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Admin Guide Financial Management

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0% found this document useful (0 votes)

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Admin Guide Financial Management

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nikeedummy

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Financial Management

Product Summary

January 2024

Contents

Financial Management.............................................................................. 24

Common Financial Components............................................................. 24

Multicurrency......................................................................................................................................24
Concept: Multicurrency........................................................................................................... 24
Concept: Company Currency................................................................................................. 26
Concept: Rates, Rate Types, and Conversion.......................................................................26
Concept: Transaction Currency..............................................................................................27
Intercompany..................................................................................................................................... 27
On-Behalf-of Intercompany Transactions............................................................................... 27
Direct Intercompany Transactions..........................................................................................37
Concept: Intercompany Transactions..................................................................................... 48
Custom Validations............................................................................................................................50
Steps: Set Up Custom Validations.........................................................................................50
Set Up Custom Validation Severity and Conditions...............................................................51
Configure Custom Validation Messages................................................................................ 52
Concept: Transaction Revalidation.........................................................................................53

Financial Accounting................................................................................ 53
Financial Accounting Structure..........................................................................................................53
Steps: Set Up Financial Accounting Structure....................................................................... 53
Steps: Set Up Companies......................................................................................................56
Set Up Company Contact Information................................................................................... 57
Set Up Fiscal Schedules and Years...................................................................................... 58
Steps: Set Up Accounting Categories....................................................................................60
Steps: Set Up and Update Journal Sources.......................................................................... 62
Assign Company Accounting Details..................................................................................... 62
Create Ledgers....................................................................................................................... 66
Convert Active Ledger Types.................................................................................................67
Steps: Create and Open Ledger Years and Periods............................................................. 68
Ledger Accounts................................................................................................................................68
Steps: Create and Organize Ledger Accounts...................................................................... 68
Create Ledger Account Types............................................................................................... 69
Set Up Account Sets.............................................................................................................. 70
Set Up Account Posting Rules...............................................................................................71
Create Account Control Rules................................................................................................74
Steps: Maintain Access to Ledger Accounts..........................................................................75
Steps: Manage Ledger Account Summaries..........................................................................77
Steps: Set Up Alternate Accounts..........................................................................................78
Create Alternate Account Set Mappings................................................................................ 79
Configure Alternate Account Set Mapping Rules...................................................................80
Concept: Ledger Accounts..................................................................................................... 82
Reference: Account Posting Rules.........................................................................................83
FAQ: Alternate Account Set Mappings.................................................................................. 87
FAQ: Can I retire ledger accounts?....................................................................................... 87
Book Codes and Books.................................................................................................................... 88
Steps: Create Book Codes and Books.................................................................................. 88

Concept: Book Codes and Books.......................................................................................... 89

Journals............................................................................................................................................. 91
Create Journal Sources..........................................................................................................91
Steps: Process Accounting Journals......................................................................................92
Create Accounting Journals................................................................................................... 93
Steps: Create Recurring Accounting Journals....................................................................... 97
Create Translation Adjustment Journals.............................................................................. 100
Attach Files on Associated Intercompany Journals............................................................. 102
Steps: Upload Journals........................................................................................................ 103
Configure Suspense Account Rules.....................................................................................103
Steps: Set Up Financial Accounting Adjustments................................................................ 105
Create Financial Accounting Adjustments............................................................................106
Concept: Accounting and Operational Journals................................................................... 108
Concept: Journal Processing................................................................................................108
Concept: Currency in Accounting Journals.......................................................................... 110
Concept: Valid Company and Cost Center Combinations................................................... 111
FAQ: Journal Errors............................................................................................................. 111
Troubleshooting: Financial Journals..................................................................................... 112
Journal Sequencing......................................................................................................................... 116
Setup Considerations: Journal Sequencing......................................................................... 116
Steps: Set Up Journal Sequencing...................................................................................... 121
Configure Journal Sequence Generator Rules.................................................................... 123
Enable Journal Sequencing for a Company........................................................................ 126
Create Journal Sequence Generators..................................................................................127
Concept: Journal Sequencing.............................................................................................. 128
FAQ: Journal Sequencing.................................................................................................... 129
Journal Insights............................................................................................................................... 129
Steps: Set Up Journal Insights.............................................................................................129
Confirm and Dismiss Journal Line Anomalies..................................................................... 131
Statistics...........................................................................................................................................133
Steps: Upload Statistics........................................................................................................133
Define Statistic Types...........................................................................................................134
Enter Statistic Values........................................................................................................... 136
Allocations........................................................................................................................................137
Setup Considerations: Allocations........................................................................................ 137
Steps: Set Up Allocations.....................................................................................................141
Create Allocation Definitions................................................................................................ 142
Group Allocation Definitions................................................................................................. 148
Test Allocations.................................................................................................................... 149
Steps: Process Allocations................................................................................................... 150
Schedule Allocation Runs.....................................................................................................151
Finalize Allocations............................................................................................................... 152
Concept: Allocations............................................................................................................. 153
Example: Set Up the Journal Lines by Allocation Report.................................................... 155
Reference: Source Types.....................................................................................................158
Reference: Allocation Methods.............................................................................................158
Reference: Basis Types....................................................................................................... 159
Allocation Pools............................................................................................................................... 162
Steps: Set Up Allocation Pools............................................................................................ 162
Create Allocation Pools........................................................................................................ 162
Create Allocation Pool Hierarchies.......................................................................................163
Revaluation...................................................................................................................................... 164
Setup Considerations: Revaluation...................................................................................... 164
Steps: Automate Revaluation............................................................................................... 167
Define Revaluation Rules..................................................................................................... 167
Group Revaluation Rules..................................................................................................... 170

Run Revaluation................................................................................................................... 171

Review Foreign Currency Revaluation.................................................................................172
Reference: Frequency Combinations for Revaluation Rules............................................... 174
Currency Translation....................................................................................................................... 175
Steps: Set Up Currency Translations...................................................................................175
Set Up Currency Translation Methods................................................................................. 176
Create Rules for Translating Ledger Accounts.................................................................... 178
Steps: Enter Translated Beginning Balances for Financial Reporting..................................179
Enter Translated Beginning Balance Amounts for Ledger Accounts................................... 180
Concept: Currency Translation.............................................................................................181
Consolidation Data Capture............................................................................................................ 184
Concept: Consolidation Data Capture..................................................................................184
Steps: Set Up Consolidation Data Capture..........................................................................186
Create Source Systems........................................................................................................186
Create Consolidation Data Mapping Table Definitions.........................................................187
Create Consolidation Data Mapping Tables........................................................................ 188
Concept: Consolidation Data - Inbound Integration............................................................. 190
Steps: Create Consolidation Data Capture Integration........................................................ 191
Map Source Systems to Integration Systems...................................................................... 193
Load Consolidation Data into Workday................................................................................194
Correct Consolidation Data.................................................................................................. 198
Concept: Period Close Activity Group of Consolidation Data Capture.................................201
Reference: Consolidation Data - Inbound Integration CSV File Format...............................202
Consolidations and Eliminations..................................................................................................... 205
Setup Considerations: Consolidations and Eliminations...................................................... 205
Steps: Set Up Consolidation Companies............................................................................. 210
Set Up Company Ownership Details................................................................................... 211
Set Up Intercompany and Interworktag Elimination Rules................................................... 212
Steps: Set Up for Persisting Noncontrolling Interest............................................................215
Set Up Elimination Rules for Noncontrolling Interest........................................................... 216
Set Up Equity Pickup Elimination Rules...............................................................................218
Steps: Create Alternate Fiscal Year Consolidations............................................................ 221
Run Noncontrolling Interest.................................................................................................. 222
Calculate Equity Pickup Results...........................................................................................224
Reference: Equity Pickup Results........................................................................................ 226
Troubleshooting: Reconcile Currency Translation Adjustment Accounts............................. 228
Troubleshooting: Equity Pickup Processing......................................................................... 229
Deriving Eliminations............................................................................................................ 230
Period and Year Close....................................................................................................................235
Steps: Set Up Close Process...............................................................................................235
Set Up Period Close Activity Groups................................................................................... 236
Define Rules for Processing Year-End Close...................................................................... 237
Change the Status of Ledger Periods..................................................................................238
Close Ledger Periods........................................................................................................... 240
Set Up Worktag Types for Roll Forward..............................................................................241
Roll Year-End Balances Forward......................................................................................... 242
Roll Translated Beginning Balances Forward...................................................................... 245
Close a Ledger Year............................................................................................................ 246
Start a Close Process.......................................................................................................... 247
Process: Procure to Pay Period Close................................................................................ 248
Concept: Journal Statuses and Pending Transactions........................................................ 251
Concept: Ledger Close Activity Groups............................................................................... 254
Concept: Close..................................................................................................................... 255
Reference: Period Statuses and Permitted Transactions.................................................... 256
Reference: Period Close Work Area.................................................................................... 257
Period Close Management................................................................................................... 258

Journal Balancing by Worktag........................................................................................................ 279

Steps: Configure Worktag Balancing for Journals............................................................... 279
Define Worktag Balancing Rules for Financial Transactions............................................... 281
Define Worktag Balancing Rules for Payroll Accrual........................................................... 283
Define Worktag Balancing Rules for Fringe Benefit Actuals Transactions...........................284
Define Cash Balancing Rules for Cash Transactions.......................................................... 285
Configure Worktag Balancing Rule Sets for Transaction Journals...................................... 288
Configure Worktag Balancing for the Tenant.......................................................................291
Configure Optional Worktag Balancing for the Tenant.........................................................292
Associate a Balancing Worktag with Procurement Card Transactions................................ 293
Concept: How Transactions Get Balancing Worktags......................................................... 294
Average Daily Balance.................................................................................................................... 296
Setup Considerations: Average Daily Balances...................................................................296
Steps: Process Average Daily Balance................................................................................299
Create Average Daily Balance Rule.................................................................................... 300
Calculate Average Daily Balances....................................................................................... 301
FAQ: How do I change an average daily balance rule?...................................................... 302
Financial Reporting..........................................................................................................................302
Steps: Create and Schedule Groups of Financial Reports.................................................. 302
Create Reporting Time Periods............................................................................................303
Create Trial Balance Reports............................................................................................... 306
Concept: Financial Reporting............................................................................................... 307
Reference: Workday-Delivered Reports for Financial Close................................................ 307
Reference: Additional Options Prompt on Journal Lines for Financial Reporting RDS.........313
Example: Composite Income Statement Report.................................................................. 314
Example: Map Aliases to Ledger Account Summaries........................................................ 321
Financial Reporting with OfficeConnect.......................................................................................... 323
Steps: Set Up Your Tenant for OfficeConnect for Financial Management........................... 323
Enable OfficeConnect for Workday Financial Management.................................................324
Set Up the Financial Reporting Data Model........................................................................ 325
Connect OfficeConnect to Your Financial Management Tenant.......................................... 327
Average Daily Balance Reporting with OfficeConnect......................................................... 329
Concept: Time Context with Average Daily Balance........................................................... 331
Concept: OfficeConnect and Reporting on the Financial Modeled Data Source..................331
Concept: The Financial Reporting Data Model.................................................................... 332
Concept: Differences Between OfficeConnect and Report Writer........................................334
Financial Analytics........................................................................................................................... 336
Configure Manager Metrics Reporting................................................................................. 336
Configure Financial Metrics Reporting................................................................................. 337
Concept: Financial Executive Scorecard..............................................................................338
Concept: Report Administrator Dashboard...........................................................................339
Reference: Metric Calculations for Financials...................................................................... 340
Example: Set Up a Custom Financial Scorecard.................................................................342
Example: Set Up a Financial Executive Scorecard..............................................................351
External Financing Sources............................................................................................................ 355
Steps: Maintain Access to Investors.................................................................................... 355
Define Investors.................................................................................................................... 356
Set Up Loan Information...................................................................................................... 357
Multiple Funding Sources................................................................................................................359
Setup Considerations: Multiple Funding Sources................................................................ 359
Steps: Set Up Multiple Funding Sources............................................................................. 363
Create Spend Restrictions....................................................................................................364
Create Default Funding Sources.......................................................................................... 365
Create Funding Sources.......................................................................................................366
Create Funding Source Rules.............................................................................................. 368
Process Funding Sources.................................................................................................... 369

Reprocess Funding Sources................................................................................................ 370

Concept: Reclassification Journals and Lines......................................................................371
Concept: Financial Accounting........................................................................................................373

Budgets.....................................................................................................376
Budgets and Plans.......................................................................................................................... 376
Setup Considerations: Budget Check.................................................................................. 376
Steps: Set Up Plans or Budgets.......................................................................................... 379
Define Plan Structures..........................................................................................................382
Create Plans or Budgets...................................................................................................... 386
Maintain Budget.................................................................................................................... 389
Edit Plan Templates............................................................................................................. 391
Submit a Plan or Budget for Approval................................................................................. 392
Amend Plans or Budgets..................................................................................................... 393
Steps: Set Up Budgetary Roll Forward and Close...............................................................395
Define Rules to Roll Budgets Forward and Close............................................................... 395
Roll Budgetary Year-End Balances Forward....................................................................... 398
Steps: Set Up Revenue Driven Budget Rules..................................................................... 399
Concept: Plan Structures......................................................................................................400
Concept: Pooled Budgets.....................................................................................................402
Concept: Inactive Financial Plans........................................................................................ 402
Concept: Convert Spend to Currencies on Company Hierarchy Plan Lines........................ 403
Reference: Budget Reports.................................................................................................. 403
Example: Create Financial Plan to Actuals Composite Reports with Eliminations............... 404
Plan Hierarchies.............................................................................................................................. 406
Setup Considerations: Plan Hierarchies...............................................................................406
Steps: Create Plan Hierarchies............................................................................................ 409
Create or Link True Child Plan Structures........................................................................... 410
Link Virtual Child Plan Structures........................................................................................ 411
Concept: Hierarchies in Plans and Budgets........................................................................ 412
Concept: Amendments to Plan Hierarchies......................................................................... 413
Reference: Valid True Plan Hierarchy Relationships........................................................... 415
Reference: Virtual Plan Hierarchy Relationships................................................................. 416
Reference: Plan Hierarchy Reports......................................................................................417
Appropriations.................................................................................................................................. 418
Steps: Set Up Appropriations...............................................................................................418
Create Appropriation Hierarchies......................................................................................... 419
Position Control............................................................................................................................... 420
Setup Considerations: Position Budgets.............................................................................. 420
Steps: Set Up Position Control............................................................................................ 424
Steps: Use Position Control................................................................................................. 424
Steps: Set Up Job Requisitions for Commitments and Obligations..................................... 425
Position Budgets................................................................................................................... 426
Position Budget Checking.................................................................................................... 435
Commitment Accounting for Position Control.......................................................................440
Position Control Reporting....................................................................................................441
Concept: Position Control.....................................................................................................444
Reference: Position Control Terminology.............................................................................445
Reference: Position Control Transactions............................................................................ 446
FAQ: Position Control...........................................................................................................448
Spend Control..................................................................................................................................450
Commitment Accounting for Spend Transactions................................................................ 450
Spend Budget Checking.......................................................................................................453

Accounting Center...................................................................................463
Setup Considerations: Accounting Center...................................................................................... 463
Data Management........................................................................................................................... 471
Create Prism Analytics Table............................................................................................... 471
Data Enrichment..............................................................................................................................472
Concept: Enrichment............................................................................................................ 472
Steps: Create Instance Mapping.......................................................................................... 473
Create Mapping Table Definition..........................................................................................473
Create Mapping Table.......................................................................................................... 474
Edit an Enrichment Dataset................................................................................................. 476
Include Mapping in a Dataset.............................................................................................. 477
Create Workday Instances with Prism Join......................................................................... 478
Create Validation Stages for Enrichment............................................................................. 481
Accounting Generation.................................................................................................................... 483
Concept: Accounting Source................................................................................................ 483
Create Accounting Source....................................................................................................483
Edit Accounting Source........................................................................................................ 487
Inactivate Accounting Source............................................................................................... 493
Create Custom Dimensions and Custom Account Posting Rule Types............................... 495
Concept: Custom Validations for Detailed Accounting.........................................................495
Reference: Accounting Source Datasets and Tables.......................................................... 496
Batch and Error Management.........................................................................................................499
Edit Accounting Center Process Configuration.................................................................... 499
Create Accounting Center Batches from Source Systems.................................................. 501
Configure Detailed Journal Additional Attributes..................................................................505
Create Manual Accounting Center Detailed Journals.......................................................... 506
Cancel Accounting Center Batches......................................................................................510
Review Details of Batches, Stages, and Runs.................................................................... 511
Stop Accounting Center Business Process Event............................................................... 516
Custom Dismiss Transactions.............................................................................................. 517
View, Resolve, and Reprocess Errors................................................................................. 520
View and Resolve Errors in Error Manager......................................................................... 525
Manage Accounting Center Maintenance Window.............................................................. 529
Example: Custom Dismiss Zero Amount Transactions........................................................ 529
Reference: Results for New and Reprocessed Transactions in a Canceled Batch.............. 533
Reporting......................................................................................................................................... 536
View Detailed Accounting Results........................................................................................536
View Summarized Journals.................................................................................................. 537
Publish Prism Datasets........................................................................................................ 538
Concept: Period Close Activity Group for Accounting Center.............................................. 539
Reference: Guidelines for Reporting on Accounting Center Datasets................................. 539
Concept: Accounting Center........................................................................................................... 540

Financial Transaction Taxes.................................................................. 541

Transaction Taxes........................................................................................................................... 541
Setup Considerations: Transaction Taxes........................................................................... 541
Steps: Set Up Transaction Taxes........................................................................................ 545
Set Up Tax Authorities......................................................................................................... 546
Set Up Tax Categories.........................................................................................................547
Set Up Transaction Tax Rates.............................................................................................548
Set Up Transaction Tax Codes............................................................................................549
Set Up Tax Recoverabilities for Financial Transactions.......................................................549
Set Up Tax Applicability for Financial Transactions.............................................................551

Set Up Company Tax IDs for Financial Transactions.......................................................... 551

View Transaction Tax Liability for Companies..................................................................... 552
Concept: Self-Assessed Tax................................................................................................ 553
Concept: Tax ID Groupings..................................................................................................554
Reference: Tax Options........................................................................................................554
Reference: Transaction Tax Business Objects.................................................................... 556
FAQ: Why do 2 identical invoice lines have different tax amounts?.................................... 557
Third-Party Tax Service Integrations....................................................................................559
Transaction Tax Rules.................................................................................................................... 562
Setup Considerations: Transaction Tax Rules..................................................................... 562
Steps: Configure Transaction Tax Rules............................................................................. 565
Configure Transaction Tax Rules for Items......................................................................... 567
Configure Transaction Tax Rules for Countries................................................................... 568
Configure Transaction Tax Rules Using Worktags.............................................................. 570
Configure Transaction Tax Rule Exceptions........................................................................ 572
Configure Transaction Tax ID Exceptions............................................................................573
Withholding Taxes........................................................................................................................... 575
Steps: Set Up Withholding Taxes........................................................................................ 575
Set Up Tax Rates for Withholding Tax................................................................................ 576
Steps: Configure Withholding Tax Rules............................................................................. 578
Configure Withholding Tax Rules for Items......................................................................... 579
Configure Withholding Tax Rules for Countries................................................................... 580
Example: Calculate Withholding Tax Using Progressive Rates........................................... 581
Tax Accounting................................................................................................................................582
Concept: Transaction Tax Account Posting Rules...............................................................582
Concept: Withholding Tax Accounting................................................................................. 583
Tax Declarations..............................................................................................................................585
Setup Considerations: E-Filing VAT Returns (UK)...............................................................585
Steps: Create Tax Declarations........................................................................................... 589
Create Tax Declaration Components................................................................................... 590
Create Tax Declaration Definitions.......................................................................................592
Create Tax Declarations.......................................................................................................593
Steps: E-File VAT Returns (UK).......................................................................................... 595
Troubleshooting: E-Filed VAT Return Fails to Submit (UK)................................................. 596
Tax Reporting.................................................................................................................................. 597
Setup Considerations: SAF-T...............................................................................................597
Steps: Set Up SAF-T............................................................................................................601
Steps: Assign Standard Account IDs to Ledger Accounts (Norway)....................................602
Concept: Tax Master Records............................................................................................. 603
1099 Reporting................................................................................................................................ 604
Setup Considerations: 1099 Reporting................................................................................ 604
Setup Considerations: Combined Federal/State Filing Program..........................................609
Steps: Set Up 1099 Reporting............................................................................................. 611
Map 1099 Categories to Spend Categories and Hierarchies...............................................612
Map a Tax Authority to 1099 Federal or State Withholding................................................. 614
Set Up Company Tax Details for 1099 Reporting................................................................614
Set Up 1099 Payees............................................................................................................ 615
Preview 1099 Reporting....................................................................................................... 617
Create 1099 Adjustments..................................................................................................... 618
Create 1099 Runs................................................................................................................ 619
Print 1099 and 1096 Forms................................................................................................. 620
Generate 1099 Electronic Files............................................................................................ 622
Create Corrected 1099 Runs............................................................................................... 623
Concept: 1099 Work Area....................................................................................................624
Example: Set Up a Contingent Worker as a 1099 Payee....................................................624
Troubleshooting: 1099 Reporting Problems......................................................................... 625

1042-S Reporting............................................................................................................................ 626

Steps: Perform 1042-S Reporting........................................................................................ 626
Create 1042-S Income Codes..............................................................................................627
Assign a Tax Authority Form Type to Contingent Workers..................................................627
Concept: Effective Dating for Transaction and Withholding Tax Rates.......................................... 628

Customer Accounts.................................................................................629
Setup Considerations: Customer Accounts.................................................................................... 629
Customers........................................................................................................................................634
Steps: Set Up and Manage Customer Information.............................................................. 634
Create Customers.................................................................................................................635
Steps: Configure Customers................................................................................................ 637
Set Up Customer Overview..................................................................................................638
Set Up Customer Contacts and Addresses......................................................................... 642
Create Custom Fields for Customer Information..................................................................645
Mass Assign Worker Roles to Multiple Customers.............................................................. 645
Configure the Customer Profile............................................................................................ 646
Set Up Bill-To Contacts........................................................................................................647
Set Up Shipping Connection Map........................................................................................649
Steps: Maintain Access to Customer Information................................................................ 651
Example: Create a Condition Rule to Prevent Creating Duplicate Customers..................... 652
Concept: Customers............................................................................................................. 653
Concept: Create Basic Customers....................................................................................... 654
Concept: Purge Customer Data........................................................................................... 654
Customer Invoices........................................................................................................................... 655
Invoicing................................................................................................................................ 655
Invoice Netting...................................................................................................................... 697
Print and Email Invoices.......................................................................................................708
Customer Payments........................................................................................................................ 721
Setup Considerations: Overpayments.................................................................................. 721
Record Customer Payments................................................................................................ 726
Steps: Set Up Machine Learning Recommendations for Customer Overpayments............. 728
Steps: Record Customer Overpayments..............................................................................730
Steps: Apply Customer Payments........................................................................................731
Reapply an Unapplied Customer Payment.......................................................................... 734
Cancel Customer Payments.................................................................................................734
Steps: Return Customer Payments......................................................................................735
Steps: Create Direct Debit Mandates for Direct Debit Customer Payments........................ 736
Steps: Set Up VAT on Customer Payments........................................................................ 737
Concept: Customer Payments..............................................................................................738
Concept: Foreign Currency Customer Payments.................................................................741
Reference: Customer Payment Process Flows and Account Posting Rules........................744
Troubleshooting: Unable to Edit Customer Payment After Searching for Invoices...............745
FAQ: Customer Payments....................................................................................................745
Auto Apply Customer Payments.......................................................................................... 747
Customer Payment Matching............................................................................................... 760
Credit Card Payments..................................................................................................................... 767
Steps: Set Up Cybersource Credit Card Payment Processing............................................ 767
Set Up Bank Account for Credit Card Payments................................................................. 767
Establish a Merchant Account..............................................................................................768
Concept: Customer Credit Card Profiles..............................................................................769
Concept: Credit Card Payments...........................................................................................770
Customer Refunds...........................................................................................................................771
Steps: Create a Customer Refund.......................................................................................771
Steps: Create Customer Refund Payments in Settlement Runs..........................................772

Concept: Customer Refunds................................................................................................ 773

Cash Sales...................................................................................................................................... 774
Record Cash Sales.............................................................................................................. 774
Manage Cash Sales............................................................................................................. 775
Deposits........................................................................................................................................... 776
Deposit Customer Payments................................................................................................776
Cancel Customer Deposits...................................................................................................777
Customer Collections...................................................................................................................... 778
Collections Dashboard..........................................................................................................778
Dunning and Customer Statements..................................................................................... 785
Interest and Late Fees......................................................................................................... 789
Steps: Write Off Receivables............................................................................................... 804
Customer Portal...............................................................................................................................807
Steps: Set Up the Customer Portal......................................................................................807
Create Workday Accounts for Customer Contacts.............................................................. 807
Concept: Customer Portal Dashboard................................................................................. 808
Example: Configure Customer Portal Dashboard................................................................ 809
Customer Portal Payments...................................................................................................812
Reference: Invoicing and Receivables Reports.............................................................................. 818

Revenue.................................................................................................... 821
Sales Items......................................................................................................................................821
Steps: Manage Revenue Categories................................................................................... 821
Steps: Set Up Taxes for Revenue Transactions..................................................................823
Create Sales Items............................................................................................................... 823
Create Sales Item Price Lists...............................................................................................825
Concept: Sales Items........................................................................................................... 826
Concept: Sales Item Currencies...........................................................................................828
Example: Create Professional Services Sales Items........................................................... 828
Customer Contracts.........................................................................................................................829
Steps: Configure Customer Contracts..................................................................................829
Steps: Upload Customer Contracts......................................................................................831
Steps: Amortize Customer Contract Costs.......................................................................... 832
Steps: Create Intercompany Contracts................................................................................ 833
Steps: Create Customer Contract Templates...................................................................... 834
Steps: Set Up Customer Contract Checklist Templates...................................................... 835
Steps: Link Customer Contracts for Revenue Allocation..................................................... 836
Steps: Manage Billable Projects on Usage-Based Transactions......................................... 836
Review Intercompany Billable Transactions.........................................................................838
Create Customer Contracts..................................................................................................839
Copy Customer Contracts.................................................................................................... 844
Amend Customer Contracts................................................................................................. 845
Change Customer Contracts................................................................................................ 847
Create Deferred Cost Schedules......................................................................................... 848
Concept: Customer Contracts.............................................................................................. 848
Concept: Customer Contract Renewals............................................................................... 850
Concept: Foreign Currency Customer Contracts................................................................. 851
Concept: Usage-Based Contract Pricing..............................................................................853
Reference: Contract Line Types for Customer Contracts.................................................... 854
FAQ: Customer Contracts.................................................................................................... 857
Troubleshooting: Unable to Create Custom Validations for Taggable Type Report Fields...858
Multiple-Element Revenue Allocation..............................................................................................859
Setup Considerations: Multiple-Element Revenue Allocation.............................................. 859
Steps: Create Multiple-Element Revenue Allocation............................................................864
Create Fair Value Price Lists............................................................................................... 865

Set Up Revenue Allocation Configurations.......................................................................... 866

Customer Contracts Billing..............................................................................................................868
Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules......................868
Steps: Set Up Prepaid Billing Using Consolidated Billing Schedules...................................871
Steps: Set Up Prepaid Billing Using Installment Billing Schedules...................................... 873
Steps: Create Customer Contracts for Minimum Commitments.......................................... 874
Steps: Create Retention for Customer Invoices...................................................................874
Create Billing Schedule Templates for Customer Contracts................................................ 875
Create Consolidated Billing Schedule Templates for Customer Contracts.......................... 876
Create Consolidated Billing Schedules for Customer Contracts.......................................... 877
Create Installment or Transaction Billing Schedules for Customer Contracts...................... 882
Concept: Billing Schedule Templates for Customer Contracts............................................ 885
Concept: Billing..................................................................................................................... 886
Customer Contracts Invoicing......................................................................................................... 888
Steps: Create Credit and Rebill Customer Invoices for Customer Contracts....................... 888
Steps: Manage Customer Invoice Proposals....................................................................... 891
Create Customer Invoices for Billing Installments................................................................893
Create Customer Invoices from Contracts........................................................................... 895
Concept: Customer Invoice Proposal Workspace................................................................896
Customer Contracts Revenue Recognition.....................................................................................897
Setup Considerations: Revenue Recognition Schedules..................................................... 897
Setup Considerations: Cumulative Catch-Up Revenue Installments....................................901
Steps: Create Multiperiod Revenue Recognition Schedules................................................904
Create Revenue Recognition Schedules for Customer Contracts....................................... 905
Create Ledger Currency Adjustment Installment................................................................. 908
Create Revenue Recognition Schedules for Customer Invoices......................................... 909
Create Revenue Installments for Billable Transactions........................................................911
Concept: Revenue Recognition............................................................................................912
Reference: Revenue Recognition Methods..........................................................................915
Reference: Revenue Recognition Currency Conversion Rates for Foreign Currency
Customer Contracts......................................................................................................... 916
Example: Create Accounting Using Blended Rates for Foreign Currency Customer
Contracts..........................................................................................................................925
Period End Revenue Accounting.................................................................................................... 929
Setup Considerations: Period End Revenue Accounting..................................................... 929
Steps: Reclassify Customer Contract Assets and Liabilities................................................ 936
Steps: Configure Derivation Rules for Billable Supplier Invoices......................................... 938
Concept: Revenue Recognition Accounting......................................................................... 940
Reference: Period End Revenue Accounting Reclassification Calculations.........................941
ASC 606/IFRS 15............................................................................................................................943
Steps: Compare Revenue Allocation Scenarios.................................................................. 943
Create Alternate Contracts................................................................................................... 944
Create Revenue Allocation Rules........................................................................................ 945
Concept: Alternate Contracts............................................................................................... 946
Concept: Revenue Scenario Tool Dashboard......................................................................946
Concept: Opportunities.................................................................................................................... 947
Concept: Revenue Dashboard........................................................................................................ 947
Concept: Workday Revenue........................................................................................................... 948
Reference: Revenue Reports..........................................................................................................950

Projects..................................................................................................... 951
Steps: Configure Projects................................................................................................................951
Concept: Workday Projects.............................................................................................................952
Concept: Project Dashboard........................................................................................................... 954
Reference: Project Reports............................................................................................................. 954

Project Setup................................................................................................................................... 958

Setup Considerations: Project Hierarchies...........................................................................958
Steps: Set Up Projects Infrastructure...................................................................................963
Configure the Project Profile................................................................................................ 964
Create Project Hierarchies................................................................................................... 966
Steps: Maintain Project Details............................................................................................ 967
Set Up Worktag Rules for Project Cost and Revenue......................................................... 969
Configure Project Cost and Revenue in Project Hierarchies............................................... 970
Concept: Project Hierarchies................................................................................................972
Example: Configure Worktag Rules for Project Cost and Revenue..................................... 973
Reference: Project Tasks and Reports with Configurable Project Summary Fields............. 974
Project Templates................................................................................................................. 975
Project Labor Costing......................................................................................................................983
Setup Considerations: Project Advanced Labor Costing..................................................... 983
Setup Considerations: Ledger Posting for Project Labor Costs........................................... 986
Steps: Manage Project Advanced Labor Costs................................................................... 989
Create Project Standard Cost Rate Sheets......................................................................... 991
Steps: Set Up Project Labor Cost Summary Configurations................................................993
Steps: Manage Project Labor Cost Summaries................................................................... 995
Create Project Cost Rate Rules...........................................................................................996
Set Up Fully Burdened Cost Rate Definitions for Projects...................................................997
Maintain Project Advanced Labor Cost Calculation Types.................................................. 998
Reference: Causes of Labor Cost Summary Reversals.................................................... 1000
Project Management..................................................................................................................... 1001
Steps: Build Projects.......................................................................................................... 1001
Create Project Groups........................................................................................................1002
Steps: Set Up Project Manager Hub..................................................................................1002
Configure Project Manager Hub Cards.............................................................................. 1003
Reference: Project Manager Hub Cards............................................................................ 1004
Reference: Project Components........................................................................................ 1008
Reference: Project Management Reports.......................................................................... 1010
Project Creation.................................................................................................................. 1011
Project Plans.......................................................................................................................1025
Project Transactions........................................................................................................... 1044
Project Portfolios.................................................................................................................1048
Resource Management................................................................................................................. 1049
Steps: Set Up Resource Management...............................................................................1049
Create Project Roles.......................................................................................................... 1050
Create Project Role Categories..........................................................................................1052
Reference: Resource Management Reports...................................................................... 1052
Project Resources.............................................................................................................. 1056
Resource Plans.................................................................................................................. 1080
Resource Forecasts............................................................................................................1091
Project Budgets............................................................................................................................. 1101
Setup Considerations: Project Budgets..............................................................................1101
Steps: Set Up Project Budgets.......................................................................................... 1106
Steps: Maintain Access to Budget Structures for Projects.................................................1107
Set Up Plan Structures for Project Budgets.......................................................................1107
Set Up Hierarchy Configuration for Project Budgets..........................................................1110
Set Up Tenant Configuration for Project Budgets..............................................................1112
Set Up Labor and Nonlabor Attributes for Plan Lines........................................................1114
Steps: Create Project Budgets........................................................................................... 1115
Steps: Create Parent-Child Project Budgets...................................................................... 1118
Steps: Manage Project Budgets with Worksheets............................................................. 1119
Edit Plan Workbooks.......................................................................................................... 1120
Schedule Project Budget Mass Update............................................................................. 1122

Concept: Project Budgets...................................................................................................1123

Concept: Multicurrency in Project Budgets........................................................................ 1125
Reference: Project Budget Setup by Role......................................................................... 1126
Reference: Project Budget Calculations.............................................................................1127
Reference: Key Performance Indicator Cards....................................................................1132
Reference: Classification Logic for Plan Line Attributes.................................................... 1133
FAQ: Project Budgeting......................................................................................................1134
Capital Projects............................................................................................................................. 1134
Setup Considerations: Capital Projects.............................................................................. 1134
Steps: Configure Capital Projects...................................................................................... 1138
Steps: Manage Capital Projects......................................................................................... 1140
Add or Edit Project Assets................................................................................................. 1141
Steps: Create Project Asset Assignment Rules................................................................. 1143
Steps: Create Capital Project Work In Progress (WIP) Exclusion Rules............................1145
Example: Create Capital Project Work In Progress (WIP) Exclusion Rule (Spend
Category)....................................................................................................................... 1146
Example: Create Capital Project Work In Progress (WIP) Exclusion Rule (Transaction
Date).............................................................................................................................. 1147
Review Capital Project Transactions..................................................................................1148
Capitalize Project Assets....................................................................................................1149
Reconcile Work in Progress (WIP) Accounts.....................................................................1152
Concept: Project Assets..................................................................................................... 1153
Concept: Capital Project Workbench................................................................................. 1153
Concept: Labor Cost Capitalization....................................................................................1154
Concept: Post Work in Progress to Company Asset Book Codes..................................... 1154
Concept: Balancing Worktags on Capital Project Transactions......................................... 1155
Project Tracking.............................................................................................................................1156
Setup Considerations: Project Tracking............................................................................. 1156
Steps: Set Up Security for Project Tracking...................................................................... 1164
Steps: Set Up Project Tracking..........................................................................................1165
Concept: Project Tracking.................................................................................................. 1166
Project Scenarios, Initiatives, and Ideas....................................................................................... 1168
Project Scenario Planning.................................................................................................. 1168
Initiatives............................................................................................................................. 1172
Ideas................................................................................................................................... 1174
Project Metrics and Reports..........................................................................................................1176
Steps: Set Up Project Transaction Summaries..................................................................1176
Concept: Project Dashboard.............................................................................................. 1177
Concept: Resource Manager Dashboards......................................................................... 1177
Reference: Security for Resource Manager Dashboards...................................................1178
Reference: Project Reports................................................................................................ 1179
Reference: Project Management Reports.......................................................................... 1183
Reference: Resource Management Reports...................................................................... 1184

Project Billing.........................................................................................1187
Setup Considerations: Project Billing............................................................................................ 1187
Steps: Set Up Project Billing.........................................................................................................1193
Steps: Consolidate Billing for Multiple Projects............................................................................ 1194
Project Pricing and Billing............................................................................................................. 1195
Steps: Set Up Project Pricing and Billing...........................................................................1195
Create Project Billing Rate Sheets.....................................................................................1196
Create Contract Rate Sheets............................................................................................. 1198
Add Billing Rate Rules to Contract Rate Sheets................................................................1200
Create Transfer Pricing Rate Sheets................................................................................. 1202
Create Custom References for Ad Hoc Project Transactions............................................ 1203

Create Ad Hoc Project Transactions..................................................................................1204

Reference: Billing Rate Rule Types for Projects................................................................1207
Project Billing Transactions........................................................................................................... 1208
Steps: Manage Project Billing Transactions.......................................................................1208
Set Up Project Billing Configurations................................................................................. 1209
Manage All Project Billing Transactions.............................................................................1211
Manage Project Billing Transactions by Transaction Source............................................. 1216
Review Billable Project Transactions................................................................................. 1222
Concept: Set Up Project Billing Configurations..................................................................1224
Reference: Project Billing Transaction Billing Statuses......................................................1226
Reference: Project Billing Transaction Ineligibility Reasons...............................................1228
Deferred Billable Project Costs Accounting.................................................................................. 1229
Setup Considerations: Deferred Billable Project Costs Accounting................................... 1229
Steps: Set Up Deferred Billable Project Costs Accounting................................................ 1232
Percent Complete Revenue Recognition...................................................................................... 1234
Setup Considerations: Percent Complete Revenue Recognition....................................... 1234
Steps: Recognize Revenue for Percent Complete.............................................................1237
Create Percent Complete Configurations for Projects....................................................... 1238
Review Percent Complete Calculations for Revenue Recognition.....................................1239
Project Billing Work Area.............................................................................................................. 1240
Steps: Configure the Project Billing Work Area Profile...................................................... 1240
Concept: Project Billing Work Area.................................................................................... 1241
Project Billing Reporting................................................................................................................ 1243
Concept: Project Dashboard.............................................................................................. 1243
Reference: Project Billing Reports..................................................................................... 1243
Reference: Project Profitability Report............................................................................... 1246
Reference: Revenue Leakage Report................................................................................1246
Concept: Project Billing................................................................................................................. 1248
Reference: Contract Line Types for Project Billing....................................................................... 1252

Business Assets.................................................................................... 1253

Asset Tracking...............................................................................................................................1253
Setup Considerations: Asset Tracking............................................................................... 1253
Steps: Set Up Asset Tracking............................................................................................ 1255
Set Up Asset Disposal Types............................................................................................ 1257
Steps: Track Assets............................................................................................................1257
Register Assets...................................................................................................................1259
Register Composite Assets................................................................................................ 1262
View Assets........................................................................................................................ 1264
Adjust an Asset In Service Date........................................................................................ 1266
Concept: Pooled Assets..................................................................................................... 1267
Reference: Asset Statuses................................................................................................. 1268
Reference: Asset Tracking Event Availability.....................................................................1269
Troubleshooting: Asset Registration Errors........................................................................1270
Asset Accounting........................................................................................................................... 1271
Setup Considerations: Asset Books................................................................................... 1271
Steps: Set Up Asset Accounting........................................................................................ 1274
Set Up Asset Adjustment Reasons.................................................................................... 1276
Steps: Set Up Asset Books for a Company.......................................................................1276
Add Assets to a Company Asset Book..............................................................................1277
Restrict Assets to Company Asset Books..........................................................................1279
Define Asset Book Rules................................................................................................... 1280
Steps: Set Up Asset Accounting for Multiple Books.......................................................... 1281
Steps: Configure Intangible Business Assets.....................................................................1282
Assign Asset Accounting Information.................................................................................1284

Change Depreciation Accounting Status on an Asset....................................................... 1287

Steps: Perform Lifecycle Events for Capital Assets........................................................... 1288
Create Asset Shares.......................................................................................................... 1289
Steps: Dispose Assets........................................................................................................1290
Set Up Asset Pooling Rules...............................................................................................1291
Set Up Trackable Line Reviews for Assets........................................................................1293
Review Trackable Lines for Assets.................................................................................... 1293
Reconcile Asset Activity and Ledger Accounts.................................................................. 1294
Concept: Asset to Ledger Reconciliation........................................................................... 1297
Concept: Composite Assets............................................................................................... 1298
Concept: Accounting Impact of Asset Lifecycle Events..................................................... 1299
Concept: Strategies for Populating New Company Asset Books on Existing Assets......... 1302
Reference: Asset Statuses................................................................................................. 1303
Reference: Asset Lifecycle Event Availability.....................................................................1305
Reference: Dispose of, Remove, or Delete Assets............................................................1305
Example: Set Depreciation Accounting Status for Company Asset Books........................ 1306
Example: Asset Roll Forward Composite Report...............................................................1307
Example: Migrate Assets to a Secondary Asset Book.......................................................1314
Example: Set Up an Update Asset Book Configuration EIB.............................................. 1315
Example: Download an Update Asset Book Configuration Spreadsheet Template with
Data................................................................................................................................1316
Example: Load Assets in Secondary Asset Books with an EIB......................................... 1317
Asset Maintenance........................................................................................................................ 1320
Adjust Asset Costs............................................................................................................. 1320
Steps: Correct or Adjust Useful Life...................................................................................1321
Impair Assets...................................................................................................................... 1322
Reclassify Assets................................................................................................................1323
Set Up Shared Costs of Assets......................................................................................... 1325
Depreciation................................................................................................................................... 1326
Set Up Depreciation Profiles.............................................................................................. 1326
Create Custom Depreciation Rate Schedules....................................................................1329
Set Up Bonus Depreciation Rules..................................................................................... 1329
Record Asset Depreciation and Amortization Expenses....................................................1331
Suspend and Resume Asset Depreciation........................................................................ 1333
Concept: Depreciation Profiles........................................................................................... 1334
Concept: Bonus Depreciation Rules.................................................................................. 1335
Reference: Depreciation Methods...................................................................................... 1336
Reference: Depreciation Conventions................................................................................ 1339
Example: Add Asset Details to Preview Depreciation Schedule........................................ 1340
Example: Schedule Asset Depreciation and Amortization Expense Runs......................... 1342

Lease Accounting..................................................................................1344
Lease Accounting Setup............................................................................................................... 1344
Setup Considerations: Lease Accounting.......................................................................... 1344
Setup Considerations: Multibook Asset Accounting for Leases......................................... 1351
Steps: Set Up Security for Lease Accounting....................................................................1354
Steps: Set Up Lease Accounting....................................................................................... 1356
Steps: Set Up Multibook Asset Accounting for Leases......................................................1358
Create Spend Categories for Lease Accounting................................................................1359
Define Account Posting Rules for Lease Accounting.........................................................1360
Set Up Supplier Contract Types for Lease Accounting......................................................1361
Assign Book Codes to Lease Contracts............................................................................ 1363
Example: Set Up Operating Leases for IFRS and GASB Accounting................................1363
FAQ: Assets on Lease-Type Supplier Contract Amendments........................................... 1369
Lease Accounting Generation....................................................................................................... 1370

Steps: Record Active Lease-Type Supplier Contracts....................................................... 1370

Create Lease-Type Supplier Contracts.............................................................................. 1370
Create Alternate Lease-Type Supplier Contracts...............................................................1372
Reference: Accounting Methods for Lease-Type Supplier Contracts........................................... 1373
Concept: Lease Accounting.......................................................................................................... 1374
FAQ: Lease Accounting................................................................................................................ 1375

Supplier Accounts................................................................................. 1376

Prepaid Supplier Spend................................................................................................................ 1376
Steps: Set Up Prepaid Supplier Spend..............................................................................1376
Create Amortization Schedules for Prepaid Purchase Orders........................................... 1378
Create Amortization Schedules and Installments for Prepaid Supplier Invoices................ 1379
Create Amortization Schedules and Installments for Prepaid Supplier Invoices from
Accounting Adjustments................................................................................................ 1380
Create Accounting for Prepaid Spend Amortization Installments.......................................1382
Invoice Retention........................................................................................................................... 1383
Steps: Set Up Retention.....................................................................................................1383
Release Retention.............................................................................................................. 1384
Invoicing and Payables................................................................................................................. 1384
Steps: Set Up Supplier Invoices........................................................................................ 1384
Steps: Set Up Spend Category and Worktag Defaulting on Supplier Invoices...................1385
Steps: Set Up Suppliers for National Account Invoicing.................................................... 1386
Steps: Set Up VAT on Supplier Payments........................................................................ 1387
Steps: Set Up Configurable Attributes on Supplier Invoices.............................................. 1388
Steps: Set Up Supplier Refunds........................................................................................ 1389
Steps: Set Up Machine Learning Recommendations for Worktags................................... 1390
Create a Supplier Invoice Request.................................................................................... 1391
Create Supplier Invoices.................................................................................................... 1395
Create a Non-PO Supplier Invoice.....................................................................................1410
Modify, Copy, or Find Duplicate Supplier Invoices............................................................ 1418
Adjust Supplier Invoices..................................................................................................... 1420
Process Supplier Invoices for Remit-To Connections........................................................ 1425
Set Up Role-Based Routing for Supplier Invoice Event.....................................................1426
Set Up Routing through a Management Chain.................................................................. 1427
Use Workday-Delivered Supplier Accounts Discovery Boards.......................................... 1428
Configure Email Ingestion for Supplier Accounts...............................................................1429
Concept: Supplier Invoices.................................................................................................1430
Concept: Tax-Only Supplier Invoices................................................................................. 1433
Reference: Volumes on Supplier Invoice Lines................................................................. 1434
Reference: Supplier Invoice Split Screen...........................................................................1434
Example: Create Payables Aging Reports.........................................................................1435
Example: Set Up UK Payment Practices and Performance Reporting.............................. 1436
Supplier Invoice Work Area................................................................................................1437
Recurring Supplier Invoices................................................................................................1446
Worktag Split Templates.................................................................................................... 1450
Gapless Invoice Sequence.................................................................................................1453
Invoice Netting...............................................................................................................................1460
Setup Considerations: Invoice Netting............................................................................... 1460
Steps: Set Up Netting.........................................................................................................1465
Create Netting Transactions...............................................................................................1467
Create Direct Intercompany Netting Transactions............................................................. 1468
Create Custom Business Form Layout for Netting Statements..........................................1469
Concept: Accounting and Netting Transactions................................................................. 1470
Reference: Netting Rules................................................................................................... 1471
Supplier Remittance Integration.................................................................................................... 1472

Steps: Set Up Supplier Remittance Integration..................................................................1472

Create Integration System User for Supplier Remittance.................................................. 1473
Set Up Remittance Release Event for Suppliers............................................................... 1474

Expenses................................................................................................ 1475
Setup Considerations: Expenses.................................................................................................. 1475
Payment Elections......................................................................................................................... 1484
Setup Considerations: Payment Elections......................................................................... 1484
Steps: Set Up Payment Elections...................................................................................... 1488
Maintain Payment Election Rules.......................................................................................1489
Define Payment Election Options.......................................................................................1491
Maintain Payment Elections............................................................................................... 1493
Deactivate Worker Payment Elections............................................................................... 1495
Expense Rate Tables.................................................................................................................... 1496
Setup Considerations: Expense Rate Tables.....................................................................1496
Steps: Set Up Expense Rate Tables................................................................................. 1499
Create Expense Rate Table Rules.................................................................................... 1500
Set Up Expense Rate Tables.............................................................................................1501
Concept: Base and Adjustment Rate Tables..................................................................... 1503
Concept: Effective Dating for Expense Rate Tables.......................................................... 1504
Expense Items...............................................................................................................................1504
Setup Considerations: Expense Items............................................................................... 1504
Steps: Set Up Expense Items............................................................................................ 1510
Steps: Set Up Security for Expense Items.........................................................................1511
Steps: Manage Reimbursable Accounts............................................................................ 1512
Create Expense Items........................................................................................................ 1514
Create Per Diem Expense Items for Travel Journals.........................................................1520
Set Up Expense Accumulators...........................................................................................1522
Itemize Hotel Expenses......................................................................................................1523
Set Up Travel Cities........................................................................................................... 1523
Set Up Airlines, Hotels, and Car Rental Agencies.............................................................1524
Set Up Service Classes..................................................................................................... 1525
Set Accumulator Balances in Travel Profiles..................................................................... 1526
Concept: Expense Item Attributes......................................................................................1526
Concept: Parent and Child Expense Items........................................................................ 1528
Concept: Expense Item Currencies....................................................................................1528
Reference: Expense Item Attribute Values........................................................................ 1529
FAQ: Expense Items.......................................................................................................... 1530
Setting Up Expense Reports.........................................................................................................1531
Setup Considerations: Intercompany Expense Report Processing.................................... 1531
Setup Considerations: Candidate Expense Reports.......................................................... 1534
Setup Considerations: Student Expense Reports.............................................................. 1538
Steps: Set Up Expense Reports........................................................................................ 1542
Steps: Enable Workers to Create Expense Reports for Nonworkers.................................1544
Customize the Expense Report Event Business Process..................................................1545
Define Business Purposes................................................................................................. 1548
Create Travel Profiles.........................................................................................................1550
Steps: Set Up Taxes for Expense Reports........................................................................ 1551
Steps: Set Up Expense Report Intercompany Processing.................................................1553
Steps: Set Up Accounting for Negative Reimbursable Expense Reports.......................... 1554
Steps: Set Up Receipt Scanning for Expenses................................................................. 1555
Steps: Set Up Expenses Email Receipts........................................................................... 1556
Concept: Email Receipts for Expenses..............................................................................1557
Steps: Create Expense Report Print Layouts in Workday Studio...................................... 1558
Create Custom Business Form Layouts for Expense Reports...........................................1559

Include a Logo and Attachment Page on Expense Report Printouts................................. 1560

Include Messages in Expense Report Print Layouts......................................................... 1561
Create Expense Report Print Layouts................................................................................1562
Reference: Expense Report Review and Approve Business Processes............................1562
Managing Expense Reports.......................................................................................................... 1564
Steps: Manage Expense Reports.......................................................................................1564
Create Expense Reports.................................................................................................... 1565
Create Expense Reports for Pre-Hires.............................................................................. 1567
Steps: Create Expense Reports for Nonworkers............................................................... 1568
Create Expense Lines........................................................................................................ 1570
Steps: Set Up Recommendations and Defaulting for Expense Items................................ 1572
Itemize Expense Lines....................................................................................................... 1573
Correct Approved Expense Reports...................................................................................1574
Concept: Currencies on Expense Reports.........................................................................1575
Concept: Expense Report Workflow.................................................................................. 1576
Concept: Expense Management Dashboard......................................................................1577
Reference: Expense Report Statuses................................................................................ 1578
FAQ: Expense Reports.......................................................................................................1578
Troubleshooting: Calculated Field Errors on Expense Reports......................................... 1579
Expense Protect............................................................................................................................ 1580
Concept: Expense Protect..................................................................................................1580
Steps: Set Up Expense Protect......................................................................................... 1582
Set Up Expense Risk Levels..............................................................................................1584
Route Expense Reports Based on Risk.............................................................................1584
Reference: Expense Protect Risk Scores and Risk Levels................................................1585
Spend Authorizations.................................................................................................................... 1586
Setup Considerations: Spend Authorizations..................................................................... 1586
Steps: Set Up Spend Authorizations..................................................................................1592
Steps: Set Up Cash Advance Requests............................................................................ 1593
Steps: Process Cash Advance Requests.......................................................................... 1594
Steps: Create Cash Advance Repayments........................................................................1594
Create Spend Authorizations..............................................................................................1595
Freeze Company Spend.....................................................................................................1597
Close Spend Authorizations............................................................................................... 1598
Mass Close Spend Authorizations..................................................................................... 1599
Reference: Spend Authorization Statuses..........................................................................1599
FAQ: Spend Authorizations................................................................................................ 1600
Credit Card Setup......................................................................................................................... 1601
Steps: Set Up Expense Credit Cards................................................................................ 1601
Steps: Set Up AMEX Global Credit Card Processing........................................................ 1603
Configure AMEX Remittance Files for Credit Card Transactions.......................................1604
Steps: Configure Visa Scrubbed or Mastercard Masked Remittance Files for Credit Card
Transactions...................................................................................................................1605
Enable Paid with Corporate Card on Expense Reports.....................................................1606
Setup Considerations: Central Travel Cards......................................................................1606
Steps: Create Central Travel Cards................................................................................... 1609
Steps: Configure Alerts for Central Travel Card Transactions........................................... 1610
Create Corporate Expense Credit Card Billing Accounts...................................................1611
Create Worker Expense Credit Cards................................................................................1613
Steps: Notify Workers About Expense Credit Card Transactions...................................... 1615
Map Merchant Category Codes to Expense Items............................................................ 1615
Concept: Process Flow of Expense Credit Card Transactions.......................................... 1616
Reference: Alternate Account Identifiers for Expense Remittance Processing.................. 1616
FAQ: Why can't I import credit card data for ECMs and contingent workers?....................1617
Credit Card Processing................................................................................................................. 1618
Steps: Review and Correct Credit Card Transactions....................................................... 1618

Steps: Purge Worker Credit Card Numbers.......................................................................1618

Fix Credit Card Transaction Errors.................................................................................... 1619
Map Data from Expense Integration Files..........................................................................1620
Change Cardholders on Expense Credit Cards.................................................................1621
Concept: Expense Credit Card Transaction Data Mapping............................................... 1623
Reference: Credit Card Reports.........................................................................................1624
Reference: Procurement Card and Expense Credit Card Transaction Statuses................1626
Troubleshooting: Expense Credit Cards............................................................................ 1627
Travel Booking Records Setup..................................................................................................... 1629
Steps: Set Up Travel Booking Records............................................................................. 1629
Set Up Classes of Service................................................................................................. 1630
Map Travel Types to Expense Items................................................................................. 1631
Travel Booking Records Processing............................................................................................. 1632
Steps: Process Travel Booking Records............................................................................1632
Review Travel Booking Records........................................................................................ 1632
Fix Travel Booking Record Errors...................................................................................... 1633
Expense Analytics......................................................................................................................... 1634
Track Expense for a Cost Center or Region......................................................................1634
Track Expense for a Supervisory Organization or Team................................................... 1637
Track Expense for a Company.......................................................................................... 1639
Expenses Hub............................................................................................................................... 1642
Steps: Set Up Expenses Hub............................................................................................ 1642
Reference: Expenses Hub Sections...................................................................................1643
Configuration Examples.................................................................................................................1646
Example: Set Up Payment Elections for Split Distributions............................................... 1646
Example: Maintain Access to Payment Elections.............................................................. 1648
Example: Create Distance-Based Expense Items............................................................. 1649
Example: Create Per Diem Expense Items for Calendar Day Travel Journals.................. 1651
Example: Create Per Diem Expense Items for 24-Hour Period Travel Journals................ 1654
Example Steps: Process and Report on Job Requisition Costs........................................ 1657
Example: Process Candidate Expenses and Recruiter Fees for a Job Requisition........... 1658
Example: Create a Custom Report for Cost-of-Hire Totals................................................1661
Example: Enable Segment-Based Security for Student Expenses.................................... 1662
Example: Configure Automatic Approval for Send Back Lines Business Processes..........1663
Example: Freeze Spend Authorizations............................................................................. 1664
Example: Create Custodian Role to Manage Central Travel Cards...................................1667
Example Steps: Configure an Expense Item and Allowance Plan with Automatic
Approval......................................................................................................................... 1668
Example: Set Up Allowance Plan for Health and Fitness Expenses..................................1669
Example: Configure Automatic Approval for Expense Reports with an Allowance Plan.....1671

Cash........................................................................................................ 1672
Banking Setup............................................................................................................................... 1672
Steps: Set Up Banking....................................................................................................... 1672
Define Bank Accounts........................................................................................................ 1673
Create Petty Cash Accounts.............................................................................................. 1680
Concept: Bank Account Currency...................................................................................... 1681
Reference: Magnetic Ink Character Formats..................................................................... 1682
Reference: Banking Information Reports........................................................................... 1682
Bank Account Signatories............................................................................................................. 1683
Setup Considerations: Bank Account Signatories..............................................................1683
Steps: Manage Bank Account Signatories.........................................................................1688
Bank Fee Analysis........................................................................................................................ 1689
Setup Considerations: Bank Fee Analysis......................................................................... 1689
Steps: Perform Bank Fee Analysis.................................................................................... 1693

Create Bank Fee Service Contracts...................................................................................1693

Enter Bank Fee Statements............................................................................................... 1695
Ad Hoc Payments......................................................................................................................... 1697
Setup Considerations: Ad Hoc Payments.......................................................................... 1697
Steps: Manage Ad Hoc Payments..................................................................................... 1703
Steps: Maintain Access to Bank Accounts for Ad Hoc Payments......................................1705
Steps: Maintain Access to Ad Hoc Payment Spend Categories........................................ 1706
Create Ad Hoc Payees.......................................................................................................1707
Create Ad Hoc Payment Templates...................................................................................1708
Create Ad Hoc Payments...................................................................................................1710
Bank Account Transfers................................................................................................................ 1715
Steps: Perform Bank Account Transfers............................................................................1715
Define Bank Account Transfer Templates......................................................................... 1716
Record Bank Account Transfers........................................................................................ 1717
Complete Details of a Bank Account Transfer................................................................... 1719
Change Bank Account Transfer Details............................................................................. 1720
Cancel Bank Account Transfers.........................................................................................1721
Bank Account Transfers for Settlement........................................................................................ 1722
Steps: Perform Bank Account Transfers for Settlement.................................................... 1722
Define Bank Account Transfer for Settlement Templates.................................................. 1723
Create Bank Account Transfers for Settlement..................................................................1725
Miscellaneous Payment Requests................................................................................................ 1728
Setup Considerations: Miscellaneous Payment Requests................................................. 1728
Steps: Set Up Miscellaneous Payment Requests..............................................................1732
Steps: Set Up Express Settlement.....................................................................................1733
Create Miscellaneous Payment Requests..........................................................................1734
Bank Statement Mappings............................................................................................................ 1736
Steps: Define Bank Statement Worktag Mappings............................................................ 1736
Create Bank Statement Worktag Mappings....................................................................... 1737
Override Bank Statement Worktag Mappings.................................................................... 1738
Steps: Define Cash Activity Categories............................................................................. 1739
Steps: Define Normalized Bank Balances......................................................................... 1740
Map Bank Statement Balance Types to Normalized Balances.......................................... 1740
Bank Statement Parsing................................................................................................................1741
Parse Bank Statements......................................................................................................1741
Bank Account Reconciliation Setup.............................................................................................. 1744
Steps: Set Up Ad Hoc Bank Transactions......................................................................... 1744
Create Ad Hoc Bank Transaction Templates.....................................................................1744
Setup Considerations: Automatic Bank Statement Reconciliation..................................... 1746
Steps: Set Up Automatic Bank Account Reconciliation..................................................... 1750
Steps: Define Matching Rule Sets for Bank Reconciliation................................................1751
Copy Bank Reconciliation Rule Sets to Matching Rule Sets............................................. 1752
Create Matching Rule Sets for Bank Reconciliation.......................................................... 1753
Steps: Define Bank Reconciliation and First-Notice Item Rule Sets.................................. 1757
Create Bank Reconciliation and First Notice Item Condition Rules................................... 1757
Create Rules for Bank Reconciliation................................................................................ 1758
Create Rule Sets for Bank Reconciliation..........................................................................1760
Create Rules for First-Notice Items....................................................................................1760
Create Rule Sets for First-Notice Items............................................................................. 1761
Concept: Bank Account Reconciliation.............................................................................. 1762
Bank Account Reconciliation Processing......................................................................................1763
Steps: Use Bank Account Reconciliation........................................................................... 1763
Enter Bank Statements Manually....................................................................................... 1764
Use Quick Entry and Reconciliation...................................................................................1766
Create Ad Hoc Bank Transactions.....................................................................................1767
Reconcile a Bank Statement Automatically....................................................................... 1770

Reconcile Multiple Bank Statements Automatically........................................................... 1771

Reconcile a Bank Statement Manually.............................................................................. 1772
Reconcile First-Notice Items on a Bank Statement........................................................... 1775
Reconcile First-Notice Items on Multiple Bank Statements................................................1776
Steps: Create and Reconcile Electronic Payment Reconciliation Groups..........................1777
Unreconcile Bank Statement Lines.................................................................................... 1779
Edit Bank Statements......................................................................................................... 1780
Cancel Bank Statements.................................................................................................... 1780
Concept: Management of Unreconciled Items................................................................... 1781
Concept: Bank Statement Reconciliation Dashboard.........................................................1783
Reference: Bank Account Reconciliation Reports..............................................................1783
Reference: Bank Statement and Reconciliation Statuses..................................................1786
Troubleshooting: Automatic Bank Statement Reconciliation Processes............................ 1787
Book-to-Bank Reconciliation..........................................................................................................1789
Concept: Book-to-Bank Reconciliation............................................................................... 1789
Process: Book-to-Bank Reconciliation................................................................................1793
Reference: Book-to-Bank Reports......................................................................................1793
Banking Cash Pools...................................................................................................................... 1798
Setup Considerations: Banking Cash Pools...................................................................... 1798
Create Banking Cash Pools............................................................................................... 1801
Cash Positioning............................................................................................................................1802
Setup Considerations: Cash Positioning............................................................................ 1802
Steps: Manage Cash Positioning....................................................................................... 1807
Enter Intraday Bank Statements Manually.........................................................................1808
Steps: Enter External Cash Activities.................................................................................1809
Record External Cash Activities......................................................................................... 1810
Record Recurring or Distributed External Cash Activities.................................................. 1811
Reference: Cash Position Reports..................................................................................... 1812
Cash Forecasting.......................................................................................................................... 1813
Steps: Produce Cash Forecast Reports.............................................................................1813
Maintain Cash Forecast Rules........................................................................................... 1815
Define Cash Forecast Components................................................................................... 1816
Define a Time Span Profile................................................................................................ 1819
Set Up Cash Forecast Report Definitions.......................................................................... 1820
Make Adjustments to Cash Forecast Reports....................................................................1821
Cash Forecasting with Worksheets...............................................................................................1821
Setup Considerations: Cash Forecasting with Worksheets............................................... 1821
Steps: Set Up Cash Forecasting with Worksheets............................................................ 1826
Create a Cash Forecast Outline........................................................................................ 1827
Steps: Use Cash Forecasting with Worksheets................................................................. 1829
Create Cash Forecast Data Source Sets...........................................................................1830
Steps: Create and Use Model Workbooks.........................................................................1833
Generate a Cash Forecast.................................................................................................1834
Copy a Cash Forecast....................................................................................................... 1836
Reference: Cash Forecast Reports....................................................................................1837
Example: Create a Cash Forecast with Worksheets......................................................... 1838
Treasury Discovery Board.............................................................................................................1843
Concept: Treasury Discovery Board.................................................................................. 1843
Steps: Set Up Treasury Discovery Board.......................................................................... 1846
Accounting Cash and Cash Pools................................................................................................ 1847
Steps: Set Up Accounting Cash and Accounting Cash Pools............................................1847
Create Accounting Cash and Accounting Cash Pools....................................................... 1848
Example: Set Up and Use Accounting Cash and Accounting Cash Pools.........................1850
Cash Management Dashboard and Reports................................................................................ 1854
Concept: Cash Management Dashboard........................................................................... 1854
Reference: Cash Management Reports............................................................................. 1857

Concept: Cash Management.........................................................................................................1858

Settlement...............................................................................................1861
Setup Considerations: Settlement.................................................................................................1861
Settlement Configuration............................................................................................................... 1867
Steps: Set Up Settlement...................................................................................................1867
Create Settlement Setup Rules..........................................................................................1868
Steps: Configure Advanced Cash Balance Checking........................................................ 1869
Maintain Cash Balance Check Options..............................................................................1871
Steps: Configure Cash Balance Checking......................................................................... 1871
Setup Considerations: Bank Institution Records................................................................ 1872
Steps: Set Up Bank Institution Records.............................................................................1874
Define Payee Bank Account Validations............................................................................1875
Define Bank Routing Rules................................................................................................ 1876
Setup Considerations: Settlement Run Filters................................................................... 1877
Define Settlement Run Custom Filters...............................................................................1881
Steps: Set Up Settlement Run Advanced Filters............................................................... 1882
Steps: Acknowledge Payments.......................................................................................... 1883
Concept: Electronic Payment Acknowledgement...............................................................1884
Concept: Electronic Payment Methods.............................................................................. 1885
Steps: Set Up Payment Purpose Codes............................................................................1886
Maintain Payment Purpose Codes.....................................................................................1887
Reference: Settlement Business Processes...................................................................... 1887
Reference: Settlement Run Custom Filters........................................................................1890
Steps: Use Settlement...................................................................................................................1892
Bank Account Preauthorization..................................................................................................... 1893
Steps: Use Prenotes...........................................................................................................1893
Create Prenote Runs..........................................................................................................1895
Reference: Prenote Run Statuses......................................................................................1896
Payment Settlement...................................................................................................................... 1897
Create Manual Settlement Runs........................................................................................ 1897
Schedule Automatic Settlement Runs................................................................................1900
Verify Delivery of Electronic Payments.............................................................................. 1903
Cancel Settlement Run.......................................................................................................1903
Cancel Payments................................................................................................................1905
Complete Electronic Payments.......................................................................................... 1906
Reprocess Multiple Electronic Payments........................................................................... 1907
Concept: Settlement Processing........................................................................................ 1908
Reference: Settlement Run Items and Payments.............................................................. 1909
Reference: Settlement Run and Payment Statuses...........................................................1911
Example: Settle Intercompany Transactions with Different Header and Line Companies.. 1913
Example: Settle On-Behalf-of Intercompany Transactions.................................................1914
Example: Settle Direct Intercompany Transactions........................................................... 1915
FAQ: Payment Settlement..................................................................................................1916
Payment Management.................................................................................................................. 1919
Steps: Set Up Escheatment............................................................................................... 1919
Steps: Create Payment Returns.........................................................................................1919
Create Payment Return Statements.................................................................................. 1921
Record Stopped Payments.................................................................................................1922
Escheat Payments.............................................................................................................. 1923
Update Escheatment Items................................................................................................ 1924
Check and Advice Printing............................................................................................................1925
Setup Considerations: Print Checks and Advices..............................................................1925
Steps: Set Up Checks and Advices for Printing................................................................ 1929
Steps: Create Check and Advice Print Layouts Using Report Designer............................ 1930

Configure Report Design Payroll Checks...........................................................................1931

Configure Check Print Layout with Report Design.............................................................1933
Create Check and Advice Print Layouts Using XSLT........................................................ 1935
Print Checks and Advices.................................................................................................. 1936
Reprint Checks and Advices and Reassign Check Numbers............................................ 1937
Steps: Set Up Positive Pay Files....................................................................................... 1938
Concept: Paycheck Cashing Out Address (USA).............................................................. 1939
Reference: Sample Check (XSLT)..................................................................................... 1941
Example: Configure Report Design Payroll Checks...........................................................1942
FAQ: Check and Advice Printing....................................................................................... 1944
Concept: Settlement Dashboard................................................................................................... 1944

Optimize Financial Management Performance................................... 1945

Reference: Financial Management Tenant Configuration Guidelines...........................................1945

Financial Management Innovation Services....................................... 1960

Reference: Financial Management Machine Learning GA Features Innovation Service.............. 1960

Glossary..................................................................................................1961
Glossary......................................................................................................................................... 1961
Cross Application Services Glossary............................................................................................ 1962
Financial Management Glossary...................................................................................................1966
HCM Glossary............................................................................................................................... 1967
Integration Glossary...................................................................................................................... 1973
Payroll Glossary............................................................................................................................ 1974
Student Glossary........................................................................................................................... 1975

Financial Management
Welcome to the Financial Management book, where you can learn how to:
• Manage and automate finance processes from record to report and contract to cash.
• Process transactions, create multidimensional reporting and analysis, and consolidate companies, all
with a consistent user experience.
• Configure processes and schedules to help your organization manage revenue according to today’s
best practices and adapt to comply with changing rules and guidelines.
• Use the period close business process to automate tasks, route approvals and send reports.
• Consolidate financial results in any currency with real-time eliminations and translations.
• Achieve greater insight, improve financial consolidation, and reduce time to close.
• Instill internal control and auditability and achieve consistency across global operations.
To learn more about how to use our documentation, click here or watch the video.

Common Financial Components

Multicurrency

Concept: Multicurrency
Workday provides multicurrency capabilities to meet your money management needs. These capabilities
enable you to record and process business transactions that occur in a currency other than the base
currency of the recording company.
Example: A USD-based company can record a sale to a French customer with a EUR denominated
invoice.
Workday also factors in the impact that multiple currencies have on all appropriate gain or loss calculations
and accounting for your transactions and open items.
Company's Currency: A company's currency, also known as the ledger currency is the base currency that
each company within your Workday tenant uses to generate and perform its accounting. Example: You
may have companies in the U.S., Germany, and Canada, each with their own currency of USD, EUR, and
CAD respectively. Since you can enter financial transactions in multiple different currencies, the company
currency is essential to the accounting because Workday converts all transaction currencies into one
common company or ledger currency. See Concept: Company Currency on page 26.
Transaction Currency: The currency of a submitted transaction is the transaction currency. This currency
persists throughout the lifecycle of the transaction. Although Workday uses the company currency to
generate accounting for transactions, you can assign foreign currencies to transactions. This might be the
currency of the customer, supplier, or another currency. In most cases, the currency for an invoice and its
payment will match. If it doesn't, Workday will, as part of the settlement automatically book the realized
gain and loss based on the foreign exchange difference.
When you approve an operational transaction, Workday generates accounting entries in the company
or ledger currency. If the transaction and company currencies differ, Workday automatically converts
the transaction's foreign currency into the company currency. You must therefore maintain currency
conversion rates between the company currency and other currencies in which you transact. See Concept:
Transaction Currency on page 27.
Bank Account Currency: Bank accounts also have their own currency in which to store funds. You store
funds in the bank account and convert funds that you transfer into the bank account using the account

currency. You can also specify which currencies a bank account accepts. When necessary, Workday and
banks convert currencies for deposited and transferred funds into the account.
Example: Your U.S. company has a local bank account in USD, and a bank account based in Ireland
in EUR. You perform a wire transfer of 100,000 USD from the U.S. account to the Irish account, which
accepts USD. The bank gives you a currency exchange rate of 85,000 EUR equal to 100,000 USD.
Workday transfers 100,000 USD out of the US bank account and deposits 85, 000 EUR into the Irish bank
account.
Item Currency: The sales items, purchase items, and expense items that are configured can have their
own currencies that define the value of the item. If the item and transaction currencies differ, Workday
automatically converts the item's currency into the transaction currency. This occurs with requisitions,
purchase orders, invoices, invoice adjustments, and expense reports.
Customer and Supplier Currency: For each customer and supplier that you define in Workday, you can
assign:
• A default currency which is their preferred currency for transactions.
• Accepted currencies which are currencies that they accept.
Whenever you create a transaction (such as an invoice), in a transaction currency different than the ledger
currency, you can override the default currency with any accepted currency based on your currency rate
configuration. The selected currency becomes the transaction currency. You can use numerous tasks
within Workday to create these transactions.
This diagram displays the flow of currencies through Workday Financial Management, as Workday
converts them.

Currency flows into operational transactions from various sources, depending on the transaction. As
customers and suppliers have their own currency, Workday automatically populates the currency to
customer and supplier transactions. For expense reports, Workday uses the company currency of the
employee or the payment election currency of the employee (if the currencies differ). When used in
transactions, Workday converts items to the transaction currency. Other transactions use the company
currency as the default.
From Entering Transactions to Reporting
Key steps in converting transaction currencies into reporting currencies are:
1. You create transactions in different transaction currencies.
2. When Workday generates operational journals from transactions, the journals are created in both the
transaction currency and the ledger currency.

3. At the end of the month you perform revaluation to recalculate foreign currency amounts in your ledger
currency, enabling you to get more accurate ledger currency amounts. You can then use an adjustment
entry to record the gains and losses caused by fluctuating exchange rates since the transaction date.
See Setup Considerations: Revaluation on page 164.
4. When reporting, you can report in another currency known as the reporting or translated currency.
Workday uses translation rules that you define to determine conversion rates, then uses these rates in
real time to translate the ledger currency into a reporting currency. See Concept: Currency Translation
on page 181.
Related Information
Concepts
Concept: Bank Account Currency on page 1681
Concept: Currencies on Expense Reports on page 1575
Concept: Currency in Accounting Journals on page 110
Concept: Currency Translation on page 181
Concept: Item Currency
Concept: Sales Item Currencies on page 828
Tasks
Review Foreign Currency Revaluation on page 172
Steps: Set Up Currencies

Concept: Company Currency

A company currency is the base currency that each company within your Workday tenant uses to generate
and perform its accounting. It’s also known as the ledger currency.
Example: You have companies in the U.S., Germany, and Canada, each with their own currency.
Since you can use multiple currencies for financial transactions in Workday, the company currency is
essential to bookkeeping. To set the currency for a company, use the Create Company task.
Once you create a journal or have accounting activity in the company, you can't change the company
currency. This ensures a single currency for accounting.
Related Information
Concepts
Concept: Currency Conversion
Tasks
Steps: Set Up Companies on page 56

Concept: Rates, Rate Types, and Conversion

A rate type is a way to identify the source and purpose of a set of rates.
Example: A rate type of current is the current market rate on any given day. A rate type of average is the
average of rates over a period. A rate type of historic is a blended rate that, when applied, results in the
proper historic valuation of an account.
Depending on the type of conversion, Workday uses different rate types to determine the rate. For
conversion from:
• Transaction currency to bank account currency. Workday uses the default rate type, but you can
override the rate.
• Transaction or bank account currency to the company currency. Workday always uses the default rate
type.
• The company currency to the reporting currency. Workday uses the rate type that you specify in the
translation rules.

