend for Workday 29

292 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 7.3 – LOG TASK AS SUPPLIER

Business Case: Supplier Contact Roger Farris will enter tasks against the project-based
services purchase order.

TASK #1: LOG TASK AS SUPPLIER

1. Sign in as Supplier as Self (rfarris.supplier).

2. Click the POs and Catalogs worklet.

3. In the Most Recent Purchase Orders area, find your project-based services purchase
order.

4. From the purchase order's Related Actions icon, select Time and Tasks > Log.

5. Click OK.

6. Enter 1,000 in the Amount to Receive field.

7. Click Submit.

6. Sign out as rfarris.supplier.

9. Sign in as a Manager (lmcneil).

10. Open Logan’s Inbox.

11. Select the receipt for RF Consulting.

12. Review the receipt. Click Approve.

13. Click Done and sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 293
Spend for Workday 29

CHAPTER 8 – BUSINESS ASSETS AND BUSINESS

ASSET ACCOUNTING
OVERVIEW
In Workday, Business Assets plays an integral role in Spend. This chapter serves as a refresher
to basic concepts in business asset accounting. An asset is anything you want to track, from
tangible capital items like company cars, to intangibles like software licenses, to low-cost high-
value items like security badges. Workday Business Assets combines the traditionally separate
domains of fixed assets and inventory management with the emerging importance of managing
high-value, low-cost items such as mobile phones and security passes.

In this chapter, you will learn how to perform a basic accounting flow of fixed assets and to track
custodianship of company property regardless of its accounting treatment.

OBJECTIVES

By the end of this chapter, you will become reacquainted with:

• Business Asset Lifecycle

• Depreciation Profiles
• Spend Categories
• Business Asset Rules
• Business Asset Registration
• Issuing a Business Asset
• Transferring a Business Asset

Spend for Workday 29

294 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

VIDEO 8.1 – BUSINESS ASSETS OVERVIEW (FREE)

Introduction: Check out the next video presentation.

NOTES

Spend for Workday 29

Confidential © 2017 Workday, Inc. 295
Spend for Workday 29

BUSINESS ASSET TRACKING

The key to business assets is the separation of asset accounting from asset tracking. By
separating the accounting and tracking decisions, business assets can be accounted for per
accounting rules and tracked per business use.

Workday Business Assets allows you to perform a basic accounting flow for fixed assets
(capitalization and depreciation), and track custodianship of company property regardless of its
accounting treatment.

This flexibility helps you perform tasks like off-boarding employees and contractors. You can
easily see all items that the worker has, and transfer them to someone else.

BUSINESS ASSET TRACKING

Workday's business asset tracking enables you to:

Track and manage any business asset according to how it's used in the business.

1. Whether the business asset is a cell phone, cell phone plan, laptop, building, WebEx
account, or product inventory, Workday allows you to invoke inventory management
activities and controls such as stock, issue, and return for assets with the same level of
physical tracking traditionally available only in Fixed Asset Systems.

Track zero cost items.

2. Track items, such as security badges, that have no individual trackable cost but for
which physical tracking is crucial.

Assign custody and responsibility.

3. Create a reportable link between issued business assets and the receiving worker. A
custody assignment can also be made a required step in the worker on-boarding
process.

SECURITY ROLES
Your asset tracking specialists can make custodianship decisions without worrying about an
asset's accounting treatment, while your asset accountants can manage the accounting for
capital assets and changes to asset cost, useful life, etc., as well as record the appropriate
depreciation throughout the asset's life. Asset tracking specialists and asset accountants have
complete visibility into all the asset lifecycle events applicable to their role. If you have multiple
asset books, key roles, such as tax manager can manage the non-primary asset books for tax
without needing access to the accounting asset book.

Spend for Workday 29

296 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

• Business Asset Tracking Specialist – This role can perform tasks related to business
assets, including registering, issuing, transferring, disposing, etc.
• Business Asset Accountant – This role can perform business asset accounting functions
for assigned organizations and has approval authority for business asset accounting
processes. Responsibilities may include editing asset accounting information and
recording depreciation expense.
• Tax Manager – This role can perform tax management functions for assigned
organizations, such as viewing business asset accounting and maintaining non-
accounting asset books. Tax managers have approval authority for business asset
tracking and accounting business processes.

CONFIGURE ASSET TRACKING

You can use these high-level steps to configure Workday to track assets.

BUSINESS PROCESSES
Define the business processes related to asset tracking:

• Asset Adjust In Service Date Event

• Asset Disposal Event
• Asset Intercompany Transfer In Event
• Asset Intercompany Transfer Out Event
• Asset Issue Event
• Asset Registration Event
• Asset Reinstatement Event
• Asset Removal Event
• Asset Transfer Event
• Receipt (optional Register Business Assets from Receipt service step and Review
Trackable Lines for Receipt action step)
• Requisition Event (optional Source Goods from Storage action step)
• Source from Storage Event
• Supplier Invoice Event (optional Register Business Assets from Invoice service step and
Review Trackable Lines for Invoice action step)

Tip: If you have capital assets, you must define additional business processes for
asset accounting.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 297
Spend for Workday 29

Create spend categories to apply to items that are capital assets or expensed items for which
you want to keep track of owners and locations (such as security badges).

1. Access the Maintain Spend Categories task.

2. Mark the following check boxes:

Field Description
Procurement Usage The spend category becomes available on
all procurement documents including
requisitions, purchase orders, supplier
contracts, receipts, and supplier invoices.
Track Items Select to enable custodial tracking of assets
that you assign to this spend category. This
is required to issue assets with this spend
category to workers. When checked, you
can optionally define defaults for Asset
Class and Asset Type.
Note: If a trackable spend category also has
expense usage, you must manually register
the assets you include in expense reports.
You cannot configure the expense report
business process to automatically initiate an
asset registration event.
Intangible Select if asset to track is an intangible asset.
This flag controls how intangibles are
processed within Workday, e.g. depreciation
method of ‘Term’, required contract start and
end dates, using an accrued liability style of
accounting, etc.