To obtain the target currency amount for all currency conversions, Workday multiplies the source currency
amount by the rate.
Note: Workday supports 12 decimal precision for currency exchange rates that you enter or upload. When
calculating exchange rates, such as currency cross rates or inverse rates, Workday rounds the calculated
rate to 12 decimal precision. When you calculate a rate with more than 18 digits, Workday truncates
display of the rate to 18 digits.
Workday enables you to:
• Define rate types using the Maintain Currency Rate Types task.
• Define the default currency rate type for the tenant using Default Values section of the Tenant Setup
task. You can define the default currency rate type using the Currency Rate Type Override on the
Edit Company Accounting Details task.
• Define or modify the exchange rates using the Maintain Currency Conversion Rates task.
• Use the Currency Rates as of Date report and the Historic Currency Rates report to view rates.
Related Information
Tasks
Maintain Currency Conversion Rates
Steps: Set Up Currencies
Steps: Upload Currency Conversion Rates

Concept: Transaction Currency

The transaction currency is the currency that you associate with a transaction when you create or edit it.
Depending on the type of transaction, Workday defaults the currency of the company, the customer, the
supplier, or the employee.
Although Workday uses the company currency to generate accounting for transactions, you can assign
foreign currencies to transactions for a customer, supplier, or another currency. The transaction currency
persists throughout the lifecycle of the transaction. Thus, the currency for an invoice and its payment must
match.
You can use many tasks within Workday to create operational transactions. It is important that you
maintain currency conversion rates between the company currency and other currencies in which you
transact. Upon transaction approval, Workday generates accounting entries in the company currency. If the
transaction and company currencies differ, Workday automatically converts the transaction currency to the
company currency.

Intercompany

On-Behalf-of Intercompany Transactions

Setup Considerations: On-Behalf-of Intercompany Activities
You can use this topic to help make decisions when planning your configuration and use of on-behalf-of
intercompany. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
On-behalf-of Intercompany is a financial accounting structure that enables transactions between different
entities within an organization. In on-behalf-of intercompany, an entity pays for a good or service that's
purchased by another entity in the organization.

Business Benefits
You can set up your tenant to record intercompany activities. Recording these activities enables an
organization to generate activities on behalf of another entity:
• Debts
• Payables
• Receivables

Use Cases
You might need to record an accounting transaction that occurs between at least 2 subsidiary or
multinational companies within your organization. Here are a few activities where intercompany enables
you to record those transactions:
• Accounting journals.
• Ad hoc bank transactions.
• Allocations.
• Asset accounting.
• Customer contracts, invoices, and invoice adjustments.
• Intercompany payments.
• Payments on behalf of.
• Payroll accounting.
• Supplier invoices and invoice adjustments.

Questions to Consider

Questions Considerations
Do you have subsidiary companies, or operate If you have subsidiary companies or multinational
multinationally? branches that perform transactions with each
other, consider configuring intercompany profiles.
Intercompany profiles enable you to record and
process those intercompany transactions.
Do you need to provide source documents for Transactions between companies in different
statutory requirements? countries frequently require source documents for
statutory reporting requirements.
On-behalf-of transactions don't generate source
documents. Before you configure intercompany
transactions, consider whether you need to set up
direct intercompany.

What kind of transactions do your subsidiary The transactions that companies within an
companies normally perform with each other? organization perform with each other determines
whether you need to structure Workday for direct or
on-behalf intercompany.
Configure direct intercompany if you need to
represent transactions where the companies
conduct business like a supplier and a customer.

Questions Considerations
You can configure a company as both a customer
and a supplier to another company.
Configure on-behalf intercompany when a company
processes the payments and invoices in place of
the company that provides the goods and services
to customers.
If both intercompany relationships apply to you,
configure both.

How do your companies use your account sets? You can only create an intercompany relationship
between 2 companies when those companies use
the same account set. Before you configure your
intercompany profiles, ensure that the companies
use the correct account sets.
How do you process and settle your intercompany If you want to settle your intercompany
transactions? transactions, you must configure these options on
the Edit Intercompany Profile task:
• Default Payment Types
• Initiate Allowed
• Payment Types
If you want to record intercompany receipts
automatically, select the Record Intercompany
Receipts check box.
Workday only creates receipts for intercompany
payments matched to an intercompany receivable.
Workday doesn't consider unmatched accounting
journals when automatically creating receipts.
When you don't automatically record receipts,
you must create manual receipts to use in your
settlement runs using the Record Intercompany
Receipts task.

How do you configure your security role Workday uses the security configuration of the
assignments? initiating company when determining who can
view the intercompany transaction. Example:
The company that creates the accounting journal
determines the security requirements to access and
process the intercompany transaction.
Workday instead uses the security configuration
of the customer on the original transaction to
determine who can view the intercompany
transaction when your company operates as the
supplier.
Consider setting up your company hierarchy role
assignments to meet your security requirements
if any users need to access both sides of the
intercompany transaction.

Recommendations

Functionality Considerations
Account posting rules Workday recommends that you configure
separate rules for the Intercompany Payables and
Intercompany Receivables account posting rules
if you want to settle intercompany transactions.
Separate posting rules enable Workday to create
the payables and receivables necessary for you to
run the settlement process.
When you don't configure separate account posting
rules, you might have trouble finding unmatched
on-behalf-of intercompany transactions when you
want to close your ledger periods.
If you configure both direct and on-behalf-of
intercompany, we recommend you add a Direct
Intercompany dimension on both the Intercompany
Payables and Intercompany Receivables account
posting rules. The dimension enables you to split
up the account posting rules you use for on-behalf-
of and direct intercompany transactions.
Depending on the transaction types you use, you
also need to configure additional account posting
rules. Common posting rules include:
• Cash
• Spend
• Revenue
• Transaction Tax
If you don't want to post intercompany transactions
to Cash, you can instead configure a pseudo bank
account to record the costs. Consider configuring
the pseudo bank account when you want to reroute
settlement transactions from the pseudo account to
a different ledger account.

Fiscal schedules Workday recommends that companies configured

for intercompany transactions use a shared fiscal
schedule. The shared fiscal schedule can be an
alternate or primary schedule.
Sharing a fiscal schedule reduces the potential for
creating erroneous transactions that you need to
eliminate using a consolidation.

Intercompany affiliate worktags Workday recommends that you enable

intercompany affiliate worktags on intercompany
transactions you need. We further recommend that
you create custom validations that require users
to add the affiliate worktags on the associated
transaction lines.
Intercompany affiliate worktags help identify due-
to and due-from companies on intercompany
transactions. Identifying these worktags enables

Functionality Considerations
Workday to eliminate entries on consolidated
financial statements.
Workday also recommends that you configure
your account posting rules to use the appropriate
intercompany affiliate worktags as resulting
worktags. Workday strongly recommends that
you ensure your configuration doesn't result in a
company creating intercompany transactions with
itself.

Requirements
Before you can create intercompany transactions, you must:
• Add an initiate intercompany event step on all business processes you want to use for intercompany
activities.
• Create intercompany profiles for all your intercompany affiliates on the Edit Company Intercompany
Profiles task.
• Configure account posting rules for intercompany payables and intercompany receivables.

Limitations
Before you configure intercompany, consider these limitations:
• If you post intercompany activities to book codes that are outside the common book code, you can't
settle those activities. To remove the intercompany balance, perform an elimination.
• If you can't add an intercompany event step to a business process, Workday might not currently support
intercompany transactions for that activity.

Tenant Setup
You can optionally configure these tenant options on the Edit Tenant Setup - Financials task:

Options Considerations
No Intercompany Payable/Receivable Lines When you select this check box, Workday doesn't
when Journals Self Balance by Company generate intercompany payable and receivable
lines on journals balanced by each line company.
Group Intercompany Payable/Receivable Lines Reduces the number of lines generated on the
journal and only displays payable and receivable
lines for the transactions. Groups payable and
receivable intercompany line amounts with these
same details:
• Affiliate company.
• Ledger account.
• Balancing worktags.
Workday doesn't net payables and receivables on
the summary line.

Unrestricted Intercompany Affiliate Selection Enables any company to add companies with valid
intercompany profiles as intercompany affiliates on
journal lines.

Options Considerations
Copy Attachments to Intercompany Accounting Grant other companies access to attachments
Journals you add on intercompany parent journals. The
other companies can view your attachments from
their intercompany child journals. You can only
view attachments of companies with a configured
intercompany relationship.

Security
To create intercompany activities for another company, you must configure security roles for the activity on
the other company. Example: If you're with Company A and you want to create an intercompany activity for
Company B, you must have a security role that enables you to also create the activity for Company B.

Domains Considerations
Set Up: Company Accounting on the Common Set up intercompany profiles. You need
Financial Management functional area. intercompany profiles to create intercompany
transactions.
Set Up: Accounting Rules on the Common Set up account posting rules. You need separate
Financial Management functional area. account posting rules for your intercompany
payables and receivables when you want to settle
intercompany balances.

Business Processes
Configure the Accounting Journal Event business process. Add the Initiate Accounting Journal
Intercompany Event business process step. Enables you to create accounting journals for on-behalf
intercompany transactions.
If your company needs to process and settle on-behalf-of intercompany transactions, configure the
Settlement Run Event business process.

Reporting

Reports or Dashboards Considerations

Intercompany Out of Balance Report Identify and resolve intercompany out of balance
issues.
Intercompany Payables and Receivables Find and review out-of-balance amounts
Reconciliation from posted journal lines on intercompany
affiliate ledgers that remain at the end of the
period. Enables you to identify and reconcile
all intercompany items for each intercompany
affiliate, including both matched and unmatched
transactions.
Intercompany Work Area Review intercompany activities, including in-
progress journal lines, unrecorded receipts, and
settlement runs. Enables you to find outstanding
amounts due to or due from an intercompany
affiliate.
Outstanding Intercompany Transactions Find and review detailed information about
outstanding intercompany transactions.

Integrations

Web Services Considerations

Get Account Posting Rule Sets Retrieves detailed information about configured
account posting rule sets.
Get Intercompany Profiles Retrieves detailed information about configured
intercompany profiles. Enables you to view detailed
information across multiple intercompany profiles.
Put Account Posting Rule Set Creates or configures account posting rule sets.
Enables you to set up many account posting rule
sets at once.
Put Intercompany Profile Creates intercompany profiles. Enables you to set
up many intercompany profiles at once.

Connections and Touchpoints

You can use on-behalf-of intercompany with many activities in Workday. Intercompany expands existing
functionality by enabling you to generate activities on the accounts of other companies. The intercompany
profile you configure enables many intercompany activities across Workday.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Intercompany Transactions on page 48
Setup Considerations: Payroll Intercompany Accounting
Tasks
Steps: Set Up On-Behalf Intercompany Transactions on page 33
Reference
Reference: Edit Tenant Setup - Financials
The Next Level: On Behalf Of Intercompany

Steps: Set Up On-Behalf Intercompany Transactions

Prerequisites
Security: Set Up Company Accounting in the Common Financial Management functional area.

Context
On-behalf intercompany enables you to process payments and invoices in place of the company that
provides the goods and services. When you configure your intercompany profiles and relationships, you
can record, initiate, and settle on-behalf intercompany activities.

Steps
1. Define Bank Accounts on page 1673.
Configure bank accounts for all affiliated companies that use intercompany transactions. We use these
accounts for both intercompany settlements and receipts. You need bank accounts for all participants
on an intercompany transaction to create intercompany receipts.
2. Define Intercompany Profiles on page 34.

3. Set Up Account Posting Rules on page 71.

Configure these account posting rules:
• Intercompany Payables
• Intercompany Receivables
Workday also recommends you configure additional account posting rules based on the transaction
types you need. Common posting rules include:
• Cash
• Spend
• Revenue
• Transaction Tax
4. (Optional) Create Customer Payment Application Rule on page 753.
You can use customer payment application rules to change how Workday processes payments. By
default, Workday uses the customer payment application rules associated with the company receiving
the payment.
When you need to write off the balances on customer invoices, we use the rules of the company on the
customer invoice.
5. (Optional) Edit Business Processes.
Workday uses intercompany business process steps when you add a company on the line of the
transaction that differs from the header company. We recommend that you add these business process
steps:
• Initiate Accounting Journal Intercompany Event step to Accounting Journal Event.
• Initiate Customer Invoice Intercompany Event step to Customer Invoice Event.
• Initiate Supplier Invoice Intercompany Event step to Supplier Invoice Event.
Configure these additional business processes:
• Record Intercompany Receipt Event
• Settlement Run Event

Result
You can create on-behalf intercompany transactions.
Related Information
Concepts
Setup Considerations: Direct Intercompany Activities on page 37
Concept: Intercompany Transactions on page 48

Define Intercompany Profiles

Prerequisites
Security: Set Up: Company Accounting domain in the Common Financial Management functional area.

Context
You set up intercompany profiles to establish the relationship between companies if 1 or more of these
requirements exist:
• You need to settle Intercompany transactions.
• You need to create On-Behalf-Of or Indirect Intercompany transactions.
• You need to record automatically Intercompany Receipts.

Steps
1. Access the Edit Company Intercompany Profile task.
2. As you complete the task, consider:
Option Description
Initiate Allowed Select to enable your company to initiate
intercompany transactions with the company on
the To column.
You don't need to select Initiate Allowed for
a company to initiate a Direct Intercompany
transaction. You select it to enable the
Intercompany worktag as a valid combination.
This check box also allows the line company on
an invoice to differ from the header company for
On-Behalf-Of transactions.
Note: If you don't select Initiate Allowed, you
must select the Settle Only check box to enable
Direct Intercompany Invoices settlement.

Settle Only Select to enable your company to settle

intercompany transactions with the company
on the To column. The company can't initiate
intercompany transactions.
Payment Types Select the allowed payment types in which the
current company can settle with the To company.
Default Payment Types Select the default payment type in which the
current company can settle with the To company.
Bank Account (Electronic payments only) Select the bank
account of the To company that you want the
current company to use when you settle with the
To company.
Workday will default the bank account for the To
company in the settlement process.The From
company, the one initiating the payment, will use
the bank account from the bank routing rules.
Workday doesn't require that the To company
use this bank account when they record the
intercompany receipt for the transaction.

Transfer Asset as Original Select to enable transfer of assets between

companies. When a company receives the asset,
we generate the asset with the same:
• Accumulated depreciation.
• In-service date.
• Total asset cost.
When you don't enable this option, the receiving
company generates the asset with a:
• Total asset cost equal to the net book value.
• An in-service date specific to the receiving
company.

Option Description
Record Intercompany Receipt Select to generate intercompany receipts
automatically after the current company settles an
intercompany transaction from the To company.
Workday splits the intercompany transaction if the
current company:
• Enables Record Intercompany Receipt.
• Receives an intercompany transaction from
the To company with both matched and
unmatched transactions.
On split intercompany transactions, Workday only
generates the receipt for the matched transaction.
You need to record the intercompany payment
manually for the unmatched intercompany
transaction.

Bank Account for Intercompany Receipt Select an active bank account. When you
configure Record Intercompany Receipt,
Workday records those automatic receipts with
the listed company using the bank account you
select.
Workday doesn't automatically select this bank
account when you manually create intercompany
receipts.

Result
You can now create or settle intercompany transactions with affiliated companies.

Next Steps
Configure your Intercompany Payables and Intercompany Receivables account posting rules.
Related Information
Concepts
Setup Considerations: Direct Intercompany Activities on page 37
Concept: Intercompany Transactions on page 48
Tasks
Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions on page 44

Steps: Create On-Behalf-of Intercompany Accounting

Prerequisites
Define intercompany profiles.

Context
You can create an on-behalf-of intercompany journal to manually record an intercompany transaction.

Steps
1. Create Accounting Journals on page 93.
Change the Company on at least 1 journal line to differ from the company on the journal header.
Workday only displays companies on the Company prompt that have a defined intercompany
relationship.
2. Create Manual Settlement Runs on page 1897.
• Select Include Payments on Behalf of Other Companies.
• Click Add and then select Intercompany Items to find the on-behalf-of transactions you want to pay.
3. (Optional) Access the Record Intercompany Receipt task.
• Select On Behalf Of on the Intercompany Invoice Type prompt.
• Select the bank account used for the settlement of the intercompany transaction. This bank account
can differ from the Bank Account defined on the Edit Company Intercompany Profile task.
When you record the receipt:
• Overpayments post to an account.
• You can write off short payments.
• Invoices account for short pay and overpay when an invoice has a different currency than the
company currency.
• You can manage balancing worktag differences to improve reconciling of intercompany payables
and receivables. The intercompany receipt posts correctly if a customer invoice has multiple lines
using different balancing worktags.
You can also configure your intercompany profiles to automatically record intercompany receipts when
you settle an intercompany payment.
Security: Record Intercompany Receipt Event business process on the Financial Accounting domain.

Result
Workday displays an additional Intercompany tab on the View Journal report with the details of
associated intercompany journals.
Related Information
Concepts
Concept: Intercompany Transactions on page 48
Reference
The Next Level: On Behalf Of Intercompany

Direct Intercompany Transactions

Setup Considerations: Direct Intercompany Activities
You can use this topic to help make decisions when planning your configuration and use of direct
intercompany. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Direct intercompany is a financial accounting structure that enables transactions between different entities
within an organization.
Direct Intercompany functionality automatically generates supplier invoices from customer invoices. It
also automatically generates intercompany receipts to settle customer invoices when you settle supplier
invoices.

Business Benefits
You can set up your tenant to record direct intercompany activities. Recording these activities enables an
organization to generate activities directly with another entity:
• Debts
• Payables
• Receivables

Use Cases
Direct Intercompany transactions are required when there’s a legal requirement for a source document to
meet statutory requirements. Example: When you enter a transaction for a company in another country or
where there are tax reporting requirements.
Direct intercompany enables you to record an accounting transaction that occurs between at least 2
subsidiary or multinational companies within your organization. You can use direct intercompany to
purchase goods or services from another company within your organization. Here are a few activities
where direct intercompany enables you to record those transactions:
• Customer invoices.
• Customer invoice adjustments.
• Supplier invoices.
• Supplier invoice adjustments.
• Intercompany payment.

Questions to Consider

Questions Considerations
Configure direct intercompany if you need to
represent transactions where the companies
conduct business like a supplier and a customer.
You can configure a company as both a customer
and a supplier to another company.
Configure on-behalf intercompany when a company
processes the payments and invoices in place of
the company that provides the goods and services
to customers.
If both intercompany relationships apply to you,
configure both.

How do your companies use your account sets? You can only create an intercompany relationship
between 2 companies when those companies use
the same account set. Before you configure your
intercompany profiles, ensure that the companies
use the correct account sets.
How do you process and settle your intercompany If you want to settle your intercompany
transactions? transactions, you must configure these options on
the Edit Company Intercompany Profile task:
• Default Payment Types
• Initiate Allowed
• Payment Types
If you want to record intercompany receipts
automatically, select the Record Intercompany
Receipts check box.
When you don't automatically record receipts,
you must create manual receipts to use in your
settlement runs using the Record Intercompany
Receipts task.

How do you configure your security role Workday uses the security configuration of the
assignments? initiating company when determining who can
view the intercompany transaction. Example:
The company that creates the customer invoice
determines the security requirements to access and
process the intercompany transaction.
Workday instead uses the security configuration
of the customer on the original transaction to
determine who can view the intercompany
transaction when your company operates as the
supplier.
Consider setting up your company hierarchy role
assignments to meet your security requirements
if any users need to access both sides of the
intercompany transaction.

Have you enabled company or cost center Ensure that there are no issues with the
partitioning? combinations as you enter transactions between
the companies. Also, ensure that worktags flow
from 1 company to another company.

Questions Considerations
If there are some cost centers on the customer
side, but not on the supplier side, you can enable a
Review step on the supplier invoice to identify and
correct the issue.

How many sales and purchase items will you use Consider these points:
when mapping revenue and spend categories?
• The amount of maintenance required when
using sales and purchase items.
• How mapping items in various combinations and
defaulting different worktags on supplier and
customer invoices will affect performance.

Do you have multiple intercompany spend Perform one of these actions:

categories mapped to a single intercompany
• Expand the number of intercompany revenue
revenue category, or the other way around?
categories or spend categories to create a 1 to 1
relationship.
• Create multiple sales items that map to the
single intercompany revenue category. Then,
map each of the sales items to a purchase item
in a 1 to 1 relationship. Each purchase item then
maps to the appropriate spend category.

Recommendations

Functionality Considerations
Account posting rules Workday recommends that you configure
separate rules for the Intercompany Payables and
Intercompany Receivables account posting rules
if you want to settle intercompany transactions.
Separate posting rules enable Workday to create
the payables and receivables necessary for you to
run the settlement process.
If you configure both direct and on-behalf-of
intercompany, consider configuring a Direct
Intercompany dimension on both the Intercompany
Payables and Intercompany Receivables account
posting rules. Adding the dimension enables you
to split up the account posting rules you use for on-
behalf-of and direct intercompany transactions.
Depending on the transaction types you use, you
also need to configure additional account posting
rules. Common posting rules include:
• Cash
• Spend
• Revenue
• Transaction Tax
If you don't want to post intercompany transactions
to Cash, you can instead configure a pseudo bank
account to record the costs. Consider configuring
the pseudo bank account when you want to reroute

Functionality Considerations
settlement transactions from the pseudo account to
a different ledger account.

Fiscal schedules Workday recommends that companies configured

Intercompany affiliate worktags Workday recommends that you enable

intercompany affiliate worktags on customer and
supplier invoices. Intercompany affiliate worktags
help identify due-to and due-from companies
on intercompany transactions. Identifying these
worktags enables Workday to eliminate entries on
consolidated financial statements.
Workday also recommends that you configure
your account posting rules to use the appropriate
intercompany affiliate worktags as resulting
worktags. Workday strongly recommends that
you ensure your configuration doesn't result in a
company creating intercompany transactions with
itself.

Automate direct intercompany Workday recommends that you automate parts

of the invoice processing for direct intercompany
transactions.
You can configure the Customer Invoice Event
business process to generate supplier invoices
automatically from customer invoices upon
business process approval.
You can also enable automatic adding of these
invoice items when you configure your customer
and supplier relationships on the Maintain
Companies as Customers or Suppliers task.
Automatically adding invoice items reduces manual
input and improves documentation.
When you automate parts of the invoice
processing, we recommend you add a Review
Supplier Invoice step to your Supplier Invoice Event
business process. The review step enables you to
ensure the accuracy of automatic processing.

Custom validations Workday recommends that you create custom

validations to guide the creation and processing of
direct intercompany transactions. Some validations
we recommend include ones that:
• Requires that worktags are included on both
customer and supplier invoices.

Functionality Considerations
• Verifies that the user added intercompany
affiliates on invoice lines for elimination rules.
• Confirms that intercompany affiliate populates
according to the Company as Customer or
Supplier of the transaction.
• Requires tax applicability, tax codes, and tax
options on customer and supplier invoices.
• Adds restrictions on the intercompany
transactions based on the intercompany profile
settings.

Requirements
Before you can create intercompany transactions, you must:
• Create intercompany profiles for all your intercompany affiliates on the Edit Company Intercompany
Profiles task.
• Configure account posting rules for intercompany payables and intercompany receivables.
• Create customers and suppliers based off the companies in your organization. These customers
and suppliers should reflect the intercompany relationships within your organization for initiating and
processing direct intercompany transactions.
• Configure 1-1 mapping for:
• Purchase items to sales items.
• Revenue and spend categories.
• You can only select mapped configurations (either revenue categories to spend categories or sales
items to purchase items) in an intercompany transaction.

Limitations
Before you configure direct intercompany, consider that you can only automatically process adjustments
to direct intercompany invoices. You can't manually create a supplier invoice adjustment on a customer
invoice adjustment at this time.

Tenant Setup
No impact. The existing intercompany configurations on the Edit Tenant Setup - Financials task apply
specifically to on-behalf-of intercompany.

Business Processes
When you need to initiate direct intercompany transactions, configure the Customer Invoice Event and
Supplier Invoice Event business processes. Enables you to create direct intercompany transactions
on customer and supplier invoices. Add the Initiate Supplier Invoice or Adjustment Creation service on
the Customer Invoice Event business process if you want to create automatically supplier invoices off
customer invoices.
If your company needs to process and settle direct intercompany transactions, configure the Settlement
Run Event business process.

Reporting

Reports or Dashboards Considerations

Integrations

Web Services Considerations

Connections and Touchpoints

You can use direct intercompany with customer and supplier invoices in Workday. Intercompany expands
existing functionality by enabling you to generate activities on the accounts of other companies. The
intercompany profile that you configure enables many intercompany activities across Workday.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Invoices for Direct Intercompany Transactions on page 48
Concept: Intercompany Transactions on page 48
Tasks
Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions on page 44
Steps: Create Invoices for Direct Intercompany Transactions on page 45
Reference
Reference: Edit Tenant Setup - Financials
The Next Level: Direct Intercompany

Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions

Prerequisites
• Create customers and suppliers representing your affiliate companies using the Create Customer and
Create Supplier tasks.
• Security: Set Up: Company Accounting in the Common Financial Management functional area.

Context
With direct intercompany transactions, you can produce the Accounts Payable and Accounts Receivable
documents you need for your global organization. You can also define the relationships between affiliate
companies in greater detail, and automate the generation and delivery of intercompany documentation.

Steps
1. Define Intercompany Profiles on page 34
Configure any affiliate companies with which you want to enable intercompany transactions
2. (Optional) Add the Direct Intercompany dimension to your Intercompany Payables and Intercompany
Receivables account posting rules.
See Set Up Account Posting Rules on page 71.
3. Maintain Companies as Customers or Suppliers on page 46.
You can associate affiliate companies with one another as customers or suppliers.
4. Map purchase items to sales items.
To associate purchase items and sales items with each other, you can use the:
• Purchase Item Mapping field on the Create Sales Item task.
• Sales Item Mapping field on the Create Purchase Item task.
See Create Sales Items on page 823 and Steps: Set Up Purchase Items for Procurement.
5. Map revenue and spend categories.
To associate spend categories and revenue categories with each other, you can use the:
• Revenue Category Mapping field on the Maintain Spend Categories task.
• Spend Category Mapping field on the Create Revenue Category task.
See Create Spend Categories and Steps: Manage Revenue Categories on page 821.

6. (Optional) Edit Business Processes.

To automate the creation of the supplier invoice, add the Initiate Supplier Invoice or Adjustment
Creation step to your Customer Invoice Event business process.
If you add this step to your business process, Workday recommends that you also:
• Add the Review Supplier Invoice step to your Supplier Invoice Event business process.
• Assign this step to your Accounts Payable Data Entry Specialist.

Result
You can create direct intercompany customer and supplier invoices.

Next Steps
Create a direct intercompany customer invoice.
Related Information
Concepts
Concept: Invoices for Direct Intercompany Transactions on page 48
Reference
The Next Level: Direct Intercompany Invoicing

Steps: Create Invoices for Direct Intercompany Transactions

Prerequisites
• Set up customers and suppliers for direct intercompany transactions.
• Security: Set Up: Company Accounting in the Common Financial Management functional area.

Context
Direct intercompany customer and supplier invoices provide the Accounts Payable and Accounts
Receivable documents you need for your global organization.

Steps
1. Create Customer Invoices on page 664.
In the Customer field, select Companies as Customers.
2. Create Supplier Invoices on page 1395.
If you didn’t automate supplier invoices on the Customer Invoice Event business process:
• Access the Supplier Invoice Workbench.
• Select Companies as Suppliers in the Supplier field.
• Click Customer Invoices.
• Select the customer invoices you want to include on the supplier invoice.
3. Create Manual Settlement Runs on page 1897.
• Click Add and then select Intercompany Items to find the direct intercompany supplier invoices you
want to pay.
• To limit your search results to direct intercompany transactions, select Direct in the Intercompany
Invoice Type field.

4. Access the Record Intercompany Receipt task.

Select Direct in the Intercompany Invoice Type field. You can only record receipt for 1 intercompany
payment at a time.
Note: The recording of the intercompany receipt acts as payment of the customer invoice for direct
intercompany transactions. You won’t use the Record Customer Payment or Apply Customer
Payment tasks when you process intercompany payments.
When you record an intercompany receipt:
• Overpayments post to an account.
• You can write off short payments.
• Invoices account for short pay and overpay when an invoice has a different currency than the
company currency.
• You can manage balancing worktag differences to improve reconciling of intercompany payables
and receivables. The intercompany receipt posts correctly if a customer invoice has multiple lines
using different balancing worktags.

Result
• The intercompany customer invoice includes the corresponding supplier invoice number.
• The intercompany supplier invoice includes the corresponding customer invoice number.
• The intercompany receipt displays on the customer invoice Activity tab.

Next Steps
Check the payment status on the header of the direct intercompany customer invoice to verify that the
transaction is complete.
Related Information
Examples
Example: Settle Direct Intercompany Transactions on page 1915

Maintain Companies as Customers or Suppliers

Prerequisites
Security: Set Up: Company Accounting domain in the Common Financial Management functional area.

Context
You can configure your companies to operate as customers, suppliers, or both, enabling them to do
business with each other through direct intercompany transactions. This arrangement eliminates the need
to create separate customer and supplier invoices, saving you time and improving your data integrity.

Steps
1. Access the Maintain Companies as Customers or Suppliers task.
2. As you complete the task, consider:
Option Description
Operates as Customer Select an existing company to operate as an
existing customer or supplier. Companies must:
Operates as Supplier
• Be part of the same organization or legal
entity.
• Transact in Workday.

Option Description
Intercompany transactions can occur based
on the mapping of the company as either the
customer or supplier:
• Between 2 companies
• Between 2 subsidiaries
• A parent company and a subsidiary

Copy Worktags For companies that operate as customers, select

the Copy Worktags check box to transfer valid
supplier invoice worktags from customer invoice
lines to supplier invoice lines.
Copying worktags improves the accuracy of
intercompany receipts for invoices that have
multiple lines with different balancing worktags.

Copy Tax Fields Workday selects the Copy Tax Fields check
box for companies that operate as customers
or both suppliers and customers. Selecting this
check box transfers tax codes and withholding
tax codes from customer invoice lines to supplier
invoice lines. Workday also populates the supplier
invoices with the purchase item and spend
category tax applicability.
If you clear this check box, Workday populates
the supplier invoice with:
• All tax codes and withholding tax codes from
your advanced tax defaulting rules by country.
• The tax applicability from the purchase item
and spend category or your configured
override rules, in that order of priority.

Copy Attachments Select the Copy Attachments check box to

transfer files from your customer invoices to your
supplier invoices.
Default Affiliate Select the Default Affiliate check box to have
Workday populate intercompany affiliate worktags
on:
• Customer invoice transactions for companies
that operate as suppliers.
• Supplier invoice transactions for companies
that operate as customers.
• Revenue journal entries for customer invoices.
• Spend journal entries for supplier invoices.
After you create intercompany invoices, you can
override the value of the default intercompany
affiliate worktag directly on the supplier invoice or
customer invoice.

Result
Intercompany supplier invoices use the company ship-to address on the header and lines of the supplier
invoice to support tax defaulting at the line level.

Concept: Invoices for Direct Intercompany Transactions

Direct Intercompany Transactions

You can generate customer or supplier invoices in Workday for direct intercompany transactions. After
you configure companies as customers, suppliers, or both, you can view the related customer or supplier
invoice and process direct intercompany payments. These actions enable you to comply with legal
requirements in countries that require additional invoicing documents for direct intercompany transactions.
You can use the Maintain Companies as Customers or Suppliers task to designate companies as
customers, suppliers, or both, for direct intercompany transactions.

Customer Invoice for Transactions with Affiliate Company

You can send a customer invoice to the affiliate company just like you would do for any other customer.
Workday automatically adds the supplier reference number from the customer invoice to the resulting
supplier invoice.

Supplier Invoices
The accounts payable specialist of the affiliate company reviews the supplier invoice. You can use
the Supplier Invoice Workbench to create a supplier invoice for multiple customer invoices. On the
Customer Invoices tab of the Supplier Invoice Workbench, you can search for customer invoice lines
that aren’t:
• Canceled.
• Denied.
• Fully Invoiced.

Supplier Invoice Adjustments

When you create a customer invoice adjustment for a direct intercompany invoice, Workday automatically
creates the supplier invoice adjustment. The Reference Invoice prompt on a supplier invoice adjustment
includes direct intercompany invoices.

Concept: Intercompany Transactions

Intercompany transactions arise when 1 unit of a single legal entity does business with another unit of
the same entity. Intercompany transactions can occur between 2 divisions, 2 subsidiaries, or a parent
company and a subsidiary. These transactions improve the flow of finances and assets between the
companies.
In Workday, you can perform direct intercompany transactions and on-behalf-of intercompany transactions.

Direct Intercompany Transactions

Direct intercompany transactions occur when 2 units within the same legal entity conduct business with
each other as a customer and a supplier.
Example: Global Modern Services (GMS) USA and Global Modern Services (GMS) France are affiliate
companies. GMS USA manufactures and sells office furniture. It also supplies the furniture to its affiliate
companies. In this case:
• GMS USA operates as a supplier and generates a customer invoice to record the sale to GMS France.

• GMS France operates as a customer and generates a supplier invoice to record the purchase from
GMS USA.
• GMS France pays GMS USA through a settlement run.
• GMS USA records an intercompany receipt to accept the payment from GMS France.
To process direct intercompany transactions, you must:
• Configure intercompany profiles.
• Set up the customer and supplier relationships between your companies.
• Map sales items to purchase items.
• Configure revenue category and spend category.
• Create transfer pricing rate sheets for your intercompany project workers to apply to the intercompany
contract.
• Configure account posting rules to record intercompany receivables and payables.
• Configure business processes to record intercompany receipt.
• Define elimination rules for intercompany balances remaining at a period close to avoid dual accounting
when you create consolidated financial reports.

On-Behalf-Of Intercompany Transactions

On-behalf-of intercompany transactions arise when 1 unit of a legal entity process the invoices and
payments on behalf of the unit that supplies good and services.
Example: GMS USA and Green Planet Solutions are affiliate companies. In this case, when Green Planet
Solutions provides goods and services to its customers:
• Green Planet Solutions invoices the customer.
• The customer sends the payment to the GMS USA.
• GMS USA records the payment, creates a deposit, and applies the payment on behalf of Green Planet
Solutions.
• After payment application, GMS USA sends an intercompany payment to Green Planet Solutions
through a settlement run.
• Green Planet Solutions confirms receiving the payment by recording an intercompany receipt.
To process on-behalf-of intercompany transactions, you must:
• Configure intercompany profiles.
• Create bank routing rules.

Indirect Intercompany Transactions

Indirect intercompany arises when 1 unit of the legal entity doesn't fully transact in Workday and only
books 1 side of the transaction. Therefore:
• Indirect intercompany transactions create only 1-sided journals in Workday.
• Workday won't create the additional Intercompany tab on the View Journal report.
• Set up external entity as a company in Workday to be able to tag the transactions with the
Intercompany Affiliate worktag.
For these transactions you might also need to:
• Provide source documents for statutory requirements.
• Define account posting rules for those customers and suppliers.
• Create workarounds for fully settling indirect intercompany transactions.

Intercompany Receipts
Intercompany receipts act as an acknowledgment of a payment on the books of the company that paid for
the intercompany transaction.

On receipt creation, whether manual or automatic, Workday generates a:

• Debit on the Cash ledger account.
• Credit on the Intercompany Receivables ledger account.
Related Information
Tasks
Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions on page 44
Steps: Set Up On-Behalf Intercompany Transactions on page 33
Reference
The Next Level: Indirect Intercompany
The Next Level: Intercompany Transactions and Consolidation Data Capture
Examples
Example: Settle Direct Intercompany Transactions on page 1915
Example: Settle On-Behalf-of Intercompany Transactions on page 1914
Example: Settle Intercompany Transactions with Different Header and Line Companies on page 1913

Custom Validations

Steps: Set Up Custom Validations

Prerequisites
Security: Business Process Administration domain in the System functional area.

Context
You can use custom validations to help workers identify transaction issues. The custom validations you
can create varies by transaction type. Create custom validations to:
• Alert transaction approvers to conditions that need more careful review.
• Display warning or error messages when workers create a transaction that meets the conditions for the
validation.
• Prevent workers from submitting invalid transactions until they resolve an error.

Steps
1. (Optional) Access the Maintain Condition Rule Categories task.
To organize your custom validation rules, define the condition rule categories by selecting the Custom
Validation Rule option.
2. Set Up Custom Validation Severity and Conditions on page 51.
3. Configure Custom Validation Messages on page 52.

Next Steps
You can use Object Transporter (OX) to migrate custom validations from 1 tenant to another. Example:
You can test custom validations in your Sandbox tenant, then migrate them to your Production tenant.
Related Information
Concepts
Concept: Object Transporter 2.0
Reference
Workday 32 What’s New Post: Custom Validations for Customer Contracts
The Next Level: Direct Intercompany Invoicing

Set Up Custom Validation Severity and Conditions

Prerequisites
Security: Set Up: Custom Validations domain in the Common Financial Management functional area.

Context
Create condition rules to have Workday generate errors or warnings during transaction validation.

Steps
1. Access the Maintain Custom Validations report.
2. Select the type of transaction.
3. Click New Validation.
As you select the Severity level, consider:
Option Description
Critical Prevents workers from submitting an invalid
transaction.
Warning Alerts workers but doesn't prevent transaction
submission and approval.
4. As you complete the task, consider:
Option Description
Description The message Workday displays to workers when
you don't configure a validation message.
Category Assigning a category makes the validation rule
easier to find later. You can create Custom
Validation Rule categories using the Maintain
Condition Rule Categories task.
Derived Logic The statement that you’ve defined through the
rule conditions. The field displays:
• Existing statements.
• New statements after you define and save
them.

Copy Condition from Rule You can copy and modify an existing validation
rule to create a new 1.
5. As you complete the Rule Conditions, consider:
Option Description
And / Or When 2 or more statements exist in the
expression, set this condition to control how the
statements relate to each other.
() Use parentheses for 3 or more statements and a
combination of And and Or conditions.
Example: (A and B) or C.

Option Description
Source External Field or Condition Rule The field or condition rule you select as the
source determines which other options are
available.
Relational Operator These options depend on the data type.
Comparison Value Based on the Comparison Type, select a
comparison field or enter a value to compare to
the source.
6. (Optional) Select Test Validations to test the custom validation performance.
Specify an existing transaction to test the validation on.
Note: Workday doesn't support testing for the benefits transactions types.

Next Steps
Write custom validation messages.

Configure Custom Validation Messages

Prerequisites
• Define custom validations by transaction type.
• Security: Set Up: Custom Validations domain in the Common Financial Management functional area.

Context
Create custom validation messages to display to workers when Workday triggers a transaction validation. If
you don't create a custom message, Workday displays the description of the custom validation instead.

Steps
1. Access the Maintain Custom Validations report.
2. Select the type of transaction.
3. From the related action on a validation, select Validation > Configure Validation Message.
4. Enter a custom validation message.
Your message can include static Text as well as dynamic External Field values from report fields and
calculated fields.

Result
When workers create transactions that meet the conditions you configure for the validations, Workday
displays the error or warning message.

Example
For the Expense Report transaction type, you configure a message for the Airfare Exceeds $600 (USD)
validation:

Field Value
Text Airfare exceeds $600 (USD) for
Extended Field Expense Report

The resulting error message is Airfare exceeds $600 for Expense Report: EXP-00004471.

Concept: Transaction Revalidation

When you view certain transactions that use custom validations, Workday carries forward any custom
validation errors and warnings from the last time you saved the transaction. Because Workday isn't
validating every time, you can view transactions quickly, which is useful if you have many custom
validations and transactions lines. Use the View Exceptions button on the view report for the transaction
to verify whether errors and warnings still apply. Workday displays exceptions on the Errors & Warnings
tab.
Transaction revalidation applies to:
• Accounting journals
• Ad hoc bank transactions
• Ad hoc bank transaction templates
• Ad hoc payments
• Asset registration
• Expense reports
• Ledger accounts
• Payment elections
• Spend authorizations
Workday always checks transactions against the latest custom validations whenever you create, edit,
submit, or approve the transactions. If you view a previously valid transaction and take a related action on
it, Workday ensures that it's still valid and has no exceptions.

Financial Accounting

Financial Accounting Structure

Steps: Set Up Financial Accounting Structure

Prerequisites
Before you set up Workday Financial Management, you must also set up these core Workday areas:
• Tenant
• Security
• Organizations

Context
Set up the basic financial components of Workday Financial Management so you can post a journal.
Operational transactions on accounting journals can result in journals that you post.

Steps
1. Set up the companies for which you want to:
• Record business transactions.
• Produce financial statements.
• Create other statutory reports.
See Steps: Set Up Companies on page 56.

2. (Optional) Set up journal sequencing for a company.

Workday assigns unique, sequential, and gapless journal sequence numbers to accounting and
operational journals for the Actuals Ledger Type.
See Steps: Set Up Journal Sequencing on page 121.
3. Establish the calendar of financial periods that control accounting and reporting for your companies.
See Set Up Fiscal Schedules and Years on page 58.
4. Logically group similar account-related objects or people for posting, searching, and reporting purposes.
See Steps: Set Up Accounting Categories on page 60.
5. Define journal sources and then map the journal sources to transactions.
See Steps: Set Up and Update Journal Sources on page 62.
6. Establish your chart of accounts and an aggregate of accounts.
See Steps: Create and Organize Ledger Accounts on page 68.
See Steps: Manage Ledger Account Summaries on page 77.
7. Establish your default currency, preferred currency values, currency rate types, and currency
conversion rates.
Workday automatically displays your tenant default and preferred currencies in all applicable fields.
Use these currency conversion rates in:
• Financial transactions such as expense reports.
• Translations from base currencies into reporting currencies.
See Steps: Set Up Currencies.
8. Identify where you want to post each type of transaction.
See Set Up Account Posting Rules on page 71.
9. Configure a set of account control rules to manage basic approval thresholds at the account level for
your companies.
See Create Account Control Rules on page 74.
10.Configure alternate or statutory account set mapping to your preferred account set.
See Steps: Set Up Alternate Accounts on page 78.
11.Assign Company Accounting Details on page 62.
Perform accounting and assign the necessary financial components to a company.
12.Create Ledgers on page 66.
13.Establish ledger years and ledger periods for each of your companies so that you can record journal
entries to their ledgers.
See Steps: Create and Open Ledger Years and Periods on page 68.

14.(Optional) Create Custom Labels.

Customize all instances of these labels across your tenant:
• Budget
• Budget information
• Budget lines
• Budget structure
• Budget template
• Entry type
• Entry types
• Plan
• Plan/budget
• Plans
• Statistic
• Total budget
• View structure

Result
You can post journals for a company.

Next Steps
Set up these additional financial components of Workday Financial Management:
• Allocations
• Budgets
• Consolidation companies
• Journal processing
• Period-end close
• Taxes
• Translations
• Worktags
• Year-end close
Related Information
Concepts
Concept: Tenant Setup
Concept: Configurable Security
Concept: Journal Processing on page 108
Concept: Worktags
Tasks
Steps: Set Up Plans or Budgets on page 379
Steps: Set Up Currency Translations on page 175
Steps: Set Up Allocations on page 141
Steps: Set Up Consolidation Companies on page 210
Steps: Set Up Transaction Taxes on page 545
Reference
Reference: Organization Types and Subtypes

Steps: Set Up Companies

Prerequisites
Security: Create: Company domain in the Organizations and Roles functional area. See ../../../
authentication-and-security/configurable-security/configurable-security-basics/kqi1577400592841.dita.

Context
Set up the companies for which you want to:
• Record business transactions.
• Produce financial statements.
• Create other statutory reports.
Companies are organizations within Workday that represent the internal business entities within your
enterprise. In Workday Financial Management, companies are the primary organization for all business
processes.

Steps
1. Set Up Nonsupervisory Organizations.
Access the Create Company task to set up your Workday company.
Note: Workday recommends that you create a company for every internal entity that has a separate
tax ID.
2. (Optional for USA companies only) Steps: Set Up a Single Legal Entity.
Set up a company relationship where multiple companies roll up to a single managing company that
serves as the reporting legal entity.
3. (Optional) Add Organizations to Hierarchies.
4. Add contact information for the company.
See Set Up Company Contact Information on page 57 .
5. Set up company tax information.
See Steps: Set Up Payroll Taxes (USA).
See Steps: Set Up Payroll Taxes (CAN).
See Steps: Set Up Payroll Statutory Contributions (FRA).
See Steps: Set Up Payroll Taxes (UK).
6. Create ID Definitions and Sequence Generators
Specify how Workday constructs and formats IDs that it automatically generates in sequence for
various financial transactions, transaction documents, and processes task.
7. Specify sequence generator ID definitions for various transactions, transaction documents, and
processes throughout the tenant.
See Reference: Edit Tenant Setup - Financials.
8. Access the Edit Company ID Definitions task.
To help you determine what to override, Workday displays the tenant settings for reference. Enter
sequence generator ID definitions that are specific to the company rather than the default tenant
settings.

Next Steps
Define the fiscal schedule for your company.

Set Up Company Contact Information

Prerequisites
• Create a company.
• Security: Set Up: Company General domain in the Common Financial Management functional
area. See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.

Context
You can set up company contact information to mail company documents and notifications to the correct
addresses. Once you set up contacts for your company, you can:
• Mail various documents to more than 1 address at once.
• Identify a primary address and other addresses. The primary address that you select will by default
display on selected documents that you create after the effective date. Example: invoices, statements,
and remit to.

Steps
1. Access the Edit Company Contact Information task.
2. As you enter company contact information, consider:
Option Description
Phone Enter customer phone information, such as
country phone code, phone number, phone
device. Select the Usage type to specify the
reason you’ll use the contact for.
Select Primary to set the phone number as the
primary phone number to populate on selected
documents.
Note: You can only have 1 primary phone
number.
In the Use For field, select the documents on
which you want to display the primary phone
number.
Set the Visibility field to Public to make the
phone information public.

Address Enter an Effective Date from when you want the

address to take effect.
Enter address of the company.
Select the Usage type to specify the reason you’ll
use the address for.
Select Primary if you want to set the address as
the primary address.
Note: You can only have 1 primary address.
In the Use For field, select the documents on
which you want to display the primary address of
the company. Some of the choices are:

Option Description
• Billing
• Mailing
• Procurement
• Remit To
• Shipping
Set the Visibility field to Public to make the
primary address public.

Set Up Fiscal Schedules and Years

Context
Build and maintain the fiscal schedules and fiscal years that your businesses use and can share for
financial accounting and reporting purposes. Fiscal schedules are distinct from your calendar years, though
the two might coincide. A fiscal schedule consists of posting intervals, the chronological periods into which
you divide the calendar. Fiscal schedules don't contain specific years. To create fiscal years and their
periods, use fiscal schedules as the building blocks.
If required, you can add the fiscal schedule as an alternate fiscal schedule on the Edit Company
Accounting Details task. See Assign Company Accounting Details on page 62.

Steps
1. Access the Create Fiscal Schedule task.
Define the fiscal schedule.
2. As you complete the task, consider:
Option Description
Fiscal Schedule Name You only need 1 fiscal schedule to share across
all your businesses. If you need more than 1,
include a distinguishing characteristic in each
name for easy identification. You can update this
name anytime.
Auto Populate Fiscal Periods Select to automatically populate the fiscal period
end date for each posting interval when you
create fiscal years for this fiscal schedule.
Workday bases dates on the prior fiscal year
and adjusts accordingly. Clear to enter the dates
manually.
3. Access the Maintain Fiscal Schedule Posting Intervals task.
Define the posting intervals to apply to any fiscal year that you create for the fiscal schedule. During
reporting, you can include or exclude adjusting accounting journals in the financial results. You can
decide to no longer include a separate period in your schedule in which to post adjustments, even if
you’ve historically done so.
4. As you complete the task, consider:
Option Description
Posting Interval Add a row for each interval that you want to use
as a period within a fiscal year.
Example: If you post every month, define 1
interval for each month.

Option Description
After you create the initial fiscal year, the posting
intervals are in use and you can't add, delete, or
change the order of them. You can only rename.

5. Access the Create Fiscal Summary Schedule task.

Define summary intervals that roll up posting intervals into a broader reporting period for a fiscal
schedule, such as a quarter or a half year.
6. As you complete the task, consider:
Option Description
Fiscal Summary Interval Add a row for each group of Fiscal Posting
Intervals that you want to combine into a
summary reporting period for the fiscal year.
Example: Group January, February, and March
into Q1 to gain insight into your quarter-to-date
financial status.
You can add, change, or delete summary
intervals anytime.

7. Access the Create Initial Fiscal Year task.

Create the initial fiscal year for which to perform accounting and financial reporting.
8. As you complete the task, consider:
Option Description
Fiscal Schedule Displays only the fiscal schedules with posting
intervals, but no fiscal years are available.
Fiscal Year Number Assign a unique number to identify the year within
the fiscal schedule. Example: Enter the calendar
year number associated with the first fiscal period.
Fiscal Year Name Uniquely identify the fiscal year in relation to other
years within the same fiscal schedule.
Example: If your fiscal year runs from July through
June, you mention both calendar years that it
crosses.

Fiscal Year Start Date The first day of the first period within the fiscal
year.
Fiscal Posting Interval The periods that make up the fiscal year, as
set on the Maintain Fiscal Schedule Posting
Intervals task.
Fiscal Period End Date Select the last day of each period. Workday sets
the Fiscal Year End Date to the latest end date.
9. (Optional) Access the Create Previous Fiscal Year.
10.(Optional) Access the Create Next Fiscal Year.
Create previous and next fiscal years as needed. Before you create a ledger year and periods for a
fiscal year, you can use the Edit Fiscal Year task to edit the name and period end dates.

11.As you complete the task, consider:

Option Description
Fiscal Year Number For the previous fiscal year, Workday subtracts 1
from the earliest existing fiscal year; for the next
fiscal year, Workday adds 1 to the latest.
Fiscal Year Start Date For the next fiscal year, Workday sets this date
to the first day after the end date of the preceding
fiscal yea

Result
You can combine several posting intervals into consolidated reporting units, such as a quarters or half
years, or fiscal summary schedules. Because financial transactions and events have an associated date,
you can use your fiscal schedule and fiscal years to control accounting and reporting.

Next Steps
Associate the fiscal schedule as the primary or the alternate fiscal schedule with your companies using the
Edit Company Accounting Details task. Then use the fiscal years to build a specific ledger year and its
ledger periods for the company using the Create Ledger Year and Ledger Periods task.
For a list of related reports and their descriptions, access the Workday Standard Reports report and
select the Set Up Fiscal Schedule report category.
Related Information
Tasks
Steps: Set Up Financial Accounting Structure on page 53

Steps: Set Up Accounting Categories

Context
You can use accounting categories to logically group similar accounting objects for posting, searching, and
reporting purposes. You can establish accounting categories for:
• Customers
• Suppliers
• Revenue
• Spend
• Business assets
• Receivable writeoffs

Steps
1. Create Spend Categories.
2. Access the Maintain Customer Categories task.
Create customer categories to classify the types of customers you have.
Example:
• Technology
• Hospitality
You can also add, edit the name of, view usage, or delete a category.
Security: Set Up: Customer Categories domain in the Common Financial Management functional
area. See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.

3. Access the Maintain Supplier Categories task.

Create supplier categories to classify the types of supplies you want to account for.
Example:
• Office Supplies
• Utilities
You can also add, edit the name of, view usage, or delete a category.
Security: Set Up: Supplier Categories in the Common Financial Management functional area.
See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.
4. Steps: Manage Revenue Categories on page 821.
Example:
• Product Sales
• Interest Income
5. Access the Maintain Receivable Writeoff Reasons task.
Create writeoff categories to describe the receivables you write off.
Example:
• Bad Debt
• Standard Writeoff
You can also add, edit the name of, view usage of, or delete a category.
Security: Set Up: Receivable Write-off Categories in the Common Financial Management functional
area. See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.

Result
For all category types, you can use accounting categories to assign as characteristics to accounting
objects and people. Workday requires that you assign a category to every customer, supplier, item,
business asset, and writeoff. You can then:
• Report on everything assigned to a specific category.
• Route transactions to the appropriate ledger accounts by using categories as conditions in account
posting rules.
• Search for and find groups of objects or people according to a specific category.
For spend and revenue categories you can:
• Use the categories as worktags.
Example: When you create a journal, tag it with a spend or revenue category.
• Write transactions against a category without having to specify items.
Example: When you create an invoice, write a line and its amount to a general category instead of a
specific item.
Related Information
Tasks
Steps: Set Up Financial Accounting Structure on page 53
Steps: Set Up Asset Accounting on page 1274

Steps: Set Up and Update Journal Sources

Context
You can define journal sources to indicate where or why you created each journal. You can use journal
source definitions to report on and analyze journals.

Steps
1. Create Journal Sources on page 91.
2. Access the Maintain Journal Source Mapping to Operational Transactions task.
Workday automatically creates operational journals for transactions. To specify which journal source
Workday assigns to operational journals:
• Define the journal source by transaction type.
• Remap the journal source that Workday applies to journal entries for all new transactions that you
process.
Security:
• Set Up: Journal Source domain in the Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in the Core Payroll functional area.
See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.
3. Access the Mass Update Journal Source task.
Update the journal source on existing transactions by transaction type. Workday recommends that
you remap the journal source for all new transactions of the given type. Update all existing operational
journals for that transaction type.
Security: Set Up: Journal Source domain in the Common Financial Management functional
area. See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.

Result
You can assign journal sources to accounting journals. Workday automatically assigns a journal source to
operational transactions as you enter them.
Related Information
Concepts
Concept: Accounting and Operational Journals on page 108
Tasks
Steps: Set Up Financial Accounting Structure on page 53

Assign Company Accounting Details

Prerequisites
• Define each financial component to associate with the company.
• Security: Setup: Company Accounting in the Common Financial Management functional
area. See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.

Context
To perform accounting related actions and record all relevant transactions for a company, assign the
necessary company financial components.

Steps
1. Access the Edit Company Accounting Details task.
2. As you complete the task, consider:
Option Description
Currency Workday uses the base currency for all financial
transactions within the company such as:
• Supplier Invoices
• Customer Invoices
• Expense Reports
Workday converts foreign currency to the base
currency of the company for accounting purposes
when you configure conversion rates.

Currency Rate Type Override Select the default currency rate type for the
company. Leave blank to use the default currency
rate type for the tenant.
Fiscal Schedule Configure the fiscal years for the company to
create ledger years or periods and plans based
on the fiscal schedule.
Once you enter journals or plan details for the
company, you can no longer change the fiscal
schedule. When you only create ledger years
and periods or plans, you can't change the fiscal
schedule until you delete them.

Alternate Fiscal Schedule Select to associate 1 or more alternate fiscal

schedules for the company to generate financial
statements for either the primary or alternate
fiscal schedules. When you run consolidated
financial statements, Workday uses the primary or
alternate consolidation fiscal schedule defined on
the Edit Consolidation Details task.
The alternate fiscal schedule can’t be the same
as the primary fiscal schedule. Once you create
beginning balances, you can’t change the
alternate fiscal schedule.

Account Set Select an account set to designate as chart of

accounts. Once you create ledger years and
periods, you can’t change the account set.
Alternate Account Set Select an additional account set for the company
to generate reports that map alternate account
sets or statutory account sets to your preferred
account set. Once you create or post journals,
you can't change the alternate account set.
Default Account Set Workday displays this account set by default
when you create:
• Journals.
• Recurring journal templates.
• Ad hoc bank transactions.

Option Description
• Ad hoc bank transaction templates.

Account Control Rule Set Set approval thresholds for company accounts
based on the specified account set.
Account Posting Rule Set Identify rules about how journal entries post to
accounts for this company based on the specified
account set.
Account Translation Rule Set Assign a value to populate automatically the
translation rule set when you run translated
financial reporting for the company.
Average Daily Balance Rule Select a rule that uses the same Account Set the
company uses.
Average Daily Balance Start Date The effective date of the Average Daily Balance
Rule and the earliest date you can select when
processing average daily balances. Workday:
• Calculates ending balances for journals with
an accounting date on or after this date.
• Tags the journal lines with the average daily
balance date.

Default Reporting Book Displays the default reporting Book on reports

where you select the book as a parameter. You
can change the default book by selecting the
Tenant Default check box on the Maintain
Books task. When you configure a default book
for a company hierarchy or company, it overrides
the tenant-level default.
Note: If you define more than 1 book and don't
set a default book, you must select a Book when
you run a financial report. Otherwise, the report
returns results for all books and you risk double-
counting.

Procurement Tax Option Select a default tax option for these purchase
transactions:
• Ad hoc payments.
• Supplier invoices and supplier invoice
adjustments.
• Purchase orders.

Translation Currency Select 1 or more default translation currencies

that you want to use when rolling translated
beginning balances forward.
Allow Accounting by Approval Date Select an invoice option to use approval date as
the accounting date instead of using the invoice
date.
Allow Accounting in Arrears Select to view:

Option Description
• The Accounting Date when you create, edit,
or view an invoice.
You can enter an accounting date for customer
or supplier invoices and invoice adjustments
that differs from the invoice date.
• In Progress operational journals when you
update ledger period statuses.

Accounting Date Requirement Select to establish whether an accounting date is

required or optional on customer invoices.
Enable Automatic Journal Line Numbering Select to automatically number activity lines of all
journals. Workday assigns the line number when
you post the journal.
Workday doesn't assign line numbers:
• To retained earnings lines.
• On copied journals.
• In a sorted order.

Disallow Change to Operational Transactions Select to prevent users from making changes
in Closed Periods to approved operational transactions in closed
periods. This configuration provides a better
audit trail when you reconcile ledger balances to
operational transactions.
Reverse Debit/Credit You can change your selection at any time. Your
changes take effect going forward; changes don’t
Keep Debit/Credit and Reverse Sign
take effect retroactively.

Result
For a given company you can:
• Create ledger year and ledger periods.
• Route journals that exceed account thresholds to approvers.
• Post journal entries to specific accounts according to posting rules.
• View beginning balances in default translation currencies.
• Translate financial reports from base currency to a reporting currency.
• Process average daily balances.
• Generate reports in both the corporate and alternate account sets.
Related Information
Concepts
Concept: Company Currency on page 26
Concept: Multicurrency on page 24
Tasks
Steps: Set Up Financial Accounting Structure on page 53
Reference
Reference: Tax Options on page 554
Workday 32 What's New Post: Financial Controls on Operational Transactions
Workday 32 What's New Post: Journal Line Numbers

Create Ledgers

Prerequisites
• Create Ledger Account Types. Name the actuals ledger type and optionally the commitment and
obligation ledger types using the Maintain Ledger Types task.
• Security: Set Up: Ledger and Book domain in the Common Financial Management Functional area. See
Steps: Set Up Security Permissions.

Context
Create an actuals ledger and, optionally, a commitment ledger and an obligation ledger for each of your
companies. For commitment and obligation ledger types, you can enable the creation of commitments and
obligations for payroll transactions (payroll and fringe benefits) and procurement transactions.
Note: For state and local governments:
• The commitment ledger type is commonly known as pre-encumbrance.
• The obligations ledger type is commonly known as encumbrance.
You can name the commitment and obligations ledger types based on your needs.
You can have only 1 actuals ledger type per company.
Note: You can create and use payroll commitment and obligation ledgers only if your company has
selected USD or CAD as its default currency.

Steps
1. Access the Create Ledger task.
2. Select the Company for which you want to create ledgers.
3. Select which Actuals Ledger Type to use for the company ledgers.
Workday appends the ledger type name to the actuals, commitment, and obligation ledgers of the
company. You can't change this value once there are journal entries for the company.
4. To provide budget date visibility on all applicable journal lines, select the View Budget Date check box.
When enabled, Workday uses your Budget Options configuration on the Edit Tenant Setup -
Financials task to determine the default budget date for the transaction.
If you have a commitment or obligation ledger, Workday requires the budget date and automatically
selects this option. If you have an actuals ledger only and are controlling budget for actuals transactions
only, you can turn this option on or off.
5. To enable the selected option for spend and payroll transactions, select the Create Commitment or
Create Obligation check box.
For payroll transactions, you can create commitments and obligations for Payroll and Fringe Benefits
when the company currency is in USD and CAD.
For spend transactions, select:
• Obligations for Procurement to create obligations for purchase orders and certain supplier contract
types.
• Both commitments and obligations for Procurement to create commitments for requisitions and
obligations for purchase orders and certain supplier contract types.
• Expenses to create commitments for spend authorizations.
6. Select the Roll Journals Forward for Procurement check box to have Workday:
• Automatically roll forward the accounting date to the first date of the next open period upon budget
approval.
• Post the commitment or obligation journals that you rolled forward to the new period.

Result
Use the company ledger to store accounting results from your original journal entries.
For a list of related reports and their descriptions, access the Workday Standard Reports report and
select the Set Up Financial Ledgers and Accounts report category.

Next Steps
Create and open a ledger year and ledger periods for your company ledgers.
Related Information
Tasks
Change the Status of Ledger Periods on page 238
Steps: Create and Open Ledger Years and Periods on page 68
Steps: Set Up Financial Accounting Structure on page 53
Steps: Maintain Access to Ledger Accounts on page 75

Convert Active Ledger Types

Prerequisites
• Close all ledger periods for the ledger type that you want to convert.
• Security: These domains in the Common Financial Management functional area:
• Set Up: Ledger and Book.
• Process: Historic Ledger Types.
See ../../../authentication-and-security/configurable-security/configurable-security-basics/
kqi1577400592841.dita.

Context
For existing Workday customers who are implementing Workday Financials, you can convert existing
active ledger types to historic types. Converting existing active ledger types to historic types, enables you
to retain existing ledger types for reporting and use active ledger types to enter new transactions.
You can only create journals in active ledger types but can report on historic ledger types.

Steps
1. Access the Convert Ledger Types task.
2. Select the Ledger Type Group that you want to convert.
Only active ledgers are available for selection.
3. Click OK.
4. Enter a name for the historical actual, commitment, and obligation ledger types.
Workday automatically adds the Historic prefix to the names.
5. Name the new actuals ledger type and optionally the commitment and obligation ledger types.
6. Click OK.
7. Review the names of the historical and new ledger types and select Confirm.

Result
Workday converts the active ledger types to historic ledger types and creates new active ledger types.

Next Steps
• Create new ledgers using the new ledger types for your existing company.
• Load beginning balances into the new ledgers.

Steps: Create and Open Ledger Years and Periods

Prerequisites
• Establish the fiscal year on which to base the ledger year and its periods.
• Set Up Fiscal Schedules and Years on page 58. Create a fiscal schedule using the Create Fiscal
Schedule task.
• Assign Company Accounting Details on page 62. Associate the fiscal schedule with the company
using the Edit Company Accounting Details task.
• Create Ledgers.

Context
Establish ledger years and ledger periods for each of your companies so that you can record journal
entries to their ledgers.

Steps
1. Access the Create Ledger Year and Ledger Periods task.
You can select any fiscal year available for the selected company ledger that doesn't already have a
ledger year and periods.
Security: Set Up: Ledger and Book domain in the Common Financial Management Functional area.
2. Access the Update Ledger Period Status task.
Change the Status of the ledger period to Open for periods within the ledger year.
If you have enabled journal sequencing for the company, then you must create sequence ID generators
before you can open the ledger period.
Security: Process: Period End domain in the Common Financial Management Functional area.

Result
Record journal entries to your company ledgers in the open ledger periods.
Related Information
Tasks
Change the Status of Ledger Periods on page 238
Create Ledgers on page 66
Steps: Set Up Financial Accounting Structure on page 53

Ledger Accounts

Steps: Create and Organize Ledger Accounts

Context
Build your ledger accounts and their hierarchical relationship to establish your chart of accounts as well as
an aggregate of accounts.

Steps
1. Create Ledger Account Types on page 69.
2. Set Up Account Sets on page 70.
3. Set Up Account Posting Rules on page 71.
4. (Optional) Set up approval amounts for each account.
See Create Account Control Rules on page 74.
5. Establish hierarchical relationships between ledger accounts.
See Steps: Manage Ledger Account Summaries on page 77.
6. (Optional) Restrict ledger accounts to members of security groups.
See Steps: Maintain Access to Ledger Accounts on page 75.

Result
You can use your ledger accounts and chart of accounts for financial reporting.

Next Steps
View ledger accounts with standard reports. For a list, access Workday Standard Reports and select the
Set Up Financial Ledgers and Accounts category.
Related Information
Concepts
Concept: Ledger Accounts on page 82
Tasks
Steps: Set Up Financial Accounting Structure on page 53

Create Ledger Account Types

Prerequisites
Security: Set Up: Accounts domain in the Common Financial Management functional area.

Context
You can configure the types of ledger accounts to use on balance sheets and income statements. Account
types enable you to group similar accounts within your account sets. After you create a balance sheet or
income statement for a company, you can select accounts from the types you create.

Steps
1. Access the Maintain Ledger Account Types task.
2. As you complete the task, consider:
Option Description
Account Type Name At a minimum, define assets, liabilities, and equity
for balance sheets, and income versus expense
for income statements. Or you can define these
basic components to be as granular as you want,
such as short term versus long term.
Normal Debit Balance Select when accounts are normally debits and
you want to display them in the debit column.
Clear to display in the credit column.
Expense Source Select to:

Option Description
• Calculate facilities and administration and
revenue recognition for manual journal lines.
• Identify an expense account for spend.

Set Up Account Sets

Prerequisites
• Create ledger account types.
• Security: Set Up: Accounts domain in the Common Financial Management functional area.

Context
To establish the chart of accounts for a company, set up your account sets and ledger accounts.

Steps
1. Access the Create Account Set task.
2. As you complete the task, consider:
Option Description
Chart of Accounts You can enable a parent or child account set as
your chart of accounts. You can then associate
the account set with a specific company using the
Edit Company Accounting Details task.
After you enter transactions for an account, you
can't clear this check box.

Include Account Set If you want to include one or more account sets
as a subset of the parent account set, select or
create child account sets.
Create as many layers of account sets as needed.
Workday displays a complete list of accounts from
the parent and child account sets in reports.
Example: You have 2 companies where some
accounts are specific to each company and other
accounts that you share across the companies.
You can create 3 account sets: one for each
company and one for the shared accounts. In the
accounts for each company, you can link to the
shared account set.

Identifier Identifies account number. Example: 1000. You

can revise anytime.
Ledger Account Type You can change the account type for accounts
without transactions.
For accounts with activity, you can only change to
a type within the same account type group.

Option Description
When you create balance sheets and income
statements, you can select from accounts
appropriate for the report.

Restricted To Companies Select the companies to which you want to restrict

the ledger account. When you enter transactions,
Workday validates that the ledger account is
available for use with the selected company.
Leave blank if you want the ledger account to be
available for use with all companies.
Retired Select when you want to inactivate the account,
but have used it with transactions. The account
still displays in reports. For historical purposes,
you can't delete accounts that you've used.
If you have specified guidelines in the account,
then you can't retire or delete the account.
Example: year-end rules, posting rules, or
elimination rules for variance accounts.
If you've used the account to report on
accumulation, then you can retire the account, but
you can't delete it. Example: financial statement
definition, definition of an allocation source,
elimination rules for used-by accounts.

Next Steps
Manage ledger account summaries.

Set Up Account Posting Rules

Prerequisites
• Set up account sets.
• Security: Set Up: Accounting Rules domain in the Common Financial Management functional area.

Context
You can configure account posting rule sets that you can associate with a company and use to direct
where operational transaction journals post in company ledger accounts. Each account posting rule set is
for a specific operational transaction. Workday also uses account posting rule sets for manual accounting
journals that have:
• Facilities and Administration manual journal entries.
• Intercompany manual journal entries.
• Worktag balancing enabled.

Steps
1. Access the Create Account Posting Rule Set task.
2. Assign a Name and specify the Account Set you want to apply the posting rules to.
3. Select a posting rule and click Edit Posting Rule to add posting rules.

4. As you complete the header section, consider:

Option Description
Enable Control Account Warning Select the check box to designate that the
specified ledger accounts in this posting rule are
control accounts.
A control account is a ledger account that
includes operational journals from operational
transactions only. When you create an accounting
journal and select a control ledger account,
Workday issues a warning. You can save the
journal line to the control account.

Default Ledger Account Select a default ledger account for any or all
account posting types.
Workday uses default accounts for transactions
that don’t match any conditions on an account
posting rule. When a transaction doesn’t meet any
conditions, Workday assigns the:
• Transaction to the default ledger account.
• Default resulting worktags to the journal line.
When you edit the posting rule, you can change
this default ledger account for any individual
posting rule.
If you don't select a default ledger account,
Workday flags transactions that don't match
any account posting rules. To flag transactions
that don't match any account posting rules as
errors, leave the default ledger account blank.
This configuration makes it easier for you to find
and fix invoice or rule errors for nonmatching
transactions (using the Fix Operational Journals
with Errors task).

Default Resulting Worktags Select 1 or more default resulting worktags for the
account posting rule.
Workday applies the default resulting worktags
when transactions post to the default ledger
account.

5. As you complete the Posting Rule Conditions grid, consider:

Option Description
Evaluation Order Order conditions from most to least restrictive
using Evaluation Order. If there are 100 or more
conditions, you can prioritize each line by entering
an alphanumeric string. If 2 or more conditions
have the same string, Workday prioritizes those
conditions at random.
High-volume processes impact performance when
processing account posting rules. To optimize
performance, prioritize frequently used account

Option Description
posting rules when they don't include overlapping
values.

Resulting Ledger Account Select a ledger account to have Workday

evaluate and post journals for transactions to
specific ledger accounts based on whether the
transaction meets select criteria.
Resulting Worktags • You can't select Resulting Worktags that are
already in use as primary or optional balancing
worktags.
• When you select Resulting Worktags values,
Workday doesn't override current worktags on
the operational journal line.
Example: You configure these worktags:
• Worker Defaults - Cost Center 1, Fund1.
• Costing Override - Location 1.
• Resulting Worktags - Region 1, Location 2
Workday applies only Region 1 as the Resulting
Worktag and not Location 2. Since you've defined
Location 1 as a costing override.

Condition For each condition, select from a predefined list

of dimensions that make sense for the transaction
type. For certain dimensions, such as various
groups and accounting categories, you can select
from a list of values that you defined. If you select
Company as a dimension in the account posting
rules, Workday validates that the ledger account
is valid for use with the company or company
hierarchy.
Workday evaluates conditions from the top down,
posting the journal for the transaction to the
resulting ledger account of the first Dimensions
and Values that match the rule.
Note: Workday doesn't support condition rules on
derived lines.
Example: You post to Account A based on
company and cost center. You post to Account
B based on the same company, the same cost
center, and a region. Place the latter, more
restrictive condition first. Otherwise, Workday
posts journals for matching transactions to
Account A, which is the first match it finds.
Note: Workday includes all dimensions for the
resulting ledger account and any value in each
dimension before Workday matches the rule.

6. Click the Test Posting Rule button to test that transactions post to the correct accounts.

7. To test 1 or more available dimensions of the posting rule, select values that a transaction should
contain.
Based on the posting rule conditions, Workday displays the ledger account and worktag to which
transactions would post with the entered values.
Example: In the Revenue posting rule, you create a rule condition that requires any transaction with
revenue category of Product to post to the Product Revenue account.

Result
Workday uses accounting post rule to determine:
• The default ledger account to post the journals.
• The default resulting worktag to post on the journal line for specific operational transactions.
Workday uses the accounting post rule conditions to determine which:
• Resulting ledger accounts to post for debits and credits.
• Resulting worktags apply to the journal line entry.
For optimized performance, when you exceed 100 resulting ledger accounts on a single account posting
rule, Workday:
• Displays the Add condition button, enabling you to add a single condition at a time.
• Enables you to edit and delete posting condition rules individually.

Example
You create a Spend account posting rule to record the value of the purchase of an item. You also create a
Payable account posting rule to track the value of accounts payable.
When you submit a supplier invoice, Workday processes the account posting rules to debit the Spend rule
and credit the Payable rule.

Next Steps
(Optional) To update a rule set, access the View Account Posting Rule Set report. For a selected rule
set, you can:
• Edit the account posting rule set name.
• Edit the default ledger account.
• Edit the posting rule.
• Test the edited posting rule.
Related Information
Tasks
Steps: Set Up Financial Accounting Structure on page 53
Reference
The Next Level: Direct Intercompany Invoicing
2021R1 What's New Post: Redesigned Retained Earnings Reporting

Create Account Control Rules

Prerequisites
• Create ledger account sets.
• Configure the Accounting Journal Event business process and security policy in the Financial
Accounting functional area.
• Security: Set Up: Accounting Rules domain in the Common Financial Management functional area.

Context
You can set up the account control rules that enable you to manage basic approval thresholds at the
account level for your companies. When a line in an accounting journal exceeds an account threshold, you
can route the journal for approval. You can add account control rule set to add thresholds for each new
account you add so that you don't have to modify your business process definitions.

Steps
1. Access the Create Account Control Rule Set task.
2. As you complete the task, consider:
Option Description
Currency Select the currency that you want to associate
with the approval threshold amounts for the
accounts.
General Threshold Set the largest journal line amount that users can
enter for all ledger accounts, without requiring
approval.
When the amount exceeds its threshold, Workday
routes the journal for approval according to the
Accounting Journal Event business process
definition.

3. In the Ledger Account Approval Thresholds grid, set thresholds for specific ledger accounts. Add
a row for each Ledger Account from the selected account set for which you want to define a lower
Approval Threshold, and enter that amount.
Workday prioritizes approval thresholds on ledger accounts over the general threshold.
4. (Optional) Access the Edit Account Control Rule Set task to edit the rule set.
When editing a rule set, you can change currency only if there are no companies using the rule set.

Next Steps
Add a conditional rule to the Accounting Journal Event business process definition to route journals that
exceed thresholds to one or more approvers.
Edit the company accounting details to associate your account control rule sets to one or more companies.
Related Information
Tasks
Steps: Set Up Financial Accounting Structure on page 53
Assign Company Accounting Details on page 62

Steps: Maintain Access to Ledger Accounts

Prerequisites
• Understand segment-based security groups and segmented security.
• Determine how you want to control access to ledger account for groups of workers.
• Security: Ledger Account Segmented Setup domain within the Segmented Setup folder in the System
functional area.

Context
You can configure segment-based security to restrict availability of ledger accounts to members of
designated security groups.

Workers see only the ledger accounts to which they have access when:
• Performing accounting journal transactions (except recurring journals).
• Running ledger account, trial balance, journal, financial metrics, and manager metrics reports.
Once you enable ledger account segmentation, a ledger account will only be visible if associated to a
ledger account segment.

Steps
1. Access the Create Ledger Account Security Segment task.
Select the ledger accounts to include in the segment. You can include:
• Individual Ledger Accounts.
• All accounts in a Ledger Account Summary.
• All accounts of a Ledger Type.
Create enough segments to cover each unique security access requirement. Included values can cross
multiple segments or be mutually exclusive. Workday recommends that you build segments from least
to most restrictive.
Security: Ledger Account Segmented Setup domain within the Segmented Setup folder in the System
functional area.
2. (Optional) Access the Create Security Group task.
Create the security groups to associate with the security segments if existing security groups don't meet
your business requirements.
3. Access the Create Security Group task.
a. Select Segment-Based Security Groupfor Type of Tenanted Security Group and enter a name for
the security group.
b. Under the Group Criteria section, select the desired security group.
c. Under the Access to Segments section, add the ledger account security segment that you created
in Step 1.
See also Create Segment-Based Security Groups.
4. Edit Domain Security Policies.
To enforce your ledger account segment security policy in transactions and reporting:
• Access the Domain Security Policies for Functional Area report.
• Select the Common Financial Management Functional Area.
• Select the Access Ledger Account (Segmented) security policy from the hierarchy.
• Remove the All Users default security group.
• Add the desired security groups.
You can include your ledger account segment-based security groups to restrict its members to the
values included in their security segments.
5. Activate Pending Security Policy Changes.
6. Test the security policy changes.
For each security segment, sign in as a user of the associated segment-based security group. Then
verify that you can only access the ledger accounts for that segment.

Result
Workers can:
• Create journals with only the ledger accounts that they have access to.
• Edit journals only if they have access to all the ledger accounts in the journal.

• View journals as long as they have access to one of the ledger accounts in the journal lines.
If a journal has lines for ledger accounts they don't have access to, they can view the whole journal, but
can't take any actions against it.
• Run journal line and ledger account reports for only the ledger accounts that they have access to.
• Run custom and standard financial reports that include journal lines only for the ledger accounts they
have access to.

Example
Restrict expense accountants to see the ledger accounts for expense reports that are payable to a worker
but not a supplier.
Related Information
Concepts
Concept: Security Groups

Steps: Manage Ledger Account Summaries

Prerequisites
Security: Set Up: Accounts domain in the Common Financial Management functional area.

Context
You can establish hierarchical relationships between ledger accounts. You can also group ledger accounts
by a range of values. Create multiple snapshots of ledger account summaries by assigning ledger
accounts, account ranges, and account summaries with separate effective dates on a single ledger
account summary. Change the hierarchy levels for different effective dates and track historical changes by
rerunning financial statements.

Steps
1. Access the Create Ledger Account Summary As Of task.
2. As you complete the task, consider:
Option Description
Effective Date Workday automatically populates this field with
the current date. You can select a retroactive or
future date instead.
Account Set You can only select account sets that are part of
a chart of accounts. You can't change the account
set while editing a summary.
Hierarchy Level Configure the summary location of the ledger
account within the hierarchy. When you view
ledger account summaries, you can navigate to
the subordinate and superior nodes.
3. Select Ledger Account Summary > Assign Ledger Accounts and Account Ranges from the related
actions menu of the ledger account summary.
Enter an effective date. You can enter a retroactive or future date instead of the default effective date.
Enter 1 or more identifier values for ledger accounts you want to include in the summary. Identifier
values can't overlap. Example: Enter 1 or more values that don't overlap for ledger account identifiers

you want to include in this summary. Example: Row 1 has a From Value = 1000 and a To Value = 1100.
Row 2 has a From Value = 1150 and a To Value = 1199.
You can select 1 or more ledger accounts in the Ledger Accounts field to include additional ledger
accounts in the ledger account summary.
4. Select Ledger Account Summary > Assign Included Ledger Account Summaries from the related
actions menu of the ledger account summary.
Enter an effective date. You can enter a retroactive or future date instead of the default effective date.
Add and arrange the ledger account summaries in the order you want Workday to access them.
5. Select Hierarchy Structure > Create from the related actions menu of the top-level node of the ledger
account summary.
Configure the hierarchy structure, levels, and enforcement for the ledger account summary.

Result
You can use the ledger account summary to report on data such as:
• Hierarchy level.
• Hierarchy name.
• Included ledger accounts.

Next Steps
Create segmented security for all ledger accounts included in the ledger account summary or all ledger
accounts of an account type by accessing the Create Ledger Account Security Segment task.
(Optional) Edit the ledger account summary name and hierarchy level as of an effective date by selecting
Ledger Account Summary > Edit from the related actions menu of the summary.
Related Information
Tasks
Set Up Account Posting Rules on page 71
Create Ledgers on page 66

Steps: Set Up Alternate Accounts

Prerequisites
• Set up account posting rules for the corporate account set.
• Define alternate account sets.

Context
Configure alternate account sets and alternate account set mapping rules to map the statutory or
regulatory account set to the corporate account set.

Steps
1. Create Alternate Account Set Mappings on page 79.
2. Configure Alternate Account Set Mapping Rules on page 80.
3. Assign Company Accounting Details on page 62.
Specify an alternate account set and default account set for the company.

Result
You can:

• Enter ledger accounts in either the corporate or the alternate account set for the same company.
• Create financial reports and record transactions in your preferred account set.
• Drill down to see detailed information for a selected account set.

Example
Global Modern Services USA is a global company based in the USA that has a branch office in France. It
has 2 companies:
• Global Modern Services USA.
• Global Modern Services FRANCE.
When posting journals to ledger accounts, the accountants use these account sets:
• USA - Corporate account set.
• FRANCE - French Statutory account set.
For the accountant in the USA, Workday uses the Corporate mapping rules for alternate account to derive
the French Statutory ledger accounts. For the accountant in France, Workday uses the French mapping
rules for alternate account to derive the Corporate ledger accounts.

Next Steps
Create individual or combined reports using the alternate and corporate account sets to review financial
transactions.
Related Information
Concepts
Concept: Financial Reporting on page 307
Reference
FAQ: Alternate Account Set Mappings on page 87

Create Alternate Account Set Mappings

Prerequisites
• Set up account posting rules for the corporate account set.
• Define alternate account sets.
• Security: Set Up: Accounts domain in the Common Financial Management functional area.

Context
You can create alternate account set mapping to:
• Name your forward and reversal alternate account set mapping.
• Select the preferred input and output account sets.
• Use the preferred input and output accounts to configuring mapping rule conditions for your alternate
account set mapping rules.

Steps
1. Access the Create Alternate Account Set Mapping task.
2. As you complete the task, consider:
Option Description
Name Name your forward and reversal alternate account
set mapping.
Reversal Mapping Name

Option Description
When you create mapping rules, Workday derives
the reversal mapping from the alternate account
set mapping rule conditions and switches the
Input Account Set and Output Account Set
selections.

Input Account Set Select the preferred input and output account
sets.
Output Account Set
When you configure mapping rules, select input
accounts and output accounts. Workday uses
these account sets to derive the alternate account
set data.
For the reversal account set mapping, Workday
switches the input and output account sets. You
can only use an input and output account set
mapping combination once.
Example: You have Account Set 1 (AS1), Account
Set 2 (AS2) and Account Set 3 (AS3). You map
AS1 to AS3.
• You can't create another account set map
combination for AS1 to AS3 nor AS3 to AS1.
• You can create an account set mapping
combination for AS1 to AS2.

Next Steps
Configure rule conditions or condition values in your alternate account set mapping rules.
Related Information
Reference
FAQ: Alternate Account Set Mappings on page 87

Configure Alternate Account Set Mapping Rules

Prerequisites
• Create alternate account set mappings.
• Security: Set Up: Accounts domain in the Common Financial Management functional area.

Context
Add mapping rule conditions to your forward and reverse alternate account sets mapping rules for a ledger
account type or a ledger account.

Steps
1. Access the View Alternate Account Set Mapping report.
2. Select an Alternate Account Set Mapping and a ledger account or ledger account type.
3. As you add rule conditions, consider:
Option Description
Edit Default Ledger Account In the Include Specific Ledger Accounts
or Include All from Ledger Account Types

Option Description
fields, select 1 or more ledger accounts or ledger
account types. Workday displays a list of the
ledger accounts for the selected alternate account
set mapping.
• For each row, select a related Default Ledger
Account, as needed.
• You can only use a ledger account as a default
once per mapping rule.
Workday post journals to the default ledger
account when transactions don't match any of the
alternate account set mapping rule conditions.

Edit Mapping Name Change an existing mapping name.

View Specific Mapping Rules Filter mapping rules to display a smaller range
for selected ledger accounts and ledger account
types for either forward or reverse alternate
account set mapping.
Sort Specific Mapping Rules Manually order a selected subset of mapping rule
conditions.
Order conditions from most to least restrictive.
Workday evaluates alternate account set
condition rules from the top down.

Add New Mapping Rules Add mapping rule conditions to your mapping
rules. You can only use a ledger account once
per mapping rule. When defining mapping rule
conditions:
• Enter 1 or more condition values or resulting
values.
• You can select either a condition value or a
resulting value for mapping rules, but not both.
• Use unique mapping Condition Values for
each line of a forward or reversal mapping
rule.
Workday derives the reverse mapping rules
based on the rules you define.

Edit Mapping Rule Modify mapping rule conditions.

When you retire ledger accounts, update any
relevant mapping rules as soon as the account
set changes. The alternate account set mapping
rules won't have condition rules that resolve to the
retired accounts.

Test Mapping Rule The test displays the conditions a selected

account set mapping rule meets. You can test the
values for existing alternate account set mapping
rules for a selected ledger account to view:
• Condition Values
• Ledger Account Returned

Option Description
• Resulting Values

Result
Workday creates the forward mapping rules with condition dimensions and dimension values that have
reverse mapping rules with:
• Resulting ledger accounts.
• Resulting dimensions.
• Resulting dimension values.
• Worktags.

Concept: Ledger Accounts

There are 4 main components to building ledger accounts: account types, account sets, accounts, and
account summaries.

Account types define the types of accounts that are available for financial statements. You can define
unique types for balance sheets and for income statements. When you build account sets, you associate
an account type with every account. You can also use account types to build financial statement
conditional rules for use in financial statement definitions.
Account sets define a group of accounts for a company. When you set up company accounting details,
you associate the chart of accounts account set with a specific company. Within an account set, you can
include accounts directly or link the account set to another set. You can also restrict the use of ledger
accounts within the account set to specific companies or company hierarchies.
Example: You have a corporate account set that contains a standard set of accounts that all of your
business entities use. Each of these business entities also has their own unique accounts. You can:
• Share the corporate account set across companies, combining that set with the unique accounts to
create the chart of accounts for each company.
• Restrict ledger accounts to companies that are part of the consolidation so they can define their own
chart of accounts.
Account summaries roll up select accounts from a given account set into a group for financial statement
reporting. You can also embed account summaries within other account summaries, creating more levels
of hierarchy. Create any number of account summaries to aggregate accounts into a single line on a
balance sheet or income statement when you define them. You can also use account summaries in
allocations to group accounts when defining a source or basis.

You can assign ledger accounts, account ranges, and account summaries and hierarchies as of an
effective date to create multiple snapshots of a ledger account summary and run restatements.
Use ledger account segment security to enable workers to access only those ledger accounts to which
they have security permissions. For only the specified ledger accounts, workers can:
• View journals when the worker has permission to at least 1 ledger account used in the journal.
• Create and edit journals when the worker has permission to all ledger accounts used in the journal.
• Create reports.
• Run journal line and ledger account reports for the specified ledger accounts.
• Run custom and standard financial reports that include journal lines for the specified ledger
accounts.
Related Information
Tasks
Steps: Create and Organize Ledger Accounts on page 68
Steps: Maintain Access to Ledger Accounts on page 75

Reference: Account Posting Rules

This topic illustrates the behavior of these common account posting rules used in financial transactions:
• Business Asset on page 83
• Expense on page 84
• Intercompany on page 85
• Spend on page 85
• Revenue on page 86

Business Asset
This table includes the common account posting rules used in business asset transactions and their
basic accounting use cases. For more product flows and accounting scenarios, see Workday Community:
Business Asset Product Flow.

Rule Account Type Use Case Debit Credit

Accumulated Asset Record the Depreciation Accumulated
Depreciation depreciation Expense Depreciation
amortization
expense for an
asset over time.
Business Asset Expense Record the • Business Asset account
Disposal Donation donation loss from Asset Disposal
depreciated assets Donation
you dispose. • Business Asset
Disposal Loss

Business Asset Income Record the sales • Accumulated • Business Asset

Disposal Gain gain from fully Depreciation Disposal Gain
depreciated assets • Business Asset • Asset account
you dispose. Disposal Sale

Business Asset Expense Record the loss • Business Asset Asset account
Disposal Loss from depreciated Disposal Loss
assets you dispose
of by discarding.

Rule Account Type Use Case Debit Credit

• Accumulated
Depreciation

Business Asset Asset Record the loss • Business Asset Asset account
Disposal Sale for a sales asset Disposal Sale
that you dispose • Accumulated
of once there's Depreciation
an agreement
• Business Asset
between parties.
Disposal Loss

Depreciation Expense Record the Depreciation Accumulated

Expense depreciation and Expense Depreciation
amortization of an
expense.

Expense
This table includes the common account posting rules used in expense transactions and their basic
accounting use cases. For more product flows and accounting scenarios, see Workday Community:
Expense Report Product Flow.

Rule Account Type Use Case Debit Credit

Credit Card Liability Record the liability Spend Credit Card
Payable of costs workers Payable
incur on a company
credit card as
workers submit the
transactions on
expense reports.
Expenses Advance Asset Record the cash Expense Advance Cash
advance amount
provided to an
employee.
Expenses Payable Liability Record the amount Spend Expense Payable
owed to an
employee based on
the expense report
that they submit for
reimbursement.
Expense Payee Asset Record the amount Expense Payee Credit Card
Receivable of an employee Receivable Payable
receivable, where
an employee
submits an
expense report with
a personal credit
card expense that
they need to repay
to the company.

Intercompany
This table includes the common account posting rules used in intercompany transactions and their basic
accounting use cases. For more product flows and accounting scenarios, see Workday Community:
Intercompany Transaction Guide.

Rule Account Type Use Case Debit Credit

Intercompany Liability Record the value Spend Intercompany
Payables of payables Payables
due between
companies on a
direct intercompany
supplier invoice.
Intercompany Asset Record the value Intercompany Revenue
Receivables of receivables Receivables
between
companies on a
direct intercompany
customer invoice.

Spend
This table includes the common account posting rules used in spend transactions and their basic
accounting use cases.

Rule Account Type Use Case Debit Credit

Payables Liability Record the value of Spend Payables
accounts payables
generated from
supplier invoices
or miscellaneous
payments.
Receipt Accrual Liability Record the value Spend Receipt Accrual
of received goods
or services or
completed work
not yet invoiced by
suppliers.
Retention Payable Liability Record the value of Retention Payable Payables
the supplier invoice
retention due from
a supplier contract
with retention
enabled.
Spend Either: Record the value Spend Payables
for a purchased
• Asset
item in a supplier
• Expense invoice.
Transaction Tax Either: Record the value • Transaction Tax Payables
of tax on purchase • Spend
• Asset
transactions,
• Expense such as a
supplier invoice

Rule Account Type Use Case Debit Credit

• Liability where the tax is
nonrecoverable.

Revenue
This table includes the common account posting rules used in revenue transactions and their basic
accounting use cases. For more product flows and accounting scenarios, see:
• Workday Community: Customer Accounts Product Flow
• Workday Community: Customer Contracts Product Flow

Rule Account Type Use Case Debit Credit

Deferred Revenue Liability Record the Receivables Deferred Revenue
accumulated
deferred revenue
so that you can
recognize the
revenue in the next
period.
Receivables Asset Record the value Cash Receivables
of receivables due
from customers
in a customer
payment.
Receivables Income Record the value Unapplied On- Receivables
Overpayment of a customer Account Payments Overpayment
payment with
a record of
overpayment.
Receivable Writeoff Expense Record the value Receivable Writeoff Receivables
of customer
invoice writeoff
for unrecoverable
balances.
Revenue Income Record the sale Receivables Revenue
value of an item in
a customer invoice.
Transaction Tax Either: Record the value Receivables • Transaction Tax
of tax on sales • Revenue
• Asset
transactions in a
• Liability customer invoice.
Unapplied On- Liability Record the value of Cash Unapplied On-
Account Payments customer payments Account Payments
deposited but
not applied to a
customer invoice.
Unapplied Liability Record the value of Cash Unapplied
Recorded customer payments Recorded
Payments deposited but Payments
unapplied so it

Rule Account Type Use Case Debit Credit

doesn't display
as part of the
customer balance.
Unbilled Asset Record the value Receivables Unbilled
Receivables of receivables not Receivables
yet billed from an
accrued customer
contract.
Undeposited Asset Record the value Undeposited Unapplied On-
Payments of an on-account Payments Account Payments
customer payment
not yet deposited
into a bank
account.

FAQ: Alternate Account Set Mappings

How do I correct alternate account set mappings?
1. Access the Alternate Account Set Mapping Exceptions report.
2. Click View Rules with no Conditions or Defaults to edit the mapping rules for the listed ledger
accounts.
How do I associate manually added unmapped ledger accounts to existing alternate account set
mappings?
1. Access the Alternate Account Set Mapping Exceptions report.
2. Click Add Rules for Unmapped Ledger Accounts to add mapping rules to accounts you manually
added.
Security: Set Up: Accounts in the Common Financial Management functional area.
How do I select ledger accounts from an alternate account set for the line company when my
header and line companies differ on the Create Journal task?
You can only select ledger accounts that are on the account set of the journal header company. When
you submit the intercompany journal, Workday processes the intercompany journals for both the header
and line companies according to the alternate account set from each company. However, when you view
the as-entered journal lines, Workday only displays ledger accounts from the alternate account set of the
header company.
What dimensions can I use for my alternate account set mappings?
The dimensions you can use for alternate account set mappings depend on the dimensions available on
the account posting rule of a transaction type. You can map your account set to more dimensions if your
account uses multiple account posting rules across different transaction types. However, Workday only
uses dimensions applicable to the transaction type when we derive the alternate ledger account.

FAQ: Can I retire ledger accounts?

Can I retire ledger accounts that I no longer want to use for future transactions?
You can retire ledger accounts on the Edit Account Set report if you aren't using the ledger account in:
• An account posting rule or as a default account in an account posting rule.
• An account translation rule.
• An allocation dimension.
• An active allocation definition for Source or Target.

• An ad hoc bank transaction template.

• An elimination rule or it's an account to which the elimination rule posts.
• A year-end close rule.
• A recurring journal template.
• A manual journal with a status of In Progress.
To find where ledger accounts are in use, access the Ledger Account Usage report.

Book Codes and Books

Steps: Create Book Codes and Books

Prerequisites
Security: Set Up: Ledger and Book in the Common Financial Management functional area.

Context
You can create book codes and books to record and report on transactions.
First, you create book codes that you can use on transactions. In Workday, all accounting entries are tied
to a book code. Book codes defines where transactions are accounted for inside the general ledger and
can be named based on your reporting requirement. Examples:
• IFRS Adjustments - For companies required to report in IFRS.
• US GAAP - For companies required to report in U.S. GAAP.
Next, you create books which you use in reports. You can group book codes together into books for
financial reporting.
A book can include multiple book codes, and a specific book code may belong to multiple books. A book
rolls up activity from one or more book codes and may or may not include the Blank book code.

Steps
1. Create Book Codes.
a) Access the Maintain Book Codes task.
b) Add the book code name and description for the book code you want to create.
c) Click OK.
2. Create Books.
a) Access the Maintain Books task.
b) As you complete the task, consider:
Option Description
Includes Book Codes Select the book codes to include in the book.
Includes Blank Book Code Select to include all transactions posted to the
blank book code in the selected book.
Tenant Default Select a book to be the tenant default. When
you run certain XpressO reports, such as a Trial
Balance, Workday selects the default book in the
Book prompt, unless you configure the report
differently.
Note: If you leave the Book prompt blank,
Workday returns all data from all books.

Concept: Book Codes and Books

Many companies that are under different jurisdictions require accounting and reporting of results according
to different accounting principles. The different methods of reporting usually contain the same transactions
but with some transactions having different accounting treatment and adjustments. Examples:
• Accounting Authority – U.S. GAAP by Financial Accounting Standards Board (FASB).
• International Financial Reporting Standards (IFRS).
• Regulatory Agencies – Department of Education (DOE), Federal Energy Regulatory Commission
(FERC).

Book Codes
Transactions use book codes. In Workday, all accounting entries are tied to a book code. Book codes
defines where transactions are accounted for inside the general ledger. Workday associates all accounting
transactions to a book code. You can define book codes for your financial transactions based on your
reporting requirements. Example: You can define:
• A Generally Accepted Accounting Principles (GAAP) book code to record current year GAAP
adjustments.
• An International Financial Reporting Standards (IFRS) book code to record International IFRS
adjustments.
• A Tax Adjustment book code to record tax adjustments.
• Period End Adjustment book code to record period end adjustments.
• Management Restatements book code to record adjustments for management reporting. This book
code won’t affect external reporting.
Workday provides book codes and books to record and segregate the transactions for financial reporting.
You can also create additional book codes to meet specific needs for your reporting requirements.
Example: You can define source and target book codes for revaluation, equity pickup, and allocations.
You can create a Year End Adjustments book code to record year end adjustments and combine it with the
Blank book code to form the Reporting book.
Operational transactions post directly to the Blank book code or Common book, except for:
• Asset-related transactions when Multibook Asset Accounting is enabled. Those transactions will post to
the specific book code associated with the Asset book.
• Supplier Lease contract related transactions when Lease Contract Book Code Configuration
has been completed. Instead, it will post to a specific book code for lease contract based on your
configuration.
• Special journal entries.
• Special operational journal entries such as revaluation, equity pickup, allocations and noncontrolling
interest.
The Blank book code or the Common book is displayed in both the Management and External reporting
book.

Book
Next you create books. You can group book codes together into books for financial reporting. A book rolls
up activity from one or more book codes, including the Blank book code. Example:
• IFRS Book = Blank book code + IFRS book code
• Tax Book = Blank book code + Tax Adjustment book code

Common Book
In Workday, most transactions are recorded in the Blank book code or the Common book. The Common
book includes accounting transactions, which are primarily operational journals within Workday Financials.
Operational journals don’t include a specific book code value, so the book code value is blank (Blank book
code). Therefore, the resulting ledger balances are implicitly a part of a Common book.

This table provides an example of how you can define books and book codes in Workday:
Note: Names of book codes and books are specific to your Workday tenant and might be different from
the values suggested here.

Book Name Includes Book Includes Blank Tenant Default Description

Codes Book Code
All Adjustments IFRS Adjustments No No Includes the 3 book
codes specified.
Local GAAP
Won’t include the
Adjustments
Blank book code.
Tax Adjustments

Common Book GAAP Yes Yes Includes:

• All transactions
with a Blank
book code (all
operational
transactions and
manual journals
with a Blank
book code).
• All journal
transactions that
have a GAAP
book code.

IFRS Book IFRS Yes No Includes:

IFRS Adjustments • All entries with
a Blank book
code (all the
operational
transactions and
manual journals
with a Blank
book code).
• All journal
entries that
have the
IFRS or IFRS
Adjustments
book codes.

Related Information
Reference
The Next Level: Multibook Asset Accounting Concepts and Overview

Journals

Create Journal Sources

Prerequisites
• Learn which journal sources to create by using the Journal Source Mapping to Operational
Transactions report.
• Security:
• Set Up: Journal Source domain in Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in Core Payroll functional area.

Context
Create or edit sources for journal entries in your accounting and operational journals. You can create
different accounting journal sources from the ones you use for operational journals, or you can use the
same journal sources for both.

Steps
1. Access the Maintain Journal Sources task.
2. As you complete the task, consider:
Option Description
Accounting Source Select to make the journal source available on the
Create Journal task.
Process Award Costs For manual journals with spend on a grant, select
this check box to calculate:
• Facilities and administration.
• Revenue recognition.

Ad Hoc Bank Transaction Source When you create ad hoc bank transactions, you
can override the journal source mapped to the
transaction.
Enable Suspense Processing for Web Service Available for use only with accounting journal
sources. Select to use suspense processing
when you run the Import Accounting Journal web
service. Set up suspense processing rules on the
Create Suspense Account Rule task. Enter a
suspense threshold percent equal to or greater
than 1% for suspense processing to run.
Suspense Threshold Percent Enabled when you select the Enable Suspense
Processing for Web Service check box. Enter
a whole number. Workday uses suspense
processing as long as the journal lines in error
are equal to or less than the percentage you
enter. Example: If the threshold is 5%, when the
number of suspended journal lines becomes 6%
or greater, suspense processing stops.

Option Description
When you leave the Suspense Threshold
Percent blank, Workday won't use suspense
processing.

Workday Source Select to indicate that the journal source is for

journals that Workday creates automatically for
operational transactions. Example: customer
invoices, supplier invoices, and expense reports.

Result
Workday assigns journal sources to operational journals based on how you map the journal sources to
operational transactions.
Related Information
Tasks
Steps: Set Up and Update Journal Sources on page 62

Steps: Process Accounting Journals

Prerequisites
• Set up financial accounting structure. See Steps: Set Up Financial Accounting Structure.
• Control access to ledger accounts for groups of workers. See Steps: Maintain Access to Ledger
Accounts.
• Create journal sources.

Context
You can create and edit accounting journals and post them to these ledger types to maintain a detailed
record of financial transactions:
• Actuals
• Commitment
• Obligation

Steps
1. Create Accounting Journals on page 93.
2. Create journals based on recurring journal templates.
See Steps: Create Recurring Accounting Journals on page 97.
3. Access the Mass Post Reversal Journals task.
Once the reversal journal period opens, you can post the reversal journals.
You can post intercompany reversal journals only if all companies in the journal have the period open.
Security: Process: Journals - Core domain in the Common Financial Management functional area.
4. (Optional) Create Translation Adjustment Journals on page 100.
5. (Optional) Access the Revise Journal task from My Tasks.
Change the accounting date, correct the journal, and resubmit for approval.
Security: Process: Journals - Core domain in the Common Financial Management functional area.

6. (Optional) Enable suspense processing for accounting journal sources.

a) Create Journal Sources.
Enter a suspense threshold percent for each journal source that you want to enable suspense
processing for.
b) Configure Suspense Account Rules on page 103.
Enable suspense processing and configure suspense account rules for the Import Accounting
Journal web service.
7. (Optional) Upload journal data into Workday from a spreadsheet.
When you enable suspense processing, Workday applies the suspense processing rules when you run
the Import Accounting Journal web service.
See Steps: Upload Journals on page 103.
8. Attach Files on Associated Intercompany Journals on page 102.
In the Intercompany Accounting Journal Options section, select the Copy Attachments to
Intercompany Accounting Journals check box to copy file attachments from intercompany
accounting journals to associated child journals.
9. (Optional) From the related actions menu for a manual journal, select 1 of these options:
• Journal > Add Attachment
• Journal > Add/Change Attachment
You can add and edit attachments for accounting journals with a status of:
• Created
• In Progress
• Posted
• Unposted
Security: These domains in the Common Financial Management functional area:
• Process: Journals - Add Attachment
• Process: Journals - Add/Change Attachment

Next Steps
Review journal and recurring journal details.
Use the:
• Find Journals report to view journals to you have access to.
• Find Journal Lines report to view reversal journals with a status of Created.
Related Information
Concepts
Concept: Journal Processing on page 108
Concept: Currency in Accounting Journals on page 110
Tasks
Configure Worktags for Transactions

Create Accounting Journals

• Configure the Accounting Journal Event business process and security policy in the Financial
Accounting functional area.

Context
You can create journals that you post to ledger accounts to record:
• Accrued liability for purchase items that you receive but haven't paid for.
• Depreciation.
• Month-end adjustments.
• Translation adjustments.

Steps
1. Access the Create Journal task.
2. As you complete the journal details, consider:
Option Description
Ledger Select a company that includes 1 of these
ledgers:
• Actuals
• Commitment
• Obligation
You can also use the Ledgers by Company
Hierarchy prompt category to navigate a
company hierarchy and then select the company
ledger.

Currency The company currency used on financial

transactions. Workday populates the field based
on the Ledger that you select.
Balancing [worktag type] Select the worktag that you want to use for
balancing the journal. Workday dynamically
displays the balancing worktag type. Example:
When Region is the balancing worktag type,
Workday displays the option name as Balancing
Region.
Optional Balancing Worktags Select 1 or more optional balancing worktag
types.
When you enable optional worktag balancing on
the Maintain Worktag Balancing Configuration
task, Workday fully balances journal lines by
optional balancing worktags. Journal lines
automatically:
• Inherit optional balancing worktags based on
the worktag types selected.
• Generate due to and due from entries to
balance transactions.

Currency Rate Type Displays when you select the Enable

Multicurrency check box. If you don't specify a
type, Workday uses the Currency Rate Type

Option Description
Override on the Edit Company Accounting
Details task.
Book Code Leave blank to post to the blank book code.
Reset Currency Rate Displays when you select Enable Multicurrency.
Enables you to recalculate ledger amounts in
accounting journals when you save or submit the
journal. Workday recalculates the amount based
on the journal accounting date and currency rate
type.
External Reference ID Enter the reference ID from the original journal
source to track imported journals for auditing
purposes.
You can also enter an external reference ID on
the journal line.

Record Quantity Select to enable quantities and units of measure

on journal lines.
Enable Multicurrency Select to enable the Currency Rate Type
prompt to specify a rate type other than the
default.
Workday selects the Enable Multicurrency
check box based on the last journal submitted.

Include Tax Lines Select to post, view, and edit transaction or

withholding tax details on journal lines with
taxable transactions.
Disable Optional Worktag Balancing Select to create adjusting journal entries for
unbalanced transactions. Example: You enable
optional worktag balancing. In the process
transactions are unbalanced by worktags. You
suspend optional worktag balancing when you
want to create adjusting journal entries for
unbalanced transactions.
Adjustment Journal Select to mark the journal as an adjustment. You
can only post adjusting journals to the period in
which they apply.
Reversal Date Displays when you select the Create Reversal
check box. Select a date that you want to have
the journal entries reversed. The default is the
next open period.
When you configure a reversal for an
intercomapny accounting journal, you can't
perform a settlement run. Workday doesn't display
the intercompany journal as a settlement run
option because the journal and reversal cancel
each other out.

Total Ledger Debits These fields must balance, as Workday doesn't

post unbalanced journals.

Option Description
Total Ledger Credits

Document Link Select the Accounting Journal Document Link

option and enter a valid uniform resource identifier
(URI) patterns from the Maintain External Link
Validation task. This configuration enables you to
link external documents to accounting journals.
If you store supporting documents or images in
an external repository, then enter the URL to that
location. Once you save the transaction, Workday
displays the URL as a live hyperlink to the image.
Approvers can reference this document before
approving the transaction.
Workday validates the link to ensure that it has a
valid Uniform Resource Identifier (URI) pattern,
as defined by your security administrator. This
process provides additional security to help avoid
malicious content in external links.

3. As you complete the Journal Entry Lines tab, consider:

Option Description
Ledger Account Displays the ledger accounts for
the company based on the restricted-to
companies that you configure on the Create
Account Set task.
Worktags Use worktags as keywords to more easily classify
and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.
When you add a new line, Workday
populates the new line with the worktags from the
previously edited line.

Exclude from Spend Report Select to exclude spend accounting lines from
budget checking and spend reports.
Tax Details Displays the amount of withholding or transaction
tax for a journal line if you select the Include Tax
Lines check box.
• Transaction Date
Specify a transaction date for the journal line.
• Tax Code
Select a transaction or withholding tax code.
• Tax Rate
Select an available tax rate based on the
transaction or withholding tax code.

Option Description
• Tax Applicability
Indicates whether the line is taxable and the
specified default tax recoverability.
• Tax Recoverability
When you specify the tax recoverability,
Workday applies the recoverable percentage
and the allocation method to the tax amount
for tax rates within a tax code.
• Tax Recoverability Type
Indicates whether the line is fully recoverable
or nonrecoverable.
• Tax Point Date Type
Select the tax point date type for the specified
transaction date on the journal line. Workday
requires the tax point date type when you
specify a Transaction Tax Code on a journal
line. Workday populates the tax point date type
with theTransaction Date
Enter business entity details for this journal when
a selected supplier or customer doesn't already
have business details in Workday.

Result
When you configure the Accounting Journal Event business process to budget check, Workday checks
that the entered amount is within the budget when you click Submit. If the amount is within the budget,
Workday routes the journal for approval.
Related Information
Concepts
Concept: Journal Processing on page 108
Tasks
Configure Worktags for Transactions
Steps: Configure Business Process Definitions
Attach Files on Associated Intercompany Journals on page 102
Reference
Workday 32 What's New Post: Reset Currency Conversion Rates

Steps: Create Recurring Accounting Journals

Prerequisites
Security: Process: Journals - Core domain in the Common Financial Management functional area.

Context
Create recurring journal templates to generate recurring journals for transactions that you repeat every
accounting period.
Example:
• Accruals.

• Depreciation charges.
• Allocations.
Recurring journals have the same journal lines for the same accounts and amounts. You can apply the
same custom validations you created for the accounting journal.
Workday doesn't apply account segment security to recurring journal templates or when you generate a
recurring journal.

Steps
1. Access the Create Recurring Journal Template task.
2. As you complete the task, consider:
Option Description
Ledger Select a company that includes 1 of these
ledgers:
• Actuals.
• Commitment.
• Obligation.
You can also use the Ledgers by Company
Hierarchy prompt category to navigate to a
company hierarchy and then select the company
ledger.

Enable Multicurrency Select to enable the:

• Currency Rate Type template prompt.
• Reset Currency Rate at Journal Generation
check box.
• Currency and Currency Rate journal line grid
details.

Record Quantity Select to enter quantities and units of measure on

the journal lines.
Template Start Date You can enter a start date that is in the future.
The recurring journal template becomes Available
Template End Date
as of the Template Start Date. You can no longer
select a template after the Template End Date.
Journal Source Displays journal sources that you designated as
an Accounting Source on the Maintain Journal
Sources task.
Currency Rate Type Available when you select the Enable
Multicurrency check box.
By default, Workday uses the Currency
Rate Type Override on the Edit Company
Accounting Details task. If you haven't entered
a default currency rate type for the company,
Workday uses the default currency rate type for
the tenant.

Optional Balancing Worktags Select 1 or more optional balancing worktag types

for balancing the journal or leave blank.

Option Description
When you enable optional worktag balancing on
the Maintain Worktag Balancing Configuration
task, Workday fully balances journal lines by
optional balancing worktags. Journal lines
automatically:
• Inherit optional balancing worktags based on
the worktag types selected.
• Generate due to and due from entries to
balance transactions.

Reset Currency Rate at Journal Generation Available when you select the Enable
Multicurrency option. Select to have Workday
automatically reset to the default currency rate.
Document Link Add the Accounting Journal Document Link
type and a valid uniform resource identifier
(URI) patterns on the Maintain External Link
Validation task. This configuration enables you to
link external documents to accounting journals.
If you store supporting documents or images in
an external repository, then enter the URL to that
location. Once you save the transaction, Workday
displays the URL as a live hyperlink to the image.
Approvers can reference this document before
approving the transaction.
Workday validates the link to ensure that it has a
valid Uniform Resource Identifier (URI) pattern,
as defined by your security administrator. This
process provides additional security to help avoid
malicious content in external links.

Create Reversal Select if you want to create a reversal journal

when you use the template to generate recurring
journals.
3. As you complete the Journal Entry Lines section, consider:
Option Description
Ledger Account Displays only the ledger accounts that are
available for use with the selected Company.
Based on the restricted-to companies you entered
on the Create Account Set or Edit Account Set
tasks.
Worktag Use worktags as keywords to more easily classify
and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.

Exclude from Spend Report Select if you want to exclude spend accounting
lines from budget checking and spend reports.

4. Access the Recurring Journal Generation task to create journals based on recurring journal
templates.
Displays templates with an accounting date that is between the template start and end dates. If you
selected Create Reversal on the recurring journal template, the default Reversal Date is the first day of
the next period.
You can create future-dated recurring reversal journals before a reversal period opens. Workday
assigns a status of Created to future-dated reversal journals.
5. Access the Mass Post Reversal Journals task to post the reversal journals when the reversal period
opens.

Result
Workday verifies any custom journal validations by creating a canceled journal when you submit your
recurring journal template. The canceled journal doesn't affect your general ledger.
Related Information
Tasks
Configure Worktags for Transactions
Attach Files on Associated Intercompany Journals on page 102

Create Translation Adjustment Journals

Prerequisites
• Run a Trial Balance - Composite report to identify accounts requiring translation adjustments.
• Roll forward year-end and translated beginning balances.
• Security: Process: Journals - Translation Adjustment domain in the Financial Accounting functional
area.

Context
You can create translation adjustment journals to eliminate differences in Equity accounts between the
ledger (Base) currency and the translation (Reporting) currency for a company. The differences can occur
due to currency rate fluctuations when posting journals on different dates.

Steps
1. Access the Create Translation Adjustment task.
2. As you complete the task, consider:
Option Description
Accounting Date Workday retrieves beginning balances and journal
transactions entered as of the accounting date
you select.
Translation Currency Select the currency into which you want to
generate an adjustment to the translated
balances.
Ledger Accounts Select accounts requiring translation adjustments.
The prompt only displays accounts translated with
the Historic Equity rate type.
Leave this field blank to retrieve all accounts
translated with the Historic Equity rate type.

Option Description
Workday only displays journal lines on the grid
for both beginning balance journals and journal
entries that match for each combination of ledger
account and worktags.

Create Manual Translation Adjustment Select to create 1 or more translation adjustments

using any combination of allowed worktags for:
• Accounts using historic currency translation
rule sets.
• Balance sheet accounts with or without
beginning balance journals.
• Income statement accounts with beginning
balance journals.
• Income statement accounts without beginning
balance journals when you opt into the
redesigned retained earnings reporting feature.
(Optional) Access the Opt-In to Roll Forward
with Balance Sheet Ledger Account task to
confirm whether you opted in or complete the
opt-in process.

3. Review the journal lines for the beginning balance and journal entries, and then enter an offsetting
amount to adjust the difference in each account.
Example: You have a beginning balance for an Equity account. During the year, you post various
offsetting journals with different currency rates into that account. At the end of the year, you find that
though the ledger balance in the Equity account is zero the translated amount has a credit balance of
300. The difference is due to the different currency rates of the posted journals.
To adjust the translated balance, you enter a translation adjustment of -300 in the Translated Debit
Adjustment column of the Equity account.

Result
Workday displays:
• The translated balance in the Equity account as zero.
• Amount of 300 as translation gain or lost in the Balance Sheet.

Next Steps
Run a Trial Balance - Composite report in the translated currency to confirm that the ending balance in
each account you corrected is zero. You can drill down on the zero balance to review the journal activity.
Related Information
Concepts
Concept: Currency Translation on page 181
Concept: Accounting and Operational Journals on page 108
Concept: Rates, Rate Types, and Conversion on page 26
Reference
2021R1 What's New Post: Redesigned Retained Earnings Reporting

Attach Files on Associated Intercompany Journals

Prerequisites
• Set up financial accounting structure.
• Set up journal sources.

Context
You can attach files on intercompany accounting journals so that Workday can copy them to any
associated child intercompany accounting journal. Displaying the attached files on the child journals
provides associated companies:
• A strong audit trail.
• Increased accountability.
You can also restrict access to the attached files on the child intercompany journals and prevent users in
companies from accessing the attached files.

Steps
1. Access the Edit Tenant Setup - Financials task.
In the Intercompany Accounting Journal Options section, select the Copy Attachments to
Intercompany Accounting Journals check box.
Security: The Set Up: Tenant Setup - Financials domain in the System functional area.
2. Access 1 of these tasks to create an intercompany accounting journal:
• Create Journal
Configure the Accounting Journal Event business process and security policy in the Financial
Accounting functional area.
• Create Recurring Journal Template
Security: The Process: Journals - Core domain in the Financial Accounting functional area.
3. On at least 1 of your Journal Entry Lines, select a company that differs from your header company.
The companies you select are available on the Companies Without Access prompt.
4. Add a file on the Attachments tab.
5. (Optional) Select the companies you don't want to have access on the Companies Without Access
prompt.

Result
Users in companies on associated intercompany accounting journals can view the attached files. You can't
view an attachment if your company is included in Companies Without Access.
Related Information
Tasks
Create Accounting Journals on page 93
Steps: Create Recurring Accounting Journals on page 97
Reference
Workday 31 What's New Post: Copy Attachments on Intercompany Accounting Journals

Steps: Upload Journals

Context
Use Enterprise Interface Builder (EIB) to upload accounting journal data from a spreadsheet. When
successfully completed, the upload automatically triggers the Accounting Journal Event business process.
Select the Automatically Complete option when you prepare the spreadsheet to have Workday:
• Complete approvals automatically.
• Bypass reviews and To Do tasks.
• Skip Notifications in the Accounting Journal event business process.
After you successfully upload journals into Workday, you can view the journals by accessing the Find
Journals report.

Steps
1. Set Up Inbound EIB.
Enter Import Accounting Journal at the Template from Web Service Operation prompt.
2. From the related actions menu of the integration system for the upload, select Template Model >
Generate Spreadsheet Template.
To maintain the correct spreadsheet format, don't change the .xml file extension.
Security: These domains in the Integration functional area:
• Integrations: EIBs
• Integration Configure
• Integration Event
3. Customize EIB Spreadsheet Template.
To customize the template, edit the template model of the EIB.
4. Set Up EIB Spreadsheet.
Enter business data into the spreadsheet.
5. Launch EIB Spreadsheet Upload.
Confirm that you are in a security group that has these permissions:
• Access to the Import Accounting Journal web service initiating action in the Accounting Journal
Event business process.
• Modify permission on the Integrations: EIBs domain and either the Integration Build or Integration
Event domain.
If you have enabled suspense processing, Workday applies the suspense processing rules when you
run the Import Accounting Journal web service.
Related Information
Concepts
Concept: Enterprise Interface Builder

Configure Suspense Account Rules

Prerequisites
Security: Set Up: Accounting Rules domain in the Common Financial Management functional area.

Context
Configure suspense account rules for use with the Import Accounting Journal web service.

Steps
1. Access the Create Suspense Account Rule task.
2. As you complete the task, consider:
Option Description
Account Set You can only use 1 suspense account rule for an
account set.
Ledger Account The default ledger account that you want to post
the suspense amount to.
Workday recommends that you don't use ledger
accounts that are restricted to a company.

Balancing Worktag The default required balancing worktag type that

you want to use on journal entries. Configure the
required balancing worktag type on the Maintain
Worktag Balancing Configuration task.
Optional Balancing Worktags The default optional balancing worktag types that
you want to use on suspense journal entries.
Configure up to 5 optional balancing worktag
types on the Maintain Worktag Balancing
Configuration task.
If you no longer use an optional balancing
worktag type, you must remove it from the
suspense account rule.

Required Worktags Use worktags as keywords to more easily classify

and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.
Select 1 or more default Required Worktags that
are different from the Balancing Worktag and
Optional Balancing Worktags.
Example: Cost Center is the default required
worktag. You can't select Cost Center as the
Balancing Worktag or Optional Balancing
Worktag.
If you no longer use a required worktag type, you
must remove it from the suspense account rule.

Result
When you click Submit, Workday validates that the worktags you selected for the suspense accounting
rule are allowed or required, based on your worktag configuration.
When you run the Import Accounting Journal web service, Workday posts journal entries to the suspense
account when they are:
• Unbalanced.
• Missing ledger accounts.

• Missing worktags.
Workday creates new journal lines for entries that meet the suspense rule criteria. On the View Journal
report, the Suspended Journal Line column displays the number of suspended lines in the journal that
don't meet the suspense account rules. Click the number to review details for each suspended line.
Use the View Suspense Account Rule report to find and update suspense account rules.

Example
On the Maintain Journal Sources task, the Finance Administrator for Global Modern Services (Ireland)
enables suspense processing for these accounting journal sources:

Field Value
Enable Suspense Processing for Web Service Accrual Journal
Intercompany Journal

Suspense Threshold Percent For both: 50

The accountant sets up the suspense account rules on the Create Suspense Account Rule task using
these values:

Field Value
Rule Name IRE-Suspense Account Rule
Account Set Corporate
Ledger Account 1100:Suspense
Required Worktags Cost Center

When the accountant runs Import Accounting Journal web service, Workday applies the suspense
accounting rules:
• Suspense processing completes if up to 50% of the journal lines are in error. When journal line errors
exceeded 50%, then suspense processing stops. For the Intercompany Journal Source, 51% of the
journal lines are in error. Only 20% of the journal lines for the Accrual Journal Journal Source are in
error.
• For the journal lines that are in error, Workday posts the suspended amount to the 1100:Suspense
Ledger Account.
• On the View Journal report, the accountant clicks the number in the Suspended Journal Line column
to view the details.
• In the details for the suspended journal line, the accountant sees that the Required Worktags for Cost
Center is missing.

Next Steps
On the Maintain Journal Sources task, Enable Suspense Processing for Web Services and enter the
Suspense Threshold Percent for accounting journal sources.

Steps: Set Up Financial Accounting Adjustments

Context
You can set up accounting adjustments to help you reclassify and transfer transaction spend for these
settled financial transactions:
• Expense reports.

• Procurement card transactions.

• Fully or partially paid supplier invoices, excluding supplier invoices for lease-type supplier contracts.
• Supplier invoice adjustments.
You can also adjust the accounting on billable project worktags and project transfers for these transactions:
• Expense reports.
• Supplier invoices.
• Supplier invoice adjustments.
Accounting adjustments enable you to process reclassifications without needing to create manual
accounting journals.

Steps
1. (Optional) Configure Questionnaires and Questions.
Configure a questionnaire to capture supporting information about the adjustment.
2. Edit Business Processes.
Configure the Accounting Adjustment Event business process in the Financial Accounting functional
area.
If you configure a questionnaire, add the Complete Questionnaire step to the Accounting Adjustment
Event business process. Workday recommends that you attach only 1 questionnaire.
3. Edit Business Process Security Policies.
Configure security policies for the Accounting Adjustment Event business process in the Financial
Accounting functional area.
4. Create Journal Sources on page 91.
5. Access the Maintain Journal Source Mapping to Operational Transactions task.
Map the Accounting Adjustment journal source to the accounting adjustment journal entry source.
Security: Set Up: Journal Source domain in the Common Financial Management functional area.
6. Access the Maintain Accounting Adjustment Change Reason Codes task.
Create change reasons.
Security: Set Up: Accounting Adjustment Change Reason Code domain in the Financial Accounting
functional area.
Related Information
Tasks
Create Amortization Schedules and Installments for Prepaid Supplier Invoices from Accounting
Adjustments on page 1380

Create Financial Accounting Adjustments

Prerequisites
• Set up financial accounting adjustments.
• Security: These domains in the Financial Accounting functional area:
• Manager Reports: Accounting Adjustment
• Process: Accounting Adjustment

Context
You can create an accounting adjustment to reclassify costs on these settled financial transactions:
• Expense reports.
• Procurement card transactions.

• Fully or partially paid supplier invoices, excluding supplier invoices for lease-type supplier contracts.
• Supplier invoice adjustments.
You can also create accounting adjustments on billable project worktags and project transfers for these
transactions:
• Expense reports.
• Supplier invoices.
• Supplier invoice adjustments.
Once you create an accounting adjustment, you can't edit it.

Steps
1. Select Accounting > Adjust Accounting from the related actions menu on the transaction.
Workday disables the Prepaid check box when you create an accounting adjustment on a billable
project worktag transaction or adjustment from a project transfer.
2. As you complete the task, consider:
Option Description
Proposed Budget Date Select to change the budget date of the
transaction.
Proposed Spend Category Select to reclassify a spend category on a
transaction.
You can’t reclassify the spend category when the
spend category is associated with a purchase
item or expense item.

Proposed Adjustment Worktags Select the worktags that you wish to use to adjust
the transaction.
Prepaid Select to reclassify supplier invoices to prepaid.
When you reclassify a prepaid supplier invoice,
you can't create another accounting adjustment
for that transaction line.
You also can't create new accounting adjustments
for an invoice line when you reclassify a supplier
invoice line to prepaid.

Billable Select to charge spend transactions back to a

customer. You can't reclassify:
• A procurement card transaction to a billable
project.
• A transaction that's both billable and prepaid.

Prepaid Amortization Type Select a prepaid amortization type of Manual or

Schedule when you reclassify a prepaid supplier
invoice.
Workday populates the prepaid amortization type
options from existing supplier invoice lines.

Result
When you approve the adjustment transaction, Workday:

• Records the accounting adjustment date.

• Links to the accounting adjustment and identifies the adjusted lines on the Accounting Adjustment tab
of the original transaction.

Next Steps
Cancel an In Progress accounting adjustment by selecting Accounting Adjustment > Cancel from the
related actions menu on the accounting adjustment. You can't cancel approved accounting adjustments,
however, you can cancel a settlement run for an operational transaction to cancel all related accounting
adjustments.
Related Information
Tasks
Create Amortization Schedules and Installments for Prepaid Supplier Invoices from Accounting
Adjustments on page 1380

Concept: Accounting and Operational Journals

There are 2 types of journals in Workday:
• Accounting journals: The journals that accountants create manually for accounting purposes. Workday
doesn't automatically tie these journals to transactions.
• Operational journals: The journals that Workday creates automatically for operational transactions that
you enter through the various Workday transaction tasks.

Reversals
You can generate reversal journals in Workday when you change or cancel an approved operational
transaction or when you reverse a posted accounting journal. The reversal journals provide a complete
audit trail of the journal entries. They enable you to comply with legal requirements in countries where you
can't modify or cancel a posted journal.
Workday creates reversals of accounting or operational journals when you select 1 of these options at the
tenant level on the Edit Tenant Setup - Financials task:
• Always Reverse Accounting and Accounting Center Summary Journals
• Always Reverse Operational and Noncontrolling Interest Journals
When you enable the reversal of accounting journals, Workday displays the Reverse option on the related
actions menu of posted accounting journals. Otherwise, Workday displays the Unpost option.
Workday provides a Reverse Journals task that you can use to reverse a journal not marked for automatic
reversals.
Example: You forget to select the Create Reversal check box when creating a journal. You access the
Reverse Journal task to reverse the missed journal.
Note: Workday strongly recommends using the Reverse option on the related actions menu of posted
accounting journals for all other journal reversal needs to ensure data integrity as the Reverse Journal
task bypasses approvals.
Related Information
Tasks
Steps: Process Accounting Journals on page 92
Steps: Set Up and Update Journal Sources on page 62

Concept: Journal Processing

Workday Financial Management automates the accounting resulting from business operations. Based
on accounting policies and rules defined by your accounting and control team, Workday automatically
generates accounting for:

• Commercial transactions
• Intercompany
• Allocation
• Depreciation
• Accruals
• Reversals
Through an intuitive journal entry facility, Workday also accepts accounting generated in third-party
systems or spreadsheet uploads.
Journal processing provides the framework for flexible maintenance of manual accounting activity and
period adjustments.

Journal
You must have the appropriate security permissions to the ledger account on the accounting journal.
You can enter journals manually or upload them. You can enter journals for month end adjustments,
depreciation, translation adjustments, or to record accrued liability for purchase items that you receive but
not paid. You can automatically reverse journal entries for accruals.
For commitment or obligation journals, you can have Workday roll forward the accounting date to the first
date of the next open period upon plan approval. Select the Roll Journal Forward for Procurement
check box on the Create Ledger task.
You can create reversal journals on or after the accounting date. If the accounting period isn't open,
Workday creates a journal in Created status. When the reversal period opens, use the Mass Post
Reversal Journals task to post the reversal journals. You can only post intercompany reversal journals if
all companies in the journal have the period open.
You can select Edit from the related actions menu of a journal that hasn't posted to correct errors.
You can select Delete from the related actions menu of a journal that you've created but not posted or
submitted for approval.
Note: You can't delete a journal in Created status if it was copied from another journal.
You can select Correct from the related actions menu of the business process event to correct a posted
journal. The option to correct a posted journal isn't available when you enable the reversal of accounting
journals.
Workday creates journals behind the scenes for operational transactions and uses posting rules to interpret
the business events into debits, credits, and accounts.
Workday posts journal entries to a ledger defined for each company.

Budget Check for Accounting Journals

To configure an accounting journal for budget check, you configure the Accounting Journal Event business
process with the Check Budget (Financial) business process. Workday budget checks the journal at the
initiation step, approval step, or both to ensure that the amount is within the budget.
Once configured, Workday performs a budget check when you:
• Submit an accounting journal for approval. If the journal doesn’t pass the budget check, modify the
amount or request an override from the budget manager.
• Approve an accounting journal.
If the journal doesn’t pass the budget check, you can take one of these actions:
• Send the request back.
• Modify the amount.
• Request an override from the budget manager.

Workday also automatically validates worktags during the budget check.

Journal Statuses
This table lists permitted activities during each journal status:

Activity Journal Available for Journal Posted Journal Canceled

Posting
Create Journal No No No
Edit Journal Yes No No
Post Journal Yes No No
Unpost Journal No Yes No
Cancel Journal Yes No No
Copy Journal Yes Yes Yes

Recurring Journals
Recurring journals are journals you create on a regular basis. They have the same journal lines for the
same accounts and amounts. You can create future-dated recurring reversal journals. When the reversal
period opens, use the Mass Post Reversal Journals task to post the reversal journals.

Journal Reports
Workday provides a number of standard reports to help you manage journals. For a list, access Workday
Standard Reports and select the Financial Accounting category.
Related Information
Tasks
Steps: Set Up Journal Sequencing on page 121
Steps: Maintain Access to Ledger Accounts on page 75
Steps: Process Accounting Journals on page 92
Steps: Upload Journals on page 103
Steps: Configure Budget Checking for Spend Transactions on page 453

Concept: Currency in Accounting Journals

Workday provides multicurrency capabilities for accounting journals. Accounting journals enable you to
record accounting data not associated with operational transactions manually. When you create accounting
journals, you can:
• Use the company currency only.
• Use foreign currencies for the journal lines.
You also have the same capabilities when you set up journal templates for use when creating accounting
journals.
When you use the Create Journal task to enter foreign currency accounting journals, Workday converts
the journal lines to the company currency to create the ledger currency amount. You can override the
exchange rate and ledger currency amounts, as necessary. If there are rounding differences in the ledger
currency, adjust the ledger amounts.
For intercompany journals where the companies have different currencies, you must have all journal lines
in the same currency.

Related Information
Concepts
Concept: Multicurrency on page 24
Tasks
Steps: Process Accounting Journals on page 92

Concept: Valid Company and Cost Center Combinations

You can restrict cost centers to specific companies on the Create Cost Center task. When you restrict
cost centers, Workday only displays cost centers associated with the company you select on the Worktags
prompt. This prompt behavior applies to these tasks:
• Edit Journal
• Create Journal
• Create Recurring Journal Template
Workday also supports valid company and cost center combinations at the line and header level on
operational journals. Workday puts the journal in Error status when it meets these 3 conditions:
• The journal contains invalid company and cost center combinations.
• The cost center is the primary or optional balancing worktag.
• The transaction is an intercompany transaction.
Use the Fix Operational Journals with Errors task to review and correct the journals to post them.
Related Information
Concepts
Concept: Accounting and Operational Journals on page 108
Tasks
Create Accounting Journals on page 93
Steps: Create Recurring Accounting Journals on page 97
Set Up Nonsupervisory Organizations
Reference
FAQ: Journal Errors on page 111

FAQ: Journal Errors

How do I correct an unposted journal? Select Edit from the related actions menu of the
journal.

How do I cancel an unposted journal that I Select Cancel from the related actions menu of the
created in error? unposted journal.

How do I correct a posted journal? Select Correct from the related actions menu of
the business process event. The option to correct a
posted journal isn't available when you enable the
reversal of accounting journals.

Can I correct a posted journal with a journal Yes, but keep these guidelines in consideration:
sequence number?
• You can't change the Journal Source.
• You can't change the journal amount.
• You can only change the accounting date to a
date within the period on the journal.

How do I cancel a posted journal in an open Select Unpost from the related actions menu of the
ledger period? posted journal to unpost and then cancel.

How do I cancel a posted journal in a closed Leave the original journal posted and create a
ledger period? reversing journal in the next open ledger period.

How do I view errors for a journal? Select Journal Entry > Fix Operational Journal
Errors from the related actions menu of the journal.

How do I view and edit custom validation errors Select Journal Entry > Edit Journal (Errors Only)
on journal lines? from the related actions menu of the journal.

Troubleshooting: Financial Journals

This topic provides strategies for diagnosing and resolving these accounting journal problems:
• No available ledger periods to post upcoming operational journals. on page 112
• No account posting rule set associated with company. on page 113
• Journal line missing ledger account. on page 114
• Journal line assigned invalid ledger account. on page 115
• Unable to post created journals. on page 115
• Journal copied when not submitted or saved for later. on page 116

No available ledger periods to post upcoming operational journals.

You’re generating operational journals for an upcoming date, but no ledger period exists to post for that
date.

Cause Solution
Ledger period isn’t open or not created for the 1. Access the Create Ledger Year and Ledger
operational journal. Periods task.
Create ledger periods for the applicable ledger
and fiscal year selected.
Security: Set Up: Ledger and Book domain in
the Common Financial Management functional
area.
2. Access the Update Ledger Period Status task
for the applicable ledger period for the company.
Set the Status of the period of the posting date
to Open.
Security: Process: Period End domain in the
Common Financial Management functional
area.
3. Access the Fix Operational Journals With
Errors task.
Select the operational journals with errors that
you want to post.
Security: Process: Audits and Corrections
domain in the Financial Accounting functional
area.

Cause Solution
The fiscal period isn't available or not created for 1. Access the Update Ledger Period Status task
that date. for the applicable ledger period for the company.
Set the Status of the period of the posting date
to Open.
Security: Process: Period End domain in the
Common Financial Management functional
area.
2. Access the Fix Operational Journals With
Errors task.
Select the operational journals with errors that
you want to post.
Security: Process: Audits and Corrections
domain in the Financial Accounting functional
area.

No account posting rule set associated with company.

No account posting rule sets display when you try to post a journal.

Cause Solution
No Account Posting Rule Set assigned to the 1. Access the Edit Company Accounting Details
company. task for the company.
Assign an Account Posting Rule Set to the
company.
Security: Set Up: Company Accounting
domain in the Common Financial Management
functional area.
2. Access the Fix Operational Journals With
Errors task.
Select the operational journals with errors that
you want to post.
Security: Process: Audits and Corrections
domain in the Financial Accounting functional
area.

No default ledger account associated with the 1. Access the View Account Posting Rule Set
account posting rule types on the account posting report.
rule set assigned to the company.
Select the account posting rule set assigned to
the company.
Security: Set Up: Accounting Rules domain in
the Common Financial Management functional
area.
2. Click Edit Default Ledger Accounts.
For each account posting rule, assign the
correct default ledger account.

Cause Solution
3. Access the Fix Operational Journals With
Errors task.
Select the operational journals with errors that
you want to post.
Security: Process: Audits and Corrections
domain in the Financial Accounting functional
area.

Journal line missing ledger account.

At least 1 of the lines on a journal you posted is missing a ledger account.

Cause Solution
The operational transaction doesn't match any of 1. Access the View Account Posting Rule Set
the condition rules for the account posting rules, report.
and you haven't assigned a default ledger account.
Select the account posting rule set assigned to
the company.
Security: Set Up: Accounting Rules domain in
the Common Financial Management functional
area.
2. Click Edit Default Ledger Accounts.
Assign the correct default ledger account.
3. Select the account posting rule type and click
Edit Posting Rule.
Add the missing condition rule.
4. Access the Fix Operational Journals With
Errors task.
Select the operational journals with errors that
you want to post.
Security: Process: Audits and Corrections
domain in the Financial Accounting functional
area.

You haven't assigned an account posting type to 1. Access the View Account Posting Rule Set
the Retained Earnings account posting rule. report.
Select the account posting rule set assigned to
the company.
Security: Set Up: Accounting Rules domain in
the Common Financial Management functional
area.
2. Click Edit Default Ledger Accounts.
Assign the correct default ledger account to the
Retained Earnings account posting rule type.
3. Edit the Retained Earnings account posting
rule type.
Add the missing condition rule.

Cause Solution
4. Access the Fix Operational Journals With
Errors task.
Select the operational journals with errors that
you want to post.
Security: Process: Audits and Corrections
domain in the Financial Accounting functional
area.

Journal line assigned invalid ledger account.

At least 1 journal line has a ledger account that isn't valid for use with the selected company.
Cause: The selected company doesn't have a configured ledger account.
Solution: Assign a valid ledger account to the company.

Steps
1. Access the View Account Posting Rule report.
Select a ledger account that's available for use with the company.
Set Up: Accounting Rules
2. Access the Fix Operational Journals With Errors task.
Select the operational journals with errors that you want to post.
Security: Process: Audits and Corrections domain in the Financial Accounting functional area.
Solution: Configure the ledger account to accept the company.

Steps
1. Access the Edit Account Set task.
Add the selected company to the Restricted To Companies for the ledger account.
Security: Set Up: Accounts domain in the Common Financial Management functional area.
2. Access the Fix Operational Journals With Errors task.
Select the operational journals with errors that you want to post.
Security: Process: Audits and Corrections domain in the Financial Accounting functional area.

Unable to post created journals.

Can't post journals that are in Created status. Only available action is copy.

Cause Solution
You saved the journal for later and need to submit 1. Configure the Process: Journals - Core domain
for approval. in the Financial Accounting functional area.
2. Access the Find Journals report to find the
journal in Created status.
3. Submit the created journal to start the business
process and receive approval.
4. When the reversal period opens, use the Mass
Post Reversal Journals task to post the
reversal journals you created with a future date.

Cause Solution
You've created a reversal journal on or after the During the close process you must decide on 1 of
accounting date. these options for the reversal journal:
• Cancel.
• Delete.
• Leave in Created status.

Journal copied when not submitted or saved for later.

Cause: You select Journal > Copy from the related actions menu of the journal, enter the header details,
and select Cancel after you progress to the Edit Journal task. Workday creates the journal in Created
status when you enter header information and click OK.
Solution:

Steps
1. Access the Find Journals report to find the journal in Created status.
Security: Process: Journals - Reporting domain in the Financial Accounting functional area.
2. From the related actions menu of the journal, select Journal > Delete Journal.
Security: Process: Journals - Core domain in the Financial Accounting functional area.

Journal Sequencing

Setup Considerations: Journal Sequencing

You can use this topic to help make decisions when planning your configuration and use of journal
sequencing. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Journal sequencing enables you to provide gapless, sequential identifiers to journals in 1 or more ledger
year or ledger period. Journal sequencing uses sequence generator rule configurations to create sequence
generators. Workday then generates and assigns sequence numbers to accounting journals using those
sequence generators.

Business Benefits
Journal sequencing helps you meet statutory reporting requirements for numbered, unique identifiers on
accounting journals. Countries with statutory reporting requirements, such as SAF-T, require these journal
line numbers to assist with auditing the financial accounts of their organizations.

Use Cases
You might want to configure journal sequencing when you operate in countries that require sequential line
numbers for your journals. Journal sequencing enables you to assign sequence numbers to your journals
by accounting date or posting date.

When you set up your sequence generators, you can configure it to sequence journals across these time
frames:
• Ledger period
• Ledger year
• Continuously over many ledger periods and years.
You can also configure sequence generators to help you organize or differentiate your journals by including
details like transaction types or fiscal periods with the sequence format string.

Questions to Consider

Questions Considerations
Do you operate in a country with statutory reporting Various countries have statutory requirements
requirements that require regular audits? that mandate journal numbering to assist with
audit trails around financial accounting. Workday
helps you meet those requirements through journal
sequencing.
Do you anticipate a need to reset your journal line Continuous sequence generators don't reset the
number back to the beginning? sequence number to the initial value. If you foresee
a need to reset your journal line number regularly,
consider sequencing by ledger year or ledger
period.
Do you need to unpost journals? When you sequence by posting date, the journal
retains its sequence number even if you unpost and
repost. Workday doesn't resequence this journal
under any circumstances.
When you sequence by accounting date, the
journal retains its sequence number when you
unpost the journal. However, Workday sorts and
resequences the period when you repost the
journal. Resequencing assigns a new journal
number to reposted journals if you cancel or add
journals in the date range the sequence generator
covers.

Do you need to sequence intercompany journals? Workday assigns sequence numbers to

intercompany journals if the respective companies
enable sequencing. Workday doesn't use the same
sequence generator for those companies. You can,
however, create sequence generators using the
same sequence generator rule configuration.
Example: The header company on the journal
enables journal sequencing. The line company
doesn't. Workday sequences the journal for the
header company, but not the line company. If the
header and line companies both enable journal
sequencing, Workday sequences the journal for
both companies. However, because the sequence
generator differs for the line company, Workday
sequences journals of the line company using a
different sequence format string.

Questions Considerations
Do you need to sequence consolidation elimination Workday assigns sequence numbers to
journals? consolidation elimination journals if the companies
you're calculating noncontrolling interest (NCI) for,
enable sequencing.
If you don't want journal sequencing, you can
create a separate sequence generator for
consolidation elimination journals by creating
a sequence generator condition rule for the
Noncontrolling Interest Transaction Type.

Do you need a sequence generator that only The Book prompt on your sequence generator
sequences specific books? rule configuration determines the journals Workday
sequences. Workday sequences journals that share
a book code with the book you select. If you don't
specify a book, Workday sequences all journals in
the company.
Do you need to change or alter the lifespan or rule If you want to alter the lifespan or rule configuration
configuration of your sequence generator after use? of your sequence generator, you must create
and configure a new sequence generator for the
next fiscal year. Changes you make to the rule
configuration only apply to new generators. You
can't have posted journals for that year and all
ledger periods can't be open.
Do you need to implement journal sequencing in You can implement journal sequencing for a
the middle of a fiscal year? company after the start of a fiscal year under these
circumstances:
• Your company has never configured journal
sequencing.
• The ledger periods of the fiscal year aren't open.
• You haven't posted journals that are on or after
the sequencing start period.
• No sequence generators exist for the company.
You can also configure your sequence generator to
begin from a specific sequence start number. If you
use the rule configuration for another generator,
that generator also begins at that start number.
Workday therefore doesn't recommend that you
specify a start number if you want to use the rule
configuration on a ledger year or period basis.

How do I create sequence numbers for Workday automatically assigns sequence

consolidation journals? numbers to consolidation elimination journals if
the companies you're calculating NCI for support
sequencing.
You can create a separate sequence generator
for consolidation journals by adding a sequence
generator condition rule for the Noncontrolling
Interest transaction type.

Recommendations

Functionality Considerations
Sequencing by accounting date or posting date The sequencing method you select determines
when and how Workday assigns sequence
numbers to your journal. You can't change the
sequencing method of a sequence generator after
creation. Workday recommends that you consider
which sequencing method best applies to your
statutory requirements and audit structure.
If you want to sequence by accounting date,
consider that Workday:
• Assigns sequence numbers to journals and
reversal journals when you close your ledger
period.
• Resequences the journals in the current and
subsequent closed periods when you cancel,
post, and unpost.
If you want to sequence by posting date, consider
that Workday:
• Assigns sequence numbers when you post the
journal.
• Doesn't resequence the journal under any
circumstances.
• Assigns the next available sequence number to
reversal journals.

Disabling journal sequencing Workday recommends that you don't enable journal
sequencing if you don't anticipate using it in later
years. You can only disable journal sequencing for
a company if:
• You haven't used sequence ID generators to
assign a sequence number to any journals.
• You’ve deleted all sequence ID generators.

Replacing or deleting sequence generators Carefully review your sequence generator rule
configurations before you submit. You can only
replace sequence generators that aren't currently
in use. You can only delete sequence generators
that are completely unused. If you want to replace
or delete a generator, the associated ledger years
or periods must also have 1 of these statuses:
• Closed
• Created
• Not Available

Sequence format strings The sequence number Workday assigns to a

sequenced journal can include any additional
information you want to convey, such as the:
• Transaction type.
• Fiscal year or fiscal period.

Functionality Considerations
Workday recommends that you avoid duplicate
sequence numbers by providing additional details
on the sequence format, such as the fiscal year or
period.

Requirements
Enable the Common Financial Management functional area.
Ensure that the ledger periods you want to sequence are in these statuses:
• Closed
• Created
• Not Available
Opt in to journal sequencing by selecting the Enable Journal Sequencing check box on the Edit
Company ID Definitions task.

Limitations
Workday supports journal sequencing for actuals ledger types and not commitment and obligation ledger
types.

Tenant Setup
No impact.

Security
Configure these domains for journal sequencing:

Domains Considerations
Set Up: Company General Users secured to this domain can configure
sequence generator rules and create sequencing
groups that apply a code to sequenced journals.
You also need this domain to opt in to journal
sequencing and create or delete the journal
sequence generators.
Set Up: Ledger and Book Users secured to this domain can create ledger
years and periods. You can only apply a sequence
generator after you create and then open ledger
years or ledger periods.
Process: Period End Users secured to this domain can open and close
ledger periods. You can only apply a sequence
generator to ledger years or periods with an open
status.

Business Processes
No impact.

Reporting
Workday doesn't deliver standard reports that display the journal sequence number. If you want to display
the journal sequence number, add Journal Sequence Number to a report from the Journal Entry
business object.

Integrations
You can use these Workday Web Services for journal sequencing:

Web Services Considerations

Get Accounting Journal Retrieves all information associated with your
accounting journals, including assigned sequence
numbers.
Get Sequence Generator Rule Configuration Retrieves all information associated with your
sequence generator rules. Enables you to view the
configurations on your sequence generators, such
as format strings and sequencing method.
Put Company You can update company details and enable
journal sequencing using this web service.
Put Sequence Generator Rule Configuration Creates sequence generator rule configurations.
Enables you to create many configurations at once.

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Other Impacts
No impact.
Related Information
Concepts
Concept: Journal Processing on page 108
Tasks
Steps: Set Up Journal Sequencing on page 121
Configure Journal Sequence Generator Rules on page 123
Enable Journal Sequencing for a Company on page 126
Create Journal Sequence Generators on page 127

Steps: Set Up Journal Sequencing

Prerequisites
• Create Ledgers. Set up ledgers for the companies you want to use journal sequencing.
• To create sequence ID generators for the accounting journal transaction type, set up journal sources on
the Maintain Journal Sources task.
• Security: Set up: Company General domain in Common Financial Management functional area. See
Steps: Set Up Security Permissions.

Context
You can configure Workday to assign unique journal sequence numbers to accounting and operational
journals for the actuals ledger. Workday can apply journal sequence numbers to journals based on
accounting date or posting date. You can use journal sequence generators to help you comply with global
auditing standards.

Steps
1. (Optional) Access the Maintain Journal Sequencing Groups task.
You can create journal sequencing groups in your local language to organize, filter, and report on
journals.
You can set a unique Journal Group Code to identify a type of journal or transaction that you want
Workday to group. Example: If you want to sort supplier invoices in your journal sequencing report, you
can create a SUPINV journal group code to represent supplier invoice journals.
2. Configure Journal Sequence Generator Rules on page 123.
Configure default and condition rules for generating sequence ID generators.
3. Create, but don't open the ledger years and periods for the company.
To enable journal sequencing, the journal sequence Start Period and all subsequent periods must:
• Be in Created, Closed, or Not Available ledger period status.
• Have no posted journals from the specified start period.
See: Steps: Create and Open Ledger Years and Periods on page 68.
4. Enable Journal Sequencing for a Company on page 126.
5. Create Journal Sequence Generators on page 127.
Create unique sequence ID generators for companies based on the:
• Rules and conditions you configured on the Create Journal Sequence Generator Rule
Configuration task.
• Ledger years, periods, or continuous configuration you selected.