Spend for Workday 29

298 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Define the different ways to dispose of assets.

Disposal types drive accounting related to the disposal of goods and enable you to report on
disposals by type. High value assets that aren’t depreciable usually have an accounting
treatment of Expensed. There will be some accounting configuration needed regardless of the
accounting treatment. Disposals will record a gain or loss for any asset that has been sold
regardless of whether the accounting treatment is expense or depreciable asset.

Note: The example used in this chapter assumes that accounting has already been
configured.

1. Access the Maintain Asset Disposal Types task.

2. Name each disposal type and complete the following:

Field Description
Asset Disposal Method Select whether the disposal type applies to
expired assets or those that you discard,
donate, or sell. These Workday-delivered
methods drive accounting for disposals. You
can assign the same method to multiple
types for flexibility.
Fair Market Value as Basis For purposes of calculating gain/loss, mark
this check box to base donation amount on
the fair market value manually entered at
time of disposal.
Net Book Value as Basis An asset's acquisition cost minus its
accumulated depreciation. Select to base an
asset's donation amount on net book value.
Workday uses the donation amount to
calculate gain/loss for accounting purposes.
Usage Count You can't delete types that are in use. If you
need to change the method or basis, create
a new type to use going forward.

You can use the Asset Disposal Types report to view existing ways to dispose of assets. As a
related action, you can change a type or add new ones.

You can now track your assets for spend categories that are set up for item tracking.
Spend for Workday 29
Confidential © 2017 Workday, Inc. 299
Spend for Workday 29

BUSINESS ASSET LIFECYCLE

Spend for Workday 29

300 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

BUSINESS ASSET SETUP

DEPRECIATION PROFILES
Capitalized business assets need depreciation profiles, which they are assigned indirectly by
way of their spend categories. Depreciation profiles are a prerequisite for capitalizing business
assets, but not for tracking custodianship. Depreciation profiles determine how the asset will
depreciate over its useful life. Key fields include the depreciation method (Straight Line,
Declining Balance, etc.), useful life, placed in service manually or when the asset is issued, and
the depreciation convention. Depreciation conventions determine the start of depreciation after
the asset has been placed in service. The conventions include: Current Period, Half Year, Mid-
Quarter, Mid-Month, Modified Half-Period, and Next Period. Further, the depreciation
convention also determines the amount of depreciation that is included in the calculation of the
gain/loss when an asset has been disposed.

These depreciation profile values default to a business asset when it is registered as a

depreciable capital asset. However, accountants can change the asset accounting values after
registration.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 301
Spend for Workday 29

SPEND CATEGORIES
All items that you can track must have a spend category. It is likely that the business asset you
want to track is already associated with a spend category. Spend categories are a prerequisite
for capitalizing business assets and tracking custodianship. For capitalized business assets,
make sure that the spend category has a depreciation profile associated with it. You will
associate it using the Asset Book Rules discussed in the next section.

Spend category is also used to derive the correct ledger account that should be used for the
accounting journal. You can specify this in the account posting rule set for the Spend Account
Posting Rule.

Spend categories define the financial characteristics of business assets, including:

• Whether it can be selected during procurement.

• Whether it can be listed in an expense report.
• Whether it is tracked.
• The UNSPSC code, if applicable.

Spend for Workday 29

302 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 8.1 – ASSET BOOK RULES

Business Case: View how to associate spend category with business asset accounting
rules and the depreciation profile.

TASK #1: MAINTAIN ASSET BOOK RULES

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter main asset book into the search box.

3. Choose the Maintain Asset Book Rules task.

4. Asset Book > Accounting

5. Click OK.

6. Add a row by clicking on the Add Row icon.

7. Enter the information as follows:

Field Name Entry Value

Spend Category Vending Machines

Resulting Accounting Treatment Depreciable Capital Asset

Result Depreciation Profile 36 SL Curr

8. Click OK to save.

9. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 303
Spend for Workday 29

ACTIVITY 8.2 – EDIT ACCOUNT POSTING RULES

Business Case: Attach the Accounting Treatment to the spend account.

TASK #1: EDIT ACCOUNT POSTING RULES

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter view post into the search box.

3. Choose View Account Posting Rule Set report.

4. Account Posting Rule Set > Corporate Account Posting Rule

5. Click OK.

6. Select the Spend Posting Rule.

7. Locate row > Resulting Ledger Account > 1550: Furniture, Fixtures & Equipment

8. View the Vending Machines as a value to the Spend Category dimension.

9. Sign out.

Spend for Workday 29

304 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 8.3 – REGISTER BUSINESS ASSET

Business Case: Register the Tablets purchased.

TASK #1: REGISTER BUSINESS ASSET

1. Sign in as Business Asset Accountant Andrew Walton (awalton).

2. Open Andrew's inbox.

3. Choose Register Business Asset task for the Mobile Office Asset (Tablet).

4. Enter Asset Details > Asset Name > Tablet 16 GB

5. Click Submit.

6. Expand Details and Process section.

7. Click Done.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 305
Spend for Workday 29

ASSET BOOKS RULES

Asset book rules for your capital assets instruct Workday when to assign an accounting
treatment other than the default of Expense, and the appropriate depreciation profile. Workday
references these rules when an asset is registered, as well as in procurement, to determine the
accounting treatment. For depreciable capital assets, you will also want to specify the
depreciation profile, the attributes of which are used to create the asset's depreciation schedule
when it is placed in service. You can configure different capitalization rules for any combination
of spend category, asset type, asset class, company, currency, and amount threshold inputs.

During receipt accrual processing for goods and services that you have received but not yet
invoiced, or when a purchase order or supplier invoice is approved, the asset book rules for the
company's primary asset book are used to determine the accounting treatment, as this is a key
attribute for determining whether to book the spend to a balance sheet or expense account.