Result
When you post journals, Workday automatically assigns each a journal sequence number that displays in
the Journal Sequence Number field when you view or edit journals.
When you process journals, Workday assigns them these journal sequence numbers:

Journal Entry Order Journal Source Journal Sequence Number

1 Customer Invoice 2015-Apr-0001
2 Manual Journal 2015-Apr-0002
3 Supplier Invoice SupInv-2015-Apr-001
4 Supplier Invoice SupInv-2015-Apr-002
5 Manual Journal 2015-Apr-0003

Next Steps
Process accounting journals.
Related Information
Concepts
Concept: Journal Processing on page 108

Tasks
Create Ledgers on page 66
Reference
Workday 31 What's New Post: Journal Sequencing by Accounting Date

Configure Journal Sequence Generator Rules

Prerequisites
• Create Ledgers. Set up ledgers for the companies you want to use journal sequencing.
• Create Journal Sources.
• Security: Set up: Company General domain in Common Financial Management functional area.

Context
You can assign numbers to journals through journal sequencing, enabling you to comply with global
auditing standards. Workday assigns these numbers based on rules you configure for sequence
generators.

Steps
1. Access the Create Journal Sequence Generator Rule Configuration task.
2. As you complete the header, consider:
Option Description
Sequence By Select the sequencing method you want to
use. Your selection determines when Workday
sequences your journals, and in what order.
• Accounting Date: Sequences your posted
journals based on the accounting date.
Workday initiates sequencing when you close
your ledger period. Workday only sequences a
ledger period again if you make changes after
reopening the period, as when you unpost or
cancel a ledger period.
• Posting Date: Sequences your posted journals
based on the posting date. Workday assigns a
sequence when you post your journal.

Sequence Generator Lifespan Select the time period you want Workday to use
for journal sequencing numbers.
Continuous enables Workday to provide
continuous journal sequencing. Continuous
sequencing uses the same sequence ID
generator and format string across many ledger
years.
For Ledger Period and Ledger Year, Workday
restarts the sequence at the end of the sequence
generator lifespan.
Once a sequencing generator assigns a
sequence number to a journal, you can't:
• Disable journal sequencing for the company.

Option Description
• Change the sequencing configuration options.
You can still edit the format strings.
You can only change the sequence ID generator
for future years if:
• There are no posted journals.
• Periods aren't in Open status.

Book Leave the Book prompt blank to apply the

sequence rules to all journals in the company.
Select a book on the prompt to apply the
sequence rules to all journals with book codes in
the selected book.
3. As you complete the Default Sequence Generator Rule section, consider:
Option Description
Transaction Type Workday populates all operational and accounting
journals. You can enter Sequence Generator
Rule Conditions to configure unique sequence
format strings for specific transaction types.
Journal Group Code (Optional) Select a journal sequencing group
that you created on the Maintain Journal
Sequencing Groups task.
You can use journal sequencing groups to more
easily organize and report on journals.

Sequence Start Number Enter the number you want to begin sequencing
with. Use this field if you used a different ID
generation system and want to continue from
where the ID ended.
Sequence Padding Enter the minimum number of digits you want to
use in journal sequence numbers. You can use
padding to help Workday sort journal sequences
when you generate reports.
Example: When you enter a Sequence Padding
value of 3:
• Sequence number 1 displays as 001.
• Sequence number 4321 displays as is.
• Workday sorts the numbers 1, 2, and 10 as 01,
02, 10 instead of 1, 10, 2.

Sequence Format String Enter any text you want Workday to include
with the sequence number. You can also enter
these bracketed string constant patterns to have
Workday automatically insert text:
• [f] inserts the fiscal year number.
• [ff] inserts the fiscal year name.
• [pp] inserts the fiscal period name.
• [seq] inserts the next sequence number.

Option Description
Include [seq] in the format string for any
configuration.
When you select Ledger Year as the sequence
generator lifespan, the format string can include:
• [f]
• [ff]
When you select Ledger Period as the sequence
generator lifespan, the format string can include:
• [f]
• [ff]
• [pp]
When you select Continuous as the sequence
generator lifespan, the format string can only
include [seq].
You can configure sequence format strings to
ensure that Workday doesn't duplicate sequence
numbers across multiple generator lifespans.
Example: You set the sequence generator
lifespan to Ledger Period and enter the
sequence format string JRNL-[f]-[pp]-[seq]. By
including the period name, you avoid duplicate
sequence numbers, such as 2 journals numbered
JRNL-2019-1.

4. (Optional) Enter the condition rules that refine the default sequence ID generator rule. As you complete
the Sequence Generator Rule Conditions section, consider:
Option Description
Transaction Type If you select more than 1 operational transaction
for the rule condition, Workday generates 1 ID
generator for multiple transaction sources.
Accounting Journal Source Displays when you select Accounting Journal as
the Transaction Type. Leave blank to select all
accounting journal sources.
If you select transaction types and an accounting
journal for the same rule, Workday uses all
accounting journal sources.

Sequence Start Number Refine the Default Sequence Generator Rule for
each condition rule.
Sequence Increment
Example: To have Workday use a different
Sequence Padding
sequence generator ID for customer invoices, you
Sequence Format String must:
• Enter a condition rule with a Sequence
Format String that uses the CustInv prefix for
supplier invoices.
• Enter a Sequence Start Number of 300 for
customer invoices.

Result
You can now enable journal sequencing for a company so that you can create journal sequence
generators.
You can edit your rule configuration to add or delete conditions.

Example
This example illustrates how you can configure the Create Journal Sequence Generator Rule
Configuration task. For the 2015-Apr ledger period:
Default Sequence Generator Rule Values

Field Value
Sequence Start Number 1
Sequence Padding 4
Sequence Format String [f]-[pp]-[seq]

Sequence Generator Rule Conditions

Field Value
Transaction Type Supplier Invoice
Journal Group Code SUPINV
Sequence Start Number 1
Sequence Padding 3
Sequence Format String [f]-[pp]-[seq]

Next Steps
• Enable journal sequencing on the Edit Company ID Definitions task.
• Create sequence ID generators on the Create Journal Sequence Generators task.
Related Information
Tasks
Steps: Create and Open Ledger Years and Periods on page 68
Reference
Workday 31 What's New Post: Journal Sequencing by Accounting Date

Enable Journal Sequencing for a Company

Prerequisites
• Set up the company for which you want to create sequence ID generators.
• Set ledger periods you want to sequence to Available, Created, or Closed status.
• Security: Set up: Company General domain in Common Financial Management functional area.

Context
• Enable a company to use journal sequencing.
• Apply or define sequence ID generator rules and conditions.

Steps
1. Access the Journal Sequence Settings tab on the Edit Company ID Definitions task for your
company.
2. As you complete the tab, consider:
Option Description
Enable Journal Sequencing Select to enable the Journal Sequence
Generator Rule Configuration and the
Sequence Start Period fields.
Once you post a journal that uses a sequencing
number, you can no longer disable journal
sequencing for the company.

Sequence Generator Rule Configuration Select or create a sequence ID generator rule.

Access the Create Journal Sequence Generator
Rule Configuration task to define sequence ID
generator rules and conditions.
Sequencing Start Period Select the current or a subsequent ledger period.
Workday creates ID generators for all periods
from the selected period.
• The sequencing start period and all ledger
periods after the sequencing start period can't
have posted journals and must be in 1 of these
statuses:
• Closed
• Not Available
• Created

Create Sequence ID Generators with New Select to have Workday generate ID generators
Ledger Years when you create ledger years or periods.

Once you enable journal sequencing for the company, you can only disable it if:
• You haven't used any ID generators.
• You've deleted all ID generators.
Access the Mass Delete Journal Sequencing Generators task to delete all unused ID generators.
You can only delete generators when you haven't used a generator to add journal sequence numbers
within a fiscal year.

Next Steps
Create journal sequence ID generators.
Related Information
Tasks
Steps: Set Up Companies on page 56

Create Journal Sequence Generators

Prerequisites
• Enable journal sequencing for your company or company hierarchy.
• Security: Set Up: Company General in the Common Financial Management functional area.

Context
You can create journal sequence ID generators to assign a unique journal sequence number to posted
journals for the actuals ledger. Journal sequence IDs enable you to comply with global auditing standards.

Steps
1. Access the Create Journal Sequence Generators task.
2. As you complete the task, consider:
Option Description
Companies or Company Hierarchies For company hierarchies, Workday only
generates journal sequence numbers for the
companies within the hierarchy that you've
enabled journal sequencing for.
Replace Unused Generators Select to have Workday replace the existing
sequence ID generators for ledger years that
haven’t used sequence ID generators. Workday
then creates a new sequence ID generator.
You can't replace a sequence ID generator that is
or was in use.

Create Continuous Sequence Generator Select to create or replace a continuous sequence

generator. You can replace a continuous
sequence generator if the ledger periods or ledger
years:
• Aren't open.
• Don't have a posted journal.

Result
Workday uses the sequence ID generators to assign sequences to journals based on the configured
sequencing rules.

Next Steps
Process accounting journals and create operational journals.
Related Information
Concepts
Concept: Journal Processing on page 108
Tasks
Steps: Process Accounting Journals on page 92

Concept: Journal Sequencing

You can enable journal sequencing for a company and define the sequence generator rules. Workday uses
the sequence generator rules to create sequence ID generators for unique, sequential, and gapless journal
sequence numbers. Workday derives the sequence ID generators based on the source and accounting
period of the journal.
You can sequence journals by Accounting Date or Posting Date. This sequencing method determines
when Workday sequences your journals, and in what order.

Accounting Date sequences your journals when you close a ledger period and sequences them based
on the accounting date. For journals with an accounting date on the same day, Workday sequences the
journals based on the business document sequence IDs, and then the transaction type.
Example: You create 3 journals with an accounting date of 11/06/2017. Workday sequences the journals
based on the business document sequence IDs:
• SUPINV-001
• SUPINV-002
• SUPINV-003
If the business document sequence IDs are undefined, Workday sequences by transaction type:
• Customer Contracts
• Payroll
Posting Date sequences your journals when you post the journals based on the posting date.
To enable journal sequencing, the journal sequence Start Period and all subsequent periods:
• Must be in Created, Closed, or Not Available ledger period status.
• Have no posted journals from the specified Start Period.
You can only disable journal sequencing for a company if:
• You haven't used sequence ID generators to assign a sequence number to any journals.
• You’ve deleted all sequence ID generators.

FAQ: Journal Sequencing

What happens to reversal journals when I change my journal sequencing method?
Workday uses the new sequencing method to sequence the reversal journal when you change your
sequencing method.

Journal Insights

Steps: Set Up Journal Insights

Prerequisites
Note: You must subscribe to Innovation Services to use this feature. Contact your Customer Success
Manager to request the Innovation Services Addendum (ISA), or see Workday Innovation Services in the
Workday Community for more information.
• At least 12 months of historic journal line data must exist on your tenant.
• Configure these security policies for the Innovation Services functional area:
• Manage: Innovation Services
• View: Innovation Services

Context
Journal Insights enables you to close accounting periods with greater efficiency and confidence. The
innovation service uses machine learning to identify these errors and anomalies and recommend
alternatives:
• Missing or unusual combinations of worktags.
• Amount anomalies.
• Ledger account errors.

• Line company errors.

Steps
1. Access the Innovation Services and Data Selection Opt-In report.
The report lists all the innovation services available. Click the link to view additional information for each
innovation service, security exhibit, and the data processing exhibit.
a) In the Innovation Service Opt-In tab, under Available Services > Financials, select the
Financials: Financial Management Machine Learning GA Features service check box.
b) In the Maintain Innovation Services Data Selection Opt-In tab, under Financials: Financial
Management Machine Learning GA Features, select the Opt In check box for the Journal Line
Data category to contribute data for Machine Learning.
c) In the Summary tab, you can verify the innovation services available and opted into. You can also
view the data contribution opt-in for various categories.
Security: Manage: Innovation Services domain in the Innovation Services functional area.
2. (Optional) Access the Run On-Demand Machine Learning Activation for Implementation Tenant
task to set up testing on Implementation Tenants.
After setting up the task, it can take up to 2 weeks to view the machine learning feature functionality in
your tenant. Then, you have 2 weeks to complete testing.
Note: Workday recommends using a Preview tenant to test this functionality because compared to
Implementation tenant, you have unlimited time to test. Also, you can more easily enable Financials
machine learning.
3. (Optional) Access the Edit Tenant Setup - Machine Learning task. Select the region in which
Workday hosts data contributed to the Machine Learning Development Environment (MLDE). The
default region for the MLDE is the U.S.
Security: Set Up: Tenant Setup - Machine Learning in the System functional area.
4. Edit Domain Security Policies.
Set up these security domains in the Financial Accounting functional area:
• Process: Journal Insights
• Reports: Journal Insights
5. Access the Edit Business Process Security Policy task and configure security policy permissions for
the Journal Insights Feedback Event business process type in the Financial Accounting functional area.
You can configure these actions for the Journal Insights Feedback Event business process:
• Dismiss Journal Line Anomalies
• Report Errors To Journal Insights
• Confirm Journal Line Anomalies
• Confirm/Dismiss Similar Journal Line Anomalies
See:
• Steps: Configure Business Process Definitions.
• Edit Business Process Security Policies.
6. Access the Create Business Process Definition (Default Definition) task and set up the new Journal
Insights Feedback Event business process.
Related Information
Tasks
Create Accounting Journals on page 93
Reference
The Next Level: Journal Insights: Journal Anomaly Detection for a Faster, More Accurate Period Close

Confirm and Dismiss Journal Line Anomalies

Prerequisites
• Set up Journal Insights.
• Configure these actions on the Journal Insights Feedback Event business process:
• Dismiss Journal Line Anomalies
• Confirm Journal Line Anomalies

Context
The Journal Insights report enables you to:
• Review detected journal line anomalies.
• Use the Anomaly Reasons prompt to filter journal line anomalies by the specific reason that Journal
Insights believe a journal line is anomalous. Filtering by Anomaly Reason, gives you increased visibility
as to why Journal Insights believes a journal line is anomalous. You can then make a more informed
decision to correct, confirm, or dismiss the anomaly.
• Create any journals that you need to correct or adjust the worktags on the journal line.
You can also use the Journal Insights report to provide feedback on Journal Insights by confirming and
dismissing journal line anomalies as errors.
Workday recommends that you use the prompt filters on the Journal Insights report to filter out general
ledger accounts or time periods that seem less relevant to you.

Steps
1. Access the Journal Insights report.
2. As you select the prompts, consider:
Option Description
Worktags Select 1 or more Worktags to filter by specific
Worktags.
Journal Insights will retrieve all journal lines with
the selected Worktags.
Note: If you select more than 1 Worktag, each
journal line must have all the Worktags that you
specify.

Anomaly Reasons Select a specific reason to filter all anomalies:

• All Reasons: Select by:
• Custom organizations
• Ledger account
• Line company
• Specific worktags, including custom
worktags
• Reason by Category: Select to filter journal
lines by either:
• Credit Amount
• Debit Amount
Journal Insights will flag debit and
credit amounts as anomalous if they're
significantly higher or less than journal lines

Option Description
with similar attribute. You can either select
a credit amount or debit amount or both.
• Ledger Account
• Line Company
You can select either an incorrect ledger
account or line company or both.
• Worktags: Select a single worktag or
multiple worktags.
When you don't select any option in the prompt,
Workday retrieves all journal line anomalies.
Example: You select Business Unit - 100 for the
Worktags prompt and select Cost Center for
the Anomalies Reason prompt. Journal Insights
will retrieve all journal lines that it thinks has an
anomalous cost center whenever the Business
Unit -100 worktag is used on a journal line.

3. Click OK.
The Priority tab displays journal line anomalies that Workday believes are most relevant for you to take
action. Workday recommends that you regularly review the journal lines on the All tab to help improve
the accuracy of journal line anomalies.
4. Access the ledger account you want to review.
5. To act upon anomalies, select the journal line anomalies.
The Priority column indicates whether the anomaly is a priority. If the column is blank, the anomaly isn’t
a priority.
The Anomaly Reason column displays the anomaly reason for each journal line. You can filter and sort
the column by anomaly reason. Filtering and sorting on the column enables you to refine your search
further.
The Recommendation column provides recommendations for anomalous Worktags, debit and credit
amounts, and ledger account on a journal line.
Sometimes, the Recommendation column might be left blank. This is because Journal Insights might
not have a recommendation as what makes a journal line anomalous.
The Current Worktags column:
• Displays all current Worktags that currently exists on the journal line.
• Highlights the 1 Worktag that Journal Insights believes is causing the Journal Line to be anomalous.
6. (Optional) Select Similar Lines Feedback to view feedback you have historically given on similar
journal line anomalies. This feedback:
• Gives you visibility of similar journal lines that you’ve confirmed or dismissed as anomalies.
• Provides you guidance on how you can classify the particular journal line.
Note: If you haven't provided any previous feedback for the journal line, Workday won't display the
Similar Lines Feedback button.
The Similarity Criteria section displays the criteria Workday uses to identify a similar journal line based
on the journal line you’re viewing.
You can click Close to go back to the Correct and Dismiss Journal Line Anomalies task.

7. (Optional) Create a reclassification journal that corrects or adjusts those journal lines.
The reclassification journal that you create with the Create Journal button reverses the anomalous
journal line and posts a new journal line with the correct worktags.
Creating the reclassification journal from the Journal Insights report also links the correcting journal
and the corrected journal. Workday doesn't create this link when you create a reclassification journal
outside the Journal Insights report.
8. Confirm or dismiss the journal line anomaly as an error.
9. Click Submit.
10.(Optional) Click Confirm/Dismiss Similar Journal Line Anomalies.
The Confirm/Dismiss Similar Journal Line Anomalies task displays similar journal lines to the one
you confirmed or dismissed.
11.( Optional) To confirm or dismiss the journal lines, review the journal lines, and either select all or select
individual journal lines.
You can review journal line anomalies that you correct, confirm, or dismiss on the Journal Line
Anomalies By Ledger Account report.

Result
When you confirm, correct, or dismiss a journal line anomaly, we remove the journal line from the Journal
Insights report.
We also retain the feedback that you provide to Workday to train and improve the Journal Insights machine
learning model:
• When you confirm or correct a journal line anomaly, Journal Insights will in the future, detect, and
display more of the same or similar journal line anomalies.
• When you dismiss a journal line anomaly, Journal Insights will in the future, display less of the same or
similar journal line anomalies.
Related Information
Tasks
Create Accounting Journals on page 93
Reference
2022R1 What's New Post: Journal Line Anomaly Feedback
2022R2 What's New Post: Journal Line Anomaly Reasons
2023 R1 What's New Post: Journal Line Anomaly Based on Amounts

Statistics

Steps: Upload Statistics

Context
Use the Enterprise Interface Builder (EIB) to load statistics into Workday from a spreadsheet. The upload
enables you to add new statistics or update existing statistics. You can use statistics as the basis for
allocations, as well as for reporting based on:
• Statistics
• Statistic Lines report data sources
After you successfully upload statistics into Workday, you can view them by accessing the View Statistic
report.
Instead of delivering a predefined spreadsheet template for uploading statistics, Workday enables you to
generate and customize a spreadsheet template based on the Put Statistic web service operation. To bring

statistics into Workday, use these steps to set up the EIB interface, generate the spreadsheet, and launch
an upload.

Steps
1. Set up the EIB upload process.
See Set Up Inbound EIB.
2. Generate and modify a spreadsheet template for the upload.
See Customize EIB Spreadsheet Template.
3. Launch the upload and verify the results.
See Launch EIB Spreadsheet Upload.
Related Information
Concepts
Concept: EIB Template Models and Spreadsheet Templates
Reference
The Next Level: Statistic Ledger Accounts vs Statistic Definitions

Define Statistic Types

Prerequisites
• Create accounting ledgers.
• Create plan structures.
• Security: Set Up: Statistics domain in Common Financial Management functional area.

Context
Statistic definitions establish the statistic types, business dimensions, and ledgers or plan structures to
base statistics upon. Dimensions could include regions, cost centers, or custom dimensions such as
stores.

Steps
1. Access the Create Statistic Definition.
2. As you complete the task, consider:
Option Description
Statistic Type Select:
• Activity for statistics that change from period
to period, such as number of customers or
number of units sold. The statistic amount
is either the period activity or the activity for
multiple periods.
• Balance for statistics that don't often change,
such as facility square footage or number
of campuses. Workday uses the period
end balance as the statistical amount and
uses the last period with a balance for basis
calculations.
• Percent for fixed percentages that include
allocated charges or marketing plans. Workday
uses the period end balance as the statistical
amount.

Option Description
Required Dimensions Select 1 or more worktags.
Workday automatically populates worktags
identified by administrators as required on the
Maintain Worktag Usage task. Primary worktag
types display as standalone columns on the
Create Statistic task.
These rules apply for required worktag
dimensions. You can't:
• Remove worktags that are required on the
Maintain Worktag Usage task.
• Remove worktags that are in use by a statistic.
• Reclassify Required Dimensions as Optional
Dimensions.
• Delete a required dimension after you've
added it to a statistic definition.

Optional Dimensions (Optional) Select 1 or more worktags that aren’t in

use as a required dimension. You can configure
Optional Dimensions that:
• Use worktags.
• Are blank.
You can reclassify Optional Dimensions as
Required Dimensions.
Ledger/Plan Structure Associate the statistical values with either 1 or
more ledger types or 1 or more plan structures,
but not a combination of both.
Include Company Sets the company as a required field on the
statistic.
Example: When you want to specify companies
on statistics for intercompany allocations.

Used by Allocations Click the number to view details on the allocations

using the statistic definition.

Result
Use the statistic definitions to create statistics. Workday applies the dimensions and statistics when
processing allocations and financial reports.

Next Steps
Specify values for the statistics using the Create Statistic task.
Related Information
Reference
The Next level: Statistic Ledger Accounts vs Statistic Definitions

Enter Statistic Values

Prerequisites
• Create a statistic definition.
• Security: Process: Statistics domain in the Common Financial Management functional area.

Context
Use the statistic type definitions to define the period and company or worktag combinations from which to
draw statistic values.

Steps
1. Access the Create Statistic task.
2. As you complete the task, consider:
Option Description
Statistic Definition Select the statistic definition with the statistic type
and dimensions that are required for the statistic.
Ledger/Plan Structure You can associate the statistical values to 1
or more ledger types or plan structures. If you
selected ledger types and plan structures on the
statistic definition, you can select values for either
a ledger (actuals) or plan.
Only the plan structures with matching worktag
dimensions are available for selection.
Select ledger types to include statistics for actuals
in financial, custom, or composite reports. Select
plan structures for plan statistics in custom or
composite reports.

Period Lists fiscal periods that don't have a statistic.

Required Dimensions Displays worktags for the dimensions you entered
Optional Dimensions on the statistic definition. You define which
worktags display as stand-alone columns or
within the Additional Worktags column on the
Maintain Worktag Usage task.

Values Total Financial reports display actual or plan statistic

line values by selected period. You can also use
statistic line values as an allocation basis.
3. Enter dimension values in the Statistic Values grid.
The fields that display in the grid are determined by the worktag types administrators set up on the
Maintain Worktag Usage task. Primary worktag types display as standalone columns in this grid.
Option Description
Company If you selected the Include Company check
box on the statistic definition, you must enter a
company for each statistical value row.
Plan Name For custom plan structures, you can specify a
plan name on each statistic line. Unique plan
names enable you to enter different statistical

Option Description
values for each plan using the custom plan
structure.
Additional Worktags Use worktags as keywords to more easily classify
and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.
Select from the list of additional worktags for the
optional and required dimensions you entered on
the statistic definition. Select 1 worktag for each
required dimension. You can only use a worktag
as an optional dimension or a required dimension,
but not both.
When you restrict cost center or supplier to
specific companies, Workday displays only the
cost centers and suppliers associated with the
company.

Result
• Allocations: Workday allocates source amounts based on the statistic values across the dimensions.
Example: You can allocate costs to each store based on sales by division (dimension).
Workday allocates source funds and prorated amounts to a target account and worktag combination based
on the statistical values. You can:
• Report on statistics, such as plans versus actuals, across the various dimensions in financial reports.
• Report key performance indicators (KPIs) for your business, such as customer attrition by store or
region.
• Record statistics in ledgers to enhance reporting or use them in allocations.
• Set up allocations using an allocation definition that specifies a statistic definition.
• Create an actuals versus plans report including statistic values or calculations with statistics.
• Create a financial statement with the statistic definition as part of the financial statement definition.
To add new statistics or update existing statistics in Workday, use the Enterprise Interface Builder (EIB).
Related Information
Concepts
Concept: Allocations on page 153

Allocations

Setup Considerations: Allocations

You can use this topic to help make decisions when planning your configuration and use of allocations. It
explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.

• Security requirements and business process configurations.

• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Allocations is a financial process that enables you to:
• Distribute ledger activity from 1 organization to another.
• Assign costs within the same company or across companies.
When you process allocations, Workday creates operational journals to record the allocations on the
ledgers.

Business Benefits
You can:
• Maintain more flexibility and greater control over accounting results.
• Perform complex allocations automatically by defining arithmetic calculations, reducing time and
manual effort.
• Apply reusable filter conditions to your source or basis ledger transactions, to improve configuration and
allocation performance.

Use Cases
An account manager or financial analyst can:
• Distribute IT costs over all cost centers based on headcount.
• Group allocations by worktag, reducing the number of allocation definitions you need to configure. This
saves you time when you manage large amounts of data during close.
• Allocate marketing expenses to regions based on revenue per region.

Questions to Consider

Questions Considerations
What can you do in Workday if your basis, such as Create a statistic definition so you don't have to
headcount, is a statistic? create 1 retrospectively when you're creating your
allocation definition.
What kinds of sources do you have? Are there any You can filter your allocation definitions so that you
you want to exclude from the allocations? only include the sources and basis that you need.
You can specify:
• Fixed rate amounts.
• Fixed source amounts.
• Ledgers.
• Plan structures (for budgets).

What kind of basis types do you have? You can calculate proration for:
• Headcount, using percentages.
• Ledger accounts.
• Statistic values.

Recommendations
To process allocations faster:
• Create a statistics definition with a value of 100% and use that as your basis so that Workday can
bypass searching every combination of ledger account.
• Display no more than 50,000 result lines to reduce the number of allocation calculations.
• Map only the worktags that you need to the target and offset to save yourself manual effort, in addition
to reducing processing time.

Requirements
If you want to select a:
• Headcount basis type, create a headcount definition.
• Fixed percent pro rata basis type, create a statistic definition with a statistic type of Percent.

Limitations
You can only:
• Allocate from budget plan structures when the budgets are approved and no longer in a draft state.
• View up to 10,000 lines on a statistic without needing to export it.
• Configure up to 53 allocation downstream dependencies when you schedule or mass finalize
allocations unless you configure group sets to be dependent on each other.

Tenant Setup
You can group allocations by the fiscal periods on budget dates.

Security
In the Financial Accounting functional area:

Domains Considerations
Process: Allocations Users can process allocations.
Set Up: Allocations Users can create allocation definitions that specify
the:
• Basis.
• Offsets.
• Sources.
• Targets.

Business Processes

Business Process Considerations

Allocation Run Event in the Financial Accounting Enables you to run allocations across a company.
functional area. Workday sets the allocation status to Pro Forma.
For allocations that result in a journal, the event
also creates a pro forma journal.

Allocation Run Intercompany Event in the Financial Enables you to run allocations across multiple
Accounting functional area. companies. The event creates a pro forma
intercompany journal for each company.

Business Process Considerations

Budget Amendment Event and its security policy in Enables you to create draft budget amendments for
the Budgets functional area. allocations.

Reporting
• The Find Allocations report displays allocation results.
• The Allocation Work Area report provides detailed information for month end processing.

Integrations

Web Services Considerations

Get Allocation Definitions Enables you to fetch allocation definitions or
allocation group sets.
Get Allocation Group Sets

Get Financial Condition Rules Retrieves existing financial condition rules.

Put Allocation Definition You can:
Put Allocation Group Set • Export data to XML files and reconfigure
allocation definitions and allocation group sets
before resubmitting the web services.
• Use a unique reference ID to either overwrite
existing allocation definitions or allocation group
sets or create new allocation definitions or group
sets.

Put Financial Condition Rule You can:

• Export data to XML files and reconfigure
financial condition rules before resubmitting the
web service.
• Use a unique reference ID to either overwrite
existing financial condition rules or create new
rules.

Connections and Touchpoints

Workday amends your budgets to reflect your allocations.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Allocations on page 153
Reference
Workday 29 What's New Post: Arithmetic Calculations on Allocation Definitions
Workday 30 What's New Post: Filtering in Allocation Definitions
The Next Level: Allocations Basics
The Next Level: Resource Guide for Allocations Troubleshooting and Performance
The Next Level: Statistic Ledger Accounts vs Statistic Definitions
Examples
Example: Set Up the Journal Lines by Allocation Report on page 155

Steps: Set Up Allocations

Prerequisites
• Review setup considerations for allocations.
• Define Statistic Types.
You can use statistics as the basis for allocations in allocation definitions by defining statistic types and
entering statistic values.
• Security: Set Up: Allocations and Process: Allocations domains in the Financial Accounting functional
area.
• Configure the Allocation Run Event and Allocation Run Intercompany Event business processes and
security policies in the Financial Accounting functional area.
• Configure the Allocation Finalize Event and Allocation Finalize Intercompany Event business processes
and security policies in the Financial Accounting functional area.
• For allocations resulting in a budget amendment:
• Add the Initiate Budget Amendment Event service step to the Allocation Finalize Event business
process.
• Configure the Budget Amendment Event business process and security policy in the Budgets
functional area.

Context
Set up allocations for an organization to automate the distribution of costs or other ledger amounts for
either actuals or budgets.

Steps
1. (Optional) Access the Edit Tenant Setup - Financials task and select the Group Allocations by
Budget Date check box in Budget Options.
You can opt in to group allocations by the fiscal periods on budget dates. When you select this check
box, Workday displays a budget date column in these tabs on the allocation results:
• Offset
• Source
• Target
See Reference: Edit Tenant Setup - Financials.
2. Create Allocation Definitions on page 142.
3. Group Allocation Definitions on page 148.
4. After you save allocation group sets, select Update Dependencies from the related actions menu of
the allocation group set to access the Update Allocation Group Set Dependencies task.
5. Test Allocations on page 149.

Result
For a list of allocations-related reports, access Workday Standard Reports and select the Set Up
Financial Accounting category.
Related Information
Concepts
Concept: Allocations on page 153
Tasks
Steps: Process Allocations on page 150

Reference
The Next Level: Statistic Ledger Accounts vs Statistic Definitions

Create Allocation Definitions

Prerequisites
Security: Set Up: Allocations domain in the Financial Accounting functional area.

Context
Allocation definitions specify the source, basis, target, and offset of allocations. For faster processing,
group related allocation definitions into allocation group sets.
To display worktag types, ensure that you've defined them for accounting journal transactions in the
Maintain Worktag Usage report.
Note: Workday doesn't automatically assign related worktags. Select where your worktags are from in the
Target section.

Steps
1. Access the Create Allocation Definition task.
As you complete the sections, consider:
Option Description
Currency Rate Type Select the rate type to use for translating
multicurrency allocations between companies.
Account Set Select the ledger accounts and business calendar
for the allocation definition.
Fiscal Schedule

Used By Select the source companies for this allocation.

Use the allocation definition across companies
that share account sets and fiscal schedules. The
allocation process generates separate results for
each company that uses the allocation definition.
Create Reversal Select to create reversal journal entries on the
first day of the next period. Workday creates
reversing entries after you initiate the Run Mass
Finalize for Allocations task. Before you run the
allocations process, you can change the reversal
date to a date after the run date in the next fiscal
period. Workday posts the reversal journal when
the ledger period for the selected date opens.
You can't create reversal journal entries for
budget amendments.
When you rerun allocations with reversals,
Workday doesn't reuse existing reversal journals,
but creates new ones.

Used in Group Set Displays after you add the definition to a group
set.
Optional Balancing Worktag When you enable optional worktag balancing on
the Maintain Worktag Balancing Configuration

Option Description
task, Workday fully balances journal lines by
optional balancing worktags. Journal lines
automatically:
• Inherit optional balancing worktags based on
the worktag types selected.
• Generate due to and due from entries to
balance transactions.

Inactive Select when the allocation definition isn't ready for

use or to discontinue use. The definition can't be
part of an allocation group set or have unfinalized
or uncanceled allocation results.
2. In the Source section, specify the source amounts to allocate.
As you complete the section, consider:
Option Description
Source Type See Reference: Source Types on page 158.
Allocation Percent Select what percentage of the ledger amounts
from the source journal lines to allocate.
Workday automatically populates 100 for all
source types. For Fixed Rate Amount or Fixed
Source Amount, Workday restricts the allocation
percent to 100.

Fixed Amount Enabled only when you select Fixed Source

Amount or Fixed Rate Amount. For:
• Fixed Source Amount, enter the total amount
you want to allocate.
• Fixed Rate Amount, enter the rate you want to
apply to a specified fixed charge.

Ledger/Plan Structure Select whether to allocate amounts from actuals

or a financial plan. You can select from financial
plan structure types that enable amendments.
You can group budget dates from actuals, but not
from financial plans.

Book Code Filter the source journal lines used in the

allocation by a specific book code. You can't filter
plans by book code.
If you don't select a book code, Workday returns
only transactions with blank book codes.

Ledger Account / Ledger Account Summary You can select retired accounts as the source,
but not for your target and offset allocation
components.
The allocation process takes activity only, whether
you select a balance sheet or income statement
account. It also summarizes activity when the

Option Description
group set that contains the allocation definition is
for a summary period.
When the source type is a plan structure, you
can filter only on source ledger summaries if the
related plan structure contains a ledger summary
hierarchy level.
Workday only groups budget dates if the Source
Filter Conditions grid displays values.

Worktags The allocation process treats worktags of:

• Different types as an AND condition. Example:
Cost center and region.
• The same type as an OR condition. Example:
Western region or eastern region.

Financial Condition Rule You can select a financial condition rule for ledger
or plan structure source types, enhancing your
filtering capabilities.
3. In the Basis section, define how to distribute the source amounts.
As you complete the section, consider:
Option Description
Ledger/Plan Structure Select whether to distribute the source amounts
based on actuals or a financial plan. You can
select from financial plan structure types that
enable amendments.
Allocation Method Select a methodology for distributing allocated
amounts.
See Reference: Allocation Methods on page
158.

Basis Type See Reference: Basis Types on page 159.

Dimension Select the worktag or value used to calculate the
basis percentages. Example: Calculate proration
by cost center, region, or any other worktag or
worktag combination. You can only map worktags
specified as dimensions in the target from basis.
We support up to 3 dimensions when using the
Spread Even allocation method. Don't specify
more than 3, as additional dimensions can result
in unexpected results.

Group By Select up to 5 worktag types to group the

allocation definition.
You can't select a worktag type if you've already
selected 1 on the Dimension field.
If you specify a worktag type, it must be the same
as the worktag type you select on the Target field.

Option Description
Financial Condition Rule You can select a financial condition rule for ledger
accounts basis types, enhancing your filtering
capabilities.
A condition rule is a method of checking specified
values with logical comparison operators
and consists of 1 or more logical statements,
separated by the logical operators AND or OR.

Translation Currency Select the account translation currency Workday

will use for prorating multiple actuals ledger
accounts. Select a translation currency if you're
prorating more than 1 actuals ledger accounts.
Account Translation Rule Set Select the currency translation rule set that
Workday will use during proration of multiple
actuals ledger accounts.
4. In the Target section, define where to record the journal entry or budget amendment for the allocated
amounts.
As you complete the section, consider:
Option Description
Ledger/Plan Structure Select whether to allocate to actuals or plan. You
can select from financial plan structure types that
enable amendments. Selection of a plan structure
limits target account and worktag mapping to its
allowable accounts, account summaries, and
worktags. The plan structure for the offset is
automatically the same as the target.
You can group budget dates from actuals only.

Budget Amendment Type Select the type of amendment to create, such

as original or allocation amendment, to help
you identify the budget amendment later on for
reporting.
Company is from The company where you want to record the
target journal entry. You can only create a budget
amendment for the source company.
• Source: Records to the same company
that you specified in the Source section
of the allocation definition. The source of
any allocation can come only from a single
company. If more than 1 company uses the
allocation definition and the target Company
is from is the same as the source, Workday
allocates the costs within each company.
• Basis: For proration, this option enables you
to set basis companies as the target using
the values from the Company column on the
Basis Filter Conditions grid.
• User Specified: Select to specify the target
company in the Company field. You can select

Option Description
from the companies that you’ve defined as
intercompany affiliates to the source company.
Note: If the target company isn't from the source,
the allocation process generates an intercompany
accounting journal.

Ledger Account is from The accounts where you want to record the target
journal entry or budget amendment.
• Source: Record to the same ledger accounts
that you specified in the Source section of the
allocation definition.
• User Specified: Summarize the allocated
amounts and record to a single ledger account
that you specify in the Ledger Account field.

Ledger Account If you select Source or User Specified from the

Company is from and Ledger Account is
from fields, the Ledger Account field displays
ledger accounts that are valid for the specified
companies.
When you restrict ledger accounts to specific
companies, Workday only validates the company
and ledger account combinations when you select
OK to submit the allocation definition.

Book Code To redistribute and account for activity in a

particular book code, select the book code to
post the journal lines resulting from the allocation
to. You can use a different book code than the
ones in your allocation source and basis. Book
code isn't available for budget amendment.
Worktag Mapping Use to include 1 or more worktags in the target
journal entry or budget amendment for the
allocation. For each Worktag Type that you
include, specify whether you want to use:
• The same worktag values as the Source
section.
• The same worktag values as the Basis section.
• A User Specified worktag value that you select
in the User Entered Value field.
When you restrict cost center or supplier to
specific companies, Workday only validates
the company and cost center or supplier
combinations when you click OK to submit the
allocation definition.
If you can't find a worktag, ensure that the
worktag type is defined for usage with Accounting
Journal in the Maintain Worktag Usage report.

5. In the Offset section, define the balancing side of the allocation accounting to relieve the source of the
amounts allocated.
For the offsetting journal entry and budget amendment, the allocation process can use either the same
company as the source (set in the Used By field) or you can select an alternative company, which
reduces the number of intercompany journal lines that you produce and eliminates the need to maintain
multistep intercompany allocations.
As you complete the section, consider:
Option Description
Company is from The company where you want to record the offset
journal entry or budget amendment.
• Source: Records to the same company
that you specified in the Used By section
of the allocation definition. The source of
any allocation can come only from a single
company. If more than 1 company uses the
allocation definition and the offset Company
is from is the same as the source, Workday
allocates the offset within each company.
• User Specified: Select to specify the offset
company in the Company field.
Note: You can only select a company that has
the same currency as your source company.

Ledger Account is from The accounts where you want to record the offset
journal entry or budget amendment.
• Source: Record to the same ledger accounts
that you specified on the Source Filter
Conditions grid.
• User Specified: Summarize the allocated
amounts and record to a single ledger account
that you specify in the Ledger Account field.

Ledger Account In the Ledger Account is from field, if you select

User Specified, you can select a specific ledger
account for the company.
Worktag Mapping Use to include 1 or more worktags in the offset
journal entry or budget amendment of the
allocation. For each Worktag Type that you
include, specify whether you want to use the
same worktag values as the Source section or a
User Specified worktag value that you select in
the User Entered Value field.
When you restrict cost center or supplier to
specific companies, Workday only validates
the company and cost center or supplier
combinations when you click OK.

Result
Use the new allocation definitions in an allocation group set. Revised allocation definitions produce
updated results when run.

If your allocation definition produces more than 50,000 journal lines, Workday recommends that you split
the allocation definition.

Next Steps
Group allocation definitions into sets for processing and to establish interdependencies.
Related Information
Tasks
Create Business Process Condition Rules
Configure Worktags for Transactions
Reference
Workday 2021R1 What's New Post: Companies on Allocation Offsets
The Next Level: Allocations Basics
The Next Level: Resource Guide for Allocations Troubleshooting and Performance

Group Allocation Definitions

Prerequisites
• Create Allocation Definitions.
• Security: Set Up: Allocations domain in the Financial Accounting functional area.

Context
By grouping allocation definitions, you can:
• Run allocations for a particular company and time frame (monthly, quarterly, annually).
• Set interdependencies between allocations within and between groups so that they run in order.
• Monitor allocation processing in an organized manner.
You can't change the details of an allocation group set that has pending allocations. Cancel or finalize
pending allocations before changing these settings.

Steps
1. Access the Create Allocation Group Set task.
2. As you complete the Details section, consider:
Option Description
Time Frame Workday uses your selection to determine the
time frames available for processing allocation
definitions in a group set.
Ledger/Plan Structure You can select 1 or more plan structures that you
specified as targets in your allocation definitions.
Inactive Workday limits you to 1 active allocation group set
for each allocation definition.
Allocation Definitions Included in Group If your allocation group set is active, you can only
select an allocation definition that isn't already in
use by another allocation group or group set for
the same company.

Example
You want to include facilities costs as part of your marketing costs before allocating those marketing
costs to sales. Create an allocation group set, and make the Marketing Cost to Sales allocation definition
dependent upon the Facilities allocation definition.

Next Steps
Test allocations.
Related Information
Tasks
Schedule Allocation Runs on page 151

Test Allocations

Prerequisites
• Ensure your allocation definitions are in allocation group sets. See Group Allocation Definitions.
• Security: Process: Allocations domain in the Financial Accounting functional area.

Context
You can test your allocation definitions to ensure that your allocation methodologies produce the expected
results.
Note: When you test your allocation definitions, you won't post any journals to the ledger.

Steps
1. Access the View Allocation Definition report.
2. From the related actions menu of an allocation definition, select Allocation Definition > Test
Allocation.
3. As you complete the task, consider:
Option Description
Company Select from the companies that use this allocation
definition.
Ledger Period Select the time range for which you want to
test the allocation definition. For the selected
Ledger Year
company, available options depend on the time
Summary Interval frame of the allocation group set that contains the
selected allocation definition.
4. After the process completes, click the Allocation magnifying glass in the Allocations to be Processed
grid to view the allocation results.
5. As you review the report, verify:
Option Description
Source Details Click to view the source transaction that the
allocation process used for its allocation
calculation. You can also view the total amount
and percent that the process allocated to the
target journal lines or budget amendment.
Basis Details To see how the allocation processes allocated
amounts, click to view the basis settings. You

Option Description
can also see the amounts used in the basis
calculation.
Target The resulting journal lines or plan lines created
by the allocation. Displays the debit or credit
amounts by target ledger account and worktags
that the allocation process redistributes from the
source amounts.
Offset The journal line or plan line debit or credit
amounts by ledger account and worktags, which
offset the amounts from the target.
Source Displays the debit and credit amounts that the
allocation process allocates to the target journal
lines. It displays by source ledger account and
worktags.
The source transaction journal lines or plan lines
that the allocation process used as the pool for its
allocation calculation.

Basis The amounts the allocation process used in its

basis calculation, grouped by ledger account and
worktag combination.

Result
Workday saves the allocation results as Draft and doesn't generate a journal or budget amendment.

Next Steps
• Edit allocation definitions and group sets as needed. Repeat allocation definition testing until you
determine that the settings produce the expected results.
• Run the allocation at period end as part of your close process.
Related Information
Reference
Reference: Source Types on page 158
Reference: Basis Types on page 159

Steps: Process Allocations

Prerequisites
• Set up allocations. See Steps: Set Up Allocations.
• Configure the Allocation Finalize Event and Allocation Finalize Intercompany Event business processes
and security policy in the Financial Accounting functional area to include approval steps.

Context
After you define your allocation methodologies, you can run allocations as part of your period close
process.

Steps
1. Schedule Allocation Runs on page 151.

2. Access the Find Allocations report.

Review the:
• Allocation results of any status to verify the success of the allocation run.
• Processing warnings and errors on the report.
(Optional) From the related action menu of allocations on the report, select:
• View Accounting to review the operational journal of an allocation, including journal status and
journal lines. You can access this related action only if the allocation uses a plan structure as
the source ledger. If the allocation has an actuals ledger, you can select the related action View
Accounting on the allocation.
• View Budget Amendment to review the budget amendment for the allocation, including status and
entries.
3. Finalize Allocations on page 152.
Finalize each allocation so that you move its journal from Pro Forma to Posted or budget amendment
from Draft to Available.
4. (Optional) Open the action item in your Inbox.
Verify and approve the final allocation results before posting the allocation journal or making the budget
amendment available.

Result
You can use the finalized allocation results on financial statement reports.
Related Information
Concepts
Concept: Allocations on page 153

Schedule Allocation Runs

Prerequisites
• Group your allocation definitions.
• Define Intercompany Profiles.
For intercompany allocations, set up intercompany profiles for each company.
• Configure the Allocation Run Event and Allocation Run Intercompany Event business processes and
security policies in the Financial Accounting functional area. Workday only applies the Allocation Run
Intercompany Event business process to allocations resulting in a journal.
• For budget allocations, configure the Budget Amendment Event business process and security policy
in the Budgets functional area.
• Security: Process: Allocations domain in the Financial Accounting functional area.

Context
You can schedule an allocation run to create pro forma journals or draft budget amendments for
allocations.
When you schedule an allocation run, you can process allocations for:
• A single allocation definition.
• Multiple allocation definitions.
• An allocation group set.
You can access the related actions menu of allocation definitions to process single allocations.

If your operational journals have more than 100,000 journal lines after you run allocations, consider
splitting your allocation definitions to avoid performance degradation.

Steps
1. Access the Schedule Allocation Run task.
2. As you complete the task, consider:
Option Description
Disable Allocations Preview For faster processing, select to run but not display
the allocations included in this run.
Period Workday uses the time frame you select for
the allocation group that includes the allocation
Year
definition.
Summary

Process Dependencies When you select this check box, Workday

processes dependent allocations first.
Dependent Allocations to Reprocess When you select the Process Dependencies
check box, Workday automatically reruns
dependent allocations.
You can also rerun them manually.

3. (Optional) If you need to cancel an allocation, select Allocation > Cancel from the related actions
menu.
You can cancel allocations with a status of Draft, Pro Forma, or Final.
Workday:
• Sets the status of the allocation and its journal or budget amendment to Canceled.
• Resets the status of any dependent allocations affected by the cancellation to Requires Rerun.
Related Information
Tasks
Create Allocation Definitions on page 142
Group Allocation Definitions on page 148

Finalize Allocations

Prerequisites
• Run allocations and review the pro forma allocation results. Complete any approval steps.
Note: If you have an allocation result that continues to have a status of pro forma, remove all the
dependencies from the allocation group set and rerun the allocation.
• Configure the Allocation Finalize Event and Allocation Finalize Intercompany Event business processes
and security policies in the Financial Accounting functional area. Workday applies intercompany only to
allocations resulting in a journal.
• For allocations resulting in budget amendments, add the Initiate Budget Amendment Event service
step to the Allocation Finalize Event business process and configure the Budget Amendment Event
business process and security policy in the Budgets functional area.
• Security: Process: Allocations domain in the Financial Accounting functional area.

Context
By finalizing allocations, you can move:

• Journals from pro forma to posted.

• Budget amendments from draft to available.
Note: You can rerun finalized allocations. When you rerun a finalized allocation Workday cancels the
allocation and resets the status to Pro Forma.
When an allocation includes dependencies, finalize the dependencies first.
You can finalize a single allocation using the Allocation Work Area report.

Steps
1. Access the Run Mass Finalize for Allocations task.
2. As you complete the task, consider:
Option Description
Override Reversal Date Leave blank if you want to reverse allocations on
the first day of the next fiscal period. Otherwise,
select another date from the next fiscal period.
You can't select a date from the current fiscal
period.
Finalize All Dependents When you select this check box, you can select
Show Dependent Allocations and view the
dependent allocations that are ready to be
finalized.
Allocations Available for Finalization You can only finalize allocations after Workday
fully processes the allocation definition.
Show Dependent Allocations Select to view upstream calculations that require
approval.

Next Steps
Run your financial statements.

Concept: Allocations
In Workday financial accounting, you can use allocations to distribute ledger amounts, usually costs, from
1 organization to another based on a preconfigured definition. You can allocate the costs either within the
same company or across companies to generate intercompany allocations. When you process allocations,
Workday calculates and distributes the allocation amounts to each target. It then creates the operational
journals to record the allocations in the ledger.
You can also use your plan data in your allocations, helping you automate month end journals. Or you can
allocate to a target plan, creating budget amendments to help ensure that your plan data replicates your
actuals.
Examples:
• A company distributes Facilities expenses (such as building maintenance and staff salaries) over
all cost centers that use the provided space and services. Using a square footage allocation basis
methodology (created as a statistic), each cost center shares the facilities operating expenses.
• A company distributes IT costs over all cost centers based on headcount in those cost centers. This
includes those costs recorded through an allocation, such as facilities expenses.
• A company allocates marketing expenses to regions based on revenue per region. The company
allocates in actuals and plan for consistent reporting.

Allocations Workflow
The diagram illustrates how allocations work:

As an accountant, when you define and process allocations, you work with:
• Allocation definitions: Represent each step of an allocation and define:
• What amounts to allocate.
• How to allocate these amounts.
• Where to post the allocation results.
• Allocation group sets: A grouping of allocation definitions and their interdependencies to help you
organize allocation definitions for processing.
• Testing: After defining allocation definitions and group sets, you can test them to ensure that they
produce the expected results.
• Allocation runs: Generate pro forma journals or draft budget amendments of the allocations. You can
manually run the allocation process or schedule Workday to run it at a specific day and time.
• Allocation results: The results of allocation processing provide support for the amounts allocated.
• Finalization: The process of finalizing your pro forma allocation and posting its operational journal or
making its budget amendment available.
• Final approval: An optional business process step to verify the final allocation results before posting the
allocation journal or making the budget amendment available.

Allocation Work Area

Use the Allocation Work Area to:
• Monitor your allocations for a fiscal period.
• Track progress toward completion.
• Easily identify allocations that are available for finalization.
The work area, which arranges information by company and allocation group set, includes:
• A Summary of the allocation processing, including:
• Allocations to Run: The total number of allocations in the group set.
• Draft: The number of allocations you have saved but not yet run.
• Requires Rerun: The number of dependent allocations that you need to rerun due to a change in
the allocation it's dependent upon.
• Pro Forma: The number of allocations that you have run that are in pro forma status (not yet
finalized).
• Error: The number of allocations that you can't post because there's an error in the allocation
results.
• Processing Exceptions to help you troubleshoot issues.
• A list of Allocations Not Finalized with a button to finalize each allocation.
• Allocation Details for each allocation in a group set, including whether the allocation is for actuals or a
plan.
Related Information
Tasks
Steps: Set Up Allocations on page 141
Steps: Process Allocations on page 150
Reference
The Next Level: Allocations Basics

Example: Set Up the Journal Lines by Allocation Report

This example illustrates how to set up a custom report to identify which allocations produce the most result
lines.

Context
When you submit the Run Mass Finalize for Allocations task, the process takes longer than usual. The
reduced performance might be a result of 1 or more allocations exceeding the Workday-recommended limit
of 50,000 result lines. You create a custom report to list allocations by the number of result lines so that
you can split them if necessary.

Prerequisites
• Steps: Set Up Allocations on page 141
• Steps: Process Allocations on page 150
• Security: These domains in the System functional area:
• Custom Field Management
• Custom Report Creation

Steps
1. Access the Create Calculated Field task.
a) Enter these values:

Option Description
Field Name RPT LRV Journal Line Allocation Definition to
Line
Business Object Journal Line
Function Lookup Related Value
b) Click OK.
c) Enter these values:

Option Description
Lookup Field Journal
Return Value Allocation Definition
d) Click OK and Done.
2. Access the Create Custom Report task.
a) Enter these values:

Option Description
Report Name Journal Lines by Allocation
Report Type Matrix
Data Source Journal Lines for Financial Reporting
b) Click OK.
c) In the Row Grouping section on the Matrix tab, add a row to the grid and enter these values:

Group by Field Label Override Sort Rows Options

RPT LRV Journal Line Allocation Definition Alphabetical - Leave blank.
Allocation Definition to Ascending
Line
d) In the Maximum Number of Rows field, enter 12000.
e) In the Column Grouping (Optional) section, add a row to the grid and enter these values:

Group By Field Label Override Sort Columns Options

Company Leave blank Alphabetical - Leave blank.
Ascending
f) In the Maximum Number of Columns field, enter 200.
g) In the Define the Field(s) to Summarize section, add 3 rows to the grid and enter these values:

Summarization Type Summarization Field

Count None.
Sum Translated Debit Amount

Summarization Type Summarization Field

Sum Translated Credit Amount
h) Access the Drill Down tab.
i) In the Detail Data section, add 8 rows to the Columns grid and select these fields:
• Journal
• Company
• Ledger Account
• Accounting Date
• Translation Currency
• Translated Debit Amount
• Translated Credit Amount
• Worktags
j) Access the Filter tab.
k) In the Filter on Instances section, add a row to the grid and enter these values:

And/Or Field Operator Comparison Comparison

Type Value
And Journal Source in the selection list Value specified in Allocation
this filter
l) Access the Prompts tab.
m) In the Prompt Defaults grid, add 8 rows and enter these values:

Field Default Type Default Value

Company No default value Leave blank.
Amount Type Specify default value Activity
Ledger No default value Leave blank.
Period No default value Leave blank.
Time Period Specify default value Current Period
Translation Currency No default value Leave blank.
Account Translation Rule Set No default value Leave blank.
Balancing Worktags No default value Leave blank.
n) After you add the fields, select the Populate Undefined Prompt Defaults check box.
o) Access the Share tab.
p) Select Share with all authorized users.
q) Click OK.

Result
You can run your Journal Lines by Allocation custom report by company or company hierarchy. The
report displays:
• Allocation definitions for each company.
• Result line counts.
• Translated debit and credit amounts.
• Totals for each company and allocation definition.

Next Steps
Update your allocation definitions to split any allocations that produce more than 50,000 result lines.
Related Information
Concepts
Setup Considerations: Allocations on page 137

Reference: Source Types

You can only select Fixed Source Amount or Fixed Rate Amount if the source companies have the same
company currency.
You can group budget dates for Ledger/Plan Structure source types only.

Option Description
Ledger/Plan Structure Allocates ledger or plan amounts.
Fixed Source Amount Allocates a fixed amount. Example: Allocate the
total amount of worker insurance premium based
on head count.
Fixed Rate Amount Allocates a fixed rate based on a calculated fixed
charge.
Example: Allocate a fixed rate for facilities based on
square footage.

Related Information
Tasks
Create Allocation Definitions on page 142

Reference: Allocation Methods

Select an Allocation Method on the Create Allocation Definition task to distribute allocated amounts:

Option Description
Fixed Percent Allocate the source amount based on statistical
values that you've predefined. Also select:
• The percent-type statistic Definition, which
stores the percentages as a statistic that sums
to 100%. To define a percent type statistic that
stores precalculated percentages by dimension,
use the Create Statistic Definition task. To
store the statistics to use in allocations, use the
Create Statistic task. Example: Square footage
percentages by cost center.
• Required and optional worktags or business
Dimension to use from the statistic definition.
Example: Cost center, region, worktag, or a
combination.

Pro-rata Use headcount, ledger accounts, or statistic values

(the Basis Type) and a Dimension (cost center)
to calculate the percentage basis. The allocation
process calculates a percentage of the total for

Option Description
each dimension and uses these percentages to
prorate the source amount.
Spread Even The allocation process calculates and distributes
the source ledger amounts evenly over a business
Dimension or multiple dimensions. Example:
Allocate facilities cost to various cost centers, giving
them equal weight so they receive an equal portion
of the allocation.
Arithmetic Calculation Multiply the headcount, ledger accounts, or statistic
values (the Basis Type) with the Fixed Rate
Amount to calculate the target amount.
Only available when you select Fixed Rate Amount
as the Source Type.

Related Information
Tasks
Create Allocation Definitions on page 142

Reference: Basis Types

For the:
• Pro Rata Allocation Method, select the type of data you want to use in the percentage basis
calculation.
• Arithmetic Calculation Allocation Method, select the type of data you want to multiply by the fixed rate
amount:

Option Pro Rata Allocation Method Arithmetic Calculation

Allocation Method
Headcount Calculates proration percentages. Can include any combination
Select: of active employees, inactive
employees, and contingent
• A financial headcount
workers.
Definition that can include
any combination of active
employees, inactive
employees, and contingent
workers. To define it, use the
Create Financial Headcount
Definition task.
• A worktag or business
Dimension to use for
calculating the proration
percentage (such as
cost center, region, or a
combination).
• Basis Filter Conditions to
include headcount for specific
companies and worktags in
the proration only.

Option Pro Rata Allocation Method Arithmetic Calculation

Allocation Method
Ledger Accounts Calculates proration using ledger Can include Balance or Activity of
accounts. Select whether to use: the ledger accounts.
• The Balance or Activity of
the ledger accounts.
• Activity prorates the period
or summary period activity
(as defined in the allocation
group set that contains the
allocation definition) of the
account only.
• Balance prorates based on
both the beginning balance
and activity.
• A worktag or business
Dimension to use for
calculating the proration
percentage (such as cost
center, region, worktag, or
combination).
• A Book Code to filter the
basis data used in the
allocation by a specific book
code.
• Basis Filter Conditions
to include specific ledger
accounts and worktags in the
proration only. The company
for the ledger account comes
from source.

Ledger Accounts (Multiple Calculates proration using the Can include the Balance or
Companies) ledger accounts of 1 or more Activity of the ledger accounts.
companies.
Define the Translation Currency
that Workday will use to prorate
the balances of the actuals
ledger accounts. If the translation
currency and the currency of any
of the companies you specify in
the filter condition are different,
you must specify an Account
Translation Rule Set.
Translation Currency and
Account Translation Rule
Set display only if you select
Ledger Accounts (Multiple
Companies).

Statistic Values Calculates proration using Can include any activity and
statistics. Select: balance statistic types.

Option Pro Rata Allocation Method Arithmetic Calculation

Allocation Method
• A statistic Definition, which
stores the statistical values
that the allocation process
uses to calculate the proration
percentages. You can define
activity, balance, and percent
statistic types using the
Create Statistic Definition
task.
Activity statistic types store
statistics that change from
period to period such as new
customers or number of units
produced. The allocation
process uses period or
summary period activity (as
defined in the allocation group
set that contains the allocation
definition). The process treats
statistics with no value in a
period as a zero amount.
Balance statistic types store
statistics that are less variable,
such as square footage.
The allocation process uses
the period end balance for
statistical amounts, and the
last period with a balance for
basis calculations.
• Required and optional
worktags or business
Dimension from the statistic
definition to use for calculating
the proration percentage.
Example: cost center, region,
or worktag combination.
• Basis Filter Conditions to
include statistics for specific
companies and worktags in
the proration only.

Related Information
Tasks
Create Allocation Definitions on page 142

Allocation Pools

Steps: Set Up Allocation Pools

Context
You can create and manage allocation pools to track distribution of revenue or cost. You can also set up
the allocation pool worktag usage.

Steps
1. Create Allocation Pools on page 162.
2. (Optional) Create Allocation Pool Hierarchies on page 163.
Create allocation pool hierarchies and configure role-based security for the hierarchy.
3. Configure Worktags for Transactions.
Configure the worktag usage for the Allocation Pool taggable. Add Allocation Pool as a worktag type for
other taggables as needed.
4. Configure Related Worktags.
Configure the Allocation Pool worktag type.

Next Steps
Include allocation pools and allocation pool hierarchies on:
• Account posting rules as condition dimensions.
• Business process definitions as a condition rule.
Include the allocation pool worktag and related worktag on transactions.
Access the Inactivate task from the related action menu of an allocation pool or allocation pool hierarchy
to discontinue its use.

Create Allocation Pools

Prerequisites
Security: Set Up: Allocation Pool domain in the Financial Accounting functional area.

Context
You can create allocation pools to track the distribution of costs or revenue.

Steps
1. Access the Create Allocation Pool task.
2. As you complete the task, consider:
Option Description
Allocation Pool ID When you don't enter an ID, Workday creates it
when you save the allocation pool.
When you submit the allocation pool, the
allocation pool ID becomes the reference ID for
integration purposes. Only an administrator can
change the allocation pool ID and reference ID.

Option Description
Include Allocation Pool ID in Name Select to add the allocation pool name to the
allocation pool ID. Workday uses the allocation
pool ID to create a unique name, enabling you to
use a name multiple times.
Assign Roles You can create or assign a role to associate
with the allocation pool. Example: Configure an
Allocation Pool Manager role.

Create Allocation Pool Hierarchies

Prerequisites
• Create allocation pools.
• Security: Set Up: Allocation Pool Hierarchy domain in the Financial Accounting functional area.

Context
You can create a hierarchical structure to group allocation pools for more enhanced reporting. You can
also assign roles to each hierarchy and enable role-based security.

Steps
1. Access the Create Allocation Pool Hierarchy task.
2. As you complete the task, consider:
Option Description
Allocation Pool Hierarchy ID When you don't enter an ID, Workday creates
one when you save the allocation pool hierarchy.
When you submit the allocation pool hierarchy,
the allocation pool hierarchy ID becomes the
reference ID for integration purposes. Only an
administrator can change the allocation pool
hierarchy ID and reference ID.
Include Allocation Pool Hierarchy ID in Name Select to add the allocation pool hierarchy name
to the allocation pool hierarchy ID. Workday uses
the allocation pool hierarchy ID to create a unique
name, enabling you to use a name multiple times.
Superior Configure to use a multilevel hierarchy. When you
define a superior, users with assigned roles and
security access on the superior can manage the
child hierarchies and allocation pools.
Workday recommends creating the highest level
hierarchy first.

Includes Select the allocation pools that belong to the

allocation pool hierarchy. You can't have the
same allocation pool in more than 1 level of a
hierarchy.
Assign Roles You can create or assign a role to associate with
the allocation pool hierarchy. Example: Configure
an Allocation Pool Hierarchy Administrator role.

Revaluation

Setup Considerations: Revaluation

You can use this topic to help make decisions when planning your configuration and use of revaluation. It
explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Revaluation is the process of calculating currency fluctuations over time, usually the difference between
when you enter transactions during the period and the period end date. You can create revaluation rules to
identify:
• Accounts that require revaluation.
• Currency rate type to revalue the foreign currency balances at period end.

Business Benefits
• Record the gains and losses caused by fluctuating exchange rates since the transaction date.
• Recalculate foreign currency amounts in your company ledger at period end enabling you to analyze
your currency exposure.

Use Cases
On a daily basis, you might receive and pay supplier invoices that are in another currency. Since rates
change daily, you might enter different exchange rates when entering and paying an invoice. As per U.S.
Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS)
you must account for realized and unrealized gain and loss due to fluctuating exchange rates. To revalue
your accounts at period end, you create a revaluation rule to record period end revaluations on foreign
currency balances in specified ledger accounts.

Questions to Consider
Before creating revaluations, consider these questions:

Questions Considerations
Do you want to automate the creation of the If yes, create a revaluation rule that will
revaluation journal? automatically create a revaluation journal when you
run the revaluation process.
Do you want to run some rules separately or If concurrently, create revaluation group sets
concurrently? to group the revaluation rules you want to run
concurrently.

Recommendations
When configuring the revaluation rules on the Create Revaluation Rule task, consider these
recommendations:

Option Recommendations
Company If you select more than 1 company or company
hierarchy, ensure that all of them share the same
account set and fiscal schedule.
Book Code You can define separate rules for each book code.
If you leave this field blank, Workday revalues all
results for the Blank book code.

Balance or Activity For revaluing balance sheet accounts, select

Balance.
For revaluing income statement accounts, select
Activity.

Create Reversal When you don't check it, Workday includes only
incremental changes each period.
Revaluation Currency Rate Type Revalue revenues and expenses at the average
period rate.
Revalue cash, account receivables, and account
payables and other current assets and liabilities at
the period end rate.
Revalue certain investment accounts at the historic
rate.

Worktags to Retain on Target Workday automatically defaults the primary

balancing worktag. Add optional balancing
worktags as needed.
Workday recommends selecting:
• Bank account for cash accounts because
reconciliation reports are by bank account.
• Supplier for accounts payable accounts.
• Customer for accounts receivable accounts.

Requirements
• Configure revaluation rules if you want to create the revaluation journal automatically. Use these rules
when you run revaluation during the close process to record period end revaluations.
• Run the revaluation as the final task before closing the period to ensure that Workday properly
remeasures the allocated foreign transactions.

Limitations
• Workday revalues all accounts that have a balance. If you close an account, ensure that the account
has zero balance for all worktag combinations in both the ledger currency and the transaction currency.
• Workday doesn't post revaluation results to a specific book code unless you define the book code in
each Revaluation rule.

Tenant Setup
No impact.

Security

Domains Considerations

Set Up: Revaluation domain in the Financial Can configure and group revaluation rules.
Accounting functional area.

Process: Revaluation domain in the Financial Can run revaluations.

Accounting functional area.

Reports: Financial Accounting in the Common Can view revaluation results.

Financial Management functional area.

Business Processes
Configure the Revaluation Run Event business process to run, process, and approve revaluation results.

Reporting
Use the Foreign Currency Revaluation report to review:
• Revalued amount in accounts that have unpaid invoices with gains or losses due to currency
fluctuations.
• Balance sheet account with a balance in a foreign currency.

Integrations
No Impact.

Connections and Touchpoints

Revaluations interact with these other areas in Workday:

Features Considerations
Banking and Settlement Revalues monetary balances that are in foreign
currency.
Customer Accounts Revalues uncollected receivables that are in foreign
currency.
Supplier Accounts Revalues unpaid payables that are in foreign
currency.
Worktag Balancing If balancing your books by worktag, include the
balancing worktag type when you define your
revaluation rules.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Define Revaluation Rules on page 167
Review Foreign Currency Revaluation on page 172
Reference
Reference: Frequency Combinations for Revaluation Rules on page 174
The Next Level: Mastering Revaluation in Workday

Steps: Automate Revaluation

Prerequisites
• Security: Set Up: Revaluation and Process: Revaluation domains in the Financial Accounting functional
area.
• Configure the Revaluation Run Event business process and security policy.

Context
Automate posting of the revaluation journal to:
• Recalculate foreign currency amounts in your company ledger at period end.
• Record the gains and losses caused by fluctuating exchange rates since the transaction date.

Steps
1. Define Revaluation Rules on page 167.
2. Run Revaluation on page 171.
3. Access the Find Revaluations report.
Locate and review revaluation results from the process. To access the View Revaluation Result
report, click Revaluation Result. The report displays:
• The accounting date.
• Details about the revaluation rule.
• Debit and credit revaluation amounts in the target and offset ledger accounts.
• Process history.
4. Review Foreign Currency Revaluation on page 172.
To ensure that you created revaluations correctly, review the Foreign Currency Revaluation report.
As you review the results, keep these guidelines in consideration:
• Rerun the report until the Exchange Gain/(Loss) column displays zero amounts.
• To determine foreign currency transactions, drill into the amounts on the Recorded Base Amount
column, and filter by source and period.

Define Revaluation Rules

Prerequisites
Security: Set Up: Revaluation domain in the Financial Accounting functional area.

Context
Create and update rules to automate the revaluation journal. You assign revaluation rules to companies.
Use these rules when you run revaluation during the close process to record period end revaluations on
foreign currency balances in specified ledger accounts.
When creating a rule, you can select 1 or multiple source book codes and a blank book code as the source
and post the resulting revaluation journal to a selected target book code. This enables you create rules to
process revaluations for specific target book codes that use different rule sets for reporting. Example: You
can have 2 target reporting books that use different rules to process revaluation. You can create a rule that
books revaluation to each reporting book by specifying a different target book code.
Note: Workday revalues all accounts that have a balance. If you close an account, ensure that the
account has zero balance for all worktag combinations in both the ledger currency and the transaction
currency.

Steps
1. Access the Create Revaluation Rule task.
2. Define high-level details about the rule.
As you complete the Details section, consider:

Option Description
Company Select 1 or more companies and company
hierarchies that use the rule. They must share
account set and fiscal schedule.
Source Book Code You can assign 1 or more source book code to a
revaluation rule.
You can only select 1 target book code, and that
book code must be in the source book code list.
You can define different rules for each book code.
If you leave this field blank, Workday revalues all
results for the blank book code only.

Blank Source Book Code In addition to the source book code, you can also
select the blank book code as a source to journal
lines posted to the blank book code.
When you don’t specify a target book code,
Workday selects the blank book code as the
source book code. Therefore enable the blank
source book code.

Target Book Code Select a target book code that you want to post
the revaluation journal to.
When you don't select a target book code
Workday will post the revaluation journals to the
blank book code.

Inactive Select when the revaluation rule isn't ready for

use or to discontinue use. You can inactivate a
rule if it's not included in a group.
3. As you complete the Frequency section, consider:
Option Description
Time Frame Select how frequently to run the rule, such as
every period or summary period. Before you close
a period, you can see pending revaluations for
the time period on these tasks that update ledger
period status:
• Update Ledger Period Status
• Mass Update Ledger Period Status
• Schedule Mass Update Ledger Period Status

Fiscal Summary Schedule Select what to base a summary time frame on.
Balance or Activity Select to run the rule for ledger account balances
or ledger account activity. You can select Activity

Option Description
only when you select Period on the Time Frame
prompt.
If you select Activity, you can’t create a reversal.

Create Reversal Defaults to creating a reversal journal entry on

the first day of the next period. You can change
the reversal date to a date after the run date on
the Run Revaluation task. Workday posts the
reversal journal when the ledger period for the
selected date opens.
When you don't check it, Workday includes only
incremental changes each period.

4. Define rule criteria for handling revaluation accounting.

As you complete the grid, consider:

Option Description
Ledger Account / Ledger Account Summary Select the balance sheet or income statement
accounts and ledger account summaries that
have foreign currency amounts to revalue.
Available summaries include at least 1 balance
sheet or income statement account.
If multiple companies are linked to the rule, then
the list displays only valid accounts across the
selected companies.

Revaluation Currency Rate Type Select the currency rate type to use for the
revaluation. When you run reports with revalued
amounts, you can select a currency rate type
consistent with the revaluation rule.
Example: Revalue intercompany payables and
receivables at the average period rate. Revalue
cash, account receivables, and account payables
at the period end rate.

Worktags to Retain on Target Select the worktags from the source entry to
retain on the target debit or credit entry on the
originating ledger accounts. If balancing your
books by worktag, include the balancing worktag
type.
Workday recommends selecting:
• Bank account for cash accounts because
reconciliation reports are by bank account.
• Supplier for accounts payable accounts.
• Customer for accounts receivable accounts.
When you select a balancing worktag, Workday
automatically populates the same value on the
Worktags on Offset.

Offset Account Posting Rule To determine the account in which to post the
realized, unrealized, or translation gain or loss,

Option Description
select the account posting rule for the offset
journal line.
Example: You select Realized Gain/Loss for a
cash account, Unrealized Gain/Loss for a payable
or receivable account, and Translation Gain/Loss
for an intercompany account.

Worktags on Offset To record the gain/loss entry on the offset

account, select the worktags from the target
account entry. If balancing your books by worktag,
include the balancing worktag type.
When you select an optional balancing worktag,
Workday automatically populates the same value
on the Worktags to Retain on Target.

Result
After you create revaluation rules, you can use the:
• Edit Revaluation Rule task to update the revaluation rule.
• View Revaluation Rule report to review your rules and copy a rule from its related actions menu.
Related Information
Reference
Reference: Frequency Combinations for Revaluation Rules on page 174
The Next Level: Mastering Revaluation in Workday
2023R2 What's New Post: Record Revaluation Journals to a Target Book Code

Group Revaluation Rules

Prerequisites
• Create revaluation rules.
• Security: Set Up: Revaluation domain in the Financial Accounting functional area.

Context
Revaluation group sets are groupings of revaluation rules. You can incorporate each revaluation rule into a
group set. They enable you to:
• Organize revaluation rules to run concurrently.
• Provide an organized way for you to monitor revaluation processing.

Steps
1. Access the Create Revaluation Group task.
2. As you complete the task, consider:
Option Description
Revaluation Group Name Enter a name for the revaluation group.

Revaluation Rules You can assign a revaluation rule to multiple

revaluation groups.
Select from the revaluation rules that:

Option Description
• Are active.
• Have the same account set.
• Are associated with companies on the same
fiscal schedule.

Inactive Select when the revaluation group isn't ready for

use or to discontinue use.

Result
After you create revaluation groups, you can use the:
• Edit Revaluation Group task to update the revaluation group.
• View Revaluation Group report to review revaluation rules in a revaluation group.

Run Revaluation

Prerequisites
• Configure the Revaluation Run Event business process and security policy.
• Define and group revaluation rules.
• If the revaluation rule creates a reversal, open the next period.
• Security: Process: Revaluation domain in the Financial Accounting functional area.

Context
As part of your close process, run revaluation for a specified company or group of companies. You can
revalue foreign currency journal amounts based on your revaluation rules for a fiscal period.
Note: When you run revaluation in a new fiscal year, ensure you first roll forward prior year balances to
create beginning balances. If you want to rerun roll forward, mass cancel the revaluation results and rerun
revaluation for all periods.
Automatic revaluation supports incremental processing. If you rerun revaluation using the same criteria
more than once in a period, the process only adds the incremental amount to the preceding run in the new
result. Example: You reprocess because of an incorrect exchange rate.
If you need to run the complete revaluation again, cancel the existing revaluation result and rerun the
revaluation.
Note: You can see pending revaluations on the ledger period status tasks.

Steps
1. Access the Run Revaluation task.
2. As you complete the task, consider:
Option Description
Revaluation Group or Revaluation Rule Select from active revaluation groups or rules.
Revaluation rules are associated with the
specified companies and company hierarchies.
If a rule includes a specific book code, the
revaluation is for that book code only. If the
rule requires the creation of a reversal journal,

Option Description
that reversal period must be open to submit the
revaluation request.
When you run the revaluation for a group, you can
only select companies or hierarchies specified on
a given rule within the group.

Company The revaluation process creates a separate

revaluation result for each company.
Fiscal Period for Revaluation Workday uses the end date of the selected period
for the revaluation.
Revaluation Reversal Date Populates to the first day of the next period. To
change the date, enter a reversal date that is
after the run date. Workday posts the reversal
journal when the ledger period for the selected
date opens.
Workday populates this field when you enable the
Create Reversal option on the revaluation rule.

Result
For each company, the revaluation result creates the revaluation journal, target result lines, and offset
result lines in the specified period based on the revaluation group or rule you select.
Workday also initiates the Run Revaluation business process for review and approval of these revaluation
results. If the business process includes an approval step, the journal remains in a Proforma status until
the reviewer approves or denies the revaluation results. For denied revaluation results, the business
process updates the journal status to Canceled. For approved revaluation results, the business process:
• Posts the results to the revaluation journal.
• Updates the revaluation journal to Posted status.
• Creates and posts a reversal journal in the next period or on the specified date, if the revaluation rule
requires it.
If you rerun the entire revaluation, you can cancel the original revaluation result. Use the Find
Revaluations report to locate the result, and from its related action menu select Revaluation Result >
Cancel.
To cancel all Approved revaluation results for an open or closed period, use the Mass Cancel
Revaluation Results task.
When you enable the Always Reverse Operational Journals option on the Edit Tenant Setup -
Financials task, Workday creates reversal journals for the canceled revaluation result.

Review Foreign Currency Revaluation

Prerequisites
• Maintain currency conversion rates.
• Security: Reports: Financial Accounting domain in the Financial Accounting functional area.

Context
At the end of the month or quarter, there could be currency exchange gains or losses for ledger accounts
that have balances in foreign currencies. For balance sheet accounts that have transactions in foreign
currencies, you can:

• View the impacts of currency rate fluctuations.

• Analyze your currency exposure by ledger account and currency.
Note: The report identifies ledger accounts with foreign currency amounts that Workday will revalue. It
doesn't display the revaluation result. To review results, access the Find Revaluations report and select
View Revaluation Result.

Steps
1. Access the Foreign Currency Revaluation Report.
2. As you complete the run criteria, consider:
Option Description
Balance or Activity Select whether you want to report on ledger
account balances or activity. Select Balance to
revalue ledger accounts on a Year to Date (YTD)
basis that includes beginning balances. Select
Activity to revalue ledger accounts for period
activity that excludes beginning balances.
Consider using saved filters to run the report for
these separate groups:
• Balance sheet accounts revalued at Current
rate using Balance.
• Income statement accounts revalued at
Average rate using Activity.

Currency Rate Type To calculate the revaluation amounts, use the

default or select the same currency rate type that
you use in your revaluation rule.
Ledger Accounts Select specific income, expense, or balance
sheet accounts to include or exclude in the report.
Example: you can exclude equity accounts.
3. Review the impact of each foreign currency within each affected ledger account:
Option Description
Ledger Account The account impacted by foreign currency
transactions.
Foreign Currency For an account that has foreign currency
transactions, Workday displays each foreign
currency on a separate line.
Foreign Amount The total account balance of transactions in this
currency, recorded as part of the transaction.
You can drill into the journal entries behind the
amount.
Recorded Base Amount The foreign amount, converted into base currency
of the company as part of the transaction. To
calculate, Workday uses the Default rate type in
your tenant to convert the foreign currency for the
transaction to the base currency of the company
as of the transaction date. Displays as a debit or
credit. Click to drill into the journal entries behind
the amount.

Option Description
Base Currency The base currency of the company. Workday
uses this currency to calculate the recorded base
and revalued base amounts.
Currency Rate The selected currency rate type, as of the
period end date, to convert the amount from
the transaction currency to the base currency.
Workday uses this rate and the foreign amount
column to calculate the revalued base amount.
Revalued Base Amount The foreign currency account balance, revalued
into the base currency for the company as of the
end of the period. Workday uses the selected
exchange rate as of the period end date to
convert the foreign currency amount for the
transaction to the base currency for the company.
Displays as a debit or credit.
Exchange Gain/(Loss) This column in the report will display a zero
amount once revaluation is complete. If the gain
or loss resulting from the foreign currency rate
change doesn't zero out, the revaluation isn't
complete. Rerun the revaluation till you get a zero
balance.

Result
View the revalued foreign currency amounts. If you’ve processed your revaluation journal for the period,
the gain or loss amount should be zero for all accounts included in the revaluation rules.
Workday summarizes journal entries by:
• Ledger Account/Ledger Account Summary.
• Time frame, and Balance or Activity parameters.

Reference: Frequency Combinations for Revaluation Rules

Consider these guidelines as you configure the Time Frame and Balance or Activity prompts on the
Frequency section when defining a revaluation rule:

Combinations Workday Calculates Comments

Time Frame - Period Revaluation for the current period
activity only.
Balance or Activity - Activity

Time Frame - Period Year to date balance, includes There are no beginning balances
beginning balance journals for for profit and loss accounts.
Balance or Activity - Balance
balance sheet accounts.
Assuming you are on a calendar
fiscal schedule, year to date
balance is from January 1 to the
revaluation process run date.

Time Frame - Summary Year to date balance as of the When you select Summary on
end of summary period. the Time Frame prompt, Balance
Balance or Activity - Balance
is the only option available on the
Balance or Activity prompt.

Combinations Workday Calculates Comments

Includes beginning balance
journals for balance sheet
accounts.

Time Frame - Year Current year activity starting with When you select Year on the
the first day of the fiscal year to Time Frame prompt, Balance is
Balance or Activity - Balance
the revaluation process run date. the only option available on the
Balance or Activity prompt.
Includes beginning balance
journals for balance sheet
accounts.

Related Information
Tasks
Define Revaluation Rules on page 167

Currency Translation

Steps: Set Up Currency Translations

Context
You can use currency translations when you perform transactions in different currencies and need to
translate them for financial reporting.

Steps
1. Set Up Account Posting Rules on page 71.
Set up the Translation Gain and Translation Loss rules to define which ledger accounts to use to
capture translation gain and loss.
2. Maintain Currency Rate Types.
Define rates for all of your companies.
3. Set Up Currency Translation Methods on page 176.
Create methods for translating from company currency into translation currency during financial
reporting.
4. Create Rules for Translating Ledger Accounts on page 178.
Define rule sets to determine which translation method each account uses.
5. (Optional) Assign Company Accounting Details on page 62.
Assign 1 default account translation rule set for each company. When you run translated financial
reports for the company, Workday populates the account translation rule set into your reporting criteria.
You can override the default for the selected company with any translation rule set that uses the same
account set.
6. Maintain Currency Conversion Rates.
Enter conversion rates for each currency rate type. Workday uses these rates to complete currency
translations for the currency rate types that you specify in your account translation methods.
To maintain accurate currency translations, regularly enter updated currency conversion rates into
Workday.
Related Information
Concepts
Concept: Currency Translation on page 181

Set Up Currency Translation Methods

Prerequisites
Define currency user-defined rate types.

Context
You can create methods for translating account currencies into translation currencies during financial
reporting.
To reflect your typical accounting standards, use one of these user-defined translation types to reflect your
typical accounting standards:
• Average: Typically used with income statement accounts. Translates activity at the designated average
rate as of the end date of the period in which the activity occurred.
Example: Translates revenue for January at the average as of the end of January. Similarly, translates
revenue for February at the average as of the end of February.
• Current: Typically used with balance sheet accounts.
• Historic: Translates beginning balance for balance sheet accounts.

Steps
1. Access the Create Account Translation Method task.
2. As you complete the task, consider:
Option Description
Translation Type Select:
• Average to translate income statement activity
at the designated average rate as of the
end date of the period in which the activity
occurred.
• Current to translate balance sheet accounts,
such as beginning balance, activity, and
ending balance at the current rate as of the
last day of the reporting period.
• Historic to translate beginning balances for
balance sheet accounts using:
• A blended rate.
• An entered translated amount to translate
activity at the current rate on the date of the
transaction.
This type translates activity for income
statement accounts using the current rate
on the transaction date.
• Custom when the other translation types don't
meet your needs.

3. As you complete the Fiscal Year Beginning Balance section, consider:

Option Description
Use Historic Translation Amounts For:
Historic or Custom translations, select this check
box to use the historic amount approach to
beginning balance currency translations. With

Option Description
this approach, define 1 translation method.
All accounts for which you translate beginning
balance amounts will share it. You don't need to
create a different method for each account.
This translation method uses the beginning
balance amounts that you enter on the Maintain
Beginning Balance Translation Amounts task.

Currency Rate Type For:

• Average translations, select nothing.
• Current translations, select the same value
for both the beginning balance and activity.
Workday sets it to equal the rate type for the
activity.
• Historic translations, select to determine which
currency rates to use in the calculation when
using a historic blended rate approach to
currency translation. With this approach, you
create a different account translation method
and rate type for each account that you want to
translate.
• Custom translations, select any rate type.

Currency Rate As Of Date For:

• Average translations, select nothing.
• Current translations, select the date at the end
of the report period.
• Historic translations, the date is preset to year
begin date. Used with a historic blended rate
approach to currency translation.
• Custom translations, select the report end date
or begin date of the year.

4. As you complete the Fiscal Year Activity section, consider:

Option Description
Currency Rate Type For:
• Average and Custom translations, select any
type.
• Current and Historic translations: typically
select the current or daily rate.

Currency Rate As Of Date For:

• Average translations, select the end date of
the transaction period for each period you’re
reporting.
• Current translations, select the date at the end
of the report period.
• Historic translations, the date Workday presets
to the transaction date.

Option Description
• Custom translations, select the report end
date, transaction date, transaction period end
date, or year begin date.

Result
Workday uses the currency rate in effect as of the date specified in the Currency Rate As of Date field.
If there's no current rate at the end of the period, Workday uses the most recent rate before that date.

Next Steps
Use this account translation method as part of a translation rule set.
Related Information
Concepts
Concept: Currency Translation on page 181

Create Rules for Translating Ledger Accounts

Prerequisites
• Define account translation methods.
• Security: Set Up: Currency Translation domain in the Financial Accounting functional area.

Context
You can specify the translation method for each account in an account set by defining translation rules.
These rules control how Workday translates monetary amounts from company currencies for each account
during financial reporting.
Example: To translate revenue and expense accounts from dollars to yen on financial reports ending
March 31, use an Average rate type at the period end date. In March, Workday translates the monetary
amounts for those accounts using the average rate as of March 31.
Workday displays account translation methods as: <user-defined name> (<translation type>).
Example: Daily (Current).

Steps
1. Access the Create Account Translation Rule Set task.
2. When creating a rule set, select an Account Set for which to define the translation rule set.
3. Enter a name for the rule set.
4. As you complete the task for setting the Account Translation Method, consider:
Option Description
Ledger Account Type Specify a method for every account type so that
all accounts have a translation method.
Workday first evaluates the individual account-
based method, then the summary method, and
finally the account type.

Ledger Account Summary Specify the method to use for accounts within
an account summary. Workday evaluates ledger
account summaries from lowest Sequence

Option Description
Number to highest, using the first match that it
finds. List your account summaries from most to
least specific.
Ledger Account (Optional) Specify the method to use for an
individual account. Workday evaluates from most
to least granular. This method takes precedence
over methods you specify for ledger account
summary and account type.

Result
You can run translated financial reports with an account translation rule set that uses the same account set
as the company.

Next Steps
(Optional) Assign the account translation rule set to company accounting details. Workday populates the
translation rule set when you run translated financial reporting for that company.

Steps: Enter Translated Beginning Balances for Financial Reporting

Prerequisites
• Set Up Currency Translation Methods on page 176.
Enable the manual entry of historic translation amounts for fiscal year beginning balances.
• Create Rules for Translating Ledger Accounts on page 178.
Associate the account translation method with at least 1 balance sheet account.

Context
You can use historic amounts to translate beginning balances by entering beginning balance amounts for
accounts in the translation currency.

Steps
1. Run a year-end Balance Sheet report that displays prior-year ending balances translated from company
currency to the translation currency.
You can use these amounts to establish your translated beginning balances.
2. Roll Year-End Balances Forward on page 242.
Create beginning balance journals for the fiscal year of the company.
3. Enter Translated Beginning Balance Amounts for Ledger Accounts on page 180.
Enter beginning balance translation amounts for each translation currency for the year after the one you
rolled forward.
4. Repeat the procedure to do back reporting for historic years using this historic amount approach to
translating beginning balances.

Result
You can run the translated financial reports for the company. The reports use the translated beginning
balance amounts that you've entered for each currency. When you run the reports, select:
• The currency and fiscal year for which you've entered translated beginning balance amounts.

• A translation method rule set that contains an account translation method that uses historic translation
amounts.
Related Information
Concepts
Concept: Currency Translation on page 181

Enter Translated Beginning Balance Amounts for Ledger Accounts

Prerequisites
• Enable account translation methods for manual entry of historic translation amounts.
• Set up the translation rule set.
• Roll forward year-end balances for the preceding fiscal year to create beginning balance journals.
• Security: Process: Close Year End in the Common Financial Management functional area.

Context
You can, for any currency that you want to translate to another currency during financial reporting, enter
and maintain beginning balance amounts in each target currency.
When you use historic translation amounts for beginning balances, you can set up beginning balances in
the translation currency; otherwise the beginning balance is zero for those accounts.
Workday recommends that you run a year-end report that returns prior-year ending balances translated
from company currency to the translation currency. Use the translated currency amounts to establish your
translated beginning balances.

Steps
1. Access the Maintain Beginning Balance Translation Amounts task.
2. As you complete the task to retrieve ledger accounts that have beginning balance journals, consider:
Option Description
Company The account set for the company must have at
least 1 balance sheet account with a translation
method that uses historic translation amounts.
Fiscal Year Select the fiscal year for which you created
beginning balance journals through the roll
forward year-end process.
For multiple fiscal schedules, you must enter
the beginning balances for both the primary and
alternate fiscal schedule. To enter beginning
balances for the:
• Primary schedule, select Standard Corporate
Schedule.
• Alternate schedule, select Alternate Fiscal
Schedule.

Ledger Select the ledger for which you created beginning

balance journals through the roll forward year-end
process.
Translation Currency Select the currency in which you want to enter
beginning balances to produce translated financial
reports.

Option Description
Book Code When using multibook accounting and reporting,
select a value to retrieve ledger accounts that
have beginning balance journals for transactions
with the specified book code. Leave blank to
retrieve beginning balances for transactions with
no book code.
Ledger Accounts Select the ledger accounts that are associated
with a historic translation method for which you
want to define translated beginning balances.
Leave blank to return all applicable ledger
accounts.

3. Review the beginning balance Debit Amount and Credit Amount for each account in the company
currency.
Workday displays a separate line for each unique Ledger Account and Worktag combination.
4. Enter the beginning balance Translated Debit Amount or Translated Credit Amount in the
translation currency.
Workday recommends that you specify a translated beginning balance for each line that has a balance
in the company currency. If you don't, you won't get accurate translated financial statements.

Result
You can now run financial reports for the company in the translation currency using the translated
beginning balance amounts that you entered for each currency.

Next Steps
Enter your beginning balance amounts and make adjustments to the prior year. Rerun the Roll Forward
Year-End Balance task and re-enter the translated beginning balance amounts.
Related Information
Tasks
Roll Year-End Balances Forward on page 242

Concept: Currency Translation

Currency translation enables you to report on financial balances and activity in a currency other than the
company currency. Example: Your U.S. corporation has companies in the U.S., France, and Germany. To
see results for the German company, you can run the trial balance from Germany and translate it to U.S.
currency. The currency to which you translate is the translation currency.

Account Translation Methods and Rule Sets

You can specify how you want to calculate fiscal year beginning balance and activity using account
translation methods. Translation methods use:
• Delivered translation types (current, average, historic, custom) to determine how Workday calculates
the translated amounts.
• User-defined currency rate types to determine which specific currency rates to use in the calculation.
After you create account translation methods, you create rule sets to associate the methods with your
ledger accounts in an account set. Each company has an account set, and that account set can have more
than 1 translation rule set. Select 1 translation rule set as the default for the company.

Historic Rates and Currency Translation

Workday provides these approaches to translation of beginning balances:
• Historic amount approach: Enter beginning balances by company and worktag for each account to get
beginning balance amounts for each individual company. When you make prior-year adjustments after
you enter beginning balances, you must reenter the translated beginning balance amounts.
• Blended rate approach: Set up a historic, blended currency conversion rate for each account. To
have Workday calculate the beginning balance amounts, use your historic rate type in your account
translation method. The same blended rate applies to the entire ledger account. To calculate the
historic blended rate, divide the translated ending balance for the prior year by the ending balance in
company currency.
If you’re running consolidated statements, the translation rule set that you use applies for all companies
in the consolidation. The blended rate for consolidated and individual company reporting might differ.
When you make prior-year adjustments, you must recalculate and update all the blended rates.
• Workday recommends that you run a report that displays prior-year ending balances translated from
company currency to the translation currency. Use the prior-year translated ending balance amounts to
establish your translated beginning balances.
Example:
You use the account translation method of Historic rate type for:
• Beginning balances that use either a blended historic rate or manual entry of translated amounts.
• Activity that uses the Current rate type as of the specific transaction date.

Description Transaction Ledger Translation Translation Translation Translated Comment

Date Amount Rate Type Rate Rate Amount
Effective
Date
2020
Transaction 2020-08-01 1000 Current 2020-08-01 2 2000 Translated
activity
Transaction 2020-09-01 1000 Current 2020-09-01 3 3000 Translated
activity
Ending 2020-12-31 2000 ― ― ― 5000 Sum of
Balance ledger
amounts
and sum
of the
translated
amounts.
Enter 5000
as the
translated
beginning
balance.
Or divide
the total
translated
amount by
the total
ledger
amount

Description Transaction Ledger Translation Translation Translation Translated Comment

Date Amount Rate Type Rate Rate Amount
Effective
Date
to get the
blended
historic rate
beginning
balance
for the
next year.
5000/2000
= 2.5

2021
Beginning 2021-01-01 2000 Historic 2021-01-01 2.5 5000 Translated
Balance beginning
balance
Transaction 2021-05-01 1000 Current 2021-05-01 4 4000 Translated
activity
Ending 2021-12-31 3000 ― ― ― 9000 Sum of
Balance ledger
(Sum) amounts
and sum
of the
translated
amounts.
Enter 9000
as the
translated
beginning
balance.
Or divide
the total
translated
amount by
the total
ledger
amount
to get the
blended
historic rate
beginning
balance
for the
next year.
9000/3000
=3

2022

Description Transaction Ledger Translation Translation Translation Translated Comment

Date Amount Rate Type Rate Rate Amount
Effective
Date
Beginning 2022-01-01 3000 Historic 2022-01-01 3 9000 Translated
Balance beginning
balance

Currency Translation in Financial Reporting

You can specify a translation currency when you run:
• Financial statements and consolidated financial statements.
• Trial balance and consolidated trial balance.
• Consolidated plan summaries and plan details.
You can run these reports in any currency in which you have exchange rates for conversion. Each time you
run a financial report, Workday recalculates the translated amounts based on the translation rule set. You
can use the default or any of the other translation rule sets. Workday doesn’t store the calculated amounts
for future use.
Report fields for translated amounts are available in the Ledger Account Balances and Journal Lines
report data sources. Use reports to view beginning balances, activity, and ending balances for ledger
accounts.
The currency translation complies with FASB 52 and IAS 21 standards.
Related Information
Concepts
Concept: Multicurrency on page 24
Tasks
Steps: Set Up Currency Translations on page 175
Steps: Enter Translated Beginning Balances for Financial Reporting on page 179
Reference
Next Level: Translation and Multicurrency Consolidations

Consolidation Data Capture

Concept: Consolidation Data Capture

You can use Consolidation Data Capture to load summarized trial balance data from external Enterprise
Resource Planning (ERP) endpoints to arrive at a consolidated trial balance in Workday for your legal
entities that aren’t transacting in Workday.
Workday doesn't recommend using this feature for high-volume use cases such as ledger conversion or
to replace any Accounting Center use cases. Refer to product comparison matrix here for more detail:
Accounting Ingestion Feature Comparison.
You can load consolidation data manually from the Consolidation Data Hub or by Document Retrieval
Services. Example: Secure File Transfer Protocol (SFTP).
Load consolidation data in the Workday defined file format. See Reference: Consolidation Data - Inbound
Integration CSV File Format on page 202.

Additional Guidelines
When loading consolidation data into Workday, consider these guidelines:

• Workday identifies each consolidation data (that is, each created journal) by a Grouping Dimension
composed of:
• Company
• Accounting Date
• Book Code
• Workday recommends that each consolidation data that you load contains a maximum of 100,000 lines.
Loading more than 100,000 lines for each consolidation data will impact performance. Example: You’re
using one .CSV file to load 3 consolidation data files. Each consolidation data file can't contain more
than 100,000 lines.
• Workday doesn't calculate period activity. Therefore don't submit ending trial balances.
• Workday doesn't support incremental activity when you resubmit post-close data. If you’re resubmitting
the data, you must resubmit the entire consolidation data for the non-Workday company.
• To reduce the number of journals created, Workday recommends that you use the period end date as
the Accounting Date. Example: 1/31/23.
• Workday won't default related worktags in your mapping tables unless you’ve included them in your
mapping definition as additional worktags.
• Opening up .CSV data files with certain editors (Example: Excel) might lead to data parsing or
conversion challenges as some will automatically update certain field display formats. Examples:
Including commas representing thousands separators in number fields, reformatting dates and so on.
Some editors will also remove non-English values such as accents, symbols, and characters. Ensure
you reformat the field formats using a text editor (Example: TextEdit) if these changes take place during
file editing before loading your Consolidation Data.
• There can be only 1 approved journal per Book Code, Company, and Accounting Date. If you reload the
same file with the same grouping dimension, Workday cancels the previous journal and replaces it with
the most recent upload.
Note: If you have enabled Always Reverse Operational Journals option on the Edit Tenant Setup
- Financials task, Workday won’t cancel the journal, but will instead create a reversal of the original
journal and will create a new approved journal with the same grouping dimension. The reversal journal
provides a complete audit trail of the original journal.
• Workday shares custom validations set and worktag configurations (Example: primary worktags) with
Accounting Journal.

Limitations
Workday doesn't support:
• Auto-generating intercompany lines or worktag balancing lines. Workday will create 1-sided journals if
you include any intercompany or worktag balancing lines.
• Suspense accounting for created journals.
• Journal sequencing.
• Evaluation of account posting rules.
Related Information
Concepts
Concept: Accounting Center on page 540
Reference
Reference: Consolidation Data - Inbound Integration CSV File Format on page 202
2023R1: What's New Post: Consolidation Data Capture
The Next Level: Consolidation Data Capture
The Next Level: Intercompany Transactions and Consolidation Data Capture

Steps: Set Up Consolidation Data Capture

Prerequisites
Access the Maintain Functional Area task and enable the Advanced Close and Consolidation functional
area.

Context
Set up Workday to capture consolidation data before you can upload consolidation data from external
Enterprise Resource Planning (ERP) endpoints.

Steps
1. Create Source Systems on page 186.
2. Create Consolidation Data Mapping Table Definitions on page 187.
3. Create Consolidation Data Mapping Tables on page 188.
4. Steps: Create Consolidation Data Capture Integration on page 191.
5. Map Source Systems to Integration Systems on page 193.

Create Source Systems

Prerequisites
Security: Set Up: Map Worktags in the Common Financial Management functional area.

Context
You can create separate source systems for each external Enterprise Resource Planning endpoint (ERP)
from which you want to upload consolidation data into Workday.
Note: When legal entities transacting outside of Workday are on different instances of the same external
ERP, Workday recommends that you create source systems for each entity in Workday. Creating separate
source systems enables you to better manage the security permissions for Consolidation Data Mapping
Definitions, Consolidation Data Mapping Tables, and file uploads.
For more information on configuring security, see Configure Consolidation Data Capture Security on
Community.

Steps
1. Access the Maintain Source Systems task.
2. Add a row.
3. Enter a source system name and optionally a description.
4. Click OK.

Next Steps
Map the source system to the integration system.
Related Information
Tasks
Create Consolidation Data Mapping Table Definitions on page 187
Create Consolidation Data Mapping Tables on page 188

Create Consolidation Data Mapping Table Definitions

Prerequisites
Use the Maintain Worktag Usage task to enable worktag as either a primary or alternate dimension for
the taggable type of Accounting Journal.
Use the Maintain Source Systems task to create source systems that corresponds to your external
Enterprise Resource Planning (ERP) endpoint.
Security: Set Up: Consolidation Data Capture Mapping Definition domain in the Advanced Close and
Consolidation functional area. For more information, see Configure Consolidation Data Capture Security on
Community.

Context
You can create a consolidation data mapping table definition to:
• Define the number of input values in your mapping table.
• Define the number and type of outputs.
You can also use the table definition to configure how to define input values by using wildcards and
ranges.
Note: Once you create a Consolidation Data Mapping Definition and create a Consolidation Data Mapping
Table based on that definition, you can't edit the Consolidation Data Mapping Definition except for changes
to the definition name.

Steps
1. Access the Create Consolidation Data Mapping Definition task.
2. Enter a name for the mapping definition.
3. Select a Source System.
4. As you complete the Parameters tab for the parameter inputs for the mapping definition, consider:

Option Description
Display Name Enter the display name for each parameter.
Example: Company, Ledger Account, Cost
Center.
Allow Wildcards Select if you want to enable wildcards when you
define mapping rules.
Note: Workday doesn’t support wildcards in
ranges.
If you have wildcards (* and ?) in your dataset and
want to evaluate them as string values, you might
not want to enable this option.

Range Field Select if you want to specify a range when you

define mapping rules.
You can't specify a range and wildcard for the
same external code.

Note: You can enter a maximum of 20 parameter inputs.

5. Click the Additional Dimensions tab to map company and ledger accounts.
6. Select Company to map a company.

7. Select Ledger Account to map ledger accounts.

8. Select an Account Set for the ledger account mapping.
9. Click the Worktags tab.
10.As you complete the Primary Worktag Types and Additional Worktag Types grids, consider:

Field Description
Accounting Worktag Types Select worktag types to which you want to map
your consolidation data.
Worktag Type Required Set up worktag types as required. If you require a
worktag type, you must select a worktag value for
every row when you create mapping table rules.
Disallow Inactive Values Select for Workday to remove inactive values
automatically.

Each primary worktag type that you define is displayed in a separate column. All additional worktag
types are displayed in a single column, enabling you to select additional worktags from a single column.
Note: Related worktags defined at the tenant level, will only populate if you define the worktags
types as additional worktags when creating a Consolidation Data Mapping Definition. Workday won’t
automatically retrieve the related worktags you define on the Maintain Related Worktag Usage task.
11.Click OK to create the structure for the consolidation data mapping table.
Related Information
Tasks
Create Source Systems on page 186
Configure Worktags for Transactions

Create Consolidation Data Mapping Tables

Prerequisites
You've created a consolidation data-mapping table definition.
Security: Set Up: Data Capture Mapping Table domain in the Advanced Close and Consolidation functional
area.

Context
You can create a consolidation data-mapping table to define rules to map your input values to your target
output values.
You can only create 1 consolidation data-mapping table per mapping table definition, but can create
unlimited mapping table definitions for each source system.
In addition to 1-to-1 mapping, you can also map:
• One input value to many output values.
• Many input values to 1 output value.
• Many input values to many output values.
Once you create a consolidation data-mapping table based on the definition, you can edit mapping table
rules (Example: add, delete, reorder) but can't modify mapping definitions, except for changes to the
definition name.

Steps
1. Access the Create Consolidation Data Mapping Table task.

2. For Consolidation Data Mapping Definition, select the consolidation data-mapping table definition
you previously created, and click OK.
Workday displays the mapping table with the structure of the selected definition.
Note: To display accounting worktags for a consolidation data-mapping table when using an Enterprise
Interface Builder (EIB), you must edit the template to add the Accounting Worktag columns. See
Customize EIB Spreadsheet Template.
3. As you complete mapping inputs to target output values, keep these guidelines in consideration:

Mapping Functionality Guidelines

Input Values For each row, enter a combination of input values
that maps to a particular output value.
If you leave value blank, Workday won't evaluate
the column for that row.

Operators When entering input values, you can use these

operators:
• NOT: Checks whether a value isn't equal to
OR isn't like an input value. Examples: NOT
abc, NOT ab?
• IS NULL: Checks whether a field value is
empty.
• IS NOT NULL: Checks whether a field value
isn't empty.
• IN (list): Checks whether a value is within a set
of values. Example: IN (abc, def, xyz).
• NOT IN (list): Checks whether a value isn't
within a set of values. Example: NOT IN (abc,
def, xyz).

Wildcard Expressions If you selected to include wildcards when defining

a parameter on the mapping definition, use?
to match any single character. Example: 10?0
matches these codes: 1020, 1030, 1080.
Use * to match any number of characters.
Example: A*00 matches all codes starting with A
and ending with 00, such as A100, A1000, A1100,
A1200.

Range Expressions If you selected Range Field on the mapping table

definition, enter a Range Start and Range End
value.
You can enter Alphanumeric ranges. Example:
A100 - D300
Workday evaluates range expression as a string.
Example: Value of 5 falls outside a range of 1-19,
but value of 05 falls within a range of 01-19.

Output Values Select the desired output value resulting from the
combination of input values.

Note: Workday evaluates rules from the top down and once it finds a matching mapping table rule, it
stops further evaluation. Therefore, order rules from most to least specific using Order.

4. Once you complete creating all rules, click OK and then Done.
Related Information
Tasks
Create Consolidation Data Mapping Table Definitions on page 187

Concept: Consolidation Data - Inbound Integration

Import consolidation data from an external ERP endpoint into Workday with the Consolidation Data
Capture integration. This integration (and related Workday tasks) translates data between:
• External ERP endpoint account structures.
• Your Workday worktag and account structures
The integration imports data in a Workday-defined Comma-Separated Value (CSV) file format.

Consolidation Data Capture Integration and Supporting Tasks

The Consolidation Data Capture Integration consists of these components and supporting tasks:

Component Description
Create Source System This task enables you to define external source
endpoints.
Maintain Source System to Integration Mappings This task enables you to map your source system
to the integration system.
Create Consolidation Data Mapping Definitions This task enables you to:
• Define the number and type of input values in
your mapping table.
• Define the number and type of outputs.

Create Consolidation Data Mapping Tables This task enables you to create a data capture
mapping table to define rules to map your input
values to your target output values.
Consolidation Data - Inbound integration template This integration template enables you to create an
integration system that you can use to:
• Manually load consolidation data from the
Consolidation Data Hub report or retrieve a
CSV file from an external Document Retrieval
Service (Example: SFTP) endpoint that contains
the consolidation data.
• Translate data by applying the mapping rules
that you define with the Create Consolidation
Data Mapping Table task.
• Map rules that you define directly in the
integration as part of integration maps.

Launch/Schedule Options for Document Retrieval Services

Workday provides these launch schedule options for the Consolidation Data Capture Integration:
• Launch on schedule. You specify a run frequency, and Workday launches the integration automatically.
Upon launch, the integration retrieves any files from the endpoint.
• Launch immediately. You can launch the integration manually.

Related Information
Tasks
Map Source Systems to Integration Systems on page 193
Create Source Systems on page 186
Create Consolidation Data Mapping Table Definitions on page 187
Create Consolidation Data Mapping Tables on page 188

Steps: Create Consolidation Data Capture Integration

Prerequisites
• Access to a Document Retrieval Service server (Example: SFTP), including user ID and password that
contains the consolidation data files.
• Consolidation data files must be in the Workday-defined Comma-Separated Value (CSV) format.
See Reference: Consolidation Data - Inbound Integration CSV File Format on page 202.
• Create source systems.
Create 1 source for each external Enterprise Resource Planning (ERP) endpoint task.
Note: When you have different instances of an ERP endpoint, Workday recommends that you create
separate source systems to secure, and better manage Mapping Table Definitions and Mapping Tables.

Context
You can create integrations to load consolidation data in the form of summarized trial balance lines into
Workday from various external endpoints.

Steps
1. Create Integration System.
Enter Consolidation Data - Inbound at the New using Template prompt.
2. (Optional) Configure integration services. As you complete this section, consider:

Option Description
Consolidation Data - Inbound/Import Enable this service to provide these additional
Consolidation Data Configurations configuration options in Message Audit:
• Attribute: Input File Tag
• Include Web Service Requests
In addition, this service also provides the launch
parameter for Auto Submit and Parallel Thread
Count Override configuration.

Consolidation Data - Inbound/Financials Enable this service to retrieve files for processing
Document Retrieval Service through the related integration system.
Select the Configure Files for External Delivery
integration attribute to enable this service to
deliver the CSV Audit Diagnostic File output file
to external endpoints.
To deliver this file, you must select the Create
Audit File in CSV Format integration attribute.
To deliver files to external endpoints, configure a
document delivery step on a business process in
the integration system.

Option Description
We don't support backslashes on these fields
when you generate an audit file on a CSV import
file:
• Journal Entry Memo
• Journal External Reference ID
• Journal Line External Reference ID
• Journal Line Memo

Filter Import Process Messages This service provides technical processing that
isn’t impactful to your integration. You can either
enable or disable it with no meaningful impact.
3. Set Up Integration Retrieval.
4. (Optional) Create Integration Notifications.
5. Create an Integration System User (ISU) and grant the ISU Get and Put access to these domains:
• Process: Consolidation Data Capture
• Integration Event
See: Steps: Grant Integration or External Endpoint Access to Workday.
6. Select Integration System Configure Integration Attributes as a related action on the integration
system and if required, enter these integration service attributes:
• For the Import Trial Balance Configurations attribute provider:
• Input File Tag
• Include Web Service Requests in Message Audit.
• For the Integration Document Retention attribute provider:
• Document Retention Policy
Security: Integration Build and Integration Configure domains in the Integration functional area.
7. Select Integration System > Configure Integration Maps as a related action on the integration
system to map tables to external values in the input file.
Security: Integration Build and Integration Configure domains in the Integration functional area.
As you configure the integration map, consider:

Option Description
Internal Value Select the name of the mapping tables you
defined on the Create Consolidation Data
Mapping Table task to match the external codes
to:
• Company
• Workday Ledger Accounts
• Worktags

External Value Provide a value that will correspond to the column

header values for the Table Name in the input
file. It must be an exact match to what displays
in the input file. Workday doesn't support special
characters.
Each mapped column must follow this format:

Option Description
• EC. indicates that the column is a Mapping
Table column.
• TableName is the exact name of the external
value in the Map: Apply Mapping Tables
located on the integration system.
• ColumnName is the exact name of the column
within the Referenced Mapping Table in
Workday.

Related Information
Tasks
Create Source Systems on page 186
Create Consolidation Data Mapping Tables on page 188
Reference
Reference: Consolidation Data - Inbound Integration CSV File Format on page 202

Map Source Systems to Integration Systems

Prerequisites
You’ve created a source system using the Maintain Source Systems task.
You’ve created an integration system. See Create Integration System.
Security: Set Up: Source System to Integration Mapping in the Advanced Close and Consolidation
functional area.

Context
Before uploading data from the Consolidation Data Hub report you’ll need to map your source system to
the integration system. Mapping your source system to the integration system enables you to upload data
from your external Enterprise Resource Planning (ERP) endpoint into Workday.
Workday supports 1 to 1 mapping (1 source system to 1 integration system).
You can only map a source system to an integration system if the integration system has mapping tables
assigned to that particular source system.
Note: This task is optional if you’re using a Document Retrieval Service connection (Example: SFTP) to
import consolidation data.

Steps
1. Access the Maintain Source System to Integration Mappings task.
2. Enter a name for the mapping.
3. Select a source and integration system.
4. Click OK.
Related Information
Tasks
Create Source Systems on page 186

Load Consolidation Data into Workday

Prerequisites
Set up Consolidation Data Capture. See Steps: Set Up Consolidation Data Capture on page 186.
For new entities on external ERP endpoints, you can use either the Put Beginning Balance Journal or the
Import Beginning Balance Journal web services to load beginning balances in Workday.
Configure the Consolidation Data Journal Creation Event business process.
See Steps: Configure Business Process Definitions.
Map the External Consolidation Data Journal Entry Source to operational transactions using the
Maintain Journal Source Mapping to Operational Transactions task.
See Steps: Set Up and Update Journal Sources.
Security: Process: Data Capture in the Advanced Close and Consolidation functional area.

Context
You can load consolidation data manually or by a Document Retrieval Service connection (Example:
Secure File Transfer Protocol (SFTP).
Load only period activity for the current open period.
Note: Workday won’t recalculate period activity based on ending balances loaded.
Note: Workday will only retain the name of the CSV file that you uploaded and won’t save the file.
Workday assumes that your external ERP endpoint will continue to serve as the system of record for your
non-Workday entity for audit purposes.
When reloading consolidation data in an open period for the same Company, Book Code and Accounting
Date (or Grouping Dimension), consider these statuses for the consolidation data:

Consolidation Data Status Description

Approved An accounting journal is posted and associated
with this data. Workday cancels the previous
consolidation data with the same Grouping
Dimension, including all journals, and will replace it
with the new consolidation data.
Replaced Workday has replaced this data by a subsequent
consolidation data with the same Grouping
Dimension. Its associated journal has been
canceled.
Draft No accounting journal is associated with this data.
Therefore, Workday won’t cancel the previous
consolidation data. You’ll need to cancel the
consolidation data manually by clicking Cancel.

Note: If you want to resubmit the consolidation data for the same Grouping Dimension, you must reload
the entire summarized trial balance period activity. Don't load incremental adjusting journal entries.

Steps
1. (Optional) Based on your requirements, create custom validations to identify transaction issues that
need a more careful review or further action. Example: Create a custom validation to ensure that

anytime you update a line using the Correct Consolidation Data task, Workday will create a line
memo for audit trail purposes. See Steps: Set Up Custom Validations.
You can share these validations in accounting journals as long as the fields exist in both places.
For a list of Workday delivered validations during the integration event and before creating the
Consolidation Data load, see Consolidation Data Capture Validations on Community.
2. Access the Consolidation Data Hub report.
3. Click Upload.
4. As you complete the task in the Upload Consolidation Data page, consider:

Option Description
Source System Integration Select the name of the integration to run. You
assigned an integration name at the Maintain
Source System to Integration Mappings setup
task.
Auto Submit Check this option if you want to have Workday
automatically initiate the Business Process for
error free consolidation data.
Note: When your mapping rules yield conflicting
output values, Workday:
• Won't populate the mapping result.
• Will display a warning.
• Won't automatically submit the data even if
you select the Auto Submit.

Attachments Use the Drop files here or Select files option to

add the Consolidation Data files.
You can only load files based on a Workday-
defined file format. See Reference: Consolidation
Data - Inbound Integration CSV File Format on
page 202.

5. Confirm that consolidation data files load successfully and then click OK.
6. On the Consolidation Data Hub report, click Refresh to confirm that integration event completes
successfully.
Note: Once the integration events complete successfully, Workday replaces the Processing tab on
the Integration Events (Last 30 Days) grid with the Completed tab, if no integration errors took place.
The Consolidation Data Hub report displays details of the consolidation data on these 2 grids:
•Consolidation Data (This grid will by default display consolidation data for the current open period.
You can customize this view by the search prompt).
• Integration Events (Last 30 Days)
7. On the Consolidation Data grid, review details of each consolidation data uploaded, such as:

Option Description
Company Name of the company that contains the
consolidation data.
Source System The name of the external ERP endpoint.
Status Indicates these statuses of each consolidation
data file:

Option Description
• Approved: You've approved the consolidation
data and generated accounting.
• Draft: You’ve successfully loaded the
consolidation data but haven’t submitted the
data for approval. There might be errors/
warnings that require your attention before
submitting the data through the Business
Process.
• Canceled: You've canceled the consolidation
data using the Cancel button
• Replaced: You've resubmitted a file containing
the same Grouping Dimension:
• The consolidation data being replaced
changes from Approved to Replaced
status.
• The associated journal has a status of
Canceled.
• Error: You've successfully submitted the
consolidation data for approval but on
completion of the business process, Workday
creates an error journal. If you can't resolve
the error, contact your Workday Customer
Support for further help.
• Submitted: You've submitted the data using
the Consolidation Data Journal Creation Event
business process for approval.

Errors Indicates the number of errors in the consolidation

data.
You can click the number to view details of the
errors.

Journal Journal that Workday creates after approval of the

consolidation data.
You can click the journal to drill into the details of
the journal.

8. Click View to review details of the consolidation data you uploaded.

a) Check Only Updated Lines if you want to view only updated lines for ledger accounts and worktags
that you previously corrected.
b) Click OK.
Workday displays information for the consolidation data, such as:
• Mapped and current ledger accounts.
• Transaction and ledger currency.
• Transaction and ledger amounts.
• Mapped and current worktags.
• Mapping results
• Name of the user who last updated the data and the minute of the last update.
9. Click Correct to correct errors in the consolidation data. After correcting the errors, you can submit the
consolidation data for approval.

10.(Optional) Click Cancel to cancel the consolidation data. You can only cancel consolidation data that is
in Draft status.
11.Review the 4 tabs on the Integration Events (Last 30 Days) grid.
• The Processing tab displays details of the integration event that Workday is still completing.
• The Completed tab displays details for each completed integration event, such as:

Option Description
Integration Event Instance of the integration event.
You can click the instance to drill into the details
of the event.

Diagnostic Audit Download URL Instance to the diagnostic file.

To diagnose file errors, click the URL and click the
'+' button to expand the selection.
Diagnostic Audit Download provides an
integration summary and displays file-related
errors, if any.

Integration Messages Integration messages display integration-related

errors.
If you’re unable to resolve all errors after
uploading the file, Workday recommends that you
contact your system administrator.

View Consolidation Data Click the down arrow to:

• View details of the consolidation data.
• Export to Excel.
• Export to PDF.

• The Incomplete tab displays details of each integration event that creates some consolidation sets
due to errors. It displays information, such as:

Option Description
Integration Event Instance of the integration event.
You can click the instance to drill into the details
of the event.

Diagnostic Audit Download URL Instance to the diagnostic file.

To diagnose file errors, click the URL and click the
'+' button to expand the selection.
Diagnostic Audit Download, primarily displays file-
related errors.

Integration Messages Integration messages display integration-related

errors.

Option Description
If you’re unable to resolve all errors after
uploading the file, Workday recommends that you
contact your system administrator.

• The Failed tab displays details of failed integration events where Workday created no consolidation
data sets due to a system error. It displays information, such as:

Option Description
Integration Event Instance of the integration event.
You can click the instance to drill into the details
of the event.

Diagnostic Audit Download URL Instance to the diagnostic file.

To diagnose file errors, click the URL and click the
'+' button to expand the selection.
Diagnostic Audit Download, primarily displays file-
related errors.

Integration Messages Integration messages display integration-related

errors.
If you’re unable to resolve all errors after
reloading the file, Workday recommends that you
contact your system administrator.

Related Information
Tasks
Correct Consolidation Data on page 198
Reference
The Next Level: Data Validations for Consolidation Data Capture

Correct Consolidation Data

Prerequisites
Upload consolidation data into Workday. See Load Consolidation Data into Workday on page 194.
Create the default definition for the Consolidation Data Journal Creation Event business process.
Edit the business process security policy to include relevant security groups. For more information, see
Configure Consolidation Data Capture Security on Community.
See Steps: Configure Business Process Definitions.
Security: Process: Data Capture in the Advanced Close and Consolidation functional area.

Context
You can review and correct line level errors once you have uploaded consolidation data into Workday.
After you resolve the errors, you can submit the corrections, if any for approval and creating accounting
journals.
Note: You can correct errors for the ledger account and worktags only.

Steps
1. Access the Consolidation Data Hub report.
2. Click Refresh to display all consolidation data uploads.
3. For the consolidation data upload that you want to correct, click Correct.
Note: Workday will only display the Correct button if the Consolidation Data is in a Draft status. For
more information on document statuses, see Load Consolidation Data into Workday on page 194.
Workday displays the Correct Consolidation Data task.
4. (Optional) On the Line Summary section:
• Click Errors and Warnings to view summary of line errors and warnings.
• Review number of Updated Lines that have an error. You can't drill down to view the details.
5. On the Search Criteria section, select a search category to narrow your results.
6. As you narrow your search criteria, consider:

Option Description
Mapped Ledger Account Select mapped ledger account and worktags. To
resolve these mapping errors, you can modify
Mapped Worktags
rules you defined in the mapping table. See
Create Consolidation Data Mapping Tables on
page 188.
Errors and Warnings Select errors or warnings that you want to correct.
You can select a single error or warning or
multiple errors or warnings.
Note: If you select more than 1 error or warning,
only those lines that satisfy all the selected errors,
or warnings will populate in the grid below.

Row ID Minimum Select a minimum and maximum row that you

want to retrieve in the grid.
Row ID Maximum

Only Updated Lines Select if you want to search for errors from lines
you previously updated.
7. Click Search.
Workday loads a maximum of 250 lines at one-time in the grid, as specified by your criteria.
8. Review these columns in the grid:

Option Description
Column Heading Represents the row from the .CSV file. Example:
First row after header row will have a Row ID of 1,
and so on.
Mapped Ledger Account Ledger account that Workday maps after
evaluating referenced mapping tables. If this field
is blank, Workday was unable to find a mapping
table rule match.
Current Ledger Account Mapped ledger account plus any corrections
(additions or deletions) that you want to submit
as your final ledger account for the given
consolidation data line.

Option Description
Mapped Worktags Worktags that Workday maps after evaluating
referenced mapping tables. If this field is blank,
Workday was unable to find a mapping table rule
match.
Current Worktags Mapped worktags plus any corrections (additions
or deletions) that you want to submit as your final
worktags for the given consolidation data line.
Mapping Results Provides details of the mapping tables that
Workday creates by the integration and input
values from the .CSV values, and the output
results.
Memo Line level message that you can provide when
performing error handling.
Updated A Yes indicates that you’ve corrected a ledger
account or worktags for this consolidation line
from what you mapped.

Note: You can either select to update single lines individually or mass update selected lines in the grid.
9. To correct single lines individually
a) Select a line or lines in the grid.
b) Enter the correct values for the current ledger account or the current worktag.
c) Click Update to update the lines in the grid with the correct values to process any changes made.
Note: When you resolve errors or warnings and clickUpdate, Workday updates the error/warning
count in real time. Example:Workday initially displays 10 errors. As you keep resolving errors, the
number of errors displayed on theLine Summary section will adjust accordingly.
If you’re making changes to more than 20 lines at a time, review the number of Processing Lines
under the Line Summary section that Workday is processing. Click Update again, to have Workday
complete processing these lines.
Note: While Workday is processing the lines, you can't search for and modify these lines.
d) (Optional) Click Save for Later if you want to review the lines before submitting them for approval.
e) Click Submit to submit the lines for approval.
Workday launches the Consolidation Data Journal Creation Event business process to submit the
lines for approval.
Note: Submit will only display once Workday resolves all critical errors.
f) (Optional) Click Cancel if you want to cancel your actions.

10.To mass update lines

a) Select the lines that you want to update in the grid. You can also select all of them if you want to
update all lines in the grid.
b) On the Mass Update Selected Lines section, select the correct values for the ledger account and
worktag.
Note: Workday will apply the values that you specify to all the selected lines in the grid.
c) As you select Actions, consider:
• Add: Workday either adds the correct values to the missing values or replaces the existing
values in the grid with the correct values.
• Remove: Workday removes all existing values from the selected lines in the grid.
• Do not apply: Workday won't apply any values in the grid. You'll have to enter the correct values
individually for each transaction line in the grid.
d) Click Update to update the lines in the grid with the correct values and process the corrections.
Note: When you resolve errors or warnings and clickUpdate, Workday updates the numbers in
real time. Example:Workday initially displays 10 errors. As you keep resolving errors, the number of
errors displayed on theLine Summary section will adjust accordingly.
If you’re making changes to more than 20 lines at a time, review the number of Processing Lines
under the Line Summary section that Workday is processing.
Note: While Workday is processing the lines, you can't search for and modify these lines.
e) On the Mass Updated Selected Lines section, for Actions, select Do not apply and then click
Update again.
Workday completes processing these lines.
f) (Optional) Click Save for Later if you want to review the lines before submitting them for approval.
g) Click Submit.
Workday launches the Consolidation Data Journal Creation Event business process to submit the
lines for approval.
Note: Submit will only display once Workday resolves all critical errors.
h) (Optional) Click Cancel if you want to cancel your actions:
• Enter a comment and click OK.
• Click Done to navigate back to the Consolidation Data Hub report.

Concept: Period Close Activity Group of Consolidation Data Capture

Workday provides a Consolidation Data Capture period close activity group, enabling you to close your
Consolidation Data Capture journals separately from other journals. You can now close these 2 groups
independently, providing greater control and flexibility in processing different types of journals as you work
through your ledger period close. You still have the ability to add them to your configured groups.
Access the Maintain Period Close Activity Groups task to configure your period close activity group. See
Set Up Period Close Activity Groups on page 236.
Before closing the period, Workday recommends that you:
• Confirm that all consolidation data for a unique grouping dimension has an approved journal.
• Run the Trial Balance Composite report each period to reconcile YTD balances between the Source
System and Workday.
Related Information
Concepts
Concept: Ledger Close Activity Groups on page 254

Reference: Consolidation Data - Inbound Integration CSV File Format

You can't generate A CSV file from a delivered template. Your organization will have to create one using
the Workday defined guidelines as specified below:
The CSV import file format has 2 types of rows:
• Header row. The first row in the CSV file is a fixed header row. The header row describes the columns
that the consolidation data rows populate. There can be only 1 header row in a file, and it must be the
first row of the file. You can skip the optional columns in the input file by removing the column or leaving
it empty.
• Consolidation Data are rows that display the summarized trial balance lines. The integration separates
the CSV file by grouping all lines with the same Grouping Dimension that consists of:
• Company
• Book Code
• Accounting Date
For each set of lines with the same Grouping Dimension, Workday will:
• Create a single Consolidation Data file.
• Process the single Consolidation Data file into a single journal entry in Workday.
The CSV import file format has 2 types of fields that you can use to upload consolidation data from the
Consolidation Data Hub report or using a Document Retrieval Service connection (Example: SFTP):
• Standard Fields
You can include these standard fields:

Field Name Supported Data Grouping Required Description

Type Dimension
ACCOUNTING_DATE
YYYY-MM-DD Yes Yes Determines ledger
period based on
MM/DD/YYYY
Company fiscal
MM-DD-YYYY schedule.
MM/DD/YY
MM-DD-YY

BOOK_CODE Integration ID-for Yes No Segregates

the Book Code transactions for
If left blank,
financial reporting.
Access Workday records
Integration IDs the journal to
> View IDs as a blank/common
related action on book code.
the book code.

HEADER_MEMO Free Text No No Header message

Alpha‑3 code
TRANSACTION_CURRENCY No No Currency in which
a transaction takes
place.
TRANSACTION_AMOUNT
Amount with no No No Amount in
commas. transaction
currency.

Field Name Supported Data Grouping Required Description

Type Dimension
Alpha‑3 code
LEDGER_CURRENCY No Yes Ledger currency
of specified
Company.
LEDGER_AMOUNT Amount with no No Yes Amount in
commas. ledger currency
of specified
Company.
LINE_MEMO Free Text No No Line level
message
EXTERNAL Free Text No No Enables you to
_REFERENCE ID associate a journal
with a record in a
third party system.
DOCUMENT_ Free Text No No Enables you
LINK to create a link
to additional
information for the
journal.
Before you enter
the Document
Link, ensure
you enter
Consolidation
Data Capture
Document Link
as a Valid URI
Pattern on the
Maintain External
Link Validation
task.

Note: Enter the field name as shown in the Field Name column above. Example: Enter
ACCOUNTING_DATE not ACCOUNTING.DATE.
Column names are case-sensitive.
• Mapping Fields
You can use these fields in your mapping tables:

Mappable Data Type Singular Grouping Required Description

Field Dimension
Company Mapping Value Yes Yes Yes Company in
Workday
Ledger Mapping Value Yes No No Ledger
Account accounts from
the account
set of the
company.

Mappable Data Type Singular Grouping Required Description

Field Dimension
Worktags Mapping Value One per type. No No Attributes
for each
consolidation
data line.

As you enter mapping values, keep these guidelines in consideration:

Mapping Value Valid Values

Alphabet aA-zZ
Numbers 0 to 9

Note: Expressions aren’t case-sensitive.

Use this format for a field or column header on your CSV file for mapping values:
EC.TableName.ColumnName, where:
• EC indicates that the column contains mapped values. Every mapping field must start with 'EC.'
• TableName is the external value of the mapping table name. This name should correspond to the
external value in the Map: Apply Mapping Tables located on the integration system.
• ColumnName is the exact name of the Column in the Referenced Mapping Table in Workday.
For more information about the configuration, see Integration Maps Configuration, on Community.
Example:

EC.Map1.Ledger EC.Map2.Company ACCOUNTING LEDGER_CURRENCY

LEDGER_AMOUNT
Acct _DATE
Cash Company A 2023-01-31 USD 1000
Accounts Company A 2023-01-31 USD 250
Receivable
Fixed Assets Company A 2023-01-31 USD 3000

Additional Guidelines
Consider these additional guidelines when you format a CSV file:
• Workday records positive ledger amounts or transaction amounts as Debits and negative ledger
amounts or transaction amounts as Credits.
• When you open CSV files with certain editors (Example: Excel) Workday might convert certain field
display formats. Remove non-English values such as accents, symbols, and characters and so on. After
using such an editor, view the CSV file with a program such as TextEdit to ensure file wasn’t altered.
• Field or column order doesn’t matter.
• Commas in Ledger Amount or Transaction Amount fields aren’t supported (Example: input 1000 vs
1,000).
• Workday considers a field required unless otherwise stated.
• Boolean values are 1 (true) and 0 (false).

• Date value formats accepted are:

• YYYY-MM-DD
• MM/DD/YYYY
• MM-DD-YYYY
• MM/DD/YY
• MM-DD-YY
• Field or Column header names must display in the file exactly as this document specifies.
• Column header names are case-sensitive.
• For HEADER_MEMO, Workday will use a memo per unique grouping, based on Company, Accounting
Date, and Book Code.
Related Information
Reference
The Next Level: Historic Translation Method/Revaluation and Consolidation Data Capture

Consolidations and Eliminations

Setup Considerations: Consolidations and Eliminations

You can use this topic to help make decisions when planning your configuration and use of consolidations
and eliminations. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Consolidation aggregates financial transactions from multiple companies in a hierarchy into a single
financial statement. You create rules to eliminate these transactions when consolidating:
• Intercompany transactions.
• Investments in subsidiaries.
• Noncontrolling interest (NCI).

Business Benefits
You can:
• Consolidate 2 or more companies as a single entity to meet global statutory and tax reporting
requirements.
• Eliminate intercompany transactions to prevent double counting.
• Run consolidated reports throughout the period and include elimination information in your reporting at
any time.
• Create journals that record the NCI for subsidiaries.

Use Cases
When a parent company either directly or indirectly controls a majority interest in a subsidiary, you
can consolidate the affiliated companies and run consolidated financial statements. A consolidated

financial statement eliminates equity, intercompany, and NCI transactions, and displays the parent and its
subsidiaries as a single entity.

Questions to Consider

Questions Considerations
Are the subsidiaries wholly owned or partially For partially owned subsidiaries, define the
owned by the parent company? ownership percentage.
What intercompany ledger accounts do you want to Include the intercompany and interworktag ledger
eliminate during consolidations? accounts you want to eliminate when you configure
elimination rules.
Use the first tab of the elimination rules for these
types of eliminations.

How will you settle intercompany transactions? To settle by cash, ensure that you create
organizations as companies in Workday.
Otherwise, you can create a custom organization
or another type of organization such as a cost
center as a primary balancing worktag. Interworktag
eliminations can’t settle with cash and will only
eliminate for the primary balancing worktag.

What sort of interest does the parent company have When the parent company has a controlling interest
in subsidiaries? in a subsidiary, configure elimination rules to
eliminate the parent company investments from the
subsidiary.
If a third party has a noncontrolling interest in a
subsidiary, define elimination rules for NCI.

Which accounting method will you use when If you use the equity method, automate equity
consolidating? pickup calculation by defining rules on the Equity
Pickup tab of the elimination rules.
Will you be reporting consolidated results for an Create a separate hierarchy for the alternate fiscal
alternate fiscal schedule? schedule and select the alternate fiscal schedule on
the Edit Consolidations Details task.

When you're planning to calculate and record NCI eliminations using the Run Noncontrolling Interest
task, consider:

Questions Considerations
What currencies and hierarchies do you perform Create:
consolidation reporting for?
• NCI journals for each currency and hierarchy
that you're reporting in.
• Translated beginning balances for each
translated reporting currency you're
consolidating in.
Example: If you perform consolidation reporting in
USD and EUR, ensure that you have NCI journals
for both currencies, and for all hierarchies that
you're performing the consolidation reporting for.

Questions Considerations
Who should opt in when they want to perform If you currently derive NCI, you can opt in to run
reporting using NCI journals? persisted NCI reports.
If you don't opt in, you won't be able to report using
NCI journal lines.
If you're new to Workday, Workday opts you in
automatically.

At what level do you want to approve NCI results? You can approve or deny NCI results at:
• Hierarchy level, reducing the number of
business process events that need your
approval.
• Company level, providing you with more visibility
and control over your NCI results.

When are you going to run NCI? You can run NCI now or schedule to run it in the
future.
What type of NCI ownership does your company You can set up NCI to calculate for direct
have? ownership on the Maintain Elimination Rules
task. Workday calculates NCI for indirect and direct
ownership by default.

Recommendations
• When you’re configuring elimination rules for intercompany and interworktag ledger accounts, select
a unique account as the variance ledger account. A unique account ensures that Workday tracks
differences if the intercompany and interworktag accounts don’t net to zero upon consolidation.
• When you’re recording NCI, set up an elimination rule for each ledger account or ledger account
summary that you want to calculate NCI on.
• When you’re configuring elimination rules for equity pickup:
• Select a provision account. If you don’t select an account, Workday tracks losses but won't record
them.
• Record equity pickup results in the subsidiary base currency to record eliminations accurately, and
to automate revaluation of the investment in subsidiary.
• Add NCI and equity pickup journals to new or existing period close activity groups.

Requirements
To ensure that Workday calculates consolidations accurately:
• Complete the company hierarchy.
• Ensure each company in the hierarchy shares the same account set, and either a primary or an
alternate fiscal schedule. The companies can have different ledger (base) currencies.
• Complete the company ownership details for every company in the hierarchy.
• Configure eliminations and equity method consolidation rules.
• Opt in to report using NCI journal lines if you've been deriving NCI.
• Enable the Translated Currency prompt when you're creating a custom report to perform consolidation
reporting. Workday uses this value to perform eliminations for NCI, and investment in subsidiary and
subsidiary equity.

Limitations
No impact.

Tenant Setup
You can use the Edit Tenant Setup - Financials task to enable options to:
• Include worktag types for retained earnings.
• Add the intercompany affiliate worktag type.
• Reverse operational and NCI journals.

Security

Domain Consideration
Set Up: Consolidation in the Financial Accounting Can configure elimination rules.
functional area.
Process: Equity Pickup in the Financial Accounting Can run and calculate equity pickup.
functional area.
Set Up: Financial Accounting in the Common Can create ownership details.
Financial Management functional area.
Process: Noncontrolling Interest in the Financial Can create journal entries.
Accounting functional area.
Process: Noncontrolling Interest Opt-in the Can opt in to report NCI using NCI journals.
Financial Accounting functional area.
Only applies to unconstrained groups.

Business Processes

Business Process Consideration

Equity Pickup Event You can approve and deny equity pickup entries.
Noncontrolling Interest Group Run Event You can approve and deny NCI group results.
Workday creates 1 NCI group result per hierarchy
that you run NCI for.
Noncontrolling Interest Run Event You can add Noncontrolling Interest Run Event as
a subprocess of the Noncontrolling Interest Group
Run Event business process.
This enables you to pre-approve and deny NCI
results for individual subsidiaries or companies in a
hierarchy.

Reporting
You can run the Consolidated Trial Balance report to review these eliminations:
• Intercompany and interworktag.
• NCI.
You can use these reports to view NCI results and journal lines:
• Find Consolidation Journal
• Find Consolidation Journal Lines
You can use the Find Noncontrolling Interest Results report to view and cancel NCI results.
You can view equity pickup journals in a:
• Standard trial balance report.

• A composite consolidated trial balance report.

Integrations

Web Services Considerations

Get Company Ownership Details Full List Retrieves information about company ownership,
including all related snapshots for the company.
Get Consolidation Details of Company Hierarchy Retrieves consolidation details on company
hierarchies.
Get Noncontrolling Interest Results Retrieves all NCI results.
Put Company Ownership Detail Full List Uploads snapshots of company ownership details.
Put Consolidation Details of Company Hierarchy Uploads the consolidation details of company
hierarchies.
Put Noncontrolling Interest Result Mass creates NCI balances when you perform
reporting using persisted elimination journals.

Connections and Touchpoints

Features Considerations
Company Intercompany Profile You use this profile to define relationships between
companies in Workday.
The profile enables you to specify which companies
can initiate transactions and which companies can
only settle transactions.

Set Up a Single Legal Entity You share this feature with a Workday Payroll
(USA) implementation. Define the company
relationship to enable multiple companies to roll up
to a single company.
Worktag Balancing You can eliminate primary worktags, but you can't
eliminate optional worktags.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across
your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Set Up Intercompany and Interworktag Elimination Rules on page 212
Steps: Set Up for Persisting Noncontrolling Interest on page 215
Set Up Equity Pickup Elimination Rules on page 218
Run Noncontrolling Interest on page 222
Calculate Equity Pickup Results on page 224
Reference
2021R2 What's New Post: Run Noncontrolling Interest

Steps: Set Up Consolidation Companies

Prerequisites
• Create a company hierarchy that includes all companies that are part of the consolidation. See Steps:
Set Up Companies.
• Review setup considerations for consolidations and eliminations.

Context
You can:
• Set up ownership for investments in subsidiaries, noncontrolling interest (NCI), and elimination rules for
equity pickup.
• Generate reports to view detailed information about these eliminations:
• Intercompany and interworktag.
• Investment in subsidiary and subsidiary equity.
• NCI.

Steps
1. Set Up Company Ownership Details on page 211.
Select the legal companies that are part of the consolidation hierarchy, and define either of these
percentages:
• Ownership.
• Claim on assets.
Security:
• Set Up: Consolidation domain in the Financial Accounting functional area.
• Set Up: Financial Accounting domain in the Common Financial Management functional area.
2. Set Up Intercompany and Interworktag Elimination Rules on page 212.
Set up rules for using intercompany affiliate worktags to eliminate ledger accounts for the consolidation.
Security: Set Up: Consolidation domain in the Financial Accounting functional area.
3. (Optional) Set Up Investment in Subsidiary and Subsidiary Equity on page 230.
Note: If you're new to Workday, you don't have access to the Investment in Subsidiary/Subsidiary
Equity (To Be Retired) tab on the Maintain Elimination Rules task.
Security: Set Up: Consolidation domain in the Financial Accounting functional area.
4. Set up your tenant for NCI using either:
• Steps: Set Up for Persisting Noncontrolling Interest on page 215 (Recommended).
• Set Up for Deriving Noncontrolling Interest on page 232.
Note: If you're new to Workday, you can't derive NCI.
5. Set Up Equity Pickup Elimination Rules on page 218.
Define the equity method accounting rules that consolidation investor and investee companies use to
eliminate equity pickup earnings.

6. Create Trial Balance Reports on page 306.

View these eliminations by running the standard composite consolidated trial balance report:
• Investment in subsidiary and subsidiary equity eliminations, including any NCI portion.
• NCI activity.
• Equity pickup.
You can view equity pickup journals in a:
• Standard trial balance report.
• Composite consolidated trial balance report.
Related Information
Tasks
Steps: Set Up Companies on page 56
Reference
2021R2 What's New Post: Run Noncontrolling Interest

Set Up Company Ownership Details

Prerequisites
• Create a company hierarchy that includes all companies that are part of the consolidation. See Steps:
Set Up Companies.
• Security: Set Up: Consolidation domain in the Financial Accounting functional area.
• Security: Set Up: Financial Accounting domain in the Common Financial Management functional area.

Context
You can set up ownership details for your investments in subsidiaries for legal companies that are part of a
company hierarchy.
When you change the third party ownership details of a parent company, consider the impact on
subsidiaries associated with it. We recommend that you create a separate ownership change snapshot on
the date of change.

Steps
1. Access the subsidiary company.
You can search for a subsidiary company:
• Using global search.
• From the Edit Consolidation Details task, and selecting a Consolidating Parent Company for the
company hierarchy.
If you don't define a parent company, Workday won't apply any elimination rules that you define for:
• Investment in subsidiary and subsidiary equity.
• Noncontrolling Interest (NCI).
2. From the related actions menu of the subsidiary company, select Company > Edit Company
Ownership Details.
Enter an Effective Date.
Workday uses this date to calculate net income and prior year retained earnings based on the date that
these changes go into effect:
• Ownership %
• Claim on Assets %

3. As you complete the Edit Company Ownership Details task, consider:

Option Description
No Owner Companies Select when the company is a consolidating
parent that doesn’t have any owner companies.
Owner Company Select an owner company or a third party.
Select Create > Create Third Party to create a
worktag for owners that don’t have a company
within your Workday tenant.
Third-party worktags enable you to associate
third-party owners with their corresponding
elimination entries.

Ownership % Enter whole or decimal numbers from zero to 100

that represent ownership in the company. The
Total for all owner companies and third-parties
must equal 100.
If you reduce the ownership percentage of an
owner company to zero, don’t remove the value
for the fiscal period. You can remove the zero
percent ownership line in a subsequent period
after Workday records the ownership adjustment.

Claim on Assets % Enter a percentage if you’re attributing income

that isn’t based on relative Ownership %. Enter
whole or decimal numbers from zero to 100. The
Total for all owner companies and third-parties
must equal 100.

Result
You can configure elimination rules for the company hierarchy.
Related Information
Tasks
Steps: Set Up Companies on page 56
Reference
The Next Level: Introduction to Workday Consolidations

Set Up Intercompany and Interworktag Elimination Rules

Prerequisites
• Create a hierarchy that includes all companies that are part of the consolidation. See Steps: Set Up
Companies.
• Complete ownership details for each company in the company hierarchy. See Set Up Company
Ownership Details.
• Security: Set Up: Consolidation domain in the Financial Accounting functional area.

Context
You can configure rules for all intercompany and intercompany worktag ledger accounts that you want
to eliminate upon consolidation. Workday uses the intercompany affiliate on journal lines to perform the

elimination when the company and intercompany affiliate are both in the hierarchy for which you run the
report. Eliminations can consist of these relationships:
• One to one.
• One to many.
• Many to one.
These eliminations occur when you run the report and aren't persisted. Workday only performs eliminations
on the ledger accounts you configure in the rules.
Example: You can create separate rules to eliminate:
• Intercompany receivable and intercompany payable accounts.
• Intercompany revenue and intercompany expense accounts.
• Interworktag receivable and interworktag payable accounts.

Steps
1. Access the Maintain Elimination Rules task.
2. Select the Account Set for which you’re defining elimination rules.
Create 1 or more elimination rules for the account set.
3. As you complete the Intercompany/Interworktag tab, consider:
Option Description
Elimination Ledger Accounts Select the consolidation intercompany or
interworktag ledger accounts you want to
eliminate.
Workday only evaluates a ledger account
when it has intercompany affiliate worktags on
transactions. See Setup Considerations: On-
Behalf-of Intercompany Activities.
Interworktag affiliate only eliminates for required
worktag balancing.
Consider the account translation method of the
ledger accounts. If you've different translation
methods, it can result in translation variances.

Variance Ledger Account Select the variance accounts to post any out-of-
balance amounts to when the intercompany or
interworktag ledger accounts don't eliminate on
consolidation.
Workday recommends that you:
• Select a different variance ledger account for
each elimination rule, to provide more visibility
into the intercompany reconciliation process.
• Don't define intercompany or interworktag
accounts as the variance ledger account.

Result
Workday calculates and displays the elimination entries in an elimination column on each consolidated
financial report, when you select 1 or more of these prompts:
• Eliminations Only
• Perform Intercompany Eliminations

You can use the Intercompany Elimination Out of Balance report to reconcile:
• Intercompany accounts in an elimination rule.
• Differences with the suspense account in the Consolidated Trial Balance report.

Example

Elimination Rule Name Elimination Ledger Accounts Variance Ledger Account

Intercompany Management Fee 4999:Management Fee Revenue 7900:Other Expenses
Elimination
5999:Intercompany Cost of Sales
7999:Management Fee Expense

Intercompany Pay/Rec 1900:Intercompany Receivable 1100:Suspense

Elimination
2900:Intercompany Payable

Investment in Subsidiary, 1950:Investment in Sub 1101:Suspense Intercompany

Associate, and Joint Venture Payable/Receivable
1951:Investment in Subsidiary -
Current Year Earnings
1952:Investment in Subsidiary -
Income Losses
1955:Investment in Associate and
Joint Ventures
1956:Investment in Associate and
Joint Ventures - Income
1957:Investment in Associate and
Joint Ventures - Income Losses
2800:Subsidiary Losses Provision
2805:Associate and Joint Venture
Losses Provision
3005:Noncontrolling Interest
Equity
3100:Capital Stock
3110:Preferred Stock
3124:APIC Other
3125:Additional Paid in Capital
3300:Retained Earnings - Prior
Years
3305:Dividends Declared
3310:Preferred Dividends
Declared
3350:Treasury Stock
3410:CTA (FX Reserve)
3450:OCI (Revaluation Surplus)
3500:Unrealized Gain/Loss

Elimination Rule Name Elimination Ledger Accounts Variance Ledger Account

8700:Earnings in Subsidiary
8701:Earnings in Associate / Joint
Ventur

In this example, we add retained earnings to the elimination rules.

Next Steps
You can report on individual elimination rules using the Intercompany Elimination Out of Balance
Report.
When an intercompany affiliate is tagged on an income statement account that isn't in your elimination
rules and a roll forward has occurred, the retained earnings an carry that additional intercompany affiliate.
This results in more elimination than intended. To resolve this, you can create a reclassing entry of the
unwanted intercompany affiliate in the retained earnings account. See Workday Community: Intercompany
Elimination Details and Reclassification.

Steps: Set Up for Persisting Noncontrolling Interest

Prerequisites
• Review setup considerations for consolidations and eliminations.
• Configure the Noncontrolling Interest Group Run Event business process to approve and deny NCI
group results at hierarchy level.
• Security: Process: Noncontrolling Interest domain in the Financial Accounting functional area.

Context
You can configure noncontrolling interest (NCI) for persisted journals.
If you currently derive NCI and want to perform reporting using NCI journal lines, you must opt in.

Steps
1. (Optional) Set up security for preapproving and denying NCI results for companies and subsidiaries in a
hierarchy.
Configure the Noncontrolling Interest Run Event business process, which is a subprocess of the
Noncontrolling Interest Group Run Event business process.
2. (Optional) Set up security for opting in to persist NCI.
Configure the Process: Noncontrolling Interest Opt-in domain in the Financial Accounting functional
area for unconstrained groups only.
3. Set Up Elimination Rules for Noncontrolling Interest.
4. Create NCI balances for each period, company hierarchy, and reporting currency that you're reporting
on using either the:
• Run Noncontrolling Interest task.
• Put Noncontrolling Interest Result web service. Workday creates the NCI journals when you
approve the NCI results.

5. Access the Noncontrolling Interest Journal Lines Opt-In task to perform reporting using NCI journal
lines.
Ensure you've performed the tasks in the checklist, and select the Report noncontrolling interest
journal lines check box.
You can opt out of reporting using NCI journal lines by clearing the Report noncontrolling interest
journal lines check box.

Next Steps
Run NCI using the Run Noncontrolling Interest task.
Related Information
Tasks
Steps: Set Up Consolidation Companies on page 210
Run Noncontrolling Interest on page 222
Roll Year-End Balances Forward on page 242
Reference
2021R2 What's New Post: Run Noncontrolling Interest

Set Up Elimination Rules for Noncontrolling Interest

Prerequisites
• Review setup considerations for consolidations and eliminations.
• Security: Set Up: Consolidation domain in the Financial Accounting functional area.