Spend for Workday 29

306 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

For each rule, you will specify the input criteria Workday uses to determine whether the rule
applies to each asset that it evaluates:

Field Description
Spend Category Select from categories that are set up to track items
(using the Maintain Spend Categories task) or
hierarchies that contain at least one of these
categories.
Company Select a value to have the rule apply to a specific
company or hierarchy. Leave blank to have the rule
apply to all. If you specify a company hierarchy and a
Greater Than Amount value, then all companies must
have the same base currency.
Company Currency If you specify a Greater Than Amount, then the
currency of the amount is the company currency. If a
transaction's currency differs from the rule's currency,
Workday converts the transaction amount to the rule's
currency to evaluate the business asset.
Amount Greater Than Enter an amount to have Workday apply the rule.
Typically, you use this option when you use a spend
category for both expense and capital. An asset that
costs more than the amount you enter is capital; an
asset that is equal to or less than the amount is
expense. Workday defaults the accounting treatment
and depreciation profile accordingly.
Invoice Line Amount Basis If you specify a Greater Than Amount, select what you
want Workday to use as the basis to evaluate the
supplier invoice line, receipt line, or amount against
the rules. You can evaluate the invoice line based on
its unit cost (cost of a single item) or extended
amount (quantity times unit cost).

Spend for Workday 29

Confidential © 2017 Workday, Inc. 307
Spend for Workday 29

FROM PURCHASE TO ASSET

BUSINESS ASSET REGISTRATION

All tracked business assets must be registered. Business asset registration starts with the
receipt of the business asset. Business Asset Tracking Specialists must register tracked
business assets manually, even if you receive the business asset through Workday
Procurement. When you register a business asset you assign it a company and a spend
category that is tracked. Workday assigns a business asset ID to each individual business
asset.

If goods are received through Procurement (and their spend category is set up to have its
custodianship tracked), then a Business Asset Tracking Specialist is automatically notified that a
receipt has been created for the goods. Workday places all the business asset information that
was on the PO onto the registration page.

Assets can also be registered by way of the supplier invoice. You can create a supplier invoice
manually, or from the related action off the receipt. The approval of a supplier invoice will
generate the accounting by debiting the account identified on the spend account posting rule
and crediting Accounts Payable.

If goods are received directly (not through Procurement), then you must enter all business asset
information manually using the Register Business Asset task. Manually registering an asset
Spend for Workday 29
308 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

does not generate an asset addition journal. To match the purchase, you must also make a
manual journal.

During registration, the business asset's spend category automatically determines whether the
business asset is capitalized and depreciated or simply expensed. "Items" in Workday—
expense items and purchase items—are associated with a spend category, so when you
register a business asset and select an item to be registered, the appropriate spend category is
associated by default. Once registered, all business assets can be issued to a worker whether
they are capitalized or expensed, requisitioned or not. It is this process that enables Workday to
track custodianship.

ASSET ACCOUNTING OVERVIEW

BUSINESS ASSET ACCOUNTING RULES
Business Asset Accounting Rules provide a link between depreciation profiles and spend
categories. They enable the configuration of accounting treatment and depreciation profile to
default based on the following combinations:

• Company
• Company Hierarchy
• Spend Category
• Amount Threshold

CALCULATE DEPRECIATION
Capitalized business assets need a depreciation profile, which Workday assigns indirectly by
way of their spend categories.

These depreciation values default to business assets when the assets are registered as
capitalized business assets. However, accountants can change a business asset's accounting
values after registration.

ISSUE BUSINESS ASSETS

Business Asset Tracking Specialists can track who has control or ownership of company
property by registering the business asset and issuing it to a worker. The Issue Business Assets
task enables you to issue company property to a worker, who will then be the custodian. Issuing
the business asset enables custodial tracking. Workday can also start depreciation for business
assets with depreciation profiles that hinge on the date the business asset is placed in service
(issued).

Spend for Workday 29

Confidential © 2017 Workday, Inc. 309
Spend for Workday 29

TRANSFER BUSINESS ASSETS

The Transfer Business Assets task enables you to change custodial ownership of a business
asset from one owner to another. By transferring an asset from one worker to another, it can be
transferred between locations, cost centers, or departments. The business asset costs are
automatically transferred with it. The accounting associated with the transfer is dictated by the
asset's spend category, which specifies a depreciation profile.

Tip: Transferring a business asset does not impact historic depreciation. The next
time depreciation is run; it will use the Worktags of the new worker.

BUSINESS ASSET IMPAIRMENT

You can book an asset impairment when its fair market value falls permanently below its net
book value (carrying cost) so that your asset reflects its current worth. This enables you to
reduce the asset's value on the balance sheet and account for its impairment expense while the
asset is still in use. The impairment expense is the non-recoverable difference between the
asset's carrying amount and the fair market value.

The transaction displays the impairment amount as negative, because it is a reduction of the
asset's value. You can view the accounting entries on the impairment transaction's journal lines.
The journal lines display the debit and credit, and the ledger accounts where each posted.

BUSINESS ASSET DISPOSAL

The Dispose Business Assets task enables you to remove items from your organization's list of
business assets. For assets issued to a worker, disposing of them severs that relationship. The
Dispose Business Assets task enables you to specify whether the items were discarded,
donated, or lost, stolen, or sold. It also provides for specifying the fair market value or sale price
at disposal. When accounting for the disposal of assets, the depreciation is reviewed to ensure
that it has been recorded properly and the remainder of the depreciation is terminated, if
applicable.

Spend for Workday 29

310 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Spend for Workday 29

Confidential © 2017 Workday, Inc. 311
Spend for Workday 29

ACTIVITY 8.4 – REGISTER AND ASSIGN

ACCOUNTING

Business Case: Register the Hewlett Packard rack mount servers purchased and Assign
the Accounting for the depreciable capital assets.