Context
You can set up elimination rules to calculate the equity and net earnings (income statement and equity)
that are attributable to parties that aren't in the hierarchy for which you run the report.

Steps
1. Access the Maintain Elimination Rules task.
2. (Optional) If you're opting in to persist NCI, remove your configuration details on the Investment in
Subsidiary/Subsidiary Equity (To Be Retired) tab.
3. Access the Noncontrolling Interest Activity tab.
Create a rule for the ledger accounts and ledger account summaries that you want to calculate NCI on.
As you complete this tab, consider:
Option Description
Direct Ownership Only (Always Select) Select this check box to calculate noncontrolling
interest (NCI) for direct ownership only.
We recommend that you always select this check
box as we plan to retire the ability to calculate NCI
for indirect ownership in a future update.

NCI Source Ledger Accounts/Summaries Select the ledger account or ledger account
summaries that you want to use for calculating
NCI activity. These are typically:
• Equity accounts.
• Net income accounts.
• Other Comprehensive Income (OCI) accounts.
Include all equity accounts that:

Option Description
• Represent ownership consistent with the
ownership table of the subsidiary. Consider
that some ownership equity accounts might not
be attributable to additional parties. Example:
Particular series of preferred stock.
• Survive consolidation. These represent the
OCI accounts. Exclude accounts that are
assigned to translation gain or loss account
posting.
When you've selected the Direct Ownership
Only check box, we recommend that you take
these actions when you select ledger account
summaries for parent companies in company
hierarchies, to prevent double counting:
• Exclude the earnings in subsidiary accounts in
the parent companies from the ledger account
summaries.
• Create a separate ledger account summary for
the earnings in subsidiary accounts.

NCI Attribution Method Select either of these methods to calculate NCI

activity:
• Claim on Assets %
• Ownership %
To change the percentages, access the Edit
Company Ownership Details task from the
related actions menu of the subsidiary company.
NCI Target Ledger Account Select a ledger account to record NCI eliminations
to that offsets the NCI equity account.
For net income accounts, this is typically the NCI
expense account on the income statement. For
equity accounts, this is typically the same as
the source account.

Ownership Change Adjustment Account Select a ledger account that isn't retired to record
the ownership change adjustments. For equity
accounts, select the same account as the source
account.
When you update ownership details, Workday
calculates ownership change adjustments based
on the activity posted to date in the source ledger
accounts that you define on the NCI rule. It
records the ownership change adjustments to the
ledger account that you select.
Workday calculates ownership adjustment
separately on prior year activity and current year
activity to date.
If you don't select a ledger account, the Run
Noncontrolling Interest task won't calculate

Option Description
ownership change adjustments even when there
are ownership changes in the period that you run
the task for.

NCI Offset Ledger Account Define the NCI offsetting ledger account that
you want to use for balancing NCI target ledger
accounts. You can use a different account for
each elimination rule to facilitate reconciliation.

Example
This example illustrates some elimination rules for noncontrolling interest.

Direct NCI Rule NCI Source NCI NCI Target Ownership NCI Offset
Ownership Name Ledger Attribution Ledger Change Ledger
Only Accounts/ Method Amount Adjustment Account
Summaries Account
Yes NCI Activity Standard: Ownership % 8850:NCI 3120:Additional3000:NCI
Income Expense Paid In Equity
Statement Capital
Accounts
Yes NCI Equity 3100:Capital Ownership % 3100:Capital 3100:Capital 3000:NCI
Stock Stock Stock Equity
Yes NCI 3600:Revaluation
Ownership % 3600:Revaluation
3600:Revaluation
3000:NCI
Revaluation Reserve Reserve Reserve Equity
Reserve

Next Steps
Run noncontrolling interest.
Related Information
Tasks
Run Noncontrolling Interest on page 222

Set Up Equity Pickup Elimination Rules

Prerequisites
• Set up company ownership details for investor and investee companies. See Set Up Company
Ownership Details.
• Security: Set Up: Consolidation domain in the Financial Accounting functional area.

Context
You can define rules for eliminating equity pickup earnings for the investor and investee companies when
you consolidate subsidiaries using the equity method of accounting. For each equity pickup rule, you can
define:
• Default ledger accounts.
• Ledger accounts for 1 or more companies with their own set of accounts.
Workday supports equity pickup on all subsidiary investments regardless of ownership percent.

Equity pickup elimination rules work in conjunction with elimination rules for intercompany or interworktag
and noncontrolling interest.

Steps
1. Access the Maintain Elimination Rules > Equity Pickup tab.
2. As you complete the Equity Pickup tab, consider:
Option Description
Rule Name You can't use a rule name more than once.
Record in Subsidiary Base Currency Select to record equity pickup in the base
currency of the subsidiary. When you select
this check box, you can revalue investments as
configured in your revaluation rules.
When you don't select this check box, Workday
calculates the equity pickup results in the ledger
(base) currency of the parent company or
companies. This results in the revaluation of your
investment account at historical rates, such as the
rates that applied at the time of recording.

Journal Source Select only 1 journal source.

You can define journal sources on the Maintain
Journal Sources task.

Currency Rate Type Select to override the default currency rate types
Workday defines at the company or tenant level.
Source Ledger Accounts/Summaries Select 1 or more default ledger accounts or ledger
account summaries that you want to use to derive
equity pickup results. Each account must be
unique, and typically comprises the net income of
the subsidiary.
You can create more than 1 row for each ledger
account or ledger account summary entry.
Example: Select 1 source ledger account for net
income and another for dividends.
If you have multiple levels of ownership, ensure
that you include the profit/loss account so
that your results flow to the various levels of
ownership in the hierarchy. Do this also if you
configure the Ownership Change Adjustment
Account option.

Investment Account Select a default ledger account to record the

change to the parent investment in the subsidiary.
Select an account that is different to the provision
account to avoid processing errors.
To avoid processing errors, the selected account:
• Must be zero or debit balance by intercompany
affiliate before equity pickup is run each
period.

Option Description
• Can't be the same account as the Provision
Account.

Profit/Loss Account Select a default ledger account to record the

change to the parent equity income or loss in the
subsidiary.
The equity pickup process creates duplicate
results if you calculate equity pickup using a
different rule with the same:
• Company or Company Hierarchy.
• Fiscal Period.
• Source Ledger Accounts.

Provision Account (Optional) Select a provision account to

record equity pickup losses for the parent
company. When you don't select a provision
account, Workday tracks losses but won't record
them to any account.
Select a provision account when you select a
ledger account from the Ownership Change
Adjustment Account option.
To avoid processing errors, the selected account:
• Must be zero or credit balance by
intercompany affiliate before equity pickup is
run each period.
• Can't be the same as the Investment
Account.

Ownership Change Adjustment Account (Optional) Select a ledger account to record the
change in ownership from prior period to current
period.
If you don't select an account, Workday won't
record ownership changes.
Workday records the offset on adjustments to the
profit/loss account.

Worktags (Optional) Select 1 or more worktags, which can

include balancing worktags, that you want to
associate with target journal lines.
3. (Optional) In the Company Overrides grid, configure an equity pickup rule for 1 or more investor
companies when each company has different investment, profit and loss, and provision accounts.
Ledger accounts and worktags that you specify on the grid override default ledger account and worktag
values for investor companies.

Example
This example illustrates an elimination rule for equity pickup:

Option Description
Rule Name Equity Pickup with Provision

Option Description
Record in Subsidiary Base Currency Select.
Journal Source Equity Pickup
Currency Rate Type Leave blank.
Source Ledger Accounts/Summaries Standard: Income Statement Accounts
Investment Account 1930:Investment in Joint Ventures
Profit/Loss Account 8000:Earnings in Joint Ventures
Provision Account 2800:Provision for Loss in Joint Ventures
Ownership Change Adjustment Account Leave blank.

In this example, the Record in Subsidiary Base Currency check box is selected so that investments can
be revalued using revaluation rules.
The Investment Account is the investment in subsidiary account, which is the target account for equity
pickup of subsidiary earnings. You could also set up and use an Investment in Subsidiary - Earnings
account to segregate cumulative earnings from the original investment balance and provide more visibility
into the investment accounts.
The Profit/Loss Account for the net income rule is the earnings or loss in subsidiary account on the
income statement. For other comprehensive income (OCI) rules, select the same account as the Source
Ledger Accounts/Summaries to effectively record the parent's portion of the subsidiary's OCI into the
same account on the parent's ledger.

Next Steps
Use the Equity Pickup task to calculate equity pickup results.
Related Information
Tasks
Set Up Company Ownership Details on page 211
Create Journal Sources on page 91

Steps: Create Alternate Fiscal Year Consolidations

Prerequisites
• Review setup considerations for consolidations and eliminations.
• Create Organization Hierarchies.
Create a company hierarchy that includes all companies that are part of the consolidation.
• Ensure you’ve recorded the Primary Fiscal Schedule opening balances using the Journal Enterprise
Interface Builder (EIB).
• Security:
• Set Up: Consolidation domain in the Financial Accounting functional area.
• Set Up: Financial Accounting domain in the Common Financial Management functional area.

Context
Workday enables you to create consolidated financial statements for companies with different fiscal
schedules. When you want to roll up companies with alternate fiscal schedules into a hierarchy, each
company in the hierarchy must share either:
• A primary fiscal schedule.

• An alternate fiscal schedule.

Also ensure:
• You create an alternate fiscal schedule for all years that have data.
• You roll forward the alternate fiscal year for each year that has data.
Note: Create a separate hierarchy if you want to report consolidation results for the alternate fiscal
schedule.

Steps
1. Consolidate companies in the hierarchy to eliminate:
• Intercompany.
• Equity pickup.
• Noncontrolling interest (NCI).
See Steps: Set Up Consolidation Companies on page 210.
2. Associate 1 or more alternate fiscal schedules with each company in the hierarchy.
See Assign Company Accounting Details on page 62.
3. Access the Edit Consolidation Details task and enter a standard or alternate fiscal year to define the
consolidation fiscal schedule for the company hierarchy.
4. Roll forward year-end balances and translated beginning balances for all companies in the hierarchy at
the end of their fiscal years.
See Roll Year-End Balances Forward on page 242.

Next Steps
Run the Consolidated Trial Balance report.
Related Information
Tasks
Create Trial Balance Reports on page 306

Run Noncontrolling Interest

Prerequisites
• Set up Workday to persist noncontrolling interest (NCI). See Steps: Set Up for Persisting Noncontrolling
Interest.
• Security: Process: Noncontrolling Interest in the Financial Accounting functional area to secure NCI
tasks and reports, and enable you to create journal entries.

Context
You can create consolidation journals that record the NCI for subsidiaries in persisted elimination journals.
When there's a change in NCI ownership, Workday calculates your NCI ownership change adjustment
amounts, based on:
• NCI source amounts.
• Previous NCI percentages.
• Current NCI percentages.
• Change in NCI ownership percentages.

Steps
1. Access the Run Noncontrolling Interest task.

2. As you complete this task, consider:

Option Description
Company Hierarchy Select the company hierarchy that you want to
record the NCI eliminations for.
Fiscal Schedule Workday calculates NCI eliminations for the
current earliest open period.
Example: If you schedule to run the task on
the 1st of April and the March period is open,
Workday calculates and records NCI eliminations
for the March period.

Currencies You can select 1 or multiple currencies for

hierarchies.

Result
You can drill into Group Result Detail per hierarchy to gain insight on NCI activities.
If NCI ownership changes occur, you can view how Workday calculates the NCI change adjustment
amounts.
Workday creates separate result lines for each rule and ownership change based on activity for the:
• Current year.
• Prior year.

Next Steps
• If NCI results look inaccurate, you can cancel NCI group results using the Noncontrolling Interest
Result Group > Cancel related action.
• You can roll forward NCI beginning balances using either of these tasks on the Process: Close Year
End domain in the Common Financial Management functional area:
• Roll Forward Noncontrolling Beginning Balances when you want to roll forward just NCI journal
lines.
• Roll Forward Year-End Balance when you want to roll forward all beginning balances, including
NCI.
Workday creates beginning balance journal lines for unique combinations of:
• Company hierarchy.
• Book codes.
• Ledger accounts.
• Intercompany affiliates.
• Third parties.
• To view NCI entries, use the standard composite consolidated trial balance report.
Related Information
Tasks
Steps: Set Up Consolidation Companies on page 210
Set Up Company Ownership Details on page 211
Set Up Elimination Rules for Noncontrolling Interest on page 216
Steps: Set Up for Persisting Noncontrolling Interest on page 215
Reference
2021R2 What's New Post: Run Noncontrolling Interest

Calculate Equity Pickup Results

Prerequisites
• Define equity pickup rules.
• Verify that the current ledger period status of the investor company isn't:
• Closed.
• Close In Progress for the Equity Pickup journal source.
• Not Available.
• Ensure that equity pickup journals for earlier fiscal periods are in a Posted state before running equity
pickup for subsequent fiscal periods to avoid processing errors.
• Configure the Equity Pickup Event business process and security policy in the Financial Accounting
functional area so that you can approve journal entries for equity pickup before posting them to target
and offset ledger accounts of investor companies.
• Security: Process: Equity Pickup domain in the Financial Accounting functional area.

Context
Record the equity earnings of a consolidated subsidiary onto the books of the parent company.
When you record equity pickup results in the base currency of a subsidiary, the journal entry displays in the
subsidiary currency.

Steps
1. Access the Equity Pickup task.
2. As you complete the task, consider:
Option Description
Company Select the investor company or company
hierarchy for recording equity pickup results.
Equity Pickup Rules When you run equity pickup for 2 rules that use
the same source and profit or loss accounts,
Workday calculates equity for both.
If you select multiple rules, Workday displays
results for each rule when you run the task.
The Equity Pickup task performs equity pickup
for all rules simultaneously. It doesn't calculate
them sequentially.
Note: To avoid processing errors, run equity
pickup 1 rule at a time if you have overlapping
investment and provision ledger accounts.

Fiscal Period Ensure that periods are open for all investor
companies to post equity pickup results.
Source Book (Optional) Select a default source book for equity
pickup. Leave blank to select source journals from
the blank book code.
Target Book Code (Optional) Select a book code to assign to the
equity pickup journal entries. Leave blank to post
equity pickup results to the blank book code.

Option Description
Post to Subsidiary Companies Select to post the equity pickup journal entries to
all investor companies. If you clear the check box,
Workday won't create operational journals and
sets the equity pickup Status to Complete.
Account Translation Rule Set Select the rule to translate accounts in a
subsidiary onto the parent books.
3. (Optional) From the related actions menu of the Equity Pickup business process and security policy in
the Financial Accounting functional area, select View Accounting to display the equity pickup Journal
Entry.
• When there's a pending approval step, the business process sets the:
• Equity pickup status to In Progress.
• Operational journal status to Pro forma.
• If there's no business process or you approved the equity pickup results, the:
• Equity pickup status is Approved.
• Operational journal status is Posted.
• If there's no accounting associated with the equity pickup results, the:
• Equity pickup status is Complete.
• The equity pickup process doesn't create an operational journal.
4. (Optional) To cancel the results of an equity pickup run, find the results that you generated and select
Cancel from the Equity Pickup Result related actions menu.

Result
When you process equity pickup, it creates a result for each investor company that you run the Equity
Pickup task for. If you run the task for a hierarchy with multiple investor companies, Workday creates
separate equity pickup results for each investor company and includes the:
• Percentage the investor company owns in the subsidiary.
• Source amount that Workday uses to calculate equity pickup.
• Provision amount that the equity picks up.
If you selected an ownership change adjustment ledger account on the equity pickup rule, Workday
displays an Ownership Change Details tab on the result. You can use this tab to drill into how Workday
calculates your equity pickup.
• Workday calculates direct ownership change adjustment amounts based on the:
• Change in ownership percentage from the current period to the prior period.
• Opening source amount at the beginning of the period multiplied by the ownership change amount.
• Workday calculates indirect ownership change adjustment amounts based on the:
• Current period ownership percentage.
• Source amount deriving from the direct ownership change adjustment result of the subsidiary on the
same equity pickup run. Workday multiplies this value by the current period ownership percentage.
When no indirect ownership changes occur during the current period, Workday displays values of zero.

Next Steps
Use the Find Equity Pickup Results report to view previous equity pickup results.

Related Information
Tasks
Change the Status of Ledger Periods on page 238
Create Trial Balance Reports on page 306

Reference: Equity Pickup Results

Run the equity pickup process for these parent and subsidiary companies:

Parent Subsidiary Ownership Net Income Change Provision for

Company in Parent Loss
Debit/(Credit)
Investment
USD
Debit/(Credit)
USD

GMS USA Green Planet 100% 151,900 (150,000) 1,900

GMS USA GMS Hong 65% (46,501) 30,225
Kong
GMS USA GMS Canada 100% (3,162) 3,162
GMS USA GMS Australia 80% (17,337) 13,870
GMS Canada GMS Australia 20% (17,337) 3,467
Third-party GMS Hong 35% (46,501) 16,275
Company Kong

Workday displays results on the parent books in either of these base currencies, depending on how you
calculate equity pickup:
• Parent
• Subsidiary

Equity Pickup Results in Subsidiary Base Currency

When you record equity pickup results in the base currency of the subsidiary, Workday posts these
accounting entries to the books of the parent company in the subsidiary base currency:
GMS USA

Ledger Debit Credit FX Rate Debit Credit

Account/ (Subsidiary (Subsidiary (Company (Company
Worktag Currency) Currency) Currency Currency)
Investment in 150,000 1.000000 150,000
subsidiary
Green Planet

Equity income 151,900 1.000000 151,900

in subsidiary
Green Planet

Provision for 1,900 1.000000 1,900

Loss
Green Planet

Ledger Debit Credit FX Rate Debit Credit

Account/ (Subsidiary (Subsidiary (Company (Company
Worktag Currency) Currency) Currency Currency)
Investment in 234,389 0.128955 30,225
subsidiary
GMS Hong
Kong

Equity income 234,389 0.128955 30,225

in subsidiary
GMS Hong
Kong

Investment in 3,671 0.861334 3,162

subsidiary
GMS Canada

Equity income 3,671 0.861334 3,162

in subsidiary
GMS Canada

Investment in 12,855 1.078958 13,870

subsidiary
GMS Australia

Equity income 12,855 1.078958 13,870

in subsidiary
GMS Australia

GMS Canada

Ledger Debit(SubsidiaryCredit(SubsidiaryFX Rate Debit(Company Credit(Company

Account/ Currency) Currency) Currency Currency)
Worktag
Investment in 3,214 1.078958 3,467
subsidiary
GMS Australia

Equity income 3,214 1.078958 3,467

in subsidiary
GMS Australia

Third-Party Company
The Equity Pickup amount is related to the noncontrolling interest parent. Workday uses the rules for
recording net income attributions for noncontrolling or minority interest consolidations. You can configure
these rules on the Maintain Elimination Rules task.
The equity pickup process doesn't create operational journals for noncontrolling interest in Workday. When
you run the Consolidated Trial Balance report, these results are the accounting entries in the currency of
the Hong Kong subsidiary:

Ledger Debit Credit FX Rate Debit Credit

Account/ (Subsidiary (Subsidiary (Company (Company
Worktag Currency) Currency) Currency) Currency)
NCI Expense 126,210 0.128955 16,275
NCI Accrual 126,210 0.128955 16,275

Troubleshooting: Reconcile Currency Translation Adjustment Accounts

Cause: Your current configuration in your tenant is preventing Workday from reconciling currency
translation adjustment (CTA) accounts.
Solution:

Steps
1. Configure the Set Up: Consolidation domain in the Financial Accounting functional area.
2. Access the Maintain Elimination Rules task.
3. In the Investment in Subsidiary/Subsidiary Equity (To Be Retired) tab, use these configurations so
that Workday can reconcile the CTA account:
Option Description
Segregate CTA and Suspense for Select for multicurrency transactions.
Consolidation
Investment in Subsidiary Ledger Accounts/ Create a new ledger account for the manual
Summaries entries that you want to make to the CTA account.
Don't:
• Combine manual entries with entries derived
from the account posting rules.
• Include accounts that you assign to the
translation gain or translation loss account
posting rule set.

Subsidiary Equity Ledger Accounts/ Create a new ledger account for the manual
Summaries entries that you want to make to the CTA account.
Don't:
• Combine manual entries with entries derived
from the account posting rules.
• Include accounts in your year-end closing
rules.

NCI Source Ledger Accounts/Summaries Select the same accounts as in the Subsidiary
Equity Ledger Accounts/Summaries field.
Leave blank if there are no noncontrolling interest
(NCI) transactions.
Don't include accounts that are in your year-end
closing rules.

NCI Portion of Equity Leave blank if there are no NCI transactions.

Variance Ledger Account Select a unique variance suspense account for
each elimination rule.

Related Information
Tasks
Set Up Investment in Subsidiary and Subsidiary Equity on page 230
Reference
Setup Considerations: Consolidations and Eliminations on page 205
Workday Community: Guide to Updating the Investment in Subsidiary Elimination Rule

Troubleshooting: Equity Pickup Processing

After the equity pickup process completes, Workday displays an error message when either the:
• Provision ledger account doesn't have a zero balance and the investment ledger account has a debit
value.
• Investment ledger account doesn't have a zero balance and the provision ledger account has a credit
balance.
Cause: Manual posting to ledger accounts can create balances in both investment and provision ledger
accounts for an intercompany affiliate.
Solution: Before processing equity pickup for the fiscal period, create a manual journal or set up an
allocation definition that clears the balance to zero for either of these accounts:
• Investment
• Provision

Steps
1. Access the Create Allocation Definition task.
Security: Set Up: Allocations in the Financial Accounting functional area.
2. In the Details section, select a source company in the Used By field.
In the Source section, select these values:
Option Description
Ledger Account/Ledger Account Summary Provision or investment account.
Worktags Intercompany affiliate worktag.

In the Basis section, select these values:

Option Description
Ledger/~Plan~Structure Actuals
Allocation Method Fixed Percent
Definition Select a fixed percentage statistic definition that
results in 100%.

In the Target section, select these values:

Option Description
Company is From Source
Ledger Account is from User Specified
Ledger Account Either:
• Investment in subsidiary account.
• Provision account.

Option Description
Worktag Type Intercompany Affiliate
Worktag Value is from Source

In the Offset section, select these values:

Option Description
Ledger Account is from Source
Worktag Type Intercompany Affiliate
Worktag Value is from Source
Company is from Source

Related Information
Tasks
Calculate Equity Pickup Results on page 224
Create Allocation Definitions on page 142
Define Statistic Types on page 134
Enter Statistic Values on page 136
Set Up Intercompany and Interworktag Elimination Rules on page 212
Reference
Setup Considerations: Consolidations and Eliminations on page 205

Deriving Eliminations
Set Up Investment in Subsidiary and Subsidiary Equity

Prerequisites
• Define elimination rules for elimination ledger accounts or ledger account summaries for account sets.
• Select a Consolidating Parent Company on the Edit Consolidation Details task.
• Security: Set Up: Consolidation domain in the Financial Accounting functional area.

Context
You can set up rules to eliminate investment in subsidiary and subsidiary equity when you're deriving
noncontrolling interest (NCI).
Note: If you're new to Workday, you don't have access to the Investment in Subsidiary/Subsidiary
Equity (To Be Retired) tab on the Maintain Elimination Rules task.

Steps
1. Access the Maintain Elimination Rules task.
2. Select the Account Set for which you’re defining elimination rules.
You can only create 1 rule for an account set.
3. Access the Investment in Subsidiary/Subsidiary Equity (To Be Retired) tab.
As you complete this tab, consider:
Option Description
Investment in Subsidiary Ledger Accounts/ Select the parent investment, equity income, and
Summaries provision for loss accounts you want to eliminate.

Option Description
• Configure the parameters defined on the Edit
Consolidation Details task for each company
hierarchy that you’re consolidating.
• Select a ledger account that has an
intercompany affiliate worktag that
corresponds to the subsidiaries in the
hierarchy.
• Create a new ledger account for any manual
entries that you want to make to the currency
translation adjustment (CTA) account.
• Don't include accounts that you assign to the
translation gain or translation loss account
posting rule set.

Subsidiary Equity Ledger Accounts/ • Select the equity ledger accounts or ledger
Summaries account summaries of all the subsidiaries that
you want to eliminate against the investment
accounts of the parent.
• Don't include intercompany affiliate worktags
on subsidiary equity accounts, as Workday
eliminates all account balances for the
selected ledger accounts. Workday doesn't
eliminate balances in the consolidating parent.
• Workday recommends that you don't include
accounts on year-end closing rules.
• The balances of these equity accounts must
equal the balances of the parent investment
accounts defined in the Investment in
Subsidiary Ledger Accounts/Summaries
tab.

Variance Ledger Account • Select a separate variance suspense account.

• Don't use target accounts associated with the
elimination process.

Result
Workday uses the rules to calculate the elimination entries.

Next Steps
To view the investment in subsidiary and subsidiary equity elimination entries, use the standard composite
consolidated trial balance report.
Related Information
Tasks
Create Trial Balance Reports on page 306
Set Up Intercompany and Interworktag Elimination Rules on page 212
Reference
Workday Community: Guide to Updating the Investment in Subsidiary Elimination Rule

Set Up for Deriving Noncontrolling Interest

Prerequisites
• Define elimination rules for investment in subsidiary and subsidiary equity for an account set.
• Select a Consolidating Parent Company on the Edit Consolidation Details task.
• Security: Set Up: Consolidation in the Financial Accounting functional area.

Context
Set up noncontrolling interest (NCI) for derived frameworks.
Note: Workday recommends that you persist NCI. If you're new to Workday, you don't have the option to
derive NCI.

Steps
1. Access the Maintain Elimination Rules task.
2. Select the Account Set for which you’re defining elimination rules.
Create 1 or more elimination rules for the account set.
3. Access the Investment in Subsidiary/Subsidiary Equity (To Be Retired) tab.
As you complete this tab, consider:
Option Description
NCI Source Ledger Account Summaries Select the ledger accounts or ledger account
summaries of the subsidiaries to calculate the
equity portion of the NCI.
Workday recommends that you:
• Select the same accounts as in the
Subsidiary Equity Ledger Accounts/
Summaries tab.
• Don’t include accounts that are in year-end
closing rules.
• Enter a value even if you don't have any NCI
activity, to ensure best practice.

NCI Portion of Equity Select the ledger account that you want to record
the NCI derived from the NCI Source Ledger
Accounts/Summaries accounts.
Workday recommends that you enter a value
even if you don't have any NCI activity.

4. Access the Noncontrolling Interest Activity tab.

As you complete this tab, consider:
Option Description
Direct Ownership Only This functionality isn’t available when you derive
NCI.
NCI Source Ledger Accounts/Summaries Select the ledger account or ledger account
summaries that you want to use for calculating
NCI activity.
To prevent double-counting, Workday
recommends that when you select ledger account

Option Description
summaries for parent companies in company
hierarchies, you:
• Exclude the earnings in subsidiary accounts in
the parent companies from the ledger account
summaries.
• Create a separate ledger account summary for
the earnings in subsidiary accounts.

NCI Attribution Method Select either the Claim on Assets % or Ownership

% as the method for calculating NCI activity. To
change the percentages, select Edit Company
Ownership Details from the related actions menu
of the subsidiary company.
NCI Target Ledger Account Select the ledger account that you want to record
NCI eliminations to that offsets the NCI equity
account.
Prior Year Retained Earnings Ledger Account Select the subsidiary retained earnings account
you want to use for displaying prior year NCI
retained earnings.
Ownership Change Adjustment Account Select 1 ledger account.
If an ownership change results in an NCI equity
change, Workday derives the current year offset
to the NCI equity change and will post to the
selected ledger account.
If you don't select an ownership change
adjustment account and there's an NCI equity
change within the current year, the consolidated
trial balance will be unbalanced by the offset
amount.

NCI Offset Ledger Account Define the NCI offsetting ledger account that
you want to use for balancing NCI target ledger
accounts.
Select the same account you defined in the NCI
Portion of Equity field on the Investment in
Subsidiary Ledger Accounts/Summaries tab.

Result
Workday uses the rules to calculate NCI activity entries and related equity pickup results.

Next Steps
To view NCI activity entries, use the standard composite consolidated trial balance report.
Related Information
Tasks
Steps: Set Up Consolidation Companies on page 210
Set Up Company Ownership Details on page 211
Set Up Intercompany and Interworktag Elimination Rules on page 212
Steps: Set Up for Persisting Noncontrolling Interest on page 215

Reference
Workday Community: Guide to Updating the Investment in Subsidiary Elimination Rule

Troubleshooting: Elimination Balance Variances

Cause: You're getting out-of-balance accounts when eliminating intercompany balances using the
Investment in Subsidiary/Subsidiary Equity (To Be Retired) tab on the Maintain Elimination Rules
task.
Note: Workday recommends that you:
• Eliminate intercompany and interworktag balances using the Intercompany/Interworktag tab on the
Maintain Elimination Rules task.
• Troubleshoot out-of-balance accounts using the Intercompany Elimination Out of Balance Report.
Solution:

Steps
1. Ensure that you’ve assigned a unique variance account and not a suspense account to each elimination
rule. Example: Investment in Subsidiary - Variance.
A unique variance account makes it easier to identify the account with an out of balance amount.
2. Run the Consolidated Trial Balance report and identify the out-of-balance amount.
3. In the Total column, drill down on the out of balance amount.
4. In the View by: field, select Company.
5. In the and then by: field, select Intercompany Affiliate.
6. Click Refresh.
Workday analyzes the ledger accounts you selected on the Investment in Subsidiary/Subsidiary
Equity (To Be Retired) tab on the Maintain Elimination Rules task.
Workday displays:
• The equity balance of each subsidiary in the (Blank) column.
• Investment of the parent in each subsidiary in each affiliate column.
Example: Company by Intercompany Affiliate Grid

Company Inter- Company Inter- Company (Blank) Elimination

Affiliate Affiliate Amount
Subsidiary 1 Subsidiary 2
(Parent) 100,000 250,000 350,000
Subsidiary 1 Blank Blank 110,000 (110,000)
Equity of
Subsidiary 1.

Subsidiary 2 Blank Blank 250,000 (250,000)

Total 100,000 250,000 (360,000) (10,000)
Investment Difference
of parent in between the equity
Subsidiary 1 of Subsidiary 1
and investment
of parent in
Subsidiary 1.

7. Compare the equity balance of each subsidiary with the investment of the parent in each subsidiary.
The balances should net to zero.

8. For balances that don’t net to zero, drill down to review and correct the journal entries.
9. If you've more than 20 companies in the hierarchy, create a custom variance report to identify the
elimination variances.
Related Information
Tasks
Set Up Investment in Subsidiary and Subsidiary Equity on page 230
Reference
Setup Considerations: Consolidations and Eliminations on page 205

Period and Year Close

Steps: Set Up Close Process

Context
Before closing, you should define rules and activity groups that pertain to the close process. You can also
create an optional close checklist to manage period, quarter, and year-end closes directly in Workday
through the business process workflow. A close checklist enables you to:
• Monitor close progress.
• Analyze key metrics.
• Send notifications to workers about the close.

Steps
1. Define Rules for Processing Year-End Close on page 237.
2. Set Up Period Close Activity Groups on page 236.
3. Create and Maintain a To Do.
Create To Do items that reflect the steps you perform during period-end and year-end close processes,
in Workday and external resources.
4. Create and Maintain Checklist.
Create a close Checklist to add groups of To Do items to your period close process. Each checklist is
a single ordered step within the business process, but you can complete the To Do items within that
checklist in any order.
5. Create Custom Business Processes.
Add the To Do items and checklists as steps to the Period Close Event business process for your
organizations. Assign security groups to workers who are responsible for the completion of each step.
6. Configure the Period Close Notification Event business process.
The business process enables you to send notifications about a close to any worker.

Result
Your close checklist is built into the Period Close Event business process. Place the close checklist tasks
in a logical order and designate the responsibility for each step. Workday notifies the responsible person
when they need to complete a task.

Example
You can create your checklist with these typical tasks to do within Workday:
• Reconcile cash to operational transactions.
• Run reconciliation reports for accounts payable.

• Approve pending transactions, such as expense reports.

• Match transactions on journal lines.
• Update ledger period statuses.
• Review year-end closing rules.
• Certify accounts.
• Run the year-end close process.
You can also create your checklist with these tasks to do outside of Workday:
• Collect on customer accounts.
• Coordinate with people responsible for completion of each step.
• Review steps.
• Approve steps.
• Send close notifications.

Next Steps
Start period, quarter, and year-end closes.
Related Information
Concepts
Concept: Close on page 255
Tasks
Steps: Reconcile Cash Operational Transactions to Ledger on page 267
Steps: Process Manual Transaction Matching on Journal Lines on page 261
Steps: Process Automated Transaction Matching on Journal Lines on page 263
Steps: Process Account Certifications on page 269
Start a Close Process on page 247
Close Ledger Periods on page 240
Close a Ledger Year on page 246
Process: Procure to Pay Period Close on page 248

Set Up Period Close Activity Groups

Prerequisites
• Security: Set Up: Period Close domain in the Common Financial Management functional area.

Context
You can group your period close activities and use these groups when you update the status of your ledger
periods. These activity groups enable you to close a set of transactions, rather than an entire ledger period.
Each close activity is a group of operational transactions. Workday automatically populates a set of these
close activity groups, but you can also create your own for a more granular close process.

Steps
1. Access the Maintain Period Close Activity Groups task.
2. Remove operational transaction types from pre-existing period close activity groups for use with other
groups.
You can only assign operational transaction types to 1 period close activity group at a time.
3. Create new period close activity groups and assign them operational transaction types.

Result
You can select period close activity groups in the Closed Activity field when you update your ledger
period status to Close in Progress. You can't edit closed activities that are in use.
You can't delete a close activity group that is used for Close in Progress. However, you can edit the activity
group even if the ledger period has a status of Closed.

Next Steps
Update your ledger period status.
Related Information
Concepts
Concept: Ledger Close Activity Groups on page 254
Concept: Close on page 255
Tasks
Change the Status of Ledger Periods on page 238

Define Rules for Processing Year-End Close

Prerequisites
Define account sets for the company.
See: Set Up Account Sets on page 70.

Context
Define rules that map source accounts to target accounts when rolling account balances forward.

Steps
1. Access the Maintain Year-End Closing Rules task.
2. As you complete the task, consider:
Option Description
Account Set The set of accounts for which you want to
establish the year-end closing rules.
Ledger Account Source The ledger account from which you want to move
balances when you close a ledger year. You can
only select from balance sheet accounts.
Ledger Account Target The ledger account to which you want to move
balances when you close a ledger year. You can
only select from balance sheet accounts.

Result
Workday applies these rules when you:
• Roll year-end balances forward using the Roll Forward Year-End Balance task.
• Close a ledger year using the Close Ledger Year task.
You can specify a rule with the same source and target retained earnings account. If you don't specify
a rule, Workday rolls account balances forward to the same account during roll-forward and year-close
processing. If you want to apply changes to future closes, change the rules. If you want to reopen prior
ledger years and close them again, use new rules. You can change rules at any time.

Use the Year-End Closing Rules report to review existing rules by account set.

Example
You keep current year and prior year retained earnings in separate accounts. At year-end, move the
retained earnings balance from the current year account to the prior year account. This creates a blank
current year account to use for the next year. When you report for your new current year, you see the net
income.

Next Steps
Close a ledger year.
Related Information
Concepts
Concept: Close on page 255
Tasks
Close a Ledger Year on page 246

Change the Status of Ledger Periods

Prerequisites
• Configure the Period Close Event business process and security policy.
• Create the ledger year and ledger periods.
• To manage period and year-end closes through the workflow, define a close checklist to include steps
for updating ledger period statuses.

Context
Update ledger period status of a single ledger or multiple ledgers to:
• Open a ledger period.
• Limit journal activity as a period close progresses.
• Close the ledger period.
• Reopen the ledger period.
Note: You update ledger period statuses for Primary fiscal schedules only. Alternate fiscal schedules are
for reporting purposes only.
If you have journals and pending transactions that you haven’t processed, understand what the account
impact is going to be before closing the period. To close a period for specific groups of operational
transactions, you can update the status to Close in Progress and select the activity groups to close. You
can create or configure your own activity groups for Close in Progress in the Maintain Period Close
Activity Group task.
Note: When changing the status of activity groups to Close in Progress, you can always create an
adjustment journal.

Steps
• Option A: Update the Status of Single Ledger Period
a) Access the Update Ledger Period Status task.
b) As you complete the task, consider:
Option Description
Ledger Period Select by company and ledger year the ledger
period that you want to update.

Option Description
All Book Codes Workday selects All Book Codes by default.
Workday uses the book code to filter transactions,
Blank Book Code
the ledger status, and pending transactions.
Select Book Code
Use Select Book Code to specify 1 or more
specific book codes.
Updates to the ledger period status apply only to
accounting journals and operational transactions
for the book codes you select.

Status Select the new status of the ledger period. The

ledger period must be in Open status before you
Closed Activity
can post transactions to the ledger.
If you select Close in Progress, select 1 or more
close activities. Workday considers those close
activities as Closed. You can't edit close activities
that are in use.
• Option B: Update the Status of Multiple Ledger Periods
a) Access the Mass Update Ledger Period Status task.
b) As you complete the task, consider:
Option Description
Year Select the fiscal year for the ledger periods you
want to update.
Company Select 1 or more companies or a company
hierarchy. You can select from only the company
hierarchies where every company within it has the
selected fiscal year.
Sort By Select Period or Company by which you want to
sort the processing results.
All Book Codes Workday selects All Book Codes by default.
Workday uses the book code to filter transactions,
Blank Book Code
the ledger status, and pending transactions.
Select Book Code
Use Select Book Code to specify 1 or more
specific book codes.
Updates to the ledger period status apply only to
accounting journals and operational transactions
for the book codes you select.

Select All Select the new status for all or selected periods. If
you select the Close in Progress status, select 1
New Status
or more Closed Activity.
Closed Activity
To schedule updates for multiple ledger periods,
use the Schedule Mass Update Ledger task.
You can't close a ledger year if the period for a
book code is in Closed status.

Result
• Workday updates the status of the ledger journals.
• You can review journal statuses, pending transactions, and ledger period status history. You can close
out work-in-progress before you update the ledger period status.
• After you close a period, you can no longer post anything to it.
• If there are pending operational transactions, Workday posts them to the next open ledger period once
you complete them.
• You can view the process monitor on the My Reports tab to see status of any periods that didn’t
update.
These messages include the reason Workday didn't update the statuses and provide recommendations
for how to correct those periods.
Example: The status of the following periods was not updated because there were accounting journals
pending approval.

Next Steps
• Change the status for these and other ledger periods to:
• Open them.
• Limit journal activity.
• Select which activity groups to close.
• Close them.
• Reopen them.
• Close a ledger year.
Related Information
Concepts
Concept: Journal Statuses and Pending Transactions on page 251
Concept: Close on page 255
Tasks
Create Ledgers on page 66
Steps: Create and Open Ledger Years and Periods on page 68
Steps: Set Up Close Process on page 235
Set Up Period Close Activity Groups on page 236
Reference
Reference: Period Statuses and Permitted Transactions on page 256

Close Ledger Periods

Prerequisites
• Create ledger years and ledger periods.
• To manage period, quarter, and year-end closes directly in Workday through the business process
workflow, create close checklists.

Context
You can close a ledger period in preparation for a new period. Closing ledger periods calculates period
actual and budget account balances for reporting and controls journal entry and posting.

Steps
1. If you are using a close checklist within Workday, use the Period Close Event business process to
begin a close.
2. Review the journal statuses and pending transactions.
3. As the close progresses, limit journal activity. Close out work-in-progress before you change ledger
period statuses to Closed.

Result
After you close a period, you can no longer post anything to it. Workday posts any pending operational
transactions to the next open ledger period once you complete them.
You can use the Ledger Year report to view a snapshot of period and year-end close status. You can
view:
• All ledger periods for the ledger year of a company.
• The status of each ledger period.
• The status history of the ledger year overall.

Next Steps
• Close other ledger periods.
• Close a ledger year.
Related Information
Concepts
Concept: Close on page 255
Concept: Journal Statuses and Pending Transactions on page 251
Tasks
Create Ledgers on page 66
Steps: Set Up Close Process on page 235

Set Up Worktag Types for Roll Forward

Prerequisites
• Associate journal lines with worktags.
• Security: Set Up: Accounting Rules domain in the Common Financial Management functional area.

Context
To optimize the roll-forward, configure rules to group beginning balances only for the worktags that belong
to specific worktag types. Using configuration rules can also reduce the number of beginning balance lines.
When you set up more than 1 rule for the same company and ledger account, Workday applies the first
rule and disregards the rest.
You can apply worktag type configuration rules only to balance sheet accounts.
You can't configure worktag type rules for:
• Retained earnings accounts.
• Income statement accounts.
When you don't set up a configuration rule with worktag types for a company ledger account, Workday
includes all used worktags when you roll forward that account.

Steps
1. Access the Maintain Worktag Types for Beginning Balance Journals task.
2. As you complete the task, consider:
Option Description
Ledger Account For ledger accounts with year-end closing rules,
select the target ledger accounts.
For ledger account summaries, Workday uses
the version in effect at the time you run the roll-
forward.
You can't use the Maintain Worktag Types for
Beginning Balance Journals task to configure
worktag type rules for:
• Retained earnings accounts.
• Income statements.

Worktag Types to Include for Retained To configure worktag types that you want to
Earnings include in retained earnings accounts, see the
Retained Earnings section in Reference: Edit
Tenant Setup - Financials.
If you don't configure anything for retained
earnings on the Edit Tenant Setup - Financials
task, Workday drops all worktags and aggregates
your beginning balance into 1 journal line specific
to that retained earnings account.

Inactive When you select this check box, Workday ignores

the configuration rule during a roll-forward. You
can use this option to activate 1 out of multiple
configuration rules for the same company and
ledger account.

Result
When you roll forward year-end balances for accounts with configuration rules, Workday retains only the
worktag types you include in the beginning balances.

Next Steps
Roll forward year-end balances.
Related Information
Reference
Workday 33 What's New Post: Roll Forward Ledger and Translated Balances

Roll Year-End Balances Forward

Prerequisites
• Create the next ledger year.
• Security: Process: Close Year End in the Common Financial Management functional area.

Context
Roll year-end balances forward on accounts to the beginning balance for the next ledger year. You can
report on the new year based on beginning balances rolled over from the last year.
When you consolidate multiple fiscal schedules, you must roll forward year-end balances and translated
beginning balances for both the primary and alternate fiscal years.
Note: Workday recommends that you must always first run or rerun roll forward year-end balances for the
primary schedule and then for the alternate fiscal schedule.
You can roll forward balances as often as necessary before you close the current year. Workday considers
the beginning balance for the year plus activity for the year when you report on the data. You can also
configure Workday to roll translated beginning balances forward after rolling year-end balances forward.

Steps
1. Access the Roll Forward Year-End Balance task.
2. As you complete the Criteria tab, consider:
Option Description
Company When a company hierarchy has companies
with different fiscal schedules, you must run the
process for each fiscal schedule.
Fiscal Year For multiple fiscal schedules, select:
• Standard fiscal year to roll forward year-end
balances for the primary schedule.
• Alternate fiscal year to roll forward year-end
balances for the alternate fiscal schedule.
Example: If Company A is on a January to
December fiscal schedule, run the roll-forward
after close of the December period. If Company B
is on an alternate fiscal schedule (July to June),
run the roll-forward after close of the June period.
When you roll forward year-end balances for an
alternate fiscal year for the first time, you must
include all balances since inception. Example: If
you have tenanted data since 2006, you must roll
forward balances from 2006 to the current year.
When the year for which you want to roll forward
balances isn't available, you must close all of its
ledger periods.

Journal Source Select the accounting source to assign the

beginning balance journals you created.
Example: You can use a year-end journal source
that identifies journals created during year-end
processing.

Roll Forward Translated Beginning Balances For multiple fiscal schedules, roll forward
translated beginning balances for both the primary
and alternate fiscal schedules.
Select to:

Option Description
• Enable the fields on the Roll Forward
Translated Beginning Balances tab.
• Run the Roll Forward Translated Beginning
Balances task for the primary and alternate
fiscal schedules after rolling forward year-end
balances.

Roll Forward Noncontrolling Interest Select to roll forward NCI journal lines.
Beginning Balances
Journal Source for Noncontrolling Interest Define a journal source for NCI beginning
Beginning Balance Journal balances. Select this journal source when you
have checked Roll Forward Noncontrolling
Interest Beginning Balances.
Roll Forward up to Current Year Select to roll multiple years forward for the same
company all at once.
All Book Codes Workday uses the book code to filter transactions,
the ledger status, and pending transactions.
Blank Book Code
Updates to the ledger period status apply only to
Select Book Code
accounting journals and operational transactions
for the book codes that you select.

3. (Optional) As you complete the Roll Forward Translated Beginning Balances tab, consider:
Option Description
Ledger Lists ledger accounts with a translated beginning
balance as of the first day of January for the fiscal
year that you selected.
Translation Currencies Displays your configured default translation
currencies. You can add or remove translation
currencies.

Result
When you complete the task, Workday:
• Creates a separate event for each company.
• Sends you inbox notifications when the process completes.
• Creates a beginning balance journal for the next fiscal year or replaces the beginning balances for
existing journals.
• Creates retained earnings in both the transaction and ledger currencies.
Workday automatically rolls account balances forward to the same account during processing. When you
configure year-end closing rules, Workday applies them instead of the default setting. You can move prior-
year balances to a separate account and start with a blank account for the current year.
When you add additional worktags on the Edit Tenant Setup-Financials task, Workday includes the
additional worktags (up to 10) in addition to the primary and optional balancing worktags when grouping
the income statement (current year retained earnings) lines during the year-end roll forward process.

Next Steps
Close the ledger year.

Related Information
Concepts
Concept: Close on page 255
Reference
The Next Level: Year-End Roll Forward and Close Processing
2021R2 What's New Post: Redesigned Retained Earnings Reporting

Roll Translated Beginning Balances Forward

Prerequisites
• Complete roll forward year-end balances to create beginning balance journals.
• Enter the translated beginning balance amounts for ledger accounts that don't have translated
balances. Workday requires this step if the account has a historic type translation method that uses
historic translation amounts, with a new combination of company and translation currencies.
• Security: Process: Close Year End domain in the Common Financial Management functional area.

Context
As part of the year-end roll forward process, you can roll forward the translated balances to establish
translated beginning balances for the new ledger period.

Steps
1. Access the Roll Forward Translated Beginning Balances task.
2. As you complete the task, consider:
Option Description
Company Determines the translation currencies, based on
the translation currencies you configured in the
company accounting details.
Fiscal Year Select a year for which you've already rolled
forward year-end balances.
For multiple fiscal schedules, roll forward the
translated beginning balances for both primary
and alternate fiscal schedules.

Ledger Accounts Select from ledger accounts with beginning

balances as of January 1 of the Fiscal Year you
select.

Result
Workday sends you inbox notifications when the process completes.
To see the translated beginning balances for specific worktags or book code, run the View Beginning
Balance Translation Amounts report.

Next Steps
If there's a translation variance, you can correct it by manually entering the translated beginning balance
for the ledger accounts. For accounts with a zero ledger balance, use the Put Beginning Balance
Translation Amounts web service to enter the corrected translated beginning balances.
Calculate changes to retained earnings by adding these translated balances:

• Prior year retained earnings (the beginning balance of the prior fiscal year).
• Ending balances of the profit and loss accounts (as of the last day of the prior fiscal year).
Related Information
Tasks
Steps: Enter Translated Beginning Balances for Financial Reporting on page 179
Enter Translated Beginning Balance Amounts for Ledger Accounts on page 180
Reference
The Next Level: Year-End Roll Forward Processing

Close a Ledger Year

Prerequisites
• Close all periods for the ledger year.
• Define or update the rules for processing year-end close.
• To begin the close, start the Period Close Event business process.
• Use the Roll Forward Year-End Balance task to obtain the beginning balances for the next ledger
year.
• Security: Process: Close Year End domain in the Common Financial Management functional area.

Context
You close ledger periods to control journal entry and posting, as well as calculate period and year-end
actual and budget account balances for reporting. Run the year-end close process after you define your
year-end closing rules. You can also create an optional close checklist to manage year-end closes directly
in Workday through the business process workflow.

Steps
1. Access the Close Ledger Year task.
2. When you select the Roll Forward Beginning Balances check box, you can schedule the roll forward
to run in the future under the Run Once in the Future section.
Note: You can't schedule ledger year close to run in the future, only roll forward for beginning
balances.

Result
Workday updates the ledger year status to Closed. After you close a ledger year, it's no longer available for
processing but remains available for reporting.

Next Steps
To change one of the ledger periods, use the Reopen Ledger Year task. Once you reopen the ledger
year, you can reopen the ledger period.
Related Information
Concepts
Concept: Close on page 255
Tasks
Change the Status of Ledger Periods on page 238
Steps: Set Up Close Process on page 235
Roll Year-End Balances Forward on page 242

Start a Close Process

Prerequisites
• Create ledger years and ledger periods.
• Create a checklist to manage year-end closes directly in Workday using the Period Close Event
business process.

Context
Close open ledger periods for companies.

Steps
1. Access the Start Period Close task directly from the related action menu of a company.
2. As you complete the task for an open Period, consider:
Option Description
Company Each company or company hierarchy can have
only 1 close event per ledger period.
A close for a company hierarchy doesn't start the
close process for each company in the hierarchy.
Each company within the hierarchy needs its own
close process.

Period Close Type Select Period, Quarter, or Year close. Workday

displays the type in period close reports, metrics,
and notifications. If the Period Close Event
business process includes check list steps that
are applicable to a certain type, Workday includes
those steps in the workflow.
Expected Completion Date Track the actual completion date against this
target date. Workday displays the date in period
close reports, metrics, and notifications. To
change the date later, select Period Close > Edit
Period Close Details from the related action of
the period close.

Result
Submit initiates the Period Close Event business process. For close events that are in progress, you can:
• Attach documents.
• Use the Period Close Work Area to manage your period, quarter, and year-end closes.
• Review the Find Period Closes report for details about the close business process.
• Use the Period Close Metrics report to analyze close metrics.
• Click the Period Close Notification button to send ad hoc notifications to workers about a period close.
Related Information
Concepts
Concept: Close on page 255
Tasks
Steps: Set Up Close Process on page 235
Process: Procure to Pay Period Close on page 248

Process: Procure to Pay Period Close

Prerequisites
Review the Period Close Product Flow to familiarize yourself with the period close process.

Context
This topic provides a checklist of tasks for requisitioning, purchasing, receiving, paying for, and accounting
for goods and services during period close.
Your procure-to-pay process checklist might consist of different tasks. Use the information as a guide.

Steps
1. Source requisitions into purchase orders.
Manually create or schedule a job to search for unsourced requisitions and source them into purchase
orders.
a) Access the Find Requisitions report to:
• Review and change the status of In Progress requisitions to Successfully Completed status so
you can source them into purchase orders.
• Filter by Has Unsourced Lines to source unsourced requisitions into purchase orders.
Security: Process: Requisition-Reporting domain in the Procurement functional area.
b) Schedule Automatic Sourcing of Requisitions.
c) (Optional) Manually Source Requisitions.
d) Access the Mass Close Procurement Documents task.
Mass close any outstanding requisitions that you won’t issue as purchase orders.
Security: Procurement Document Mass Action Event business process and security in the
Procurement functional area.
e) (Optional) Access the Requisitions Pending Approval or Sourcing report in your wdsetup tenant.
Locate all requisitions that you haven't sourced.
For more information, see Procurement Reports.
2. Approve and issue any outstanding purchase orders or change orders.
a) Access the Find Purchase Orders report.
Review purchase orders with a status of In Progress or Draft and change their statuses to Approved
so you can issue them.
b) Issue Purchase Orders.
Issue all purchase orders so you can create receipts and supplier invoices.
c) (Optional) Create Change Orders.
Create change orders for issued purchase orders.
d) (Optional) Access the Mass Close Procurement Documents task.
Mass close any outstanding purchase orders that you’ll never receive.
Security: Procurement Document Mass Action Event business process and security in the
Procurement functional area.
For more information, see Steps: Mass Close Procurement Documents.

3. (Optional) Access the Supplier Contracts Needing Attention report in your wdsetup tenant.
This report displays all contracts expiring in the next month and contracts with less than 10% remaining
balance.
You can select to either:
• Create an amendment to extend the contract.
• Copy the contract to a new contract.
• Close the contract.
Security: Process: Supplier Contract - Reporting domain in the Procurement functional area.
4. Review and accrue any open supplier invoices.
a) Access 1 or all of these reports:
• Find Supplier Invoices: Process invoices in Draft or In Progress status.
Security: These domains in the Supplier Accounts functional area:
• Reports: Supplier Accounts
• Process: Supplier Invoice - Reporting
• Supplier Open Items: Pay any partially paid or unpaid invoices.
Security: Reports: Supplier Accounts in the Supplier Accounts functional area.
• (Optional) Unapproved Supplier Invoice Line Accrual in your wdsetup tenant.
Use the report to create a reversing manual journal entry at the end of each period to accrue
properly supplier invoices.
Security: Reports: Supplier Accounts in the Supplier Accounts functional area.
For more information, see Supplier Invoice Accrual Dashboard and Reports.
5. Register Assets on page 1259
Register and capitalize the assets and place them in service before you record depreciation. Placing
them in service will accurately state your assets and depreciation expenses.
6. Record Asset Depreciation and Amortization Expenses on page 1331.
Create a schedule to record depreciation and amortization expenses for company assets.
7. Do 1 or both of these:
• Create Amortization Schedules for Prepaid Purchase Orders on page 1378.
• Create Amortization Schedules and Installments for Prepaid Supplier Invoices on page 1379.
You amortize prepaid invoices and related installments for the period to decrease prepaid liability by
debiting expense accounts.
8. Create Receipt Accruals.
Create period-end accruals for approved uninvoiced receipts for goods and services.
9. Create Manual Settlement Runs on page 1897.
Pay and settle all applicable supplier invoices.
For more information, see Concept: Settlement Processing on page 1908.
10.Access the Fix Operational Journals With Errors task.
Correct any operational journal errors not posted to the current period.
Security: Process: Audits and Corrections domain in the Financial Accounting functional area.
For more information, see Troubleshooting: Financial Journals on page 112.
11.Change the Status of Ledger Periods on page 238.
Close activity groups for procurement, suppliers, and ad hoc payments.
For more information, see Concept: Ledger Close Activity Groups on page 254.

12.(Optional) Run Revaluation on page 171.

For multicurrency organizations, revalue foreign currency journal amounts based on your rules for the
period.
13.Reconcile payables to the ledger.
Use 1 or all of these reports to reconcile your payables to the ledger balance:
• Payables Aging.
Security: Reports: Supplier Accounts domain in the Supplier Accounts functional area.
• Payables to Supplier Balances Reconciliation.
Security: Reports: Financial Accounting domain in the Financial Accounting functional area.
• Payables to Supplier Balances Reconciliation Exception Summary.
Security: Reports: Financial Accounting domain in the Financial Accounting functional area.
• Trial Balance for the Payables ledger account.
Security: Reports: Financial Accounting domain in the Financial Accounting functional area.
14.Complete bank reconciliation.
Reconcile bank statements against your cash transactions.
a) Reconcile a Bank Statement Automatically on page 1770 or Reconcile Multiple Bank Statements
Automatically on page 1771.
b) Access the Book to Bank Summary - Uncleared Bank Statement Lines report.
Check for unreconciled lines.
Security: Process: Bank Statement-Reporting domain in the Banking and Settlement functional area.
c) Reconcile a Bank Statement Manually on page 1772.
Manually reconcile any remaining unreconciled lines.
For more information, see:
• Steps: Use Bank Account Reconciliation on page 1763.
• Reconcile First-Notice Items on a Bank Statement on page 1775.
• Bank Reconciliation Product Flow.
15.Access 1 or both of these reports to reconcile cash to bank balances.
• Book to Bank Summary Report
• Book to Bank By Bank Account Currency Report
Security: Report Execution domain in the Tenant Non-Configurable functional area.
For more information, see:
• Reference: Book-to-Bank Reports on page 1793.
• Reference: Bank Account Reconciliation Reports.
16.Reconcile cash transactions to ledger account.
Use these reports to reconcile your cash transactions to your ledger accounts.
• Cash to Bank Reconciliation Composite report to reconcile cash operational transactions to the
ledger account in ledger currency.
• Cash to Bank Reconciliation in Bank Currency report to reconcile cash operational transactions
to the ledger account in bank currency.
Security: Report Execution domain in the Tenant Non-Configurable functional area.

17.Roll Forward Procurement Documents.

During year-end closing, roll forward commitment and obligation journals to the first date of the next
open period.
Access the Create Ledger task and select the Roll Journals Forward for Procurement check boxes
for the Create Commitments and Create Obligations grids.
Security: Set Up: Ledger and Book domain in the Common Financial Management functional area.
Related Information
Concepts
Concept: Close on page 255
Concept: To Do Step
Concept: Checklist Step
Reference
The Next Level: Period Close

Concept: Journal Statuses and Pending Transactions

You can use the Ledger Period Journal Status report, Update Ledger Period Status task, or Mass
Update Ledger Period Status task to review ledger period details and statuses.
Before closing ledger periods, make sure that:
• You've posted everything for the period.
• Everything in progress has an In Progress status.
• Everything you need finalized is in its final state.
If you have journals in progress that you need to finalize, you should cancel or post them before closing
the period. Ensure that all journals balance because Workday prevents you from posting unbalanced
journals.
On the tabs or columns of these tasks and reports, consider:

Tab / Column Description

Journal Status Displays how many accounting and operational
journals you have for each journal status. Make
sure that all the journals are in the status that you
want when you close. After you close, the journals
remain in these statuses:
• Created: You’ve created the journal and saved it
for later or created a reversal journal on or after
the accounting date. Submit the created journal
to start the business process to get it approved.
If you want to post journals, submit them for
approval. When the reversal period opens, use
the Mass Post Reversal Journals task to post
the reversal journals you created. Otherwise,
cancel the journals, delete them, or leave them
in this status when you close.
• In Progress: You’ve created the journal and
started the business process, but haven’t
approved the journal. Approve the journal to
post it or deny the journal to change it to a
Canceled status. Before you can close the

Tab / Column Description

period, you must post or cancel In Progress
journals.
Note: To view In Progress status journals, you
must select Allow Accounting in Arrears on
the Edit Company Accounting Details task.
• Pro forma: The journal has allocations that
you haven’t yet posted or equity pickup results
waiting for your approval. Post these journals
and finalize allocations before you close the
period. To cancel these journals, cancel the
allocation or leave them in this status when you
close.
• Posted: You’ve posted the journals. Review to
make sure that you haven’t posted any journals
in error.
• Unposted: You’ve formerly posted the journals
then changed your mind. Rather than leaving
journals in this status, either edit the journal, or
cancel the journal if you don't need it.
• Canceled: Is a finalized status. Review to make
sure that you haven’t canceled any journals
in error. If someone cancels a transaction and
the original ledger period is still open, Workday
cancels the journal for the transaction. If you've
closed the ledger period, perform these actions:
• Leave the original journal posted.
• Create a reversing journal in the next open
ledger period.
• Correct In Progress: You processed an
accounting journal and are editing it using the
Business Process > Correct related action.
The accounting journal status changes to
Posted when you submit the accounting journal.
• Error: Operational journals that have errors that
you need to fix before close. To troubleshoot,
use the Fix Operational Journals With Errors
task.
• Reserved: Workday reserves the journal when
the budget check step in the accounting journal
event business performs a budget verification
for the ledger account and any other dimensions
defined.
The journal has a status of Reserved whether
or not the budget check passes, fails, or isn’t
required.
Before you can close the period, you must
approve or cancel Reserved journals.

Pending Accounting Journal Events Displays accounting journals that have Unpost in
Progress statuses. Approve the journal to post it or

Tab / Column Description

deny the journal to return it to the Created status.
From there, you can cancel the journal.
Pending Operational Transactions Displays operational transactions that you've either
saved as drafts or submitted into the business
process but not yet approved. Decide whether
you want these transactions to post in this period
or the next open period. To post to this period,
approve the transaction so that Workday generates
operational journals for it.
Pending Depreciation Transactions Displays assets that have depreciation you need to
record. You can post them or leave them pending
for the next period. If you have depreciation
transactions and select not to depreciate their value
for this period, they roll forward into the next period.
Workday adds them to the depreciation total for
that period. To post, use the Record Depreciation
Amortization Expense task.
You can cancel a depreciation transaction except
when it is:
• In a ledger period with a status of Closed or
Close in Progress for Operational Accounting.
• Containing assets that you've disposed of or
further depreciated.
• An adjustment (catchup depreciation or
reversal).
• Created by an asset transfer, recategorization,
or disposal because these events automatically
record depreciation for periods up to the
transaction period.
• Canceled.

Pending Allocations Displays the allocations ready for processing.

Based on the allocation schedule, decide whether
to:
• Post them now and have the accounting impact
this period.
• Cancel them.
• Run the allocations later.
To resolve the allocations that aren’t yet run or in
process, use the Allocation Work Area.

Pending Receipt Accruals Displays receipt accruals that you've either saved
as draft or submitted into the business process
but not yet approved. Workday prevents you from
closing a period with pending/draft accruals to
ensure that they post to the current period. For
receipt accruals in draft, either submit and approve
them or cancel them. For receipt accruals already
processing, approve them or deny and then cancel
them.

Tab / Column Description

Status History Displays status change history for ledger periods
and their associated Closed Activity groups on the
Ledger Period Journal Status report.
If any periods are in Close in Progress status,
you can't update those activity groups with new
transaction activity.

Related Information
Tasks
Change the Status of Ledger Periods on page 238
Close Ledger Periods on page 240
Reference
The Next Level: Guide to Period Close Journal Entries

Concept: Ledger Close Activity Groups

Context
Workday provides period close activity groups that categorize operational transactions and accounting
activity. You can close these groups independently to provide greater control and flexibility as you work
through your ledger period close. You can configure your own period close activity groups in Workday to
customize further your close process to suit your business needs.
Note: Workday includes each activity in only 1 period close activity group.

Period Close Activity Groups and Operational Transactions

The View Period Close Activity Groups report displays the period close activity groups and their
associated operational and accounting transaction types.

Example: Change Ledger Period Close Statuses for Activity Groups

Your organization has separate teams for processing customer and supplier transactions, and you want to
close the transaction ledgers on different dates.
Close the Procurement activity group on the first day of the close period to stop processing purchase
orders and supplier invoices. To post backlog payments, you should still keep the Customer Accounts
activity group open, which includes customer invoices and payments you received during the current
ledger period.
Keeping this activity group open gives you the flexibility to finalize expense activities and analyze their
impact early in the close period. Workers can still post supplier invoices to the same period.
First, access the ledger period you want to close using the Update Ledger Period Status task. Next,
change the status to Close in Progress from the Status prompt, and then select Procurement from the
Closed Activity prompt.
You have now stopped procurement transactions from posting to the period you changed to Close in
Progress, and kept the period open for processing customer transactions.
Related Information
Tasks
Change the Status of Ledger Periods on page 238
Set Up Period Close Activity Groups on page 236

Concept: Close
Workday provides several tools to help you complete close activities at the end of an accounting period,
quarter, or year. These activities enable you to:
• Change ledger period and year statuses.
• Close periods for some operational transaction groups before closing them for others.
• Roll forward year-end balances.
• Roll forward translated beginning balances.
• Create and execute a close checklist.
You can use these tools, along with other tasks performed outside of Workday, to manage your close
processes.

Ledger Period Close

Workday enables you to have multiple ledger periods open at the same time. While you're finalizing a
ledger period, you can get the next ledger period under way. You can select new statuses and close
activities for one or more ledger periods, and use different statuses and close activities for other ledger
periods.
If you have more than 1 ledger type, the corresponding ledger periods and statuses are always in sync.
Example: If your company uses Actuals and Commitments ledger types, you update the ledger periods and
statuses for each ledger type concurrently.
To close a ledger period, you gradually lock it down to limit new journal activity as you work towards the
close.
Example: On February 2, you change the January ledger period status from Open to Close in Progress.
This status prevents operational journal activity for specific activities, such as Procurement. You keep the
Payroll close activity as Open to process payroll on the next run date of February 15.

Roll Forward Year-End Balances

Before closing the previous ledger year, Workday enables you to roll journal balances forward into the
beginning balance of the current ledger year. At any point in the close timeline, you can run the Roll
Forward Year-End Balance process to create or replace journal beginning balances. These beginning
journal balances, combined with current-year journal activity, give you the latest numbers when you report
on the current ledger year.
Example: You run the roll forward process in mid-January after you've changed the status for previous
year ledgers to Adjustments Only. Running the roll forward process in mid-January enables you to create a
more realistic January balance sheet.
You can also have Workday roll forward translated beginning balances after rolling year-end balances
forward.

Ledger Year Close

Just as you can have multiple ledger periods open simultaneously, in Workday you can have the preceding
ledger year open as you work in the next ledger year. Leave at least 1 ledger period open (typically the
last) for a place to post adjustments until you're ready to close the ledger year.
Example: You open the January ledger period in late December. You gradually limit your December journal
activity by changing the ledger period status. On January 10, you limit the ledger period to Adjustments
Only. After you make adjustments and close all periods, in early March you close the preceding ledger
year.
To close a ledger year, you define year-end closing rules and run the ledger year close process. Close all
ledger periods for the year before you can close the ledger year. The process:

• (Optional) Rolls forward remaining balances from the preceding ledger year into the beginning balance
of the current ledger year, for the last time.
• Updates the ledger year status to Closed.

Close Checklist
To manage your close procedures, you can create close checklists in Workday to incorporate all your
close steps into your business process workflow. At the scheduled time, Workday sends a notification to
complete the task to the assigned worker. By using a close checklist, you can also analyze close metrics
and send workers additional notifications about a close step anytime.
Related Information
Tasks
Define Rules for Processing Year-End Close on page 237
Steps: Set Up Close Process on page 235
Reference
The Next Level: Guide to Period Close Journal Entries

Reference: Period Statuses and Permitted Transactions

Period statuses control what you can process in your accounting period and by which source.
You can set up different statuses for ledger periods that will affect the activities that you can perform during
that period.
This table lists permitted transactions during each period status:

Period Status Operational Journal Reversal Journal Accounting Adjustment Journal

Journals,
Depreciations, and
Receipt Accruals
Created No Yes No No
*Not Available No Yes No No
Open Yes Yes Yes Yes
**Close in Progress Configurable Configurable Configurable Yes
Depends on the
individual status
of your activity
groups.

Adjustment Only No No No Yes

Closed No No No No

Reversals: For reversals of accounting journals, Workday creates reversal journals in Created status but
doesn't post them.
*Not Available Status: You can set periods you open in error to a Not Available status.
**Close in Progress Status You can close activity groups independently giving you flexibility to close
some groups and leave others open.
Related Information
Concepts
Concept: Ledger Close Activity Groups on page 254

Tasks
Change the Status of Ledger Periods on page 238

Reference: Period Close Work Area

As your workers complete steps in the Period Close event business process, you can use the Period
Close Work Area report to manage your period, quarter, and year-end closes.
Security: Process: Period End domain in the Common Financial Management functional area.
You can access these tasks from the work area:

Task Description
Change Fiscal Period Workday automatically displays the latest period
that has one or more closes.
Change the fiscal period as necessary.

Find Period Closes Review details of the period close process.

Period Close Metrics Analyze period close metrics and review the
progress for the latest fiscal period with a close
event.
Period Close > Manage Attachments from the Attach documents to the closed period.
Period Close related actions menu.
Example:
• Attach completed balance sheet reconciliations
for the accounting manager to review and sign
off on.
• Attach final financial statements for the
controller to review and approve.
The documents are then available on:
• Close notifications.
• The View Period Close report.

Period Close > Edit Period Close Details from Change the expected completion date of the period.
the Period Close related actions menu.
Period Close Notification Notify workers regarding a period close that's in
progress.
When you submit the notification, Workday
launches the Period Close Notification event
business process.
Each close event can have only one active
notification event. If a notification is in progress
when you submit another one, Workday cancels the
existing notification and launches a new notification
event.
If you included the Review Period Close action
step, the business process creates an Inbox
notification for the worker.
If the worker has appropriate security access, the
notification includes:
• Detailed period close information.

Task Description
• Period close business process information.
• Process history.

Related Information
Concepts
Concept: Journal Statuses and Pending Transactions on page 251
Tasks
Steps: Set Up Close Process on page 235

Period Close Management

Setup Considerations: Reconcile Cash Operational Transactions to Ledger
You can use this topic to help make decisions when planning your configuration and use of reconciling
cash operational transactions to your cash ledger account. It explains:
• Why to set it up.
• How this feature fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
You can use Workday to reconcile cash operational activities to the corresponding cash ledger account by
company and bank account.

Business Benefits
You can reconcile cash operational transactions to your cash ledger account within Workday. This
eliminates the need to reconcile cash operational transactions outside of Workday.

Use Cases
As part of your reconciliation process during period end, you must reconcile all your cash operational
transactions to your cash account.

Questions to Consider
Before reconciling cash operational transactions, consider these questions:

Questions Considerations
For what period should I create an initial balance? Select a period from which you want to start
reconciliation.
Note: You must have reconciled cash transactions
for all prior periods.

How many times can I create an initial balance? You usually create initial balances once, but can
create them again if you want.

Questions Considerations
Note: If you create initial balances again, Workday
deletes all previously created beginning operational
cash balances.

Recommendations
Before you create an initial balance, Workday recommends that you reconcile cash transactions for all prior
periods. Example: You've reconciled all cash transactions for the period ending June 30th, 2016. Create
initial balances for the Period and Fiscal Year, July 2016. Once you run the process, Workday creates
initial balances by Company and Bank Account dated July 1, 2016.

Requirements
To reconcile operational cash transactions, you must:
• Create initial balances as a starting point for your reconciliation. If you don't, the reconciliation reports
won’t display any data.
• Close your fiscal year or run the Generate Period Beginning Balances for Reconciliation Activities
task to create beginning balances for each open period. If you don't, the reconciliation reports will
display only activity.
Note: The Generate Period Beginning Balances for Reconciliation Activities task creates
beginning balances for all subsequent open periods. Example: If you run the task for February 2019,
Workday creates beginning balances for March and all subsequent open periods.

Limitations
• The Cash to Bank Reconciliation Composite report only reconciles cash balances in Ledger
currency. To reconcile cash transactions in Bank Account currency, Workday recommends that you use
the existing Cash to Bank Account Balances Reconciliation report.
• When you recreate an initial balance, Workday deletes all previously created initial balances and
beginning balances.
To restore beginning balances, run the Generate Period Beginning Balances for Reconciliation
Activities task.

Tenant Setup
No impact.

Security

Domains Considerations
Process: Cash to Bank Reconciliation Initial Users with security enabled for this domain can
Balance in the Financial Accounting functional area. create initial balances.
Reports: Financial Accounting in the Financial Users with security enabled for this domain can run
Accounting functional area. the reconciliation reports.
Process: Period End in the Financial Accounting Users with security enabled for this domain can
functional area. run the Generate Period Beginning Balances for
Reconciliation Activities task to create beginning
balances.

Business Processes
No impact.

Reporting

Reports or Dashboards Considerations

Cash to Bank Reconciliation Composite Use this report to confirm that cash operational
transactions reconcile to the ledger account.
Cash to Bank Reconciliation Initial Balances Use this report to confirm and review the initial
Composite balances.
Find Cash to Bank Reconciliation Activities. Use this report to view details of cash operational
transactions for a specific period.
Find Cash to Bank Reconciliation Initial Balances. Use this report to view initial balances.
Also, use the related actions from the report to edit
initial balances.

Cash to Bank Reconciliation by Reconciliation Use this report to view the reconciliation status of
Status Composite. each cash operational transaction to cash ledger
balance.

You can use the Cash to Bank Reconciliation Activity report data source (secured to the Reports: Financial
Accounting domain) to create custom reports to reconcile cash operational transactions to cash ledger
balance.

Integrations
No impact.

Connections and Touchpoints

Cash to Bank reconciliation interacts with these other areas in Workday:

Features Considerations
Customer Accounts Reconciles cash transactions collected from
customers.
Supplier Accounts Reconciles cash transactions paid to suppliers.
Expenses Reconciles cash transactions paid for expenses.
Payroll Reconciles cash paid for payroll transactions.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Reconcile Cash Operational Transactions to Ledger on page 267
Reference
The Next Level: Automate Your Account Reconciliation Process with Transaction Matching
The Next Level: Efficiently Certify Your Reconciliation Accounts with Account Reconciliation

Steps: Process Manual Transaction Matching on Journal Lines

Context
You can match and unmatch transactions manually to reconcile your ledger account ending balances on
journal lines.
Example: You can manually match transactions that:
• Are small in number that you want to match quickly without creating a matching rule set.
• Are missing identifiable attributes that you can't include in rule sets.
You can mark offsetting journal lines as matched and focus on journal lines that remain unmatched.

Steps
1. (Optional) Mass Mark Journal Lines as Unavailable for Manual Matching on page 261.
2. Match Journal Line Transactions Manually on page 262.