TASK #1: REGISTER AND ASSIGN ACCOUNTING

1. Sign in as Business Asset Accountant Andrew Walton (awalton).

2. Open Andrew's inbox.

3. Choose Asset Registration: Multiple Business Assets Hardware – Servers task for
the Servers.

4. Register the two HP Pro Liant DL500 Rack Mount Server assets.

5. Enter Asset Details > Asset Name > DL 500 Rack Mount Server on both asset rows.

6. Click Submit.

7. Expand Details and Process section.

TASK #2: ASSIGN BUSINESS ASSET ACCOUNTING

1. Click Open button.

2. Note the Cost, Accounting Treatment, Depreciation Profile, Useful life, etc.

3. Enter Residual Value 1500 for each server.

4. Click Submit.

5. Click the Details and Process expand button to review transaction.

6. Click Done.

Note: When you assign worktags to a business asset - no matter what transactions you
do with this business asset the worktag is automatically going to populate the financial
transaction as well.

Spend for Workday 29

312 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 8.5 – REGISTER AND ASSIGN

ACCOUNTING

Business Case: Register the Vending Machine business asset and Assign the Accounting
for the depreciable capital asset.

TASK #1: REGISTER BUSINESS ASSET

1. Sign in as Business Asset Accountant Andrew Walton (awalton).

2. Open Andrew’s Inbox.

3. Click the Asset Registration task.

4. Asset Name > Snack Machine.

5. Click Submit.

TASK #2: ASSIGN BUSINESS ASSET ACCOUNTING

1. Click Open button.

2. Note the Cost, Accounting Treatment, Depreciation Profile, Useful life, etc.

3. Enter Residual Value 500.

4. Click Submit.

5. Click the Details and Process expand button to review transaction.

6. Click Done.

7. Sign out.

Note: When you assign worktags to a business asset - no matter what transactions you
do with this business asset the worktag is automatically going to populate the financial
transaction as well.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 313
Spend for Workday 29

ACTIVITY 8.6 – ISSUE A BUSINESS ASSET

Business Case: Issue Snack Machine, to Christine Nguyen, Facilities Manager.

TASK #1: ISSUE A BUSINESS ASSET

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter iss asset into search box.

3. Select the Issue Assets task.

4. Company >Global Modern Services, Inc. (USA)

5. Spend Category > Vending Machines

6. Click OK.

7. Select > Snack Machine

8. Issue to > Worker > Christine Nguyen

9. Click Submit.

10. Click Done.

11. Sign out.

TASK #2: VERIFY CHRISTINE'S COMPANY PROPERTY

1. Sign in as Christine Nguyen (cnguyen).

2. Enter my comp prop into search box.

3. Select the My Company Property report.

4. View the assets that have been issued to Christine.

5. Sign out.

Spend for Workday 29

314 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 8.7 – PLACE BUSINESS ASSETS IN

SERVICE

Business Case: Place the HP Pro Liant DL500 Rack Mount Servers in service.

TASK #1: PLACE BUSINESS ASSETS IN SERVICE

1. Sign in as Finance Administrator Teresa Serrano (tserrano)

2. Enter fin asset into search box.

3. Select the Find Assets report.

4. Company > Global Modern Services, Inc. (USA)

5. Spend Category > Hardware – Servers

6. Location > Chicago

7. Click OK.

8. From the Related Actions of the first asset > Business Asset > Place in Service

9. Click Submit.

10. Repeat for the 2nd Asset.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 315
Spend for Workday 29

ACTIVITY 8.8 – RECORD DEPRECIATION

Business Case: Record Depreciation for depreciable assets.

TASK #1: RECORD DEPRECIATION

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter rec dep into search box.

3. Select the Record Depreciation Amortization Expense task.

4. Run Frequency > Run Now

5. Click OK.

6. Request Name > Monthly Depreciation

7. Company > Global Modern Services, Inc. (USA)

8. Spend Category > Hardware – Servers and Vending Machines

9. Click the Run Preview checkbox.

10. Click OK.

11. Click the Refresh button until the processing is 100% complete.

12. Click the magnifying glass for the Depreciation Transaction for the Vending Machine.

13. Click the Related Actions, select Accounting > View Accounting.

Spend for Workday 29

316 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 8.9 – TRANSFER BUSINESS ASSETS

Business Case: Transfer snack machine from Christine Nguyen to Amanda Baker.

TASK #1: TRANSFER BUSINESS ASSETS

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter fin asset into search box.

3. Select the Find Assets task.

4. Company > Global Modern Services, Inc. (USA)

5. Issued To > Christine Nguyen

6. Click OK.

7. Related Actions on Snack Machine Business Asset.

8. Related Actions > Business Asset > Transfer

9. Transfer to > Worker > Amanda Baker

10. Click Submit.

11. Click Done.

Note: To view the status of a business asset, Click the related action icon next to the
business asset and select Business Asset, then view the Business Asset Status.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 317
Spend for Workday 29

ACTIVITY 8.10 – VIEW BUSINESS ASSET HISTORY

Business Case: Review Business Asset.

TASK #1: VIEW BUSINESS ASSET HISTORY

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter fin asset into search box.

3. Select Find Assets task.

4. Company > Global Modern Services, Inc. (USA)

5. Spend Category > Vending Machines

6. Click OK.

7. Click the Snack Machine link.

8. View tabs to review business asset history.

Spend for Workday 29

318 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 8 KNOWLEDGE CHECK

Please complete the Business Assets and Business Asset Accounting quiz in the Workday
Learning Center.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 319
Spend for Workday 29

CHAPTER 9 – MANAGE REPORTS AND ANALYTICS

OVERVIEW
Insight into your organization's total spend is of paramount importance. When spend is
measured, it can be managed. Workday Procurement includes built-in spend analytics that give
you full visibility into your organization's spend.

Drill-downs can be for one or multiple dimensions. Multi-dimensional drill-downs enable you to
view by any worktag you've assigned to spend elements. Different elements might have
different security, so the data that appears depends on what security groups you are in.

There are many reports available for suppliers, procurement, business asset management, and
related topics.

Run the Workday Standard Reports report to see a list of all reports by category.

OBJECTIVES

By the end of this chapter, you will be able to:

• Identify the Workday standard reports

• Describe the two types of standard reports and their differences
• Run a standard report and view by dimension
• Review Spend by Category
• Review Top Suppliers by Spend
• Review Supplier Reports
• Identify set up steps for 1099-MISC reporting
• Identify the delivered business form layouts in BIRT
• Use the composite profile for reporting

Spend for Workday 29

320 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

WORKDAY STANDARD REPORTS

Before introducing Workday's Report Writer and creating custom reports, it is a good idea to first
discuss the Standard Reports that are delivered in Workday.

As of the writing of this guide there are more than 1000 delivered Standard Reports in two
distinct ‘flavors’ or types. The first type is an XpressO report. These reports are NOT able to be
copied and then customized but can generally be configured based on the restrictions of the
report format.

New columns or fields cannot be added to the report. XpressO reports CANNOT be customized
but may only be configured. At present 80% of the delivered reports within Workday are
XpressO reports and not Report Writer reports.

The second type of delivered report is a Report Writer report. Reports are accessible by
searching for Workday Standard Reports and then further defining your search by category or
multi category and are then displayed as follows:

Display in the report is the description of the report, the type of report (Report Writer or
XpressO), then whether the report is schedulable or not, and what domain controls the security
necessary to run/view the report.

The report can be run or scheduled from the Report object under the Report column as shown
above. If you want to copy the report to customize it, note the report name from the Name
column and then navigate to Copy Standard Report to Custom Report.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 321
Spend for Workday 29

ACTIVITY 9.1 – VIEW WORKDAY STANDARD

REPORTS

Business Case: View financial related standard reports delivered by Workday.

TASK #1: RUN REPORT

1. Sign in as a Setup Administrator (tserrano).

2. Locate the Workday Standard Reports report.

3. Select the following Report Categories:

Field Name Entry Value

Report Categories Banking

Business Assets
Procurement
Supplier Accounts

4. Click OK and review the reports available.

TASK #2: RUN AN XPRESSO REPORT

1. Search for and select the Find Purchase Orders report.

2. Enter the information as follows:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Document Date on or After Accept the default

3. Click OK and review the report information.

TASK #3: RUN A REPORT WRITER REPORT

1. Locate the Find Suppliers report.

Spend for Workday 29

322 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

2. Select Active in the Supplier Status field.

3. Click OK and review the report information.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 323
Spend for Workday 29

DELIVERED REPORTS BY WORKTAGS

A Worktag is a tool that enables you to mark transactions and supporting data to make their
business purposes clear and establish their common relationships through classification. This
gives you a multidimensional view of your business that you can act upon. You can find
information easier, filter searches to focused results, and analyze information in aggregated and
summarized reporting by business dimension.

Examples that can be run by Worktag are:

• Trial Balance
• Ledger Detail
• Ledger Account Activity Summary
• Ledger Account Activity Summary by Source

Some features of financial reporting include:

• View up to two Worktag types in addition to account.

• Change report headings.
• Drilldown on total column.
• Display statistics on same line as amounts.
• Drilldown on statistics

TRIAL BALANCE
The Workday trial balance is a list of all the ledger accounts with balances for your companies'
ledger.

When run for a single company, the report lists the ledger account, and the beginning balance,
total debit amount, total credit amount, and ending balance for the reporting period.

When run for multiple companies, you can select from the following display options:

• Company: Displays an ending balance column for each company that you include in the
report request.
• Summary: When running the report for a multilevel company hierarchy, displays an
ending balance column for each subordinate company hierarchy.
• Total: When running the report for a company hierarchy, displays an ending balance
column with the total amount for each company in the company hierarchy.

Spend for Workday 29

324 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 9.2 – PROCUREMENT DASHBOARD

Business Case: Review the Procurement Dashboard and procurement reports.

TASK #1: REVIEW PROCUREMENT DASHBOARD

1. Sign in as Teresa Serrano (tserrano).

2. Select Dashboards worklet from the Home page.

3. Select Procurement.

4. Review the Procurement Reports.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 325
Spend for Workday 29

ACTIVITY 9.3 – SUPPLIER ACCOUNTS AND

SETTLEMENT DASHBOARDS

Business Case: Review the Supplier Accounts and Settlement Dashboards.

TASK #1: REVIEW SUPPLIER ACCOUNTS DASHBOARD

1. Sign in as Teresa Serrano (tserrano).

2. Select Dashboards worklet from the Home page.

3. Select Supplier Accounts.

4. Review the Supplier Accounts Reports worklet.

TASK #2: REVIEW SETTLEMENT DASHBOARD

1. Select Dashboards worklet from the Home page.

2. Select Settlement.

3. Review the Settlement Reports worklet.

Spend for Workday 29

326 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 9.4 – SPEND BY CATEGORY

Business Case: Review Spend by Category for a Company or group of companies.

TASK #1: VIEW SPEND BY CATEGORY REPORT

1. Sign in as Teresa Serrano (tserrano).

2. Enter spend by into search box.

3. Select the Supplier Spend by Category (LTM) report.

4. Select the Global Modern Services, Inc. (USA) Company.

5. Click OK.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 327
Spend for Workday 29

ACTIVITY 9.5 – TOP SUPPLIERS BY SPEND

Business Case: View the Top Suppliers by Spend report for a specific timeframe.

TASK #1: VIEW TOP SUPPLIERS BY SPEND

1. Sign in as Teresa Serrano (tserrano).

2. Enter top spend into search box.

3. Click the Top Suppliers by Spend report and enter the following:

Field Name Entry Value

Company Global Modern Services, Inc. (USA)

Invoice Date on or After January 1 of the current year
Invoice Date on or Before Today’s Date
Reporting Currency USD

4. Click OK.

Spend for Workday 29

328 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

SUPPLIER REPORTS
Use these supplier reports to help you determine the status of your supplier setup. For a
complete list of reports by area, run the Workday Standard Reports report.