Next Steps
• Use custom reports to report on journal lines that remain unmatched.
• Open transactions that make up the balance.
• Unmatch journal lines in case of mistakes in matching.
Related Information
Concepts
Concept: Close on page 255
Tasks
Steps: Unmatch Journal Lines on page 266
Reference
The Next Level: Automate Your Account Reconciliation Process with Transaction Matching
The Next Level: Efficiently Certify Your Reconciliation Accounts with Account Reconciliation

Mass Mark Journal Lines as Unavailable for Manual Matching

Prerequisites
Security: Process: Account Certifications - Create domain in the Financial Accounting functional area.

Context
You can schedule mass updates to mark existing journal line transactions as unavailable for matching.
Example: When you want to focus on transactions from the current year, you can mark journal lines from
previous years as unavailable to match.

Steps
1. Access the Mass Update Journal Lines as Unavailable for Matching task.
2. As you complete the task, consider:
Option Description
Ledger Account Select a ledger account or alternate ledger
account.
You can only select balance sheet accounts
that are available for use with the Company you
select.

Option Description
The alternate ledger account option only displays
for companies with alternate accounts defined.

Mark as Available (Optional) Select when you want to correct an

error and now want to make previously marked
unavailable lines as available for matching.

Result
Journal lines you mark as unavailable:
• Aren’t displayed when you match transactions using the Transaction Matching on Journal Lines
task.
• Aren't considered for automatic matching when using the Schedule Matching Run task.

Next Steps
Use the Select Journal Lines as Available for Matching task to mark individual journal lines you
previously marked unavailable as available for matching. Example: You previously marked all journal lines
from previous years as unavailable for matching, but now want to match 1 journal line from the previous
year with a current year journal line. You can use this task to select the previous year journal line as
available for matching with a current year journal line.
Related Information
Reference
Workday 32 What's New Post: Transaction Matching on Journal Lines for Alternate Accounts

Match Journal Line Transactions Manually

Prerequisites
Security: These domains in the Financial Accounting functional area:
• Process: Account Certifications - View
• Process: Account Certifications - Create

Context
You can manually match journal lines during period close to:
• Increase data integrity.
• More accurately analyze your ledger account ending balances.

Steps
1. Access the Transaction Matching on Journal Lines task.
2. As you complete the task, consider:
Option Description
Ledger Account Select a ledger account or alternate ledger
account.
You can only select balance sheet accounts
that are available to use with the Company you
select.

Option Description
The alternate ledger account option only displays
for companies that you defined alternate accounts
for.

Match On Type Workday populates this field based on the Match

On Type selected in the Set Up Transaction
Matching task.
Filter By Book Code Leave blank to retrieve journal lines for all book
codes.
You can't match transactions across book codes.

Adjustment Journal Select to include only adjustment journals.

3. Select the journal lines you want to match, and click Match.
4. (Optional) To adjust your search criteria, for additional journal lines, expand the Select Journal Lines
section, enter new search criteria, and then click Get Journals.
Workday retrieves additional journal lines based on the new criteria.
5. Select the additional journal lines, and then click Match.
Workday generates a Match ID to record the match and to display journal lines included in the match.
You can click the Match ID to view match details and from the related actions menu, perform an
Unmatch.
Related Information
Concepts
Concept: Close on page 255
Reference
Workday 32 What's New Post: Transaction Matching on Journal Lines for Alternate Accounts

Steps: Process Automated Transaction Matching on Journal Lines

Context
You can create rule sets that process matching rules to automate transaction matching on journal lines,
enabling you to reconcile your ledger account ending balances on journal lines. Using the automated
matching process, you can then mark offsetting journal lines as matched and focus on journal lines that
remain unmatched.

Steps
1. Access the Set Up Transaction Matching task.
Select the Match on Type that Workday with use on all matches.
Note: Switching the Match on Type will inactivate any rule sets using the previous matching type.
Security: Set Up: Account Certifications domain in the Financial Accounting functional area.
2. Create Rule Sets for Matching Transactions on page 264.
3. Schedule Matching Run on page 265.

Next Steps
Use the Find Journal Lines report or create custom reports to gather data on journal lines that remain
unmatched and review open transactions that make up the balance.

Related Information
Concepts
Concept: Close on page 255
Tasks
Steps: Unmatch Journal Lines on page 266
Reference
Workday 31 What's New Post: Automated Transaction Matching on Journal Lines

Create Rule Sets for Matching Transactions

Prerequisites
• Use the Set Up Transaction Matching task to select a matching type.
• Security: These domains in the Financial Accounting functional area:
• Set Up: Matching Rule Set
• Access: Matching Rule Set (Segmented

Context
You can create a rule set consisting of different matching rules to match transactions on journal lines
automatically. In addition to a 1-to-1 matching method, matching rules enable you to compare:
• One journal line to many journal lines.
• Many journal lines to 1 journal line.
• Many to many journal lines.

Steps
1. Access the Create Matching Rule Set task.
You can’t change the matching type for a rule set once it’s created.
2. As you complete the task, consider:
Option Description
Matching Type Select Journal Line to match transactions on
journal lines.
Order Enter a number 1 through 50 for the order of the
rule. Workday evaluates and processes the rules
in the order you specify.
Place the most specific rules before rules that
require less precision in the match. That way,
when Workday identifies more granular matches
first, it removes the matched journal lines from
future consideration.

Matching Method Select a matching method.

Filter Criteria You can specify filter criteria to reduce the
number of transaction lines to match from Source
1 to Source 2.
Match On For more precise matching, you can select
multiple criteria for each ledger account.
Matching Options Select Include Blank Values for Line Memo,
Worktags, External Reference ID, if you want to
include them in the matching criteria.

Option Description
Note: Workday automatically excludes the
options from the Match On criteria.

Result
When you run automatic transaction matching, Workday uses the rules in the matching rule set to match
transaction lines.

Next Steps
To view the defined matching rule sets and the number of rules within each set, you can access the
Maintain Matching Rule Sets task. You can then drill down to view these details for each rule in the set:
• Matching method.
• Rule order.
• Whether the rule is currently active.
Related Information
Reference
Workday 32 What's New Post: Automated Transaction Matching on Journal Lines

Schedule Matching Run

Prerequisites
• Create a matching rule set.
• Use the Set Up Transaction Matching task to select a matching type.
• Security: Process: Account Certification – Create Auto Match domain in the Financial Accounting
functional area.

Context
You can schedule the matching run to apply the matching rule sets to match transactions.
Workday limits each match to contain a maximum of 99,999 journal lines.

Steps
1. Access the Schedule Matching Run task.
2. Select a Run Frequency.
3. For Matching Run Type, select Journal Line.
4. Enter a Request Name to provide more visibility for the matching run.
Workday appends a date and time stamp on each request name when you process the matching run.
5. As you complete the Run Criteria, consider:
Option Description
Company You can select multiple companies or company
hierarchies.
Ledger Account You can select multiple ledger accounts, ledger
account summaries, or alternate accounts.
Alternate ledger account option only displays
values for companies with alternate accounts
defined.

Option Description
Include All Open Items Includes all nonmatched journal lines in the
selected Fiscal Year up to the Job Run Date.
Fiscal Year You can select a maximum of 2 fiscal years.
Fiscal Period You can select more than 1 fiscal period.
This option isn’t available when you select
Include All Open Items.

Use Job Run Date for As Of Effective Date Enter a date as the effective date for the job run.
As Of Effective Date Workday uses effective date to identify the
snapshot of the selected company hierarchy and
ledger account summary for the matching run.

Matching Rule Set Select a matching rule set for which you want to
match transactions.
You can only select rule sets using the matching
type selected in the Set Up Transaction
Matching task.

Result
Workday uses the matching rules in the selected rule set to match transactions on journal lines.

Next Steps
(Optional) On the Match Statistics grid, click Matches to view details of all the matches in the matching
run.
Related Information
Reference
Workday 32 What's New Post: Transaction Matching on Journal Lines for Alternate Accounts

Steps: Unmatch Journal Lines

Prerequisites
Match journal line transactions.

Context
You can unmatch large volumes of journal lines at a time.

Steps
1. Access the Find Journal Lines report to unmatch a single journal line.
For matched journal lines, select Matched Journal Lines > Unmatch from the related actions menu of
the matched ID.
Security: Process: Account Certifications - Cancel domain in the Financial Accounting functional area.

2. Access the Mass Unmatch Journal Lines task to unmatch journal lines based on multiple criteria.
As you complete the task, consider:
Option Description
Accounting Date On or After Workday unmatches journal lines on and after this
date.
Accounting Date On or Before Workday unmatches journal lines on and before
this date.

Security: These domains in the Financial Accounting functional area:

• Process: Account Certifications
• Process: Account Certifications - Cancel All Match

Result
Based on the filters you configure Workday unmatches all journal lines and makes them available for
matching again.
Related Information
Tasks
Steps: Process Automated Transaction Matching on Journal Lines on page 263
Steps: Process Manual Transaction Matching on Journal Lines on page 261

Steps: Reconcile Cash Operational Transactions to Ledger

Context
You can reconcile cash operational transactions to your cash ledger accounts.

Steps
1. Create Cash to Bank Reconciliation Initial Balances on page 268.
Create initial cash balances as a starting point for your reconciliation.
2. Change the Status of Ledger Periods on page 238.
Change the status of ledger period to Closed. The process creates beginning balances for the
next period. Create beginning balances before you run the reconciliation reports. If you don't, the
reconciliation reports will display only activity.
Note: If you don't change the status of ledger periods, you must access the Generate Period
Beginning Balances for Reconciliation Activities task to generate beginning balances. You can use
this task to create beginning balances only if initial balances exist.
3. Run the Reconciliation Reports.
Access the Cash to Bank Reconciliation Composite report to confirm that cash operational
transactions reconcile to the ledger account.
Note: The Cash to Bank Reconciliation Composite report only reconciles cash balances in Ledger
currency. If you want to reconcile cash transactions in Bank Account currency, Workday recommends
that you use the existing Cash to Bank Account Balances Reconciliation report.
Access the Find Cash to Bank Reconciliation Activities report to view details of cash operational
transactions for a specific period. You can run this report using any selected time period, but it defaults
to the current period.
Related Information
Concepts
Setup Considerations: Reconcile Cash Operational Transactions to Ledger on page 258

Reference
Reference: Workday-Delivered Reports for Financial Close on page 307
Workday 33 What's New Post: Reconcile Cash Operational Transactions to Cash Ledger Balances
The Next Level: Automate Your Account Reconciliation Process with Transaction Matching
The Next Level: Efficiently Certify Your Reconciliation Accounts with Account Reconciliation

Create Cash to Bank Reconciliation Initial Balances

Prerequisites
Roll year-end balances forward.
Security: Process: Cash to Bank Reconciliation Initial Balance domain in the Financial Accounting
functional area.

Context
You can create initial operational cash balances for the period from which you want to start reconciliation.
Example: If you want to start reconciling cash operational transactions from a specific month, select the
month and year for the Period prompt.
Create initial balances before you can run the reconciliation reports. If you don't, the reconciliation reports
won’t display any data.
You usually create initial balances once, but can create them again if you want.
Note: If you create initial balances again, Workday deletes all previously created beginning operational
cash balances. Note that ledger beginning balances you create using the Roll Forward Year-End
Balance task aren’t deleted.

Steps
1. Access the Generate Cash to Bank Reconciliation Initial Balances task.
2. Select a Run Frequency.
3. As you complete the task, consider:
Option Description
Company Select a company or company hierarchy.
Period Can be open or closed.
Workday creates initial operational cash balances
for the period you select.

4. Confirm that the process completes.

5. Access the Cash to Bank Reconciliation Initial Balances Composite report to confirm and review
the initial balances.
6. (Optional)
• To edit initial balances, access the Find Cash to Bank Reconciliation Activity Initial Balances
report. From the related actions of the Reconciliation Activity, select Cash to Bank Reconciliation
Initial Balance > Edit.
• To delete initial balances, access the Find Cash to Bank Reconciliation Activity Initial Balances
report. From the related actions of the Reconciliation Activity, select Cash to Bank Reconciliation
Initial Balance > Delete.
Note: Workday only deletes the specific initial balance. To recreate initial balances, you must rerun
the Generate Cash to Bank Reconciliation Initial Balances task. The task recreates all previously

created initial balances and regardless of the period you select, deletes all initial and beginning
balances.

Result
Workday:
• Retrieves all posted journals for cash operational transactions from the inception of your financial
activity to create an initial balance.
• Retrieves journals for all cash operational transactions that you post after the date of the initial balance
and creates reconciliation activity for them.

Steps: Process Account Certifications

Context
You can set up a process to:
• Create account certifications and assign certification roles to specific employees.
• Decertify account certifications that have ledger activities or ledger balance changes.
Workday then routes the certification or decertification to employees with the assignable roles for their
review and approval.
If you're using worksheets, you can enter amounts to certify in a workbook and submit the workbook and
certification for review and approval.

Steps
1. (Optional) Create Account Reconciliation Template Definitions on page 270.
You create a template if you want to use Worksheets to reconcile and certify your account balances.
2. (Optional) Access the Create Policy Purpose and Procedure task.
You can create a Policy and Procedure document to identify company policies and procedures for
reconciling account balances for period close. You can share these Policy Purpose and Procedure
documents across the Certification Sets and Certification Definitions.
If you are already using Account Certification Definitions, you can create and add the Policy Purpose
and Procedure document to an existing account certification using the Edit Account Certification Set
task within the Maintain Account Certification Sets task.
For new Account Certification Definitions, you can add the Policy Purpose and Procedure document
when you create a new account certification set within the Maintain Account Certification Sets task.
Security: Set Up: Account Certifications domain in the Financial Accounting functional area.
3. Create Account Certification Sets on page 270.
4. Run Account Certification Sets on page 272.
5. (Optional) Decertify Account Certifications on page 274.
Decertify previously approved certifications with ledger activity or ledger balance changes.

Next Steps
Use custom reports to report on completed, decertified, and open account certifications.
Related Information
Concepts
Concept: Close on page 255
Reference
Workday 31 What's New Post: Account Certification Sets and Role Assignment
2020R2 What's New Post: Automated Decertification of Account Certifications

Create Account Reconciliation Template Definitions

Prerequisites
Security:
• Security: Set Up Account Reconciliation Template domain with the security group type of Unconstrained
Groups in the Financial Accounting functional area.
• Drive in the System functional area.

Context
You can create account reconciliation template definitions to reuse existing names of workbooks and
sheets when you create new reconciliation workbooks.

Steps
1. Access the Create Account Reconciliation Template Definition task.
2. As you complete the task, consider:
Option Description
Name The name you enter displays for selection in
prompts only when selecting a template. It doesn’t
display in the final workbook that you generate
from the template definition.
Sheet Name Add a sheet name to your plan template
definition.
Template definitions must include at least 1
reconciliation entry sheet.

3. Click OK and then Done.

Result
You’ve created a reconciliation template definition that is now available for selection when you create an
account certification.

Next Steps
Use the Edit Account Reconciliation Template Definition task to maintain or reuse your reconciliation
template definition.
Related Information
Reference
2020R1 What's New Post: Account Reconciliation Using Worksheets
The Next Level: Automate Your Account Reconciliation Process with Transaction Matching

Create Account Certification Sets

Prerequisites
• Security: Set Up Account Certifications domain in the Financial Accounting functional area.

• From the Maintain Assignable Roles task, assign each of these roles enabled for Account
Certification the same security groups that are assigned on the Setup: Account Certifications domain:
• Approver
• Preparer
• Reviewer
See Set Up Assignable Roles.

Context
You can create account certification sets to:
• Include 1 or more account certifications in the set.
• Assign these roles to your employees for each certification:
• Approver
• Preparer
• Reviewer
• If using Worksheets, associate an Account Reconciliation Template definition to each account
certification.

Steps
1. Access the Maintain Account Certifications Sets report.
2. Click Create.
3. As you complete the task, consider:
Option Description
Company/Company Hierarchy You can select a company or company hierarchy.
All companies in the company hierarchy must
contain the same ledger currency.

Account Reconciliation Template Definition Select an Account Reconciliation Template

Definition if you're using Worksheets to reconcile
and certify balances. You can select the same
reconciliation definition for multiple certifications.
If you don't select the template definition,
Workday won't generate the reconciliation
workbook when you create the certification.

Policy Purpose and Procedure Select or create a policy and procedure document
that you want to associate with the account
certification.
Ledger Account/Ledger Account Summary Select the ledger accounts and ledger account
summaries that you want to certify for the
certification.
Balance or Activity Select if you want to certify a ledger account
balance or ledger account activity.
Year to date balance includes beginning balance
journals for balance sheet accounts. Ensure that
you roll year-end balances forward before you
select Balance.

Book Leave blank to select all books.

Option Description
Worktags Select specific worktags to enable reviewers
and approvers to drill down and certify individual
worktag balances for the ledger account.
When you want to specify more than 25 individual
worktags, Workday recommends that you use a
worktag hierarchy on the Account Certification to
improve performance and scalability.
Leave blank to select all worktags associated with
the ledger account.

Priority Select how you want to prioritize processing

certifications. Example: Select a high priority for
certifications that you want to complete early.
4. Click OK and then Done.
5. For each account certification set, click View Roles.
6. To assign roles to each account certification, click Assign Roles.
7. Select an effective date and click OK.
8. As you complete the Assign Roles grid, consider:
Option Description
Role Select 1 of the Assignable Roles.
Restricted to Single Assignment Select if you want to assign the role to a single
employee.
Assigned To You can assign each role to multiple employees.

Next Steps
To edit a certification set, access the Maintain Account Certification Sets report and for the account
certification set you want to edit, click Edit.

Run Account Certification Sets

Prerequisites
• Create an account certification set and assign account certification roles to employees.
• Trial balance is ready for approval.
• Security: These domains in the Financial Accounting functional area:
• Set Up Account Certifications.
• Process: Account Certifications.
• These domains in the System functional area:
• Drive
• Worksheets

Context
You run the account certification sets to:
• Generate and route account certifications to the assigned employees for their necessary action.
• Generate workbooks (if using Worksheets) with the latest ledger account balances.

Note: To avoid duplicate certifications, run an account certification only once for a period. If you need to
rerun the account certification, first cancel the existing account certification from the related actions menu
of the account certification.
You can configure your account certification process to route certifications to reviewers and approvers, with
or without worksheets. You can also set up condition rules to bypass the routing for approval of accounts
with no activity.
If using Worksheets, always click Refresh Grid Data from the first sheet before submitting to ensure that
workbook has consistent data.
Note: Click Save for Later on your certification before you navigate back to the workbook to refresh the
data.

Steps
1. Edit Business Processes.
Add steps to the Account Certification Event business process to route account certifications to
employees assigned to the account certification roles.
(Optional) Configure additional conditional rules for the Account Certification Event business process to
certify ledger accounts automatically that have no activity for the fiscal period.
2. Access the Run Account Certification Sets task.
3. As you complete the task, consider:
Option Description
Company/Company Hierarchy You can select multiple companies or company
hierarchies.
All companies in a company hierarchy must have
the same ledger currency.

Account Certification Set You can select multiple account certifications.

Account Certification for the Selected Set Select:
• All Account Certifications to certify ledger
accounts or ledger account summaries for all
account certifications.
• Select Account Certification to certify or
recertify ledger accounts or ledger account
summaries for specific account certifications.

Result
Workday initiates the Account Certification Event business process and for accounts with:
• Activity, routes for approval as configured. If you configured the certification to include worksheets,
Workday routes the worksheet and certification.
• No activity (if you've configured the additional conditional rules), Workday automatically certifies the
accounts.
Related Information
Concepts
Concept: Business Processes and Organizations
Tasks
Steps: Configure Business Process Definitions
Reference
2020R1 What's New Post: Automatically Certify Ledger Accounts with Zero Activities

2020R1 What's New Post: Account Reconciliation Using Worksheets

Decertify Account Certifications

Prerequisites
• You've created and approved account certifications.
• Configured the Account Certification Event business process to route account certifications to
employees assigned to the account certification roles.
• Security: These domains in the Financial Accounting functional area:
• Process: Account Certification - Decertify.
• Process: Account Certification - Decertify All.

Context
You can decertify previously approved certifications that have ledger activity or ledger balance changes by
either:
• Scheduling an automated process to decertify mass account certifications.
• Decertifying a single account certification.

Steps
• Option A: Mass Decertify Account Certifications
a) Access the Schedule Automated Decertification task.
Run the task to identify and decertify previously approved certifications with ledger activity or ledger
balance changes.
b) Select a Run Frequency.
c) As you complete the Criteria tab, consider:

Field Description
Company/Company Hierarchy Select a company or company hierarchy.
Current Period Select the fiscal period for which you want to run
the schedule. If you want to run the schedule
Prior Period
for a time period that spans both periods,
select both Current Period and Prior Period.
Example: You’re running the schedule on June
19, 2020 but want to identify and decertify
certifications from May 19, 2020 to June 19,
2020.
d) (Optional) If you select a recurring schedule for Run Frequency, consider these guidelines as you
complete the Schedule tab:

Field Description
Recurrence Type Select a recurring schedule for the task.
Catch Up Behavior Select how many times that you want to run
the task after your environment goes offline for
maintenance issues.
Example: You schedule a process to run
multiple times in a day. When your environment
goes offline for maintenance, you can limit the
process to run once instead of catching up on all
missed runs.

Field Description
Select:
• None: If you don't want to run any
occurrences of the missed schedule, but to
run it on the current schedule.
• Run Once: If you want to run the schedule
once, usually the last run before your
environment went offline.

e) Click OK.
Workday identifies and decertifies all account certifications with ledger activity or ledger balance
changes.
• Option B: Decertify a Single Account Certification
a) Access the Find Account Certifications report.
b) From the related actions of the approved certification that you want to decertify, select Account
Certification > Decertify.
c) On the Confirm Account Decertification page ensure that the certification has a status of Certified.
d) Click Confirm and then click OK.
Workday decertifies the account certification and changes the status of the certification to
Decertified: Recertification in Progress.

Result
Workday initiates the Account Certification Event business process and sends an Inbox notification
for correction, approval, and recertification as configured. If you configured the certification to include
worksheets, Workday routes the worksheet and certification.

Next Steps
Review details of decertifications, including which person Workday assigns to the next task to complete the
recertification:
1. Access the Find Decertified Certifications report.
Security: Process: Account Certifications - Reporting in the Financial Accounting functional area.
2. Click an account certification to access the View Account Certification report.
Security: Process: Account Certifications - View in the Financial Accounting functional area.
3. Click Decertification Details to access the Decertification Details Report report.
Security:
• Report: Execution domain in the Tenant Non-Configurable functional area.
• These sub reports in the Financial Accounting functional area:
• Sub Report - Journal Lines for Account Certification - Journal Activity Post Certification
report secured to the Reports: Financial Accounting domain.
• Sub Report - Account Certification Lines Filter by Certification - Ledger Balance as of
Approval Date report secured to the Process: Account Certifications - Reporting domain.
• Sub Report - Journal Lines Filtered by Status for Account Certification - Ledger Amount
report secured to the Process: Journals-Reporting domain.
Related Information
Tasks
Run Account Certification Sets on page 272
Steps: Configure Business Process Definitions

Reference
2020R2 What's New Post: Automated Decertification of Account Certifications

Certify Account Balances

Prerequisites
• Define the Account Certification Event business process and security policy.
• You've reconciled all accounts you want to certify.
• Trial balance is ready for approval.
• Security: These domains in the Financial Accounting functional area:
• Process: Account Certifications - View
• Process: Account Certifications - Reporting
• Process: Account Certifications - Cancel

Context
You can create quick, one-off, account certifications that require immediate action without creating
certification sets and assigning roles. You can then submit the reconciled account balances for review and
approval.

Steps
1. Access the Create Account Certification task.
2. As you complete the task, consider:
Option Description
Ledger Account/Summary Select the ledger accounts and ledger account
summaries you want to certify for the certification.
Book Leave blank to select all books.
Balance or Activity Select if you want to certify a ledger account
balance or ledger account activity.
Year to date balance includes beginning balance
journals for balance sheet accounts. Ensure that
you roll year-end balances forward before you
select Balance.

Worktags Select specific worktags to enable reviewers

and approvers to drill down and certify individual
worktag balances for the ledger account.
Leave blank to select all worktags associated with
the ledger account.

Priority Select how you want to prioritize processing

certifications. Example: Select a high priority for
certifications you want to complete early.
3. Click OK.
In the Ledger Accounts to Certify grid, Workday populates these fields with the balances of the
accounts you select in the Ledger Account/Summary field:
• Ledger Account Balance
• Amount to Certify for Account

4. In the Amount to Certify for Account field, enter the amount to certify for each account.
Workday calculates and populates the Variance field with the difference between the amounts you
enter in the Amount to Certify for Account field and the Ledger Account Balance.
5. (Optional) Attach supporting documents.
6. (Optional) Click Save for Later to save the certification in a Draft status.
You can still edit and cancel an account certification from the related actions menu of the account
certification in a Draft status on the Find Account Certification report.

Result
Workday initiates the Account Certification Event business process and sends Inbox notifications to
reviewers and approvers for necessary action at their end.

Next Steps
(Optional) To cancel an approved account certification, navigate to Find Account Certifications report
and from the related actions menu of the approved certification, select Cancel.
Related Information
Concepts
Concept: Close on page 255
Reference
Workday 31 What's New Post: Account Certification

Configure Account Certification Dashboard

Prerequisites
• Create a Ledger Account summary of all balance sheet accounts.
• Map the standard alias _BS_Balance_Sheet_Accounts to the Ledger Account Summary.
• Security: Process: Account Certifications - Reporting domain in the Financial Accounting functional
area.

Context
You can configure the Account Certification Dashboard to display these reports on the dashboard:
• Account Certification Definitions for Balance Sheet Accounts.
• Balance Sheet Certification Progress.
• Number of Account Certifications by Status.

Steps
1. (Optional) Verify that for the Balance Sheet Certification Progress report, the Ledger prompt field
has a value of Actuals Ledger Type (Derived).
a) Access and run the Balance Sheet Certification Progress for the company and fiscal period for
which you want to configure the Account Certification Dashboard.
b) From the related actions menu of the report, select Standard Report > Edit.
c) From available actions menu of column C3, select Edit.
d) Under the Map Sub Report Prompts section, confirm these values:
• Prompt Field: Ledger.
• Value Type: Use Value From Prompt Set.
• Value: Actuals Ledger Type (Derived).
e) Click OK and then exit.
2. Access the Maintain Dashboards report.

3. Locate the Account Certification Dashboard, and click Edit.

4. On the Content tab, click Add.
5. In the Tab Name field, enter a name for the dashboard. Example: Account Certification Statistics.
6. Clear the Configurable By User option.
7. In the Prompt Set field, select Account Certification Prompt Set.
8. Expand Worklets, and add these 3 Account Certifications reports as worklets to the grid:
Option Description
Worklet • Balance Sheet Certification Progress.
• Account Certification Definitions for Balance
Sheet Accounts.
• Number of Account Certifications by Status.
Note: If required, you also add custom reports as
Worklets.

Worklet Size 1x or 2x
You also select a combination of 1X and 2X to
configure the report layout to meet your needs.

9. Click Done.
10.From your Home page, click Menu to display your installed Apps.
11.If you don't see the Account Certification App installed, click Add Apps .
12.In the Find Apps field, enter Account Certification, and click the + sign to add the Account
Certification App to your menu.
13.Click Back to Menu .
Workday displays the Account Certification dashboard.

Next Steps
1. Click to open the dashboard.
2. Enter the dashboard prompts and click OK to view the reports.
Note: The value you enter on these prompts will apply to all the reports displayed on the dashboard.
Related Information
Concepts
Concept: Account Certification Dashboard on page 278
Reference
2020R1 What's New Post: Account Certification Dashboard
Examples
Example: Map Aliases to Ledger Account Summaries on page 321

Concept: Account Certification Dashboard

The Account Certification dashboard is a configurable workspace, enabling you to monitor progress of your
account certifications in a single place. You can select the account certification reports and custom reports
you want to display on the dashboard using the Maintain Dashboards report. To add links to account
certification reports, custom reports and external links, click Edit.
Workday provides these reports as worklets that you can add to your Account Certification dashboard:
• Account Certification Definitions for Balance Sheet Accounts - Identifies account certification
definitions for each balance sheet account. It also indicates if there are no account certifications for
specific balance sheet accounts.

• Balance Sheet Certification Progress Report -Tracks the certification progress for balance sheet
ledger accounts.
• Number of Account Certifications by Status-Tracks account certifications by their statuses.
The value you enter on the Dashboard prompts will apply to all reports displayed on the dashboard.
Example: When you enter Company A for the Company/Company Hierarchy prompt and Feb-2020 for the
Fiscal Period prompt, Workday displays all certification status reports on the dashboard for the selected
prompts.
Once you configure the dashboard, you can add it as a worklet to your Home page.
Related Information
Tasks
Steps: Process Account Certifications on page 269
Configure Account Certification Dashboard on page 277
Reference
2020R1 What's New Post: Account Certification Dashboard

Journal Balancing by Worktag

Steps: Configure Worktag Balancing for Journals

Prerequisites
• Security: Set Up: Worktag Balancing domain in the Common Financial Management functional area.
• Review setup considerations on worktag balancing for payroll.

Context
You can set up the required balancing worktag type you want to use in addition to company for balancing
journals, for all companies in your tenant. You can enable worktag balancing for:
• New implementation.
• Workday Expenses.
• Workday Payroll.
• Workday Student.
Note: Carefully plan the business dimension that you want to use as your required balancing worktag.
Once you enable worktag balancing, you can't disable it or change the balancing worktag type.
Set up the optional balancing worktag types you want to use in addition to company for balancing journals,
for all companies in your tenant. You can enable worktag balancing for new implementation and existing
implementation.
Optional balancing worktags aren’t mandatory on a transaction. You can add or remove optional balancing
worktags. Create reclassifying journal entries when transactions that are in process no longer balance after
you update the optional balancing worktag configuration.

Steps
1. If already using Workday Expenses or Payroll, ensure the control ledger account balance nets to zero
before you load beginning balance journals.
a) Before enabling worktag balancing, complete all in-process transactions and settle payments in your
tenant.
• Fringe benefit (fringe benefit, commitments, obligations, facilities, and administration expense).
• Expenses (expense report, expense report payment, and expense credit card payment).
• Payroll (payroll accrual, forward accrual, payment, commitments, and obligations).
• Settlement (prenote payment, payment return, ad hoc payment, ad hoc bank transaction, bank
transfer, and intercompany payment / receipt).
b) Create a manual journal to reverse account balances and close all prior periods.
Closing all periods restricts modifications to historic transactions after enabling worktag balancing.
If you later reopen a period for adjustment, add new transactions as opposed to changing historic
details.
2. Set up worktag balancing rules for required balancing worktags.
a) If using required worktag balancing for financial transactions, define financial balancing rules.
Set up how you want Workday to assign a required balancing worktag to the offset side of journals
that use balancing rules.
See Define Worktag Balancing Rules for Financial Transactions on page 281.
b) If using required worktag balancing with Workday Payroll, define payroll balancing rules.
Set up how you want Workday to assign a balancing worktag to:
• The deductions portion and net accumulation of gross-to-net payroll (including forward accruals).
• Fringe benefit charges.
If you change historic payroll transactions after you enable worktag balancing, the transactions
have an error status because they don't have a balancing worktag. The Fix Operational Journals
With Errors task tags the payroll accounting entries with the default worktag from the Worktag
Balancing Transaction Rule Set that you entered on the company accounting details. Use the Fix
Operational Journals With Errors task to resolve issues.
See:
Define Worktag Balancing Rules for Payroll Accrual on page 283.
Define Worktag Balancing Rules for Fringe Benefit Actuals Transactions on page 284.
c) If using worktag balancing for cash transactions, define a cash balancing rule to associate primary
balancing worktags to bank accounts.
Workday generates worktag balancing entries at the time of settlement to reflect accurate balances
for cash balance checks or financial reports.
See Define Cash Balancing Rules for Cash Transactions on page 285.
d) Define worktag balancing transaction rule sets to associate balancing rules for required balancing
worktags with applicable transactions.
See Configure Worktag Balancing Rule Sets for Transaction Journals on page 288.
e) Configure a balancing worktag for the tenant.
Use the Maintain Worktag Balancing Configuration task to configure the balancing worktag
Workday uses to balance journals in addition to company.
See Configure Worktag Balancing for the Tenant on page 291.
f) (Optional) Configure optional balancing worktags for the tenant.
You can balance operational transactions and accounting journals by optional balancing worktags
without setting up required balancing worktags. Use the Optional Balancing Worktag section on

the Maintain Worktag Balancing Configuration task to select up to 5 of these worktag types for
use when balancing company books:
• Business Unit
• Cost Center
• Custom Organizations
• Custom worktags
• Fund
• Gift
• Grant
• Location
• Program
• Project
• Region
When transactions that are in progress no longer balance after you update the optional balancing
worktag configuration, create adjusting journal entries.
See Configure Optional Worktag Balancing for the Tenant on page 292.
g) Update account posting rules for InterWorktag Payables and InterWorktag Receivables.
Account posting rules define where to post due to and due from journal lines for transactions
between worktags.
See Set Up Account Posting Rules on page 71.
3. Configure the balancing worktag as required for all worktag objects on the Maintain Worktag Usage
task.
See Configure Worktags for Transactions.
4. Load beginning balance journals from your external ledger into Workday.

Result
For required balancing worktags, Workday:
• Balances journals by company.
• Uses the balancing worktag you configured to balance all journals.
Related Information
Concepts
Setup Considerations: Worktag Balancing for Payroll
Reference
FAQ: Journal Errors on page 111

Define Worktag Balancing Rules for Financial Transactions

Prerequisites
Set up any custom worktags that you want to use in your balancing rule.

Context
Define rules that instruct Workday on how to assign a balancing worktag to the offset side of an operational
transaction journal. You need a rule for applicable transactions for which you want to specify the balancing
worktag.
Example: If you balance by fund, the rule enables you to settle and receive payments for a group of funds
using a single, specified fund. You don't need a rule if you want the offset journal line to always inherit the
balancing worktag from the operational transaction side.

Changes to balancing rules affect new transactions only.

Steps
1. Access the Create/Edit Financial Balancing Rule task.
2. As you complete the task, consider:
Option Description
Worktag Type Worktag types are groupings of worktags by a
business dimension: Cost center, business unit,
region, fund, and custom organization. Select the
type to use to balance journals for transactions
subject to this rule.
Your choice determines the worktags available for
selection within this balancing rule.
Your tenant can use only 1 balancing worktag
type for all companies.

Default Option The Default Option applies to all worktag values

except worktags listed in the Balancing Worktag
Offset grid. Select whether you want the offset
transaction journal (liability or receivables) to:
• Inherit the same balancing worktag as
the operational transaction side (spend or
revenue). The journal lines automatically
balance by the balancing worktag value of the
transaction.
• Specify a different balancing worktag than the
operational transaction side.
Example: You can settle and receive payments
for a group of funds using a single fund. To
balance the journal, generate due to and due
from journal lines.

Default Value Select Specify to apply the balancing worktag

offset to a transaction journal when there’s no
matching balancing worktag on the operational
transaction.
3. Use the Balancing Worktag Offset grid to list exceptions to the default setting of the rule.
Workday compares the balancing worktag on the operational transaction to the worktags specified in
the grid. On first match, Workday uses the balancing Option for that row. If there’s no match, Workday
applies the Default Option for the rule.

Option Description
Worktags Select one or more worktags or worktag
hierarchies that:
• Are exceptions to the default of the rule.
• Share the same balancing option and offset
balancing worktag.

Option Select whether you want the offset transaction

journal to:

Option Description
• Inherit the worktag from the operational
transaction side.
• Specify a different worktag value.
Example: Specify enables you to settle and
receive payments for a group of funds using a
single fund.

Offset Balancing Worktag If you selected Specify, select the worktag that
you want to apply to the offset side.

Result
You can use the rules for a given worktag type to build rules sets. These rule sets define which rule to use
for each of the various types of transactions subject to worktag balancing.
Review the View Financial Balancing Rule report to confirm the rules that you have set up to balance
financial transactions by worktag in addition to company.

Example
Set up a rule for supplier invoices where all cost centers use the Inherit option except Cost Center A
and Cost Center B. Use the Specify option for Cost Center A and Cost Center B. Also, indicate that Cost
Center Z is the worktag balancing offset. In this case, Cost Center Z settles payment for the other 2 cost
centers provided that you associate the rule to supplier invoices in the worktag balancing transaction rule
set.

Next Steps
• (Payroll implementations) Create a payroll balancing rule to associate a balancing worktag with the
deductions and net accumulation portions of gross-to-net payroll.
• Define a worktag balancing transaction rule set.
Related Information
Concepts
Concept: How Transactions Get Balancing Worktags on page 294

Define Worktag Balancing Rules for Payroll Accrual

Prerequisites
Set up any necessary custom worktags.
If using Workday Financials, define a financial balancing rule.

Context
Create a payroll balancing rule to associate a balancing worktag with the deductions portion and net
accumulation of gross-to-net payroll. You can use the payroll balancing rule for forward accruals.
You can override defaults of the balancing rule and specify at the paygroup level how you want
transactions to carry worktag information.
Note: Changes to balancing rules affect new transactions only, not previously completed ones.

Steps
1. Access the Create Payroll Balancing Rule or Edit Payroll Balancing Rule task.

2. When using the Create Payroll Balancing Rule task, select Payroll Accrual for your Transaction.
Specify is automatically selected as the Default Option.
3. When using the Edit Payroll Balancing Rule task, select a Payroll Balancing Rule to Edit from
Payroll Accrual Rules.
The Transaction name defaults in.
4. Select a Worktag Type to balance journals for your worktag balancing transaction rule for payroll.
5. Specify a Default Value for payroll accrual transactions using this balancing rule.
The Default Value must be the same type as the Worktag Type.
6. Identify a Payroll Balancing Source for the worktag balancing rule.
• Select Assign by Pay Group to create a worktag balancing rule based on a pay group.
• Select Default by Organization to create a worktag balancing rule based on an employee
organization assignment.
7. (Optional) If you use the Edit Payroll Balancing Rule task for payroll accruals, note any worktag
balancing rule sets that use the rule.
8. (Optional) Once you've established a balancing rule for Payroll Accrual, you can create a Balancing
Worktag Offset to exclude specific pay groups from the rule.
To create a Balancing Worktag Offset, select Assign by Pay Group as the Payroll Balancing
Source.
You can't specify rules by Pay Group if you set Default by Organization as the Payroll Balancing
Source.
If you later change the rule, you can't make retroactive transactions for a previously completed payroll.
Don't change a rule if a payroll is calculated but not settled. Settle all payrolls before making any
change to the rule.
To limit the application of the balancing rule:
• From the Pay Group prompt, select one or more pay groups.
• For selected pay groups, select an Offset Balancing Worktag, which must be the same type as the
Worktag Type.

Result
Review the View Payroll Balancing Rule report to confirm its details.

Next Steps
To associate a balancing worktag with actual fringe benefit charges, create a payroll balancing rule.

Define Worktag Balancing Rules for Fringe Benefit Actuals Transactions

Prerequisites
Set up any necessary custom worktags.
If using Workday Financials, define a financial balancing rule.

Context
Create a payroll balancing rule to associate a balancing worktag with actual fringe benefit charges.
Note: Changes to balancing rules affect new transactions only, not previously completed ones.

Steps
1. Access the Create Payroll Balancing Rule or Edit Payroll Balancing Rule task.
2. When using the Create Payroll Balancing Rule task, select Fringe Benefit Actuals for your
Transaction.
3. When using the Edit Payroll Balancing Rule task, select a Payroll Balancing Rule to Edit from
Fringe Benefit Actuals Rules.
The Transaction name defaults in.
4. To balance journals for your worktag balancing transaction rule, select a Worktag Type.
5. Select Fringe Benefit Actuals for your Transaction.
6. Select a Default Option to indicate whether the worktag balancing value:
• Is inherited from the operational side of the transaction.
• Or the value is based on a specified balancing worktag rule.
If you select Inherit, don’t select a Default Value or a Payroll Balancing Source.
7. (Optional) If you select Specify as your Default Option, indicate a Default Value for fringe benefit
actuals transactions using this balancing rule.
8. (Optional) If you select Specify as your Default Option, identify a Payroll Balancing Source for the
worktag balancing rule.
• To create a worktag balancing rule based on a pay group, select Assign by Pay Group.
• To create a worktag balancing rule based on an employee organization assignment, select Default
by Organization.
9. (Optional) If you use the Edit Payroll Balancing Rule task for fringe benefit actuals, note any worktag
balancing rule sets that use the rule.
10.(Optional) Once you’ve established a balancing rule for Fringe Benefit Actuals, you can create a
Balancing Worktag Offset to exclude specific pay groups from the rule.
To create a Balancing Worktag Offset, you must select Specify as your Default Option and select
Pay Group as your Payroll Balancing Source.
You can’t create a Balancing Worktag Offset if you select Inherit as your Default Option or select
Default by Organization as your Payroll Balancing Source.
If you later change the rule, you can’t make retroactive transactions for a previously completed payroll.
Don’t change a rule for calculated payroll that you have yet to settle. Settle all payrolls before making
any change to the rule.
To limit the application of the balancing rule:
• From the Pay Group prompt, select one or more pay groups.
• For one or more of the selected pay groups, select an Offset Balancing Worktag, which should be
the same type as the Worktag Type.

Result
Review the View Payroll Balancing Rule report.

Next Steps
Create a balancing rule set for your balancing worktag.

Define Cash Balancing Rules for Cash Transactions

Prerequisites
• Process all open transactions and payments that generate cash accounting.

• Security: Set Up: Worktag Balancing domain in the Common Financial Management functional area.

Context
You can create a cash balancing rule to associate a primary balancing worktag to a bank account.
Example: A specific fund or pooled cash funds as a primary balancing worktag. When you add this rule to
your worktag balancing transaction rule set, Workday:
• Derives the balancing worktag defined in the rule on cash accounting entries.
• Generates interworktag payable and receivable journal lines to balance at the bank account level.
You can generate interworktag entries at the time of settlement to reflect accurate balances for cash
balance checks or financial reports. When you use this rule, you no longer need to create manual journal
entries to balance between funds at period close.

Steps
1. Access the Create Cash Balancing Rule task.
2. As you complete the task, consider:
Option Description
Worktag Type Worktag types are groupings of worktags by a
business dimension: Cost center, business unit,
region, fund, and custom organization. Select the
type to use to balance journals for transactions
subject to this rule.
Your choice determines the worktags available for
selection within this balancing rule.
You can use only 1 balancing worktag type for all
companies.
Note that when the cash balancing rule is In Use
as part of your worktag balancing configuration,
you can't change the worktag type.

Default Option The Default Option applies to all bank accounts

except for accounts specified in the Balancing
Default Value
Worktag Offset grid. Select to either:
• Inherit the same balancing worktag as
the operational transaction side (spend or
revenue). The offset journal lines automatically
balance by the balancing worktag value of the
transaction.
• Specify a default balancing worktag value to
use.

3. (Optional) In the Balancing Worktag Offset grid, map a specific bank account to a primary balancing
worktag. Workday applies the balancing worktag to the cash entries with the matching bank account
worktag.

4. Configure Worktag Balancing Rule Sets for Transaction Journals on page 288.
To add the cash balancing rule to your worktag balancing transaction rule set, you:
a) Edit the worktag balancing transaction rule set.
b) Select the Always Inherit check box for all worktag balancing transaction types in the Financial
Transaction Types grid.
The transaction accounting entries will inherit the balancing worktag from the offset lines. This
prevents Workday from generating the due to and due from entries at the time of accrual.
c) Clear Always Inherit in the Cash Transaction Type grid.
d) Select the cash balancing rule to apply it to all cash entries associated with a bank account.

Result
Workday uses the primary balancing worktag to create interworktag balancing entries when generating
cash accounting or settling cash transactions for each bank account. Any predefined optional balancing
worktags also display on the interworktag balancing entries.
Workday overrides any balancing worktags defined in the financial balancing rule with the bank account
worktag defaults for:
• Ad hoc bank transactions
• Ad hoc payments
• Miscellaneous payment requests (cash basis accounting)
• Prenote payments
For bank account transfers and transfers for settlement, Workday derives the associated balancing
worktag when generating the transactions.

Example
Your proposed amount of $100,000 for your project that uses Fund A is approved for budget. You receive
a federal grant of $100,000 for the approved budget in your Treasury Fund. This intermediary fund
assigned to the Treasury bank account pays and receives on behalf of other funds. In turn, Fund A has a
claim on cash with the Treasury Fund.
When you create the customer invoice for the federal agency, Workday uses the worktag balancing
transaction rule to generate accrual accounting entries with the inherited Fund A worktag:

Ledger Account Debit Credit Worktag

Accounts Receivable 100K Fund A
Revenue 100K Fund A

When you receive the grant, you record the customer payment and apply the payment to the agency
invoice. Workday generates the cash entry with the Treasury Fund worktag mapped to the Treasury bank
account defined in the cash balancing rule. Workday also generates initial claim on cash (interworktag)
entries between the Treasury Fund and Fund A worktags:

Ledger Account Debit Credit Worktag

Cash 100K Treasury Bank Account
Treasury Fund

Accounts Receivable 100K Fund A

Claim on Cash 100K Treasury Fund
Claim on Cash 100K Fund A

You expend the grant funds and record a supplier invoice for Fund A. Workday uses the worktag balancing
transaction rule to generate accrual accounting entries with the inherited Fund A worktag:

Ledger Account Debit Credit Worktag

Spend 100K Fund A
Accounts Payable 100K Fund A

When you settle the supplier invoice, Workday generates the cash entry with the Treasury Fund worktag
mapped to the Treasury bank account. Workday also generates claim on cash entries to balance between
Treasury Fund and Fund A:

Ledger Account Debit Credit Worktag Interworktag

Affiliate
Accounts Payable 100K Fund A
Cash 100K Treasury Bank
Account
Treasury Fund

Claim on Cash 100K Treasury Fund Fund A

Claim on Cash 100K Fund A Treasury Fund

Next Steps
To help ensure manual cash accounting entries post with the correct balancing worktag, use the Worktag
doesn’t match Cash Balancing Rule report field to create:
• A custom validation to inform you when a manually entered balancing worktag on a cash journal line
doesn't match the rule definition.
• A custom report to identify manual cash journal lines with a bank account and balancing worktag that
doesn't match the rule definition.
Related Information
Concepts
Concept: How Transactions Get Balancing Worktags on page 294
Tasks
Steps: Configure Advanced Cash Balance Checking on page 1869
Reference
2022R1 What’s New Post: Associate Balancing Worktags with Company Bank Accounts

Configure Worktag Balancing Rule Sets for Transaction Journals

Prerequisites
• Define a financial balancing rule for each type of financial transaction subject to the rules.
• Define a payroll balancing rule for each type of payroll transaction subject to the rules.
• Security: Set Up: Worktag Balancing domain in the Common Financial Management functional area.

Context
Create a set of rules for how to balance journals by worktag for operational transaction that use balancing
rules. Each transaction type can use a different balancing rule.

Steps
1. Access the Create/Edit Worktag Balancing Transaction Rule Set task.
2. Enter the rule set details:
Option Description
Worktag Type You can use only 1 balancing worktag type for
all companies in the tenant. Worktag types are
groupings of worktags by a business dimension:
cost center, business unit, region, fund, and
custom organization. Select the type to use to
balance journals for transactions subject to this
rule set.
Your selection determines the rules available to
assign to transaction types within the rule set. The
rule sets for a selected worktag type are available
for use when defining the worktag balancing
configuration for the same worktag type.
If the rule set is In Use as part of your worktag
balancing configuration, you can't change the
worktag type.

Default Worktag for Unapplied Customer To account for unapplied cash when you deposit
Payments a customer payment or put a remaining amount
on account, the journal lines must balance by
worktag. Workday assigns this default worktag
to the journal lines for unapplied deposited
payments and on account payments, as well as
the corresponding cash entry. When you apply
the payment to an invoice, Workday transfers
the amount from the default worktag to the
invoice receivables distribution worktag. The
amount is transferred based on the Financial
Balancing Rule for Customer Invoice and Cash
Sale transactions.
If you change the default worktag, run a trial
balance to check whether you have any unapplied
cash from customer payments with the prior
worktag value. If there’s an account balance,
manually create accounting journals to move the
balance from the former worktag to the new one.

Default Worktag for Fix Operational Journals To account for reversal journals generated due to
canceling historic transactions, the journals lines
must balance by worktag.
To balance the reversal journals for these historic
transactions by worktag and remove them from
error status, use the Fix Operational Journals
With Errors task to find them. Select the journals
that are missing a balancing worktag and submit
them for posting again. For transactions that
involve employees (such as payroll), Workday first
looks to the employees organization assignment
for the balancing worktag to use. If that isn't
available, or if the transaction doesn't involve

Option Description
an employee, then Workday assigns the default
worktag to the journal lines to balance the journal.
Workday doesn’t assign a balancing worktag to
historic journals in posted status.

Default Worktag for Facilities and To account for expenses generated due to
Administration facilities and administration transactions, the
journals lines must balance by worktag.
The credit side of the transaction identifies
the account used to record facilities and
administration revenue. Which is typically a
revenue account.
If worktag balancing is enabled, the balancing
worktag is determined based on the Facilities
and Administration Expense worktag balancing
rule.

Default Worktag for Unapplied Student Workday assigns the default worktag to the
Payments journal lines for unapplied and on account
student payments. When you apply the payment
to a student charge, Workday transfers the
amount from the default worktag to the student
receivables distribution worktag. The amount is
transferred based on the Financial Balancing
Rule for Student Charge transactions.
Use Default Worktag for Unapplied Student Select to assign the default worktag for unapplied
Payments for Award Disbursements student payments as the balancing worktag for
the on account operational journal lines created
by overpayments on student award disbursement
payments. When clear, Workday assigns the
balancing worktag configured on the associated
student award item.
Default Worktag for Expense Payee When you enable worktag balancing, you must
Receivable select a balancing default worktag to enable
accounting for negative reimbursable expense
reports.
Workday assigns the default worktag to these
account posting rules to balance journals for
negative reimbursable expense reports:
• Expense Payee Receivable
• Credit Card Payable

Default Worktag for Customer Contract Asset When you enable worktag balancing, you must
and Liability Reclassification select a balancing default worktag to enable
accounting for the reclassification of customer
contract assets and liabilities.
Workday assigns the default worktag to the credit
and debit journal lines created by running the
task.

3. As you complete the rules for each worktag balancing transaction type, consider:
Option Description
Financial Balancing Rule Select a balancing rule for a given transaction or
group of transactions. The balancing rule enables
the receivables or liability side of the transaction
journal to inherit the balancing worktag from the
operational transaction side or use a specified
worktag.
Always Inherit Leave the rule blank and select this check box
to have the offset side of the transaction journal
always use the same balancing worktag as the
operational transaction side.

The rule set has a limited number of transaction types because not every transaction uses a balancing
rule. Some transactions use other worktag balancing options.

Result
You can use the worktag balancing transaction rule set on the Maintain Worktag Balancing
Configuration task as part of your worktag balancing configuration. When Workday generates accounting
for operational transactions, it evaluates the balancing option on the rule set to determine which balancing
worktag to apply to the offset side of journals.
Review the View Worktag Balancing Transaction Rule Set report to confirm the details of your rule set.

Next Steps
Configure worktag balancing at the tenant level.
Related Information
Concepts
Concept: How Transactions Get Balancing Worktags on page 294

Configure Worktag Balancing for the Tenant

Prerequisites
• Determine which worktag type to use as the balancing worktag for your tenant.
• Create a worktag balancing transaction rule set to associate balancing rules with transactions.

Context
You can plan the business dimension you want to use as your balancing worktag. Workday doesn't require
you to enable balancing worktag for your tenant. Once you enable balancing worktags, you can't change it
or disable it. Workday assigns the required balancing worktag to the offset side of journals for all financial
transactions that use balancing rules.

Steps
1. Access the Maintain Worktag Balancing Configuration task.
2. As you complete the task, consider:
Option Description
Worktag Type Worktag types are groupings of worktags by a
business dimension:
• Business unit

Option Description
• Region
• Fund
• Custom organization
Select the worktag type to balance journals for
transactions subject to worktag balancing.
Your choice determines the rule sets available for
selection within this task.
For Workday Student, you must include the Fund
Worktag Type option.

Worktag Balancing Transaction Rule Set When Workday generates accounting for
operational transactions, it evaluates the rule set
to determine which balancing worktag to apply to
the offset side of the journal. You can only select
from the rule sets of the selected worktag type.
You can later change the rule set. For any
transaction in progress, Workday applies the rule
set in effect when the transaction is completes.
For Workday Student, select Fund on the Default
Worktag for Unapplied Student Payments field.

Result
For the current period forward, all journals must balance by a worktag of the selected worktag type.
Workday uses the selected rule set to determine the worktag to balance the operational transaction journal.

Configure Optional Worktag Balancing for the Tenant

Prerequisites
Security: Set Up: Worktag Balancing domain in the Common Financial Management functional area.

Context
Set up the optional balancing worktags you want to use for balancing operational transactions for all
companies in your tenant. You can use optional balancing worktags with or without setting up a required
balancing worktag.

Steps
1. Access the Maintain Worktag Balancing Configuration task.
2. As you complete Optional Balancing Worktag section, consider:
Option Description
Worktag Types Worktag types are groupings of worktags by
a business dimension. Select up to 5 worktag
types to balance transactions subject to worktag
balancing.
Worktags that are in use as a required balancing
worktag or resulting worktag aren't available for
selection as an optional balancing worktag.

Option Description
Default Optional Worktags for Unapplied Available options depend on the optional
Payments balancing Worktag Types you select. You
can select 1 or more default optional balancing
worktags that you want assigned to:
• Journal lines for unapplied deposited
payments.
• On Account payments.
• Corresponding cash entries for unapplied
payments.
When you apply the payment to an invoice,
Workday transfers the amount from the default
optional balancing worktag to the balancing
worktag you selected for the Customer Invoice
Cash Sale financial transaction types.

Default Optional Worktags for Student Available options depend on the optional
Unapplied Payments balancing Worktag Types you select. You can
select up to 5 default optional balancing worktags
that you want assigned to journal lines for
unapplied and on account payments. When you
apply the payment to a student charge, Workday
transfers the amount from the default optional
balancing worktag to the student receivables
distribution worktag.
Default Optional Worktags for Expense Payee Available options depend on the optional
Receivable balancing Worktag Types you select. You can
select up to 5 default optional balancing worktags.
Workday assigns the default optional worktags
to these account posting rules to balance the
journals for negative reimbursable expense
reports:
• Expense Payee Receivable
• Credit Card Payable

Result
Optional balancing worktags aren’t required on a transaction. You can add or remove optional balancing
worktags at any time. Create adjusting journal entries if in-process transactions no longer balance after you
update the optional balancing worktag configuration.
When in use, Workday-generated journal lines are fully balanced by optional balancing worktags and
automatically:
• Inherit optional balancing worktags on based on the worktags selected.
• Generate due to and due from entries to balance transactions.
You can create trial balance reports and balance sheets by optional balancing worktags.

Associate a Balancing Worktag with Procurement Card Transactions

Prerequisites
Determine the worktag type to use as the balancing worktag for your tenant.

Context
Enable worktag balancing for procurement cards and verification of procurement card transactions.

Steps
1. Access the Maintain Worktag Balancing Configuration task and specify the Worktag Type.
Balancing worktags for procurement cards and verification of procurement card transactions don't
require a Worktag Balancing Transaction Rule Set.
2. Access the Create Corporate Credit Card Billing Account task.
3. In Account Details, select the Balancing Worktag.
You can't update an existing procurement corporate card with existing transactions; you must start with
a new corporate procurement card.

Result
When workers verify procurement card transactions, you must enter the balancing worktag from the
Worktags prompt.
Related Information
Tasks
Create Corporate Procurement Card Accounts
Verify Procurement Card Transactions

Concept: How Transactions Get Balancing Worktags

After you enable required worktag balancing, transactions that generate accounting must balance by
worktag.
This table lists the balancing option Workday uses to determine the balancing worktag for the offset journal
line of applicable transactions:

Always Inherits Always Inherits from Determined by Balancing Worktag

from Predecessor Transaction Balancing Rules and Specified in
Transaction Rule Set Transaction
Assign asset accounting Depreciation Ad hoc bank transaction Allocation
You can specify the
balancing worktag in
the transaction header.
Workday automatically
creates due to and due
from entries for the
other balancing worktag
values in the journal.
Alternatively, you can
manually create journal
entries to balance the
journal by balancing
worktag.

Customer payment Fringe benefit Ad hoc payment Asset disposal

deposit commitment
Customer refund Fringe benefit Customer cash sale Asset transfer
commitment liquidation

Always Inherits Always Inherits from Determined by Balancing Worktag

from Predecessor Transaction Balancing Rules and Specified in
Transaction Rule Set Transaction
Expense credit card Fringe benefit obligation Customer invoice Asset reclassification
payment
Expense payment Fringe benefit obligation Customer invoice Bank account transfer
liquidation adjustment
Intercompany payment Grants transactions Customer invoice Journal entries
writeoff
You can specify the
balancing worktag in
the transaction header.
Workday automatically
creates due to and due
from entries for the
other balancing worktag
values in the journal.
Alternatively, you can
manually create journal
entries to balance the
journal by balancing
worktag.

Intercompany receipt Payroll commitment Expense report Procurement card

transaction verifications
You specify the
balancing worktag in
the Create Corporate
Credit Card Billing
Account task.

Payment return Payroll commitment Fringe benefit Roll forward year-end

liquidation balances
Payroll payment Payroll accrual Payroll result
Prenote payment Payroll forward accrual Supplier invoice
Prepaid spend Payroll obligation Supplier invoice
amortization adjustment
Procurement card load Payroll obligation
liquidation
Supplier invoice Purchase order
payment
Receipt accrual
Requisition
Revenue recognition
Reverse depreciation
Supplier contract

Related Information
Concepts
Concept: Worktags
Tasks
Steps: Configure Worktag Balancing for Journals on page 279

Average Daily Balance

Setup Considerations: Average Daily Balances

You can use this topic to help make decisions when planning your configuration and use of average daily
balance functionality. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Workday enables you to track daily ending balances for ledger account and worktag combinations to
calculate average daily balances for regulatory reporting.

Business Benefits
You can:
• Calculate average daily balances and daily ending balances on a combination of ledger accounts and
worktag types.
• Calculate the average daily balances on a month-to-date, quarter-to-date, or year-to-date basis.
• Configure average daily balance rules to calculate on any balance sheet account including current year
retained earnings.
• Filter both average daily balances and daily ending balances by company, book, ledger account, and
worktag type.
• You can also create consolidated balance sheets with these elimination values:
• Intercompany.
• Interworktag (if you have a primary balancing interworktag).
• Investment in subsidiary.
• Subsidiary equity.

Use Cases
You can use average daily balance to comply with banking regulations. Examples:
• Banks calculate and pay interest to their customers based on the average daily balances of customer
deposits.
• Credit card companies calculate and charge interest based on the average daily balances of customers
outstanding balances.

Questions to Consider

Questions Considerations
What do you need to do to produce consolidated Set up reports using the Average Daily Balance
reports on average daily balances? Lines for Financial Reporting report data source.
Then select the Intercompany Affiliate worktag on
the average daily balance rule so that eliminations
generate correctly when you run reports.
Do you want to process average daily balances on When processing average daily balances on
retained earnings? balance sheet accounts, you can select the
Calculate Current Year Retained Earnings check
box in the average daily balance rule. If you select
the check box, Workday requests the account used
for the retained earnings beginning balances, and
includes the amount in the process.
If you’re using the latest version (ADB 3.0),
Workday uses the accounts specified in the Year
End Closing Rules to calculate average daily
balances on retained earnings.

Do you need to set up worktags for average daily For ADB 2.0, Workday doesn't support any worktag
balance retained earnings? carryover from net income, for both the current
and prior year retained earnings accounts in the
average daily balance job.
For ADB 3.0, Workday preserves worktags on ADB
lines for Retained Earnings accounts as defined in
your ADB rules.
Note: High-volume worktag types can significantly
impact your ADB processing and reporting
performance.

How do you want to calculate average daily If you want to use Average Daily Balance job
balances? processing, see Steps: Process Average Daily
Balance on page 299.
If you want to use OfficeConnect, see Average
Daily Balance Reporting with OfficeConnect on
page 329.

Recommendations
When calculating average daily balance on balance sheet accounts, select the Calculate Current Year
Retained Earnings check box in the average daily balance rule.
Workday recommends balancing to source systems based on either the transaction posting date or the
transaction accounting date (value date) using the Journal Lines report data source. In Workday, the
posting date is the last updated date, not the accounting date. When balancing to source systems based
on posting date, Workday recommends not editing the journal at a later date. The reposted journal will
reflect the edit date, not the original post date.
Workday also recommends using only those ledger accounts and worktag combinations required for the
average daily balances.

Requirements
No impact.

Limitations
Average Daily Balance doesn't support detailed payroll journals, and only supports summarized payroll
journals when configured.
Actuals ledgers are the only supported ledger type.

Additional Considerations
Average Daily Balance supports:
• Company security on all average daily balance report data sources.
• Organization security on the Average Daily Balance Lines report data source, but not on the Average
Daily Balance Lines for Financial Reporting report data source.
• Consolidated reporting for wholly owned companies using the same ledger currency, using the
Average Daily Balance Lines for Financial Reporting report data source.
You can't process Average Daily Balances for more than 6 months at a time.

Tenant Setup
No impact.

Security
Configure these domains in the Financial Accounting functional area:

Domains Considerations
Process: Average Daily Balance Enables users to process average daily balances.
Reports: Average Daily Balance Enables users to create average daily balance
reports.
Reports: Organization Average Daily Balance Lines Enables users to filter average daily balance lines
by company and organization.

Business Processes
Configure the Average Daily Balance Event business process to approve the average daily balance
results.

Reporting
You can use these report data sources to create custom reports:
• Average Daily Balance Headers
• Average Daily Balance Line for Financial Reporting
• Average Daily Balance Lines

Integrations

Web Services Considerations

Get Average Daily Balance Rules Retrieves and creates average daily balance rule
configurations.
Put Average Daily Balance Rule

Web Services Considerations

Get Historic Average Daily Balance Amounts Retrieves and creates daily ending balances.
Put Historic Average Daily Balance Amounts

Connections and Touchpoints

Workday updates your average daily balance with any activity in manual and operational journals.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across
your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Reference
2022R1 What's New Post: Performance Enhancements for Average Daily Balance

Steps: Process Average Daily Balance

Context
Set up rules and the process for calculating the average daily balance for the time period or date range.
Note: Average Daily Balance doesn't support detailed payroll journals, and only supports summarized
payroll journals when configured.

Steps
1. Create Average Daily Balance Rule on page 300
You can create rules that calculate the average daily balance by:
• Ledger.
• Ledger account summaries.
• Worktags.
Example: Set up rules that use asset and liability accounts or ledger account summaries to generate
regulatory reports.
2. Assign Company Accounting Details on page 62.
3. Calculate Average Daily Balances on page 301.
Process average daily balances and set up the average daily balance process frequency. You can run
ad hoc processes or schedule processes to run:
• Daily.
• On a selected date.
• For a predefined journal date over a specified date range.
4. (Optional) Create custom reports.
See Concept: Custom Reports.

Result
Run average daily balance processes according to your schedule.

Next Steps
Use the Report Writer to define custom reports that:
• Provide a month end average daily balance of cash, by fund, for allocating monthly investment income
to funds.

• Compare average daily balances for a selected account, worktag, or book combination.
• Calculate product profitability.
• Display differences between actual ledger by date and average daily balance in transaction currency.
• Display a balance sheet in actual ledger balances and average daily balance, within the same report.
Related Information
Reference
Workday 31: What's New Post: Eliminations for Average Daily Balance Reporting
2022R1 What's New Post: Performance Enhancements for Average Daily Balance

Create Average Daily Balance Rule

Prerequisites
Security: Set Up: Accounting Rules domain in the Financial Accounting functional area.

Context
You can configure ledger accounts and associated worktags that you want to include in average daily
balance calculations.

Steps
1. Access the Create Average Daily Balance Rule task.
2. As you complete the task, consider:
Option Description
Rule Name You can only change the name once you start
using the rule.
Account Set When you assign an average daily balance rule to
a company, you must select the same account set
for both the rule and the company.
Book Select 1 or more books to filter the source journal
lines used in the average daily balance rule.
When you don't enter a book code, Workday
returns all journal lines with a blank book code.
Workday uses the book code to calculate average
daily balance.

Calculate Current Year Retained Earnings Select this check box to generate average daily
balance values for current year retained earnings.
When you select this check box, Workday hides
income statement ledger accounts on the Ledger
Account/Summary field. You'll be able to select
an account to send your current year retained
earnings in the Retained earnings account for
fiscal year beginning balance prompt.

Worktag Type When you balance your books by worktag, you

must include the balancing worktag type.
Workday displays worktag options according to
your Ledger Account/Summary selections.

Option Description
When you select all balance sheet ledger
accounts for the Ledger Account, select the
ledger account to which you want to assign
retained earnings. When you process average
daily balances for the first time in the next fiscal
year, net income from the preceding year rolls
forward in the account you select. Workday
calculates beginning balances based on the type
of ledger account.

Next Steps
• Assign the average daily balance rule to a company.
Related Information
Tasks
Assign Company Accounting Details on page 62

Calculate Average Daily Balances

Prerequisites
Create average daily balance rules.
Security: These domains in the Financial Accounting functional area:
• Process: Average Daily Balance
• Reports: Average Daily Balance
• Reports: Organization Average Daily Balance Lines
Configure the Process Average Daily Balance Event business process and security policy in the Financial
Accounting functional area.

Context
You can configure a time period or date range to calculate the average daily balance.
Note: You can also calculate your average daily balance using OfficeConnect. See Average Daily Balance
Reporting with OfficeConnect on page 329.

Steps
1. Access the Process Average Daily Balance task.
2. Select a Run Frequency.
3. On the Average Daily Balance tab, you can only select companies that you assigned average daily
balance rules to.
4. (Optional) On the Schedule tab, you can set up recurring average daily balance processing.
Workday processes average daily balances from the accounting date of the earliest transaction posting
or adjustment up to the current date.
Example: You process the average daily balance from February 1 through June 30. On July 1, you
adjust 2 journals dated March 25 and April 5. When you process the average daily balance on July 7,
Workday processes the balance from the earliest adjustment date (March 25) up to July 7.

Result
For each company or company hierarchy, Workday:
• When configured, initiates the Process Average Daily Balance business process for review of the
average daily balance results.
• Calculates both the transaction and base amount.

Next Steps
Create custom average daily balance reports or other financial reports.
Related Information
Concepts
Concept: Custom Reports

FAQ: How do I change an average daily balance rule?

You can't change an average daily balance rule while it's in use by 1 or more companies. To edit or delete
a rule, you must first cancel or mass cancel the Average Daily Balance header:
• To cancel individual headers, select Cancel from the related actions menu of the Average Daily
Balance Header.
• To cancel all average daily balance headers from the average daily balance start date for a company,
use the Mass Cancel Average Daily Balance Headers task.
After you change an average daily balance rule, recalculate canceled headers by rerunning the Average
Daily Balance process using these Start Dates:
• For individually canceled headers, select the Average Daily Balance Header Date of the first canceled
header.
• For mass header cancellations, select the Average Daily Balance Start Date on the View Company
Accounting Details report.

Financial Reporting

Steps: Create and Schedule Groups of Financial Reports

Prerequisites
• Define fiscal reporting time periods.
• Define financial statement profiles.

Context
Schedule groups of financial reports to run at the same time. You can create different report groups to
meet your needs. For a report group, you can burst a set of reports by company or cost center, generating
a separate report for each company or cost center in the set.

Steps
1. Save Filters.
Save report filters for the financial reports that you want to include in your report group. Saved filters
define preset run parameters for reports. You can use them to run recurring reports more quickly, and

as criteria when you create a schedule group of reports. You can create saved filters to use in report
groups for:
• Financial statements (run with or without using a report profile) and the Manager Financial Report.
• Trial balance
• Ledger detail
• Custom reports (through the Report Writer)
2. Group Reports.
Group financial reports so that you can schedule them to run as a single unit. You can include a
bursting set in the report group to generate multiple versions of each report by company or cost center.
A bursting set eliminates the need to run each company or cost center report individually.
3. Schedule Reports or Report Groups.

Result
At the scheduled time, Workday generates all financial reports in the report group by company or cost
center, if the report group includes a bursting set.

Example
• Create a report group for month-end reporting and schedule it to run after period close.
• Use report groups to schedule financial statements for reporting to the U.S. Securities and Exchange
Commission (SEC), such as:
• Annual Form 10-K.
• Quarterly Form 10-Q.
Related Information
Tasks
Burst Reports

Create Reporting Time Periods

Prerequisites
• Set up the fiscal, award, or summary schedule you can use to create reporting time periods.
• Security: Reports: Financial Accounting domain in the Financial Accounting functional area.

Context
Reporting time periods define the years and periods that you can use to report on financial, award, and
project transactions. You can create time periods relative to the report time, or use specific years and
periods. You use reporting time periods to build predefined profiles for financial and award statements.
Workday delivers various common reporting time periods. You can use any of these Workday-delivered
time periods in a financial statement profile, or define your own fiscal or award time periods.
Note: To create new time periods, use the delivered time periods as examples.

Steps
1. Access the Create Reporting Time Period task.
2. As you complete the task, consider:

Field Description
Schedule Type Determines the type of reporting period you're
creating, depending on whether it is on a fiscal,

Field Description
award, or project schedule. The default selection
is Fiscal, which allows you to view and set
options specific to the fiscal period or summary
schedule.
Fiscal Schedule Set this field to use a specific fiscal year or period.
Summary Schedule Select a summary schedule if you plan to use a
summary period. The summary schedule can be
specific or relative to the report run date.
Inactive To override the default tenant time period, select
the Inactive check box.
3. As you complete the Year and Period sections, consider:

Field Description
Use Report Run Base the reporting time on the period you select
at the time of report run. You can further adjust
this time by using the Add or Subtract option.
For reporting time period following a fiscal
schedule, you can clear this check box to select a
specific fiscal year, period, or summary schedule.

Add or Subtract Use this option to move the reporting year or

period backward or forward relative to the report
run period. If you specify a negative number,
the reporting time period will move to before the
report run period, by the specified number of
periods. If you specify a positive number, the
reporting time period will move to after the report
run period, by the specified number of periods.
This field can only be set when you select the Use
Report Run check box.
Example: To create a time period for the previous
year of the report run period, enter -1 under Year.

Use Specific For reporting time period based on a specific

fiscal year, select the fiscal year under Year.
For reporting time period based on a specific
summary schedule, select the summary period
under Period.
If you select to Use Report Run for year and Use
Specific for period, the reporting time period will
cover the specified period during the report run
year.
This option is only available for the fiscal schedule
reporting time.

4. As you complete the Periods to Include section, consider:

Field Description
Periods to Include Enter the number of fiscal, award, or summary
periods up to and including the report run or
specified period.
Example: Enter 4 Periods to Include to see a
full-year quarterly report when using a quarterly
fiscal or award summary schedule.

Year To Date or Award Year To Date Select to include cumulative activities for all
periods from the beginning of the fiscal or award
year to the report run or specified period. Clear to
include activities from only the specified period.
Year From Date For fiscal schedules, select to include cumulative
activities from the period after the report run or
specified period to the end of the fiscal year.
If you select a summary period, this option will
report from the next summary period. If you do
not select a summary period, this option will report
from the next month.

Plan to Date Select to include plan activities from the inception

of the fiscal financial plan to the report run or
specified period.
Award Life to Date or Project Life to Date Select to include activities from inception of a
project or award to the report run or specified
period.
Grant Life to Date Select to include grant activities from the inception
of a fiscal schedule grant to the report run or
specified period.
Summary Schedule to Date Select to include all periods in the summary
schedule up to and including the report run
period, for all years.
Include all Periods in Previous Summary Select to include all periods in the previous
Schedules summary schedule up to and including the report
run period, irrespective of the year.
Include Periods Based on Period Selection in Select to include all periods in the summary
Summary Schedules (To Date) schedule up to and including the report run
period, for all summary periods in the report.
Summary Schedule from Date Select to include all periods in the summary
schedule that occur after the report run period, for
all years.
Include all Periods in Future Summary Select to include all periods in the summary
Schedules schedule that occur after the report run period,
irrespective of the year.
Include Periods Based on Period Selection on Select to include all periods in the summary
Summary Schedules (From Date) schedule that occur after the report run period, for
all summary periods in the report.

Result
You can use the fiscal and award reporting time periods you created to build reports for financial and
award statements.