Report Description
Find Supplier View supplier invoice history that has been loaded to support duplicate
Invoice History supplier invoice checking. Details include the invoice numbers,
company, supplier, and invoice details for each invoice. You can edit
them from the related action menu.
My Supplier This report lists supplier requests by proposed supplier name with the
Requests request status.
Supplier This report lists all the existing supplier groups and the number of
Groups suppliers in each group.
Supplier This report lists all the existing supplier categories and the number of
Categories suppliers in each category.
Supplier Open View each supplier's reporting transactions with an open balance, it
Items shows the transaction type, number, and date, the due date, aging days,
original amount, payments applied, discounts taken, and balance.
View Supplier For the specified supplier, this report provides all supplier details
including category, group, payment details, and contact information.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 329
Spend for Workday 29

CONFIGURING AND PROCESSING 1099-MISC

OVERVIEW
The 1099-MISC is an informational tax form that summarizes all non-employee compensation
paid to individuals and certain organizations annually. The 1099-MISC form does not include
payments made to employees. Payroll and payroll-related payments to employees are reported
on the employees' W-2s.

A 1099-MISC form is required to be filed when you pay $600 or more for goods or services from
a vendor in a year.

Tip: The $600 threshold is subject to change. Review the IRS form 1099-MISC
instructions for the current tax year to verify threshold amounts for each category.

Generally, you will need to report the payments for the following goods or services from a
vendor if the filing threshold is met or exceeded:

• Cash payments to fishermen

• Crop insurance proceeds
• Medical and health care payments
• Prizes and awards
• Proceeds paid to attorneys
• Rents
• Services (including parts and materials)
• Other types of payments not covered by another information reporting document
In Workday, you can set up 1099-MISC reporting, generate previews, and print IRS forms.

Step 1

MAP 1099 MISC CATEGORIES TO SPEND CATEGORIES

You can map one or more spend categories or spend category hierarchies to each category box
on IRS form 1099-MISC.

You can use these mappings to track payment of:

• Supplier invoices to 1099 suppliers where lines have spend categories or spend
category hierarchies that map to 1099-MISC categories.
• Ad hoc payments to 1099 suppliers where lines have spend categories or spend
category hierarchies that map to 1099-MISC categories.

Spend for Workday 29

330 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

• Ad hoc bank transactions to 1099 suppliers where the transaction is a withdrawal, is

flagged for inclusion in IRS 1099-MISC reporting, and has lines with spend categories or
spend category hierarchies that map to 1099-MISC categories.
• 1099 suppliers can include regular suppliers and independent contingent workers.
Because only certain types of payments are reportable to the IRS as 1099-MISC
payments.
• 1099-MISC only the payments associated with a spend category or spend category
hierarchy that maps to a 1099-MISC category. Workday tracks and classifies all other
1099 supplier payments as uncategorized.
You can access the Update 1099 MISC Configuration task.

1. Select one or more payment types to exclude from 1099 MISC reporting.

2. Complete the following:

Spend for Workday 29

Confidential © 2017 Workday, Inc. 331
Spend for Workday 29

For payments made to 1099 suppliers, Workday tracks categorized and uncategorized amounts
for 1099 MISC reporting.

The 1099 MISC Report shows all amounts paid to 1099 suppliers, including amounts below the
threshold and uncategorized amounts. Printed forms show only categorized amounts that are at
or above the threshold.

For example, you may have a supplier invoice with a Legal and Auditing Fees spend category
on the invoice line. When you pay the invoice the line amount goes toward Box: 14 Gross
proceeds paid to an attorney on the IRS form 1099 MISC for that supplier.

Step 2

DESIGNATE A PAYEE
You can designate a supplier, investor, independent contingent worker, or an ad hoc payee as a
1099 payee if you issue an IRS form 1099-MISC at year-end to summarize payments to that
payee for the year.

1. Access the Create Supplier, Create Supplier Change, Create/Edit Investor, or

Create/Edit Ad Hoc Payee task.

2. From the Tax Authority Form Type field, select 1099 MISC.

3. For 1099 suppliers, select Report 1099-MISC with Parent to consolidate 1099 MISC
reporting for parent and child suppliers.

4. For independent contingent workers, access the Assign Tax Authority Form Type to
Contingent Worker task to select the 1099 MISC tax authority form type.

5. Select the TIN Type and enter a Tax ID.

Workday includes these payees and their applicable payments in 1099-MISC reporting. An
applicable payment is one paid to a 1099 payee from an invoice, ad hoc payment, or ad hoc
bank transaction that includes lines with spend categories mapped to 1099-MISC categories.

You can preview 1099-MISC reporting to ensure accuracy and completeness of 1099 payees
and their payment data before printing 1099 MISC forms.

Tip: Workday uses the payment date for 1099-MISC reporting, not the transaction
date. For example, if an independent contingent worker submits a supplier invoice

Spend for Workday 29

332 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

on December 25 and your company pays it on January 2, then the payment applies
to 1099-MISC reporting for the new year.

You can run the 1099-MISC report for a company or a company hierarchy. The report
summarizes data by company, showing the total amount and total number of payees. When
using a company hierarchy and printing 1099 MISC forms or filing electronically, Workday splits
the output by company.

Step 3

CREATE OR EDIT 1099-MISC ADJUSTMENTS

Optionally, you can adjust 1099-MISC spend categories if you need to reclassify how payments
are reflected in 1099 reporting.

Step 4

CREATE OR MODIFY 1099-MISC RUN

You can create or modify a 1099-MISC run for a company or a company hierarchy. When you
use the Create or Modify 1099-MISC Run task you will save the 1099-MISC data created during
a unique processing run. This calculates your 1099-MISC filing as a snapshot in time and
becomes the base file for subsequent filing. You can run this task for a company or a company
hierarchy.

Use the following to manage your 1099-MISC reporting:

Task Description
Find 1099-MISC Runs Find 1099-MISC runs by company or
company hierarchy for a calendar year.
The results are shown in reverse
chronological order so that you see your
most recent runs first.
Find 1099-MISC See all payees with a 1099-MISC that
your company had for a calendar year.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 333
Spend for Workday 29

Find 1099-MISC Print Run Groups Find 1099-MISC print run groups so that
you can more locate the PDFs that you've
already generated for a company or
company hierarchy and calendar year.
From here you can also print for
individual payees within a group.

Step 5

CREATE CORRECTED 1099-MISC RUN

Optionally, you can modify information for payees in an existing 1099-MISC run.

Step 6

SELECT 1099-MISC AND 1096 FORM LAYOUTS

You can select a 1099-MISC or a 1096 form layout to use when you print 1099-MISC and 1096
forms. You can either select a layout that uses preprinted stock or one that prints the IRS form
and your reporting details on blank paper.

Tip: To file 1096 forms with the IRS, you must use the IRS 1096 Preprinted Form
layout. The IRS 1096 Display Only Form prints the image on blank stock, but it
cannot be used to scan the report or file it with the IRS.

Spend for Workday 29

334 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Step 7

PRINT 1099-MISC AND 1096 FORMS

You can print IRS 1099-MISC and 1096 forms for 1099 payees on blank or preprinted stock.

Tip: To file 1096 forms with the IRS, you must select the IRS 1096 Preprinted Form
layout. The IRS 1096 Display Only Form prints the image on blank stock, but can't
be used to scan the report or file it with the IRS.

You must complete the following prior to printing your forms:

• Select a preprinted, blank, or display only form layout from the Edit 1099-MISC and 1096
Print Form Layout task.
• Create a 1099-MISC run.
• Before printing, run the Duplicate Taxpayer ID report and the 1099-MISC Supplier
Missing Taxpayer IDs report. Make any necessary adjustments.
• Use the 1099-MISC report to preview 1099-MISC reporting and review 1099 payee
payment details.

Step 8

CREATE ELECTRONIC FILING 1099-MISC INTEGRATION

Create an integration system to generate electronic Form 1099-MISC files that you can upload
to the US Internal Revenue Service FIRE web site, and add the integration system as an
integration step to the 1099 Electronic Filing Run Event business process. This business
process is initiated by the Generate 1099-MISC Electronic Filing task.

Tip: Companies with 250 or more 1099 payees must file electronically with the IRS.

The integration system cannot upload Form 1099 files to the IRS FIRE web site; you must do so
manually. For that reason, you do not need to configure delivery options for the integration
system. Instead, you can retrieve the output files from Workday using the 1099-MISC Work

Spend for Workday 29

Confidential © 2017 Workday, Inc. 335
Spend for Workday 29

Area report. When you configure the integration system, you can specify a retention period of up
to 180 days for the 1099 files.

Step 9

GENERATE 1099-MISC ELECTRONIC FILE FOR IRS

To generate 1099-MISC electronic files, you must first create a 1099-MISC Electronic Filing
integration and configure a 1099-MISC Electronic Filing Run Event business process to launch
the integration.

The Generate 1099-MISC Electronic Filing task produces an electronic file for IRS reporting.

You can file for one or for multiple companies with single transmitter.

Use Workday's Get Company 1099-MISC Data and Get 1099-MISC web services to populate
integrations which will generate the 1099-MISC data file.

NEXT STEPS
• Send 1099-MISC forms to 1099 payees for tax filing purposes.
• File the 1096 form and related 1099-MISC forms with the IRS.

BUSINESS INTELLIGENCE AND REPORTING TOOLS (BIRT) PRINT

LAYOUTS
CREATE PURCHASE ORDER PRINT LAYOUTS
You can customize the Workday-delivered business form layout to include images for a
company logo and signature.

You can define layouts to issue purchase orders as PDF email attachments or printed files to
suppliers.

1. Access the Create Purchase Order Print Layout task.

2. Select one or more companies.

Spend for Workday 29

336 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Each company can have only one purchase order print layout.

3. If you require more flexibility than the delivered purchase order print layout, use a
Custom Business Form Layout.

4. Check Include Company Logo and Include Signature to include these on your layout.

The company logo and signature are generated from the Workday-delivered purchase order
layout or custom layout you optionally used.

5. Select or create financial messages for printed purchase orders.

Financial messages display on each purchase order you generate with this layout. You
can include up to 3 messages.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 337
Spend for Workday 29

Workday automatically uses the print layout when your company generates PDF email
attachments and printed purchase orders.

You can also edit your purchase order print layout if you need to make any adjustments using
the Edit Purchase Order Print Layout task.

Spend for Workday 29

338 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

VIDEO 9.1 – BIRT OVERVIEW FOR FINANCIALS

Introduction: Check out the next video presentation.

NOTES

Spend for Workday 29

Confidential © 2017 Workday, Inc. 339
Spend for Workday 29

CREATE CUSTOM BUSINESS FORM LAYOUTS FOR PURCHASE ORDERS

Workday delivers a standard business form layout for purchase orders called Printable
Purchase Order.

If the delivered business form layout doesn't meet your needs, you can create your own custom
business form layouts and associate them with purchase order print layouts and in some cases,
replace a delivered layout using Report Designer in Workday Studio.

1. Create your own XSL stylesheet or design a business form layout using Report Designer
in Workday Studio to define the placement of lines and boxes on the purchase order.

2. Create a custom business form layout.

A. Access the Create Business Form Layout task.

B. Check the Active box.

C. Enter the number of days for retaining purchase orders before they expire in
Resulting Document Expiration Offset (in days).

D. After the expiration time period is over, the PDF layout is no longer available and
you cannot display or print the purchase order.

E. To maximize purchase order expiration days, Workday supports up to 25,000

days.

F. Choose a business form layout from one of the following prompts:

G. XSL Attachment

H. Report Design

I. Select a Custom Report.

J. Add the Token Name for the company logo and signature as follows:

o company_logo
o po_signature

K. These tokens are in your XSL stylesheet or Report Designer business form
layout.

3. Access the Configure Business Form Layout task to upload images for the company
logo and signature tokens.

4. Associate your custom layout with the purchase order print layout.

Spend for Workday 29

340 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

A. Access the Create/Edit Purchase Order Print Layout task.

B. Select the Business Form Layout.

C. Check the applicable Include Company Logo and Include Signature options.

5. (Optional) Include financial messages for purchase order business documents.

When you print purchase orders, Workday uses the custom business form layout for the
company instead of the delivered one.

Workday displays the payment type, such as credit card or check, in the purchase order header.

PRINT CHECKS
Workday delivers three business form layouts for checks and advices, each of which contain a
metadata XSL stylesheet that defines the default placement of fields, company logo, and
signature on checks and advices. The business form layout that Workday uses at print time
depends on whether the printout is a financial check, payroll check, or pay slip.

To customize the default configuration of checks and advices, you can create check print
layouts. Based on the check or advice stock you've selected; you can configure a layout to:

• Print checks at the top, middle, or bottom of the page.

• Establish the print location of items such as dates, payee names, and addresses.
• Specify the placement of additional fields necessary to print on blank check stock.
• Elect to print the company logo and signature on the check.
• Elect to print the company name on the remittance.
• Define both financial and payroll-specific check options.
Business form layouts assume the use of preprinted check stock. If you opt to use the default
business form layout configuration rather than define your own check print layouts, you must
use preprinted check stock. To use blank check stock, you must use check print layouts to
configure the additional fields.

Tip: Users can issue a positive pay file to the bank. It is a business process in
Workday.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 341
Spend for Workday 29

CONFIGURE BIRT CHECK PRINTING FOR FINANCIALS OVERVIEW

OVERVIEW

Step 1

Download the report design file from the Solution Catalog.

Step 2

Copy Standard Report to Custom Report: Payments to Print-Report Design.

Go into your Workday tenant and use the Copy Standard Report to Custom Report task and
copy the Payments to Print-Report Design report and create your client specific version (e.g.
Green Planet Payments to Print-Report Design).

There is also a DIFFERENT standard report for payroll checks, so make sure you pick the
correct one.

Spend for Workday 29

342 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Step 3

Create your business format layout in Workday.

Relate the new report design file from Step 1 and the Workday report from Step 2 to your
business form layout.

Here, you attach the report design file per Step 1, and the Workday Standard report created in
Step 2 above.

Step 4

Spend for Workday 29

Confidential © 2017 Workday, Inc. 343
Spend for Workday 29

Define tokens for the business form layout. Then, you can configure business form layout to
upload images for each token.

As with XSLT, you can configure tokens for logo and check signatures for your business form.
These image files can also be inserted directly into the BIRT report design.

Step 5

You can create the check print layout in Workday using the Create Check Print Layout with
Report Design task.

Give the layout a name and reference the business form created in Step 3 above.

Additionally, you can define PDF security options same as is done with XSLT check.

Spend for Workday 29

344 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

Step 6
You can configure bank accounts to use the new check print layout.

Update any affected bank accounts with your new check print layout from Step 5.

For clarity, there are separate prompts for XSLT and BIRT check layouts.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 345
Spend for Workday 29

Step 7
Modify your report design using BIRT as required.

• Reposition fields, adding and removing fields.

• Upload a new version of the report design file to the business form.
From this point, it is an iterative process of generating your checks in Workday and fine-tuning
to address your client and bank requirements.

Step 8
Modify the Workday standard report using BIRT as required.

• For example, if there was a field not delivered in the standard report that your customer
requires, you could use BIRT to add it.
• Add fields to Workday standard report first, and then add them to the report design.
• Upload the new version of the report design file to your business form.

Spend for Workday 29

346 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

In some cases, you may have a field that your client wants or needs that is not included in the
Workday standard report. For this, you would simply modify the Workday Standard Report to
include this field.

Step 9

Retest BIRT Financial Check in your tenant.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 347
Spend for Workday 29

ACTIVITY 9.6 – CREATE PURCHASE ORDER PRINT

LAYOUTS

Business Case: Define business form layouts when issuing POs.

TASK #1: CREATE PURCHASE ORDER PRINT LAYOUTS

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Locate the Create Purchase Order Print Layout task.

3. Select Global Modern Services Ltd (Ireland) as your company.

4. Click OK.

5. In the Business Forms Layout field, select Custom Purchase Order.

6. Mark the Include Company Logo checkbox.

7. Mark the Include Signature checkbox.

8. Click the Add Row icon to add a row to the Financial Messages region.

9. Select Purchase Orders > PO Inquiries - For inquiries regarding this Purchase
Order please call 1-800-555-4855.

10. Click OK.

11. Click Done.

Spend for Workday 29

348 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

ACTIVITY 9.7 – RUN REPORTS

Business Case: Review procurement reports available in Workday.

TASK #1: RUN REPORTS

1. Sign in as Finance Administrator Teresa Serrano (tserrano).

2. Enter Work Stand into the search box.

3. Select the Workday Standard Reports report.

4. Select the following Report Categories:

Field Name Entry Value

Report Categories Set Up Procurement

Set Up Supplier Accounts
Set Up Supplier Contracts
Supplier Accounts
Supplier Contracts

5. Click OK.

6. Review the reports available.

7. Sign out.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 349
Spend for Workday 29

VIDEO 9.2 – CUSTOM REPORTS FOR SUPPLIERS

Introduction: Check out the next video presentation.

NOTES

Spend for Workday 29

350 Confidential © 2017 Workday, Inc.
 Spend for Workday 29

CHAPTER 9 KNOWLEDGE CHECK

Please complete the Manage Reports and Analytics quiz in the Workday Learning Center.

Spend for Workday 29

Confidential © 2017 Workday, Inc. 351
Spend for Workday 29

FINAL EXAM

Check your knowledge by completing the following in the Workday Learning Center:
Spend Final Exam.

This exam covers the following areas:

• Procurement and Supplier Management
• Process Procurement
• Request for Quote
• Matching Overview and Setup
• Supplier Invoicing
• Procurement Cards, Banking and Settlement of Payments
• Supplier Collaboration
• Business Assets and Business Asset Accounting
• Manage Reports and Analytics

Questions are based on information in the Spend

Course Manual, as well as from the required Videos
and Demonstrations that you watched. Please note,
there may be exam questions based on information in
the Videos and Demonstrations that was not included
in the Course Manual.

You have 3 hours to complete the final exam. There

are no time extensions. You must achieve at least
80% on the final exam to pass the class.
Good luck!

Spend for Workday 29

352 Confidential © 2017 Workday, Inc.