Create Trial Balance Reports

Context
The Workday trial balance is a list of all the ledger accounts with balances for your company. You can only
view and report on ledger accounts to which you have security permission.
When run for a single company, the report lists the:
• Ledger account.
• Beginning balance.
• Total debit amount.
• Total credit amount.
• Ending balance for the reporting period.
When run for multiple companies, you can select from these 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: For a company hierarchy, displays an ending balance column with the total amount for each
company in the company hierarchy.
When run for multiple fiscal schedules, Workday:
• Summarizes journal lines by journal date instead of accounting period and fiscal year. You can then run
financial statements for either the primary or alternate fiscal schedules.
• Determines the correct fiscal period based on the fiscal schedule you select.
To balance by both required and optional balancing worktags, you must run the nontranslated trial balance
report. Workday only balances translated trial balance reports by the required balancing worktag.
Workday also delivers a standard composite consolidated trial balance report that is useful for reporting on
company hierarchies. Use Workday Report Writer to copy and configure column and row types that enable
you to:
• View a list of companies and their respective totals.
• View intercompany entries.
• View elimination entries.
• Define calculations for columns and row types.
• Select fields that you want summarized.
• Select fields for which you want to view detailed data.
• Configure filter conditions.
• Define prompt defaults.
Note: Filters and data are specific to your Workday tenant, and might be different than the values used in
the standard composite trial balance report. Use any value in the report as guidance.
Related Information
Tasks
Steps: Create Composite Reports
Steps: Set Up Consolidation Companies on page 210

Concept: Financial Reporting

Workday provides standard financial accounting reports so you can analyze activity and meet financial
statement needs. You can run reports in any of the currencies you set up. You can display, download, and
print Workday reports in tabular or graphical formats. Workers can report only on ledger accounts to which
they have permission using configurable ledger account security.

Statutory Reporting
In addition to standard reports, Workday provides these tools to create statutory reports:
• The Report Writer for customizing standard reports.
• Journal Connector for loading accounting data from an external source into Workday.
• Integration with a third-party service to enable statutory reporting.

Standard Financial Reports

Most financial reports are fiscal period based, meaning that once you run a report for a closed period, you
can’t change its content.
Workday delivers standard reports and a financial statement generator. Use the financial statement
generator to define the content of the report by specifying rows and time periods.

Custom Reports and Data Sources

You can create your own reports using the Workday Report Writer tool. Workday defines financial
information to enable you to add required data to your report.
For a list and description of report data sources (RDSs) and RDS filters used in Financial Reporting,
access the Data Sources report and filter on Category by:
• Financials
• Financial Accounting
• Financial Reconciliation and Close
Related Information
Tasks
Steps: Maintain Access to Ledger Accounts on page 75

Reference: Workday-Delivered Reports for Financial Close

This table lists some of the Workday-delivered reports that enable you to:
• Gain visibility into your data.
• Reconcile operational transactions.
• Track the status of account certifications.

Report Description Subreports and Security

Account Certification Lists all balance sheet ledger Set Up: Account Certifications
Definitions for Balance Sheet accounts and their associated domain in the Financial
Accounts. account certification definitions. Accounting functional area.
Balance Sheet Certification Use this report (secured to the The 3 subreports:
Progress. Report Execution domain in
• Sub Report - Journal Lines for
the Tenant Non-Configurable
Account Certification - Ledger
functional area) to display ledger
Amount, secured to the
balances versus amounts to
Reports: Financial Accounting
certify with variances. Also, the
domain in the Financial
Accounting functional area.

Report Description Subreports and Security

report indicates if a given account • Sub Report - Account
certification has: Certification Lines By Status,
secured to the Process:
• Has started
Account Certifications
• Not started - Reporting domain in
• Isn't created the Financial Accounting
functional area.
• Sub Report - All Balance
Sheet Ledger Accounts with
Optional Ledger Account
Filter, secured to the Reports:
Financial Accounting domain
in the Financial Accounting
functional area.

Cash to Bank Reconciliation Use this report (secured to the These 6 subreports secured
Report Execution domain in to the Reports: Financial
the Tenant Non-Configurable Accounting domain in the
functional area) to reconcile cash Financial Accounting functional
to bank for a single company and area:
one or more bank accounts for a
• Sub Report - Cash to Bank
specified fiscal period and time
Journal Non-Operational
period.
Transaction Activity Ending
Reconciles in company currency, Balance (Standard).
operational cash ending balances • Sub Report - Cash to Bank
to the operational ledger ending Ledger Balances by Balancing
balances and displays any Worktag (Standard).
differences by company, ledger • Sub Report - Cash to Bank
account, and bank account. Reconciliation Activities
Note: If you run this report (Standard).
without creating initial balances • Sub Report - Cash to Bank
or Beginning Balances, Workday Reconciliation Future Period
displays zeroes. Activities.
• Sub Report - Cash to Bank
Reconciliation Error Activities.
• Sub Report - Cash to Bank
Reconciliation Beginning
Balances (Standard).

Cash to Bank Reconciliation in Use this report (secured to the These 6 subreports secured
Bank Currency Report Execution domain in to the Reports: Financial
the Tenant Non-Configurable Accounting domain in the
functional area) to reconcile cash Financial Accounting functional
to bank for a single company and area:
one or more bank accounts for a
• Sub Report - Cash to Bank
specified fiscal period and time
Reconciliation Beginning
period.
Balances.
Reconciles in bank currency, • Sub Report - Cash to Bank
operational cash ending balances Reconciliation Activities.
to the operational ledger ending • Sub Report - Cash to Bank
balances and displays any Reconciliation Future Period
Activities.

Report Description Subreports and Security

differences by company, ledger • Sub Report - Cash to Bank
account, and bank account. Reconciliation Error Activities.
• Sub Report - Cash to Bank
Journal Non-Operational
Transaction Activity Ending
Balance in Transaction
Currency.
• Sub Report - Cash to
Bank Ledger Balances in
Transaction Currency by
Balancing Worktag.

Cash to Bank Reconciliation by Use this report (secured to the These 6 subreports secured
Reconciliation Status Report Execution domain in to the Reports: Financial
the Tenant Non-Configurable Accounting domain in the
functional area) to view the Financial Accounting functional
reconciliation status of each cash area:
operational transaction to cash
• Sub Report - Cash to Bank
ledger balance.
Reconciliation Beginning
This report is similar to theCash Balances.
to Bank Reconciliation report. • Sub Report - Cash to Bank
Ledger Balances.
• Sub Report - Cash to Bank
Reconciliation Activities -
Unreconciled Prior Periods.
• Sub Report - Cash to Bank
Reconciliation Activities -
Reconciled.
• Sub Report - Cash to Bank
Reconciliation Activities -
Unreconciled.
• Sub Report - Cash to Bank
Journal Non-Operational
Transaction Activity Ending
Balance.

Cash to Bank Reconciliation by Use this report (secured to the These 6 subreports secured
Reconciliation Status in Bank Report Execution domain in to the Reports: Financial
Currency the Tenant Non-Configurable Accounting domain in the
functional area) to view the Financial Accounting functional
reconciliation status of each cash area:
operational transaction to cash
• Sub Report - Cash to Bank
ledger balance in bank currency.
Reconciliation Beginning
Balances.
• Sub Report - Cash to Bank
Reconciliation Activities -
Unreconciled Prior Periods.
• Sub Report - Cash to Bank
Reconciliation Activities -
Reconciled.

Report Description Subreports and Security

• Sub Report - Cash to Bank
Reconciliation Activities -
Unreconciled.
• Sub Report - Cash to Bank
Journal Non-Operational
Transaction Activity Ending
Balance in Transaction
Currency.
• Sub Report - Cash to
Bank Ledger Balances in
Transaction Currency.

Cash to Bank Reconciliation Use this report (secured to the These 3 subreports secured
Initial Balances Report Execution domain in to the Reports: Financial
the Tenant Non-Configurable Accounting domain in the
functional area) to verify and Financial Accounting functional
reconcile cash to bank initial area:
balances for a single company
• Sub Report - Cash to Bank
and one or more bank accounts.
Journal Non-Operational
For each company and bank Transaction Activity Ending
account, compares cash ledger Balance for Reconciliation
ending balances, including Initial Balances (Standard).
manual cash journals to the • Sub Report - Cash to
related operational cash ending Bank Ledger Balances
balances. for Reconciliation Initial
Balances(Standard).
• Sub Report - Cash to
Bank Ledger Balances for
Reconciliation Initial Balances
by Balancing Worktag
(Standard).

Cash to Bank Reconciliation Use this report (secured to the These 6 subreports secured
Initial Balances in Bank Report Execution domain in to the Reports: Financial
Currency the Tenant Non-Configurable Accounting domain in the
functional area) to verify and Financial Accounting functional
reconcile cash to bank initial area:
balances for a single company
• Sub Report - Cash to Bank
and one or more bank accounts.
Reconciliation Beginning
For each company and bank Balances.
account, compares cash ledger • Sub Report - Cash to Bank
ending balances, including Reconciliation Activities -
manual cash journals to the Unreconciled Prior Periods.
related operational cash ending • Sub Report - Cash to Bank
balances in bank currency. Reconciliation Activities -
Reconciled.
• Sub Report - Cash to Bank
Reconciliation Activities -
Unreconciled.
• Sub Report - Cash to Bank
Journal Non-Operational
Transaction Activity Ending

Report Description Subreports and Security

Balance in Transaction
Currency.
• Sub Report - Cash to
Bank Ledger Balances for
Reconciliation Initial Balances
in Transaction Currency by
Balancing Worktag

Currency Translation Use this report (secured to the These 3 subreports secured
Adjustment Reconciliation Report Execution domain in to the Reports: Financial
the Tenant Non-Configurable Accounting domain in the
functional area) to: Financial Accounting functional
area:
• Reconcile currency translation
gains and losses by ledger • Sub Report - Current Period
account for a single company. CTA Derivation (Standard).
• Compare the currency • Sub Report - Journal Lines
translation adjustment for the Translated for CTA Gain
current period with the prior (Standard).
period. • Sub Report - Journal Lines
View derived journal entries Translated for CTA Loss
by drilling on the Currency (Standard).
Translation Gain and Loss
accounts in the Reconciliation
section of this report.
You can run this report for a
single company only.

Currency Translation Use this report (secured to the These 3 subreports secured
Adjustment Reconciliation by Report Execution domain in to the Reports: Financial
Company the Tenant Non-Configurable Accounting domain in the
functional area) to: Financial Accounting functional
area:
• Reconcile currency translation
gains and losses by ledger • Sub Report - Current Period
account for a company or CTA Derivation (Standard).
company hierarchy. • Sub Report - Journal Lines
• View derived journal entries Translated for CTA Gain
by drilling on the Currency (Standard).
Translation Gain and Loss • Sub Report - Journal Lines
accounts in the Reconciliation Translated for CTA Loss
section of this report. (Standard).

Intercompany Elimination Out Use this report to reconcile: Reports: Financial Accounting
of Balance Report domain in the Financial
• Intercompany accounts in an
Accounting functional area.
Elimination rule.
• Differences with the Suspense
account in the Consolidated
Trial Balance report.
The report displays Intercompany
and Intercompany Affiliate
Elimination Ledger account

Report Description Subreports and Security

differences in both transaction
and translated currencies.
The report by default runs for all
Elimination rules, but you can
select to run it for a specific rule.
Clear the Include all
Intercompany Affiliates option
if you want to run the report for
affiliates that are only under the
company hierarchy.

Find Cash to Bank Use this report to view details of Reports: Financial Accounting
Reconciliation Activities cash operational activities for a in the Financial Accounting
company and one or more bank functional area.
accounts.
Displays cash operational activity
by:
• Accounting date
• Bank account
• Company
• Ledger account
• Reconciliation activity type
• Transaction date

Find Cash to Bank Use this report to view initial Reports: Financial Accounting
Reconciliation Initial Balances balances for company or in the Financial Accounting
company hierarchy and one or functional area.
more bank accounts and ledger
accounts.
Displays initial cash balances
in ledger and bank currency by
company, ledger account, bank
account, and accounting date.
Also, use this report to edit and
delete an initial balance using
related actions.

Ledger Year Beginning Use this report (secured to the These 2 subreports secured
Balances by Company Report Execution domain in to the Reports: Financial
the Tenant Non-Configurable Accounting domain in the
functional area) to display the Financial Accounting functional
ledger year beginning balances area:
for a company or company
• Sub Report - Beginning
hierarchy in:
Balance Journal Lines.
• Ledger Currency • Sub Report - Beginning
• Translation Currency Balance Journal Lines
Translated.

Number of Account Provides the number of account Process: Account Certifications -

Certifications by Status. certifications grouped by Account Reporting domain in the Financial
Certification status. Drill-down Accounting functional area.

Report Description Subreports and Security

provides details of ledger
accounts included in each
Account Certification along with
other pertinent data.
Outstanding Intercompany Use this report to review Reports: Financial Accounting
Transactions outstanding intercompany in the Financial Accounting
transactions by paying company functional area.
and intercompany affiliate.
Note: Workday doesn't include
any posted reversal journals that
have a related reversal journal
in the next period. This prevents
you from adjusting any journals
that Workday will automatically
reverse the next period.

View Ledger Period Statuses Use this report to view Reference Process: Period End in the
IDs of all ledger period statuses. Common Financial Management
functional area.
Balance Sheet Retained Use this report to reconcile the Report Execution domain in
Earnings Reconciliation current year retained earnings the Tenant Non-Configurable
calculated from balance sheets functional area.
and income statements.
Income Statement Retained Use this report to reconcile Report Execution domain in
Earnings Reconciliation the current year retained the Tenant Non-Configurable
earnings calculated from income functional area.
statements.
Balance Sheet - Consolidated Use this report to view a Report Execution domain in
consolidated balance sheet the Tenant Non-Configurable
across companies in a hierarchy. functional area.
Balance Sheet - Non Use this report to view a balance Report Execution domain in
Consolidated sheet for a single company. the Tenant Non-Configurable
functional area.

You can also access the Workday Standard Reports report to view a list of all Workday-delivered reports.
Related Information
Concepts
Concept: Financial Reporting on page 307
Reference
Workday 31 What's New Post: Common Financial Management Reporting
Workday 32 What's New Post: Common Financial Management Reporting

Reference: Additional Options Prompt on Journal Lines for Financial Reporting RDS
This table describes details of the Additional Options prompt on the Journal Lines for Financial Reporting
Data Source (RDS):

Prompt Description
Calculate Ledger Amount for Translated Beginning Enables you to convert loaded journals to the
Balances company currency of the report.
The Ledger Beginning Balance and Translated
Beginning Balance amounts display separately in
the report.

Exclude Adjustment Journals Select to exclude adjustment journals.

Exclude Allocation Journals Select to exclude allocation journals.
Exclude Pro forma Journals Select to exclude pro forma journals. Workday
places unposted allocation journals in Pro Forma
status.
Include In Progress Journals Select to include journals with In Progress status.
Include Payroll Details • Select to include detailed operational payroll
Security: Reports: Financial Reports with Payroll accounting journal lines. Details include:
Details domain in the Financial Accounting • Employee Name
functional area. • Cost Center
• Base Pay
• Job Profile
• Location
• Position
Security: Worker Data: Position and Employee
Worktag domain in the Common Financial
Management and Core Payroll functional areas.
• Leave unselected to include summarized
operational payroll accounting journal lines.
Won’t include any payroll details.

Include Reserved Journals Select to include reserved journals. Workday places

journals in Reserved status as soon as a requisition
passes budget check.
Report by Accounting Date using Plan Structure When using plan structures, select to report by
accounting date instead of budget date.

Related Information
Concepts
Concept: Business Objects, Data Sources, and Fields

Example: Composite Income Statement Report

This example illustrates how you can create a custom report that displays a detailed income statement.
Composite reporting uses matrix report types as sub reports to enable you to combine data into 1 report.
Use financial-specific report data sources (RDS) to define the primary business object's row and column:
• Types.
• Groupings.
• Calculations.

Context
As a company accountant, you need an actuals income statement with configurable rows and columns
that:
• Lists the amounts for Current Period Year-to-date.
• Lists the Last Year Current Period Year-to-date.
• Calculates net income or loss.
• Displays certain expenses in detail.
• Displays revenue in summary.
Note: Filters and data are specific to your Workday tenant and might be different than the values
suggested in this example. Use the information as a guide.

Prerequisites
• Have the appropriate security permissions:
• For ledger account segments.
• To all journals, including the accounting and operational journals.
• Create a basic matrix report consisting of the ledger accounts and activity for each cost center. To
provide source data into your Composite Report Income Statement, use the report as a sub report. Use:
• Journal Lines for Financial Reporting as the data source.
• One of these data source filters:
• Journal Lines for Company and Reporting Time Period.
• Journal Lines for Organization and Reporting Time Period.
Define the report to include:
• Default prompts for company.
• Amount type.
• Ledger.
• Period and time period.

Steps
1. Access the Create Custom Report task.
2. Enter:

Field Value
Report Name A unique name for your composite report income
statement
Report Type Composite
3. Click OK.
4. From the available action menu of column C1, select Define > Control Field.
5. Enter:

Field Value
Column Name Ledger Account
Business Object Ledger Account
6. Click OK.
7. From the available actions menu of column C2, select Define > Data.

8. Enter:

Field Value
Column Name Current YTD
Sub report Select the basic matrix sub report for journal
lines you previously created. Workday populates
the Map Sub Report Prompts grid with prompt
values you defined in the sub report.
9. In the Map Sub Report Prompts grid, enter:

Prompt field Value Type Value

Company Specify Value Select your company
Amount type Specify Value Activity
Period Specify Value Period (Example: 2013 - Mar)
Time period Specify Value Current period YTD
10.Select Field to Aggregate > Amount.
11.In the Style field, select Workday Styles > Default.
12.Click OK.
13.From available actions menu of column C3, select Define > Data.
14.Enter:

Field Value
Column Name Prior YTD
Sub report Select the basic matrix sub report for journal
lines you previously created. Workday populates
the Map Sub Report Prompts grid with prompt
values you defined in the sub report.
15.In the Map Sub Report Prompts grid, enter:

Prompt Field Value Type Value

Company Specify Value Name of your company
Amount type Specify Value Activity
Period Specify Value Period (Example: 2013 - Mar)
Time period Specify Value Current period YTD
16.Select Field to Aggregate > Amount.
17.In the Style field, select Workday Styles > Default.
18.Click OK.
19.From the available actions menu of row R1, select Define > Lookup Data.
20.Enter:

Field Value
Row Name Revenue
Row Label Override Revenue

21.In the Filter Data in Sub Report grid, enter:

Field Detailed Instances to Include

Ledger Account • 4000: Revenue
• 4500: Other Income
• 4900: Sales Discounts
• 4999: Management Fee Revenue

22.In the Outline Options section, select Options > Reverse the Sign.
23.Click OK.
24.From the available actions menu of row R2, select Define > Lookup Data.
25.Enter:

Field Value
Row Name Cost of Sales
Row Label Override Cost of Sales
26.In the Filter Data in Sub Report grid, enter:

Field Detailed Instances to Include

Ledger Account • 5000: Cost of Sales
• 5100: Billable Travel Expenses
• 5900: Purchase Discounts

27.Click OK.
28.From the available actions menu of row R3, select Define > Calculation.
29.Enter:

Field Value
Row Name Gross Profit
Calculation Type Sum
Rows • Revenue
• Cost of Sales

30.In the Outline Options section, select Options > Reverse the Sign.
31.Click OK.
32.From the available actions menu of row R4, select Define > Empty.
33.Enter:

Field Value
Row Name Empty Row 1
34.Click OK.

35.Starting with row R5, add these values:

Reference Name/ Row Type Calculation Options Ledger

Override Account
> Detailed
Instances to
Include
R5 Salaries & Look Up Data • 6000:
Benefits Salaries &
Wages
• 6010:
Benefits
Expenses
• 6020:
Employer
Paid Taxes
• 6030:
Retirement
• 6040:
Bonus -
Quarterly

R6 Legal Service Look Up Data 6400: Legal &

& Fees Service Fees
R7 Contingent Look Up Data 6600:
Labor Contingent
Labor Expense
R8 Employee- Look Up Data • 6850: Staff
Related Meeting
Expense Food
• 6860:
Employee
Expense

R9 Travel & Look Up Data 6800: Travel &

Entertainment Entertainment
R10 Marketing Look Up Data 6200:
Marketing
R11 Facilities & Look Up Data • 6100:
Rent Facilities
• 6300:
Office &
Administrative
• 7200:
Utilities

R12 IT Expense Look Up Data • 6500:

Information
Technology
• 6700:
Depreciation

Reference Name/ Row Type Calculation Options Ledger

Override Account
> Detailed
Instances to
Include
• 7500:
Repairs &
Maintenance

R13 Amortization Look Up Data 6790:

Amortization
Expense
R14 Miscellaneous Look Up Data • 6900:
Expense Insurance
• 7300: Taxes
& Licenses
• 7310:
Postage
Expense
• 7400:
Spend
• 7800: Bad
Debt
• 7900: Other
Expenses
• 7999: Other
Direct Costs

R15 Total Operating Calculation Sum Range

Expense
Starting Row
• R5 (Salaries
& Benefits)
Ending Row
• R14
(Miscellaneous
Expense)

R16 Empty Row 2 Empty

R17 Other Income Look Up Data • 8000:
& Expenses Interest
Income
• 8100:
Interest
Expenses
• 8200:
Impairment
Expense
• 8300:
Motor Pool
Allocation

Reference Name/ Row Type Calculation Options Ledger

Override Account
> Detailed
Instances to
Include
• 8500:
Telecommunications
Allocation
• 9000: Gain/
Loss on
Sale of
Assets

R18 Income Taxes Look Up Data 8900: Income

Taxes
R19 Net Income Calculation Sum Reverse the
Sign
Rows:
• R3 (Gross
Profit)
• R15 (Total
Operating
Expense)
• R17 (Other
Income/
Expenses)
• R18
(Income
Taxes)

36.Click the Run or Preview button to view the report.

Result
The matrix report RDS accesses the journal line as its primary object. The income statement definition:
• Uses Reporting Time Periods as relative time spans.
• Includes journal lines that are in Posted or Pro Forma status.
• Excludes journals that are Canceled, in Error, or in Draft status.
Depending on which fields you designated as drillable on the matrix sub report, some of the detailed data
for column and row groups you can view include:
• Company.
• Cost Center.
• Ledger Account.
• Revenue Category.
• Region.
• Spend Category.
You can:
• Share the report definition with organization members that have the appropriate security level.
• Produce the report output in table format.
• Use your income statement as the basis for other composite financial reports.

Related Information
Tasks
Steps: Create Composite Reports

Example: Map Aliases to Ledger Account Summaries

This example illustrates how you can run a standard income statement and balance sheet.

Context
As an accounting manager, you need to produce an income statement and balance sheet for an urgent
board meeting. You decide to use and configure the Workday-delivered income statement and balance
sheet by mapping Workday aliases to your ledger account summaries.
Note: Ledger account summaries are specific to your Workday tenant and might be different from the
values suggested here.

Prerequisites
Security:
• Access to the Aliases domain.
• Appropriate ledger account segment security permissions to all journals, including the accounting and
operational journals.
• Reports: Financial Accounting domain in the Financial Accounting functional area.

Steps
1. Access the Map Standard Aliases task.
2. From the Business Object prompt, select Ledger Account Summary.
3. Map these Workday-delivered aliases to your ledger account summaries:

Field Value
_BS_Current_Assets_Row1 Map the ledger account summary you want to
display in the first, second, and third rows of the
_BS_Current_Assets_Row2
Current Assets section for the Balance Sheet.
_BS_Current_Assets_Row3
Example:
1: Corporate: Cash and Cash Equivalents
2: Corporate: Receivables
3: Corporate: Investments

_BS_Current_Liabilities_Row1 Map the ledger account summary you want to

display in the first to fifth rows of the Current
_BS_Current_Liabilities_Row2
Liabilities section for the Balance Sheet.
_BS_Current_Liabilities_Row3
Example:
_BS_Current_Liabilities_Row4
1: Corporate: Accounts Payable
_BS_Current_Liabilities_Row5
2: Corporate: Notes Payables
3: Corporate: Interest Payable
4: Corporate: Customer Deposits
5: Corporate: Short Term Loans

Field Value
_BS_Equity_Row1 Map the ledger account summary you want
to display in the first to fifth rows of the Equity
_BS_Equity_Row2
section for the Balance Sheet.
_BS_Equity_Row3
Example:
_BS_Equity_Row4
1: Corporate: Capital Stock
_BS_Equity_Row5
2: Corporate: Retained Earnings
3: Corporate: Currency Translation Adjustments
4: Corporate: Accumulated Other Comprehensive
Income
5: Corporate: Treasury Stock

_BS_Noncurrent_Assets_Row1 Map the ledger account summary you want to

display in the first to third rows of the Noncurrent
_BS_Noncurrent_Assets_Row2
Assets section for the Balance Sheet.
_BS_Noncurrent_Assets_Row3
Example:
1: Corporate: Property, Plant, and Equipment
2: Corporate: Goodwill
3: Corporate: Other Noncurrent Assets

_BS_NonCurrent_Liabilities_Row1 Map the ledger account summary you want to

display in the first to third rows of the Noncurrent
_BS_NonCurrent_Liabilities_Row2
Liabilities section for the Balance Sheet.
_BS_NonCurrent_Liabilities_Row3
Example:
1: Corporate: Long Term Debt
2: Corporate: Deferred Revenue
3: Corporate: Other Noncurrent Liabilities

_IS_Expense_Row1 Map the ledger account summary you want to

display in the first to sixth rows of the Expense
_IS_Expense_Row2
section for the Income Statement.
_IS_Expense_Row3
Example:
_IS_Expense_Row4
1: Corporate: Salary and Benefits
_IS_Expense_Row5
2: Corporate: Other Employee Related Expenses
_IS_Expense_Row6
3: Corporate: Contingent Labor
4: Corporate: Operating Expenses
5: Corporate: Facilities Related Expenses
6: Corporate: Misc. Expenses

_IS_Other_Revenue_Expense_Row1 Map the ledger account summary you want

to display in the first to third rows of the Other
_IS_Other_Revenue_Expense_Row2
Revenue or Expense section for the Income
_IS_Other_Revenue_Expense_Row3 Statement.
Example:

Field Value
1: Corporate: Interest Expense
2: Corporate: Income Taxes
3: Corporate: Other Income

_IS_Revenue_Row1 Map the ledger account summary you want

to display in the first and second rows of the
_IS_Revenue_Row2
Revenue section for the Income Statement.
Example:
1: Corporate: Total Income
2: Corporate: Operating Income

4. Click OK and Done.

Result
You can run the standard income statement and balance sheet.

Next Steps
When you select Copy from the related actions menu of the income statement and balance sheet,
Workday automatically creates custom financial reports. You can then edit the custom reports according to
your company needs.
Related Information
Concepts
Concept: Custom Reports
Tasks
Create Custom Reports
Create Reports from Business Object Instances

Financial Reporting with OfficeConnect

Steps: Set Up Your Tenant for OfficeConnect for Financial Management

Prerequisites
Note: The solutions described in this section are not part of the Workday Service. See Legal Notice for
details.
Before you set up your tenant for OfficeConnect, you must:
• Set up the Workday Financial Management area.
• Meet eligibility requirements as described in Enable OfficeConnect for Workday Financial Management.

Context
You can set up your tenant for OfficeConnect to use with Financial Management data.

Steps
1. Enable OfficeConnect for Workday Financial Management on page 324.

2. Create or edit a security policy for these security domains:

• Set Up: Financial Reporting and Analytics Data Model. The users in the groups you add to this policy
are able to set up the financial reporting data model. Add a security group with View permissions,
such as Finance Administrator.
• Access Workday Financials OfficeConnect. The users in the groups you add to this policy have
permission to log in to Workday from OfficeConnect using the financial modeled data source. Add a
security group with View and Modify permissions.
See Edit Domain Security Policies.
3. Activate Pending Security Policy Changes.
4. Set Up the Financial Reporting Data Model on page 325.
5. Install OfficeConnect on the computer of each financial analyst.
You can install OfficeConnect either as:
• An Administrator. See Install OfficeConnect as an Administrator.
• An end user. See Install OfficeConnect as an End User.
6. Connect OfficeConnect to Your Financial Management Tenant on page 327.
Use the API client settings Workday generated when you enabled OfficeConnect for Workday Financial
Management.
Related Information
Concepts
Concept: Reporting on the Financial Modeled Data Source
Concept: Currencies and Currency Translation
Concept: Differences in OfficeConnect Between Financials and Planning Data Sources
Tasks
Connect OfficeConnect to Your Financial Management Tenant on page 327
Install OfficeConnect as an Administrator
Install OfficeConnect as an End User
Reference
The Next Level: Setting the Foundation for Financial Management
2022R1 What's New Post: OfficeConnect Availability for Financial Management

Enable OfficeConnect for Workday Financial Management

Prerequisites
Security: Set Up: Tenant Setup - Financials domain in the System functional area.

Context
You can enable OfficeConnect in your tenant to use it with Workday Financial Management data.

Steps
1. Access the Tenant Setup report.
2. Navigate to Financials > OfficeConnect.
3. Select Enable OfficeConnect.

4. Click the API Client link.

Copy these values and save somewhere for a later step:
• Client ID
• Workday REST API Endpoint
• Authorization Endpoint
Related Information
Tasks
Connect OfficeConnect to Your Financial Management Tenant on page 327
Reference
The Next Level: Video Shorts - OfficeConnect - Financial Management

Set Up the Financial Reporting Data Model

Prerequisites
Security: Set Up: Financial Reporting and Analytics Data Model domain in the System functional area.

Context
Set up the financial reporting data model before you sign in to Workday in OfficeConnect. By defining the
reporting data model, you're curating the Workday Financials data model (FDM), so that you only expose
the components of the FDM needed for reporting. When you set up the financial data model, Workday
creates the financial modeled data source.

Steps
1. Access the Set Up Financial Reporting and Analytics Data Model task.
2. As you complete this task, consider:
Option Description
Company Select the primary top-level hierarchy for the company to report on.
The company you select determines the Account Set value and
the Fiscal Schedule value.
In the Alternate Company Hierarchies field, optionally select one
or more additional company hierarchies to use.

Ledger Accounts Select the top-level hierarchy that includes the accounts to report
on and analyze.
The company you select determines the Account Set value.
In the Alternate Account Top-Level Hierarchies field, optionally
select one or more additional ledger account hierarchies to use.
The Default Amount Field is summarized by ledger debit minus
credit. When creating a report in OfficeConnect, you can select a
different amount field, such as Natural Amount, by applying a filter
to the worksheet or workbook.

Time Select a Fiscal Summary Schedule that represents a time period in

the selected Fiscal Schedule that's between year and the posting
interval period, such as quarter.
Workday creates a three-tier time hierarchy in the reporting data
model that goes from year (based on Fiscal Schedule) to the
selected Fiscal Summary Schedule to the posting interval period.

Option Description
Example: FY2021 > Quarter > Month
The company hierarchy that you select determines the Fiscal
Schedule value.

Currency Select the default currency to use when reporting on the Corporate
currency or any company hierarchy level.
When reporting on a single company, Workday uses the ledger
currency for that company by default.
Select the Default Translation Rule Set that defines the
translation method to apply based on ledger account type when
Workday performs currency translation. In OfficeConnect, you
can select a different translation rule set by applying a filter to the
worksheet or workbook.

Versions For journal line, Actuals is selected by default.

For plan lines, select the financial plan structures and plans to
report on. You can select from a limited number of plans.

Effective Date Select the default effective date that determines the dimension
hierarchies and values in your model elements. The date can be:
• Dynamic. Select a date relative to the current date (or the
current date itself).
Example: Prior Period End Date. If the period is monthly and
the current date is April 5, 2022, then the effective date is March
31, 2022. If the period is monthly and the current date is May 5,
2022, then the effective date is April 30, 2022.
• Static. Commonly used static dates that the system populates.
These dates are auto-generated based on the model's selected
fiscal schedule and summary schedule. The list updates
automatically over time.
Example: The date of the end of each interval posting period for
the past 12 months.
• Custom: Define custom dates that represent something specific
to the company. These dates are available for selection
indefinitely.
Example: An org change that occurred on mm/dd/yyyy.
A change in the date applies to all users of the model.
Note: OfficeConnect displays the effective date as a label under
Labels > Model > Model Effective Date so that users know which
effective date is used.

Dimensions Select the optional dimensions, such as worktags and

organizations, to drill down into the data. If you add a hierarchical
dimension, select a hierarchy to use. If you don't specify a
hierarchy, Workday includes the values as a flat list.
The dimensions you select determine how report creators can filter
and group the data.

Option Description
In Alternate Top-Level Hierarchies, optionally select one or
more additional hierarchies to use. You have to select a primary
hierarchy before you can add alternate hierarchies.

Show Details Manage the journal line details users can view for a report cell
when they click Show Details for deeper analysis. You can:
• Delete any optional fields.
• Search for and add fields.
• Reorder the fields to change the display and sort order.
If you don't change anything, Show Details displays the default set
of fields from OfficeConnect reports.
Note: The number of fields you configure to display in the
OfficeConnect worksheet impacts performance. A large number of
rows and columns creates larger and slower reports.

Result
Workday creates the financial modeled data source using the components you defined in the financial
reporting data model. You can use this modeled data source when you sign in to Workday from
OfficeConnect.
Related Information
Concepts
Concept: The Financial Reporting Data Model on page 332
Tasks
Display Journal Line Details for Report Cells
Reference
2022R2 What's New Post: Workday Financial Plan Lines in OfficeConnect for Financial Management
2022R2 What's New Post: Journal Line Details in OfficeConnect for Financial Management
2022R1 What's New Post: OfficeConnect Availability for Financial Management

Connect OfficeConnect to Your Financial Management Tenant

Prerequisites
Ensure that:
• OfficeConnect is available to your Financial Management instance, based on specific eligibility
requirements.
• You have the Access OfficeConnect permission.
• You've enabled OfficeConnect on the Financials tab on the Tenant Setup report and saved the
OfficeConnect API Client information.
• You have set up the Financial Reporting and Analytics Data Model.
• Based on the security policy of your company, you’ve downloaded and installed the latest version of
OfficeConnect.
Security:
• Access Workday Financials OfficeConnect domain in the Financial Accounting functional area.

• At least 1 of these security domains in the Financial Accounting functional area:

• Reports: Financial Accounting (Company based).
• Reports: Organization Financial Reporting (Organization based).
• Reports: Organization Journal Lines (Organization based).
• Reports: Projects (Project based).
• Process: Budget (Company based)
• Reports: Company Financial Budgets (Company based)
• Reports: Manager Budgets (Organization based)
• Reports: Manager Financial Budgets (Organization based)

Context
You can set up an OfficeConnect installation with Workday sign-in settings. Users can then sign in to
OfficeConnect for Financial Management with their Workday credentials. If you don't include the Workday
sign-in settings, users can manually enter these settings when they first sign in to OfficeConnect.

Steps
1. Get these sign-in settings from the Financials tab on the Tenant Setup report for each Workday tenant
you want to connect to:
• Client ID
• Workday REST API Endpoint
• Authorization Endpoint URL
2. Click Log In from the OfficeConnect tab in Excel.
Workday automatically displays the Planning sign in page.
3. Select Log in with Workday.
Workday automatically displays the Manage Tenants page.
4. On the Manage Tenants page specify these connection details:
Option Description
Name The name of the Workday tenant you're
connecting to. Example: Production tenant or
Sandbox tenant.
Data Source The data source for the tenant: Financials.
Client ID Created when you enabled OfficeConnect
for Financial Management. See Enable
API endpoint URL
OfficeConnect for Workday Financial
Authorization Endpoint URL Management on page 324.

5. Click Save and then Close.

6. Sign in to your Financial Management tenant.
7. At the prompt, select Allow.
8. (Optional) Create additional tenant connections. When saved, the tenant names display in the drop-
down.
9. (Optional) If you configured multiple tenants for Workday Single Sign-On and your identity provider
automatically signs you in, change the Connections user setting to allow users to select a tenant when
signing-in. See Reference: User Settings Fields.

Result
The settings persist after the first successful sign-in. The next time you sign in to OfficeConnect, you see
the Workday sign-in page. The Workday tenant that you last signed into automatically populates.

Use the Manage Tenants option to add, edit, or delete tenants. To switch to a different Workday tenant,
select the tenant name from the Select Tenant drop-down menu.

Next Steps
Your organization can use this process to setup multiple connections, such as to Preview, Sandbox or
Production instances of Financial Management. Continue to sign in to a single selected instance from the
list of connections you setup.
Related Information
Tasks
Steps: Set Up Your Tenant for OfficeConnect for Financial Management on page 323

Average Daily Balance Reporting with OfficeConnect

Prerequisites
Create an OfficeConnect report with the data for which you want to generate average daily balances. See
../../../../../adaptive-planning/en-us/reporting-and-analysis/officeconnect/using-officeconnect/officeconnect-
reporting-workbooks/xur1623711193958.dita.
Review these topics to familiarize yourself with OfficeConnect terminology, such as account element, date
elements, labels, and so on:
• ../../../../../adaptive-planning/en-us/reporting-and-analysis/officeconnect/using-officeconnect/
officeconnect-overview/tjm1623711190927.dita.
• ../../../../../adaptive-planning/en-us/reporting-and-analysis/officeconnect/using-officeconnect/
officeconnect-overview/rdk1623711188333.dita.
• ../../../../../adaptive-planning/en-us/reporting-and-analysis/officeconnect/using-officeconnect/
officeconnect-report-elements/qmj1623711197333.dita.
Review these topics to familiarize yourself with OfficeConnect and Financial Management:
• OfficeConnect - Financial Management - Getting Started.
• OfficeConnect: Use OfficeConnect with Financial Management Data.

Context
You can calculate and report on the average daily balance using OfficeConnect for Financial Management
for any:
• Given account.
• Multiple accounts.
• Account summary over different time spans.
This enables you to assess interest required against the respective balance averages.
If you want to validate or verify a cell amount in OfficeConnect, you can use Expand or Expand to Leaf
Level on the parent Time element in OfficeConnect. Then, switch the Amount Type for its children to
Ending Balance.
Similarly, if you want to get to-date ending balances for each day in an Average Daily Balance cell, you
can:
• Apply a Time Context, such as Period to Date.
• Use Expand or Expand to Leaf Level on the parent Time element in OfficeConnect.
Note: Because Workday calculates Average Daily Balance on daily ending balances, Workday doesn’t
display journal line rows with the Show Details function when you use Average Daily Balance in
OfficeConnect. To view the daily ending balances, you can expand the time element of the ending balance
to daily or leaf level node.

Differences Between OfficeConnect for Average Daily Balance and Average Daily Balance Job
Processing
Average Daily Balance in OfficeConnect for Financial Management:
• Is calculated in real time.
• Doesn't require you to run the Average Daily Balance job that requires the Report Writer.
• Doesn't require you to create Average Daily Balance rules and assign them to a company.
• Supports currency translation.

Steps
1. Log in to OfficeConnect.
2. Open the OfficeConnect report that you created.
3. In the report, select and highlight the row, column, or cell for the data that you want to convert to
Average Daily Balance.
4. In the Elements tab, expand Dimensions and then Amount Type.
5. Right-click Average Daily Balance and then select Apply to Selection.
6. From the Toolbar, click Refresh.
Workday updates the highlighted data to display the Average Daily Balance for the selected time
period.
7. (Optional) Click the Review tab to confirm that the amount type is Average Daily Balance.
8. (Optional) From the Toolbar, click Label to apply descriptive text in your report for some of the elements
you’ve used. See ../../../../../adaptive-planning/en-us/reporting-and-analysis/officeconnect/using-
officeconnect/officeconnect-reporting-workbooks/zvg1623708831138.dita.
Examples:
• Use Amount Type as a label type to help display the amount type name of Average Daily Balance or
Ending Balance.
• If using Time Context, use both the Time and Context label types to display them together. Example:
June Year to Date.
9. (Optional) To apply to-date average daily balances for the data in the report, you can use Time Context.
a) Highlight the time period in the report to which you want to apply to-date balances.
Example: To calculate period to date average daily balances, select monthly time period in your
report.
b) For the selected time period, from the Toolbar, select Expand.
Workday displays all days in the selected time period.
c) Select the days in the selected time period.
d) In the Elements tab, expand Time and then Context.
e) Select the relevant Time Context.
Example:
• If you’ve highlighted and expanded the monthly time period, right-click Period to Date and then
select Apply to Selection.
• If you’ve highlighted and expanded the Quarter time period, right-click Quarter to Date and then
select Apply to Selection.
f) Select the values that you want to display or hide and then select Keep Only or Remove Only from
the toolbar. See: ../../../../../adaptive-planning/en-us/reporting-and-analysis/officeconnect/using-
officeconnect/officeconnect-reporting-workbooks/vwe1623708876751.dita.
Related Information
Tasks
Steps: Set Up Your Tenant for OfficeConnect for Financial Management on page 323

Reference
2023R2 What's New Post: Average Daily Balance Support in OfficeConnect for Financial Management

Concept: Time Context with Average Daily Balance

You can use Time Context based on the Financial Reporting Data model in OfficeConnect to calculate to
- date average daily balances. Time Context enables you to build a report over a specified to - date range.
Example: Period to Date, Quarter to Date, or Year to Date.
Example: You can apply a Quarter to Date time context element for a single period (Feb) to get Jan 1 –
Feb 28, or can apply the time element for a specific date (Feb 17) to get Jan 1 – Feb 17.
Note:
To use Time Context, you must have the latest OfficeConnect client installed. See Check Your
OfficeConnect Version.
When using Time Context with Expand or Expand to Leaf Level, Workday recommends using it with the
same to - date anchor period. It can be a year, quarter, or period. Example: YTD + Year (2023), QTD +
Quarter (FY23-Q2), or PTD + Period (FY23-May).
OfficeConnect expands time that is based on the parent time anchor and its hierarchy in the Elements tab.
Example: If you specify May+QTD, OfficeConnect will only expand for the month of May. If you want to see
the average daily balance for the full 2nd quarter (April1 to June 30), you must specify Q2+QTD.
You can use Time Context like Period to Date for a specific date. Example: If you want to calculate
average daily balance till Jan 15, you can specify Jan 15 + PTD. However, if you use a specific day or
date, you can expand it as the day has no leaf - level children.
To see PTD average daily balance for only Jan 1-6, use Jan+PTD, expand it, and then use the Keep Only
or Remove Only options to keep or remove the necessary rows. Similarly, you could use Q2+QTD, expand
it, and keep or remove the necessary rows.
If you aren’t using Time Context, OfficeConnect calculates the average daily balance only for the
period end. Example: If the time period in the report is quarter and you don’t specify Quarter to Date,
OfficeConnect only calculates the average daily balance for the quarter. When you expand the quarter to
daily, the expanded balances are daily ending balances and not average daily balances.
Related Information
Reference
2023R2 What's New Post: Time Options for OfficeConnect for Financial Management
Examples
Add Time Contexts

Concept: OfficeConnect and Reporting on the Financial Modeled Data Source

You can use the financial model data source in OfficeConnect to query Workday Financial Management
data directly, enabling easy, performant, reporting.
OfficeConnect is a Microsoft Excel add-in that enables you to create reports in Excel using financial data in
Workday from the financial model data source. With OfficeConnect, you can create financial reports using
the Excel interface you’re familiar with, using data backed by Workday, such as journal lines.
OfficeConnect updates the data when you run or refresh your report in real time. These reports are based
on model elements like ledger accounts, time period, and worktags.
You might want to use OfficeConnect to perform ad hoc analysis on journal line data.
When creating and editing a report, you can:
• Use formatting capabilities of Excel.
• Use cell formulas and calculations of Excel.
• Expand and collapse hierarchies in the data model.

• Filter Workday data.

Example: You can use OfficeConnect for Financial Reporting to:
• Create an income statement.
• Create a balance sheet.
• Perform ad hoc dimension analysis.
• Perform salary and benefit analysis.
• Calculate product and customer margin.
Workday supports OfficeConnect only on Windows operating systems.
Related Information
Concepts
Concept: OfficeConnect for Excel Interface Tour
OfficeConnect Tab Buttons on the Excel Ribbon
Concept: Caching and Refreshing the Financial Modeled Data Source
Concept: Currencies and Currency Translation
Tasks
Steps: Manage OfficeConnect Reporting Workbooks
Reference
OfficeConnect Report Elements
OfficeConnect Reporting Workbooks
OfficeConnect Report Settings and Properties
OfficeConnect for PowerPoint
OfficeConnect for Word
Reference: OfficeConnect Technical Requirements
OfficeConnect FAQs and Troubleshooting
2022R1 What's New Post: OfficeConnect Availability for Financial Management
The Next Level: OfficeConnect - Financial Management - Getting Started

Concept: The Financial Reporting Data Model

The financial reporting data model is a curated subset of components selected from the Workday financial
data model (FDM). The reporting data model determines which information from the FDM, such as which
company hierarchies, ledger account hierarchies, and dimensions, is available for analyzing and reporting
on in OfficeConnect.
When you set up the financial reporting data model, Workday creates the financial modeled data source
that you can access from OfficeConnect.
When you sign in to Workday from OfficeConnect using the financial data source, OfficeConnect displays
most of the information in the reporting data model in the Elements tab. You can drag and drop individual
elements, such as a company or ledger account, from the Elements tab into the worksheet.
OfficeConnect summarizes the data in your Workday ledger accounts as determined by the intersection of
the elements you place in the worksheet.
The financial reporting data model includes these elements:

Model Elements Description

Company The primary top-level company hierarchy you can report on.
One or more alternate company hierarchies you can report on.

Ledger Accounts The primary account top-level hierarchy you can report on.

Model Elements Description

One or more alternate ledger account hierarchies you can report on.

Time The three-tier time hierarchy defined in the reporting data model.
Typically, the hierarchy goes from year to quarter to month/period:
• Year is based on the Fiscal Schedule.
• Quarter is based on the configured Fiscal Summary Schedule.
• Month/Period is based on the posting interval period.
Example: FY2021 > Quarter > Month

Currency Defines:
• The default currency to use when reporting on the Corporate
currency or any company hierarchy level.
• The translation method to apply based on ledger account type
when Workday performs currency translation.

Versions The scenarios used for comparison: Journal Line or Plan Lines.
Effective Date The default effective date that determines the dimension hierarchies
and values in your model elements (prepopulated dynamic and static
dates, or custom dates defined by an administrator).
Dimensions The list of optional dimensions, such as worktags and organizations,
that you can use to group and filter the data.
For hierarchical dimensions, a primary top-level hierarchy and
optionally one or more alternate hierarchies.
Required dimensions don't count toward your maximum number of
dimensions that can have alternate hierarchies.

Show Details The contributing journal line and transaction details that users can
view for a data point.

The financial reporting data model:

• Includes aggregated data at the ledger account level.
• Summarizes the amount field by Ledger Debit Minus Credit. When creating a report in OfficeConnect,
you can select a different amount field, such as Natural Amount, by applying a filter to the worksheet or
workbook. You can't change the amount field at the row, column, or cell level.
• Specifies a default translation rule set to use for currency translation. You can select a different
translation rule set by applying a filter to the worksheet or workbook. You can't change the translation
rule set at the row, column, or cell level.
• Includes these amount types:
• Ending Balance (default)
• Beginning Balance
• Beginning Balance Translation Adjustment
• Adjusted Beginning Balance
• Activity
• Displays intercompany eliminations in OfficeConnect at the lowest common parent level.

Considerations for Plan Lines

When working with plan lines, keep these considerations in mind:
• Only Workday Financial Plan Lines are supported.

• You can’t disable the currency translation adjustment (CTA) account, which might affect your partial
balance sheet plans.
• Revisit the dimensions selected for the model to ensure that the selected plan structure dimensions are
also in the model, or add them.
Example: If a plan uses Cost Center as its dimension, the model doesn't require that specific dimension
to be present. For reporting purposes, you need to add the same dimensions to the model so that
they’re available in reports.
• When applying a plan version in a report, specify the company (or companies) and time periods for the
report.
Example: Even if a plan name says 2012 Company A Plan, the time period for 2012 and Company A
aren't automatically applied and should be applied to the row, column, cell, or worksheet filter.
• When using dimensions for plan lines that are intended only for journal lines:
• Journal Status: Plan lines have a default status of Posted because there’s no journal status for plan
lines.
• Journal Source: Plan lines have a blank status and appear under Journal Source (Uncategorized/
Blanks) because there are no journal sources for plan lines.
• Match Status: Plan lines have a match status of Not Matched and can't be changed.
Note: These fields can’t be ignored for plan lines because the same summarized Plan Value would
be applied for every instance of Journal Status.
• You can now include a new dimension called Plan Entry Document Status in the financial reporting data
model to filter on the financial plan line status explicitly (Available, Draft, In Progress). Otherwise, all
available Plan Entry Document Statuses are included.
• If your plan is at a higher summary level than period, OfficeConnect uses the last period for any activity
on that plan and the last period's end date to match up with its translation exchange rate.
Example: If your plan is at the quarterly level for Q3 (Jul-Sep), the plan amount registers activity in
September and uses the September 30 end date for the currency translation exchange rate. A similar
impact would apply to a plan amount meant to cover an entire year.
• All plan amounts entered in Workday Budgets are considered as period activity (plan amount for a
specific time period). If you enter plan ending balances as plan amounts, use the Amount Type of
"Activity" when reporting on ending balances for these plans.
Related Information
Concepts
Concept: Currencies and Currency Translation
Concept: Modeled Data Sources
Tasks
Set Up the Financial Reporting Data Model on page 325
Display Journal Line Details for Report Cells
Reference
2022R2 What's New Post: Workday Financial Plan Lines in OfficeConnect for Financial Management
2022R2 What's New Post: Journal Line Details in OfficeConnect for Financial Management
2022R1 What's New Post: OfficeConnect Availability for Financial Management

Concept: Differences Between OfficeConnect and Report Writer

This section describes the differences between reporting on journal line data using OfficeConnect with the
financial modeled data source and using Workday Report Writer with a Workday-delivered data source.

Eliminations
OfficeConnect supports intercompany elimination rules only. OfficeConnect doesn't support other
elimination rules, such as interworktag or noncontrolling interest (NCI).

OfficeConnect displays intercompany eliminations at the lowest common parent level.

Currency Translation Adjustment

OfficeConnect only uses Translation Loss account and its posting conditions for currency translation
adjustment.

Current Year Retained Earnings

OfficeConnect doesn't automatically calculate the current year retained earnings. To include current year
retained earnings in your worksheet, add a row that aggregates net revenue and expenses.

Filtering Data
OfficeConnect filters data differently than Report Writer. In Report Writer, data source filters, built-in
prompts, and report filters all filter the data displayed in the report in an additive way, further constraining
the data that ultimately is displayed.
OfficeConnect uses default values for filtering data in the report, and you can define filters at different
levels. The filters you define at the different levels might conflict with each other, so OfficeConnect follows
predefined precedence rules to determine what data to display.
Example: Cells override rows.

Breadth of Data
When you create a report in Report Writer, you specify a data source and data source filter to determine
the data that the report displays.
When you create a report in OfficeConnect, the modeled data source contains data that comes from
multiple security domains. The data you see in a report in OfficeConnect is all data you have access to
in all applicable domains. As a result, the data in your OfficeConnect report is a union of data you have
access to in multiple domains.

Rounding and Significant Digits with Currency Translation

Significant digits and rounding are important when performing arithmetic operations. When you report on a
currency that's different than the ledger currency, the report performs currency translation.
When performing currency translation, OfficeConnect and Report Writer round numbers at different times.
This difference in rounding might lead to a small, but noticeable difference in numbers when you compare
reports using the same data from each tool.
• OfficeConnect retains all significant digits without rounding when performing internal calculations.
OfficeConnect leaves all formatting decisions, such as rounding, to the user. Retaining the precision
until the last possible moment improves performance when performing currency translation.
• Report Writer performs currency translation for each journal line and then rounds the value before
performing other calculations.
If you compare the numbers in an OfficeConnect worksheet to a Workday Report Writer report with the
same data, there might be a difference in numbers due to the different method of handling significant digits.

Time Period Planning

If your plan is at a higher summary level than period, OfficeConnect uses the last period for any activity on
that plan and the last period's end date to match up with its translation exchange rate.
Example: If your plan is at the quarterly level for Q3 (Jul-Sep), the plan amount registers activity in
September and uses the September 30 end date for the currency translation exchange rate. A similar
impact would apply to a plan amount meant to cover an entire year.

In contrast, Report Writer uses the first period in the summary period but the end period for the translation
rate. In the prior example, the plan amount registers activity in July, but uses the September 30 end date
for the currency translation exchange rate.
Related Information
Concepts
Concept: OfficeConnect and Reporting on the Financial Modeled Data Source on page 331
Concept: Default Types and Precedence Rules

Financial Analytics

Configure Manager Metrics Reporting

Context
Configure definitions for the Manager Metrics report for your companies and company hierarchies. The
report provides managers with a quick snapshot of organization costs and average cost per headcount for
a cost center, region, custom organization, or project.

Steps
1. Access the Configure Manager Metrics task.
2. As you complete the task, consider:
Option Description
Company Select one or more companies and company
hierarchies that the manager metrics definition
applies to. All must use the same fiscal schedule
and belong to the same account set.
Translation Currency The currency of the report. You can run the report
in any currency in which you have exchange rates
for conversion.
Translation Rule Set If the company currency differs from the
translation currency, select the translation rule set
to use to calculate the translated amounts. You
can use any of these translation rule sets:
• The default translation rule set of the company.
• Any other account translation rule set of the
company.

Default Time Period The relative time period choices that Workday
provides, such as current period year to date
(YTD), last 12 periods, and last year. The user
who runs the report can change this selection.
Book Narrow the activity in the reporting metrics to a
specific book.
3. Select the Organization Metrics, including the key Account/Account Summary for each measure.

4. (Optional) Select a Financial Headcount Definition to include a headcount metrics section in the
report.
This selected definition drives the calculation of headcount on the report. The metric fields on the report
include: Budgeted, Filled, Open, Available Plan, and Plan Usage. When you run the report for an
organization hierarchy, Workday aggregates the headcount metrics for all child organizations.

Result
Managers can run the Manager Metrics report. Metrics default to the organization and time period from
the definition, but managers can click Change Selection to select a different organization and relative time
period. If the manager belongs to more than 1 organization, Workday uses the highest organization within
the highest hierarchy node.

Configure Financial Metrics Reporting

Context
Configure definitions for the Financial Metrics report for your companies and company hierarchies. The
report enables accountants and financial analysts to provide executives with a quick snapshot of key
metrics such as liquidity, balance sheet, and profit/loss.

Steps
1. Access the Create/Edit Financial Metrics Definition task.
2. As you complete the task, consider:
Option Description
Company Select one or more companies and company
hierarchies that the financial metrics definition
applies to. All must use the same fiscal schedule
and belong to the same account set.
Financial metrics default to the company of the
user but the user who runs the report can change
it. If the user has a financial reporting role in
more than 1 company, Workday uses the highest
company within the highest hierarchy node.

Translation Currency The currency of the report. You can run the report
in any currency in which you have exchange rates
for conversion.
Account Translation Rule Set If the company currency differs from the
translation currency, select a translation rule set
to calculate the translated amounts. You can use
the default rate or any other translation rule sets
of the company.
Default Time Period The relative time period choices that Workday
provides, such as current period year to date
(YTD), last 12 periods, and last year. The user
who runs the report can change this selection.
Book Narrow the activity in the reporting metrics to a
specific book.
3. Select each Metric, whether to Display the metric, and the Measures used to calculate the metrics,
including the key Account/Account Summary for each measure.

Result
Users permitted to view financial metrics information (such as executives) can run the Financial Metrics
report. They can click the Change Selection button to select a different company, translation currency,
and relative time period than the ones from the definition.

Concept: Financial Executive Scorecard

The Financial Executive Scorecard is a configurable dashboard that gives you insight into important
performance indicators for your organization. With the Financial Executive Scorecard, you can:
• Create snapshots of your organization key financial metrics for a given fiscal period.
• Review the financial performance of your business in a consolidated view.
You can customize the dashboard with worklets that you want to display from the Reports and
Dashboards profile group.
Workday provides these scorecard components:
• Composite reports enabled as worklets for the dashboard.
• Financial Executive Scorecard Sub-Report - Published report that provides initialized, calculated,
and published scorecard metric values.
• Scorecard prompt set that specifies the metric set, organization, and period for the subreport.
• Financial Executive metric set that defines the organizations, fiscal schedule, and published period for
the scorecard metrics.
• Standard financial metrics.
The Financial Executive Scorecard reports use these layouts to display these metrics:

Report Layout Using these Metric

Calculations and Metrics
Financial Executive Scorecard - KPI Card WD Matrix Report Metric
Net Income Calculation
• Net Income

Financial Executive Scorecard - KPI Card WD Simple Arithmetic Metric

Revenue per Employee Calculation
• Revenue per Employee

Financial Executive Scorecard - KPI Card WD Simple Arithmetic Metric

Spend per Employee Calculation
• Spend per Employee

Financial Executive Scorecard - KPI List WD Simple Arithmetic Metric

Operations Calculation:
• Profit %
• Gross Margin %
WD Matrix Report Metric
Calculation:
• Total Revenue
• Total Spend
WD Headcount Metric
Calculation:

Report Layout Using these Metric

Calculations and Metrics
• Financial Employee Count

Financial Executive Scorecard - KPI List WD Simple Arithmetic Metric

Financial Ratios Calculation
• Debt to Equity Ratio
• Return on Equity Ratio
• Current Ratio

You can drill down on the delivered worklets to review descriptions and report details of each worklet.
You can also access the Financial Executive Scorecard on Android, iPad, and iPhone devices.

Scorecard Setup
To set up the Financial Executive Scorecard, you must:
1. Enable scorecard in your Workday tenant.
2. Configure security policies on the Metric Management, Manage: Metric Values, Metrics in Review, and
Published Metrics domains.
3. Configure the Financial Executive scorecard on the Metric Set Details profile group.
4. Map financial scorecard standard aliases to your ledger account summaries, ledger types, and account
translation rule set in your tenant.
5. Initialize, calculate, review, and publish metric values for Workday-delivered metrics on the Process
profile group.
6. Configure the dashboard by clicking Maintain Dashboards on the Reports and Dashboards profile
group.
Related Information
Examples
Example: Set Up a Financial Executive Scorecard on page 351

Concept: Report Administrator Dashboard

The Report Administrator dashboard is a configurable workspace, enabling you to monitor report
performance in a single place. You can select the reports you want to display in the default menu using the
Maintain Dashboards report. To add links to custom reports and external links, click Edit.
Security: Custom Report Administration in the System functional area.
Workday provides these reports as worklets that you can add to your Report Administrator dashboard:
• Custom Report Exceptions by Owner
Contain reports:
• That fail exception audits, organized by report owner.
• Enabled as worklets but not available on any dashboards.
• Temporary reports past their deletion date.
• That you can't share with any users.
• Containing items marked Do Not Use.
• Custom Reports Not Run
A list of reports not run in the tenant for the past 365 days. Helps to identify reports that might have
fallen off user radars or might no longer have value.

• Recently Created and Modified Reports

Reports added or modified in the last 90 days. This can help you measure or identify needed education
and change management activities specific to these updates.
• Recently Updated Calculated Fields
A list of calculated fields created or modified in the last 7 days. Useful when researching when report
results unexpectedly change.
• Scheduled Reports That Will Fail
Proactively identify actively scheduled reports with scheduling exceptions and that will fail on their next
scheduled run. A commonly caught error is a nonexpired report schedule associated with a user who is
no longer authorized to run the report.
• Slowest Reports Run in Background
A worklet that displays the average report execution time, in milliseconds. Sorted with the slowest
average time at the top. By default, the report returns results from the last 90 days, however you can
adjust the number of days.
You can also add tasks including these to the Dashboard Menu for quick access:
• All Custom Reports
• Create Calculated Field
• Create Custom Report
• Delete Custom Report
• Delete Temporary Report Definition
• Edit Custom Report
• Edit Report Performance Log Settings
• Hide Workday Delivered Report
• Maintain Dashboards
• Process Monitor
• Report fields
• Schedule a report.
• Transfer Ownership of Custom Reports
• View Custom report
• View Report Performance Logs
Once you configure the dashboard, you can add it as a worklet to your Home page. You can also access
the Report Administrator dashboard on Android, iPad, and iPhone devices.
Related Information
Concepts
Concept: Dashboards
Tasks
Steps: Set Up Dashboards and Landing Pages
Reference
The Next Level: Report Administrator Dashboard

Reference: Metric Calculations for Financials

Use Workday-delivered calculations to gain greater insight when you define custom metrics for your
financial scorecard.

Calculation Description Organization Types Configuration Options

WD Matrix Report Enables you to build Business Unit Matrix Report
custom metric values
Business Unit Hierarchy Company
using matrix reports.

Calculation Description Organization Types Configuration Options

Calculation: Cost Center Ledger
Summarizes aggregation Cost center Hierarchy Amount Type
fields specified on the
Company Time Period
matrix report.
Company Hierarchy Period
Metric Examples:
1
Custom Organization Plan Structure
• Total revenue
1
• Total expense Custom Organization Plan Names
• Net income Hierarchy
Ledger Accounts and
Use the Simple Location Hierarchy Summaries
Arithmetic calculation Project Translation Currency
to create ratios or
percentages such as: Project Hierarchy Account Translation
2
Rule
• Operating margin
• Profit margin Aggregation Field
• Revenue per
employee

WD Number of Days Enables you to build Business Unit Time Period

custom metrics using
Business Unit Hierarchy
number of days.
Company
Calculation
Company Hierarchy
Calculates number
of days for the Cost Center
configuration options you
Cost Center Hierarchy
select.
Custom Organization
Aggregation Metric
Example Custom Organization
Hierarchy
Number of days: Quarter
to Date Location Hierarchy
Use Simple Arithmetic Project
calculation to create
Project Hierarchy
ratios or percentages
such as:
Days Sales Outstanding
(DSO)
Days Payables
Outstanding (DPO)

When you use a report field that requires translation, you must enter the Translation Currency and the
Account Translation Rule Set.
Related Information
Concepts
Concept: Workday Scorecards
Tasks
Steps: Create Custom Metrics and Scorecards

Reference
Reference: Metric Calculations for Dependent Metrics

Example: Set Up a Custom Financial Scorecard

This example illustrates how you can build custom financial scorecard to make important analytic
information available from your home page, dashboard, or scorecard worklet.

Context
Teresa Serrano is Chief Financial Officer at Global Modern Services. In a meeting with the Chief Human
Resources Officer Logan McNeil, she notices that Logan uses a management reporting dashboard to gain
insight into workforce operations.
Teresa talks with to the Scorecard Administrator Norman Chan about developing custom financial
scorecards that:
• Displays revenue, net income, and profit margin for January 2013.
• Uses analytic indicators to display performance and trend.
• Enables her to view more detailed information to gain greater insight.
• Enables other vice presidents to provide comments and recommendations when profit is at risk of being
below target.
Note: Ledger account summaries, company hierarchies, and matrix reports are specific to your Workday
tenant and might be different from the values suggested here.

Prerequisites
• On the Edit Tenant Setup - Reporting and Analytics task, select the Enable Scorecarding check
box to enable custom scorecards.
• Have an existing actual or plan matrix report to produce aggregate value for the metrics. You can also
create custom matrix reports by copying these 2 delivered standard reports:
• Financial Scorecard Metric for Journal by Company.
• Financial Scorecard Metric for Journal by Cost Center.
• Have the appropriate security permissions for ledger account segments to all journals, including the
accounting and operational journals.
• Security:
• These domains in the System functional area:
• Metric Management
• Manage Metric Values
• Reports: Financial Accounting domain in the Financial Accounting functional area.

Steps
• Create a custom analytic scorecard.
a) Access the Create Analytic Scorecard Profile task.

Field Value
Name Financial Executive Scorecard
Organization Type Company Hierarchy
Top Level Node 1CON Consolidation - Corporate

Field Value
Fiscal Schedule Standard Corporate Schedule
b) Click OK to display the scorecard profile.
c) Click the Metric Set Details profile group.
d) Click Edit.
e) Enter or confirm these field values:

Field Value
Inactive Unchecked
Organization Type Company Hierarchy
Include Content Checked
Metric Calculation Scope Node including subordinates
Top Level Node 1CON Consolidation - Corporate
Levels From Top 1
Additional Nodes Blank
Fiscal Schedule Standard Corporate Schedule
Published Period 2012 - Dec
Metric Processing Period Workday automatically populates the next
period of 2013 - Jan.
f) Click OK and then click Done.
• Create a custom metric for Net Income.
a) Access the View Analytic Scorecard Profile report.
b) From the Analytic Scorecard Profile prompt, select Custom-> Financial Scorecard.
c) Click OK to display the Financial Scorecard profile.
d) Click the Metrics profile group.
e) Click Create Custom Metric and confirm or enter these values:

Field Value
Metric Set Financial Scorecard
Metric Name Net Income
Workday Metric Calculation Name WD Matrix Report
f) Click OK.
g) On the Metric Source tab, enter:

Field Value
Track Target Checked

Field Value
Target Source Matrix Report
h) Click the Calculation Configuration tab.
i) In the Actual Amount section, enter:

Field Value
Matrix Report (Actuals) Matrix Report for Financial Scorecard
Metrics by Company
j) In the Map Matrix Report Prompts grid, enter:

Prompt Field Value Type Value

Company Specify Value 1CON Consolidation-Corporate
Ledger Specify value Actuals
Amount Type Specify value Activity
Time Period Specify Value Current Period YTD
Period Use Value from Metric Metric Period
Calculation
Ledger Accounts and Specify Value Corporate: Total Revenue
Summaries
Corporate: Total Expenses

Translation Currency Specify value USD

Account Translation Rule Set Specify value Consolidations
k) On the Aggregation Field, select Debit Minus Credit Amount.
l) In the Target Amount section, enter:

Field Value
Matrix Report (Plan) Matrix Report for Financial Scorecard
Metrics by Company
m) In the Map Matrix Report Prompts grid, enter:

Prompt Field Value Type Value

Translation Currency Specify value USD

Prompt Field Value Type Value

Account Translation Rule Set Specify value Consolidations
n) On the Aggregation Field, select Debit Minus Credit Amount.
o) On the Thresholds tab, enter:

Field Value
Threshold Type Percentage of target
Threshold Direction Increasing is better
Bad Upper Limit 0.9
Warning Upper Limit 0.95
p) On the About This Metric header, enter:

Field Value
About This Metric Net income is calculated by taking revenue
and adjusting for the cost of doing business,
depreciation, interest, taxes, and other
expenses.
q) Click OK and then click Done.
• Create a custom metric for total revenue.
a) Click Create Custom Metric and confirm or enter these values:

Field Value
Metric Set Financial Executive Scorecard
Metric Revenue
Workday Metric Calculation Name WD Matrix Report
b) Click OK.
c) On the Metric Source tab, enter:

Field Value
Track Target Checked
Target Source Matrix Report
d) Click the Calculation Configuration tab.
e) In the Actual Amount section, enter:

Field Value
Matrix Report (Actuals) Matrix Report for Financial Scorecard
Metrics by Company
f) In the Map Matrix Report Prompts grid, enter:

Prompt Field Value Type Value

Company Specify Value 1CON Consolidation-Corporate
Ledger Specify value Actuals
Amount Type Specify value Activity

Prompt Field Value Type Value

Time Period Specify Value Current Period YTD
Period Use Value from Metric Metric Period
Calculation
Ledger Accounts and Specify Value Corporate: Total Revenue
Summaries
Translation Currency Specify value USD
Account Translation Rule Set Specify value Consolidations
g) On the Aggregation Field, select Credit Minus Debit Amount.
h) In the Target Amount section, enter:

Field Value
Matrix Report (Plan) Matrix Report for Financial Scorecard
Metrics by Company
i) In the Map Matrix Report Prompts grid, enter:

Prompt Field Value Type Value

Company Specify Value 1CON Consolidation-Corporate
Ledger Specify value Actuals
Amount Type Specify value Activity
Time Period Specify Value Last Year - Current Period YTD
Period Use Value from Metric Metric Period
Calculation
Plan Structure Specify Value Budget
Ledger Accounts and Specify Value Corporate: Total Revenue
Summaries
Translation Currency Specify value USD
Account Translation Rule Set Specify value Consolidations
j) On the Aggregation Field, select Credit Minus Debit Amount.
k) On the Thresholds tab, enter:

Field Value
Threshold Type Percentage of target
Threshold Direction Increasing is better
Bad Upper Limit 0.9
Warning Upper Limit 0.95
l) On the About This Metric header:
a. Enter:

Field Value
About This Metric Revenue is the amount of money a company
actually receives during a specific period,

Field Value
including discounts and deductions for
returned merchandise. It’s the top line or gross
income figure less costs, to determine net
income.
b. Click the Link icon. For Link Type, select Report Link and then select Report Link 1. Click OK.
m) To link the custom metric scorecard to other reports, expand Report Links and enter:

Field Value
Tag View Top 10 Customers by Revenue
Drill To Top 10 Customers by Revenue
n) Click the Map Prompts button and enter:

Prompt Value Type Field Value

Company Use Value From Metric Organization Leave Blank
Ledger Specify default value Leave Blank Actuals
Time Period Specify default value Leave Blank Current Period YTD
Period Use Value From Metric Period Leave Blank
Account Translation Specify default value Leave Blank Consolidations
Rule Set
Translation Currency Specify default value Leave Blank USD
Revenue Accounts Specify default value Leave Blank Corporate: Total
Revenue
o) Click Done.
p) Click OK and then click Done.
• Create a custom metric for Profit Margin.
a) Click Create Custom Metric and confirm or enter these values:

Field Value
Metric Set Financial Scorecard
Metric Profit Margin
Workday Metric Calculation Name WD Simple Arithmetic
b) Click OK.
c) On the Metric Source tab, select:

Field Value
Actual Source Workday Algorithm
Track Target Checked
Target Source Workday Algorithm
d) Click the Calculation Configuration tab and select:

Field Value
Operand A Net Income

Field Value
Operand B Blank
Operator 1 Divide
Operand C Revenue
Operand D Blank
Operand E Blank
Operand F Blank
e) On the Thresholds tab, enter:

Field Value
Threshold Type Percentage of target
Threshold Direction Increasing is better
Bad Upper Limit 0.9
Warning Upper Limit 0.95
f) On the About This Metric header, enter:

Field Value
About This Metric Profit Margin is calculated as net income divided
by total revenue or profits divided by sales.
Profit margins are expressed as a percentage
and measures how much out of every dollar
of sales a company actually keeps earning.
Example: a 20% profit margin means that the
company has a net income of $0.20 for each
dollar of total revenue earned.
g) Click OK.
h) Click the Calculation Configuration tab and confirm that the Expression displays Net Income/
Revenue.
i) Click Done.
• Create a custom dashboard.
a) Click the Reports and Dashboards profile group.
b) Click Create Custom Dashboard and enter:

Field Value
Dashboard Financial Scorecard
c) Click OK.
d) Enter these dashboard settings:

Field Value
Prompt Set Scorecard
Domain Metric Management
Dashboard Icon Actuals vs Budget
Max Worklets Allowed 6

Field Value
Configurable by User Unchecked
e) Click OK and then click Done.
• Create scorecard report.
a) Click Create Scorecard Report and enter:

Field Value
Report Name Sub Report - Scorecard
Dashboard Financial Scorecard
b) On the Metrics grid, enter these values:

Metric Formatting Style

Revenue Thousands (1 Decimal Place) K

Net Income Leave Blank

Profit Margin Percentage - 2 Decimal Places
c) On the Layout Options section, confirm Enable Drilling To is checked and for the Target prompt,
select Target Value.
d) On the Share Option section, select Share with all authorized users.
e) Click OK and then click Done.
• Display the Financial Scorecard in Worklets.
a) Click the Reports and Dashboards profile group.
b) Click Maintain Dashboards.
c) Locate the Financial Scorecard you created.
d) Click the Edit button.
e) On the Dashboards Prompts tab, enter these values:

Prompt Field Label for Prompt Default Type Default Value

Metric Set Metric Set Specify default value Financial Scorecard
Metric Organization Metric Entity Specify default value 1CON Consolidation-
Corporate
Metric Period Metric Period Specify default value Jan 2013
f) On the Required Worklets tab, add this worklet to the grid:

Field Value
Worklet Sub Report - Scorecard
Worklet Size 1x (for all worklets)
g) Click Map Prompts and then Done.
h) Click OK and then click Done.

• Initialize and calculate the metric set.

a) Click the Process profile group to generate values for the current processing period.
b) Verify that the current processing period is 2013 - Jan.
c) Click Initialize.
Workday automatically populates these values:

Field Value
Metric Set Financial Scorecard
Period 2013 - Jan
Run Frequency Run Now
Processing Type Process metric set for current period.
d) Check Confirm.
e) Click OK and then click Done.
f) Click the Process profile group to refresh the process Status.
Workday initializes the metric values in the Financial Scorecard metric set and displays a message
when complete. Confirm that the process is complete before moving to the next processing step.
g) Click Calculate.
Workday automatically populates these values:

Field Value
Metric Set Financial Scorecard
Period 2013 - Jan
Run Frequency Run Now
h) Check Confirm.
i) Click OK and then click Done.
j) Click the Process profile group to refresh the process Status.
Workday calculates the metric values in the Financial Scorecard metric set and displays a message
when complete.
• Publish the metric set.
a) Click Publish.
Workday automatically populates these values:

Field Value
Metric Set Financial Scorecard
Period 2013 - Jan
Run Frequency Run Now
b) Select Confirm.
c) Click OK and then click Done.
d) Click the Process profile group to view the process Status.
• View the Financial Scorecard in the Dashboard.
a) Search for the Financial Scorecard custom dashboard you created.
b) From the related actions menu of the scorecard name, select Custom Dashboard > Run to display
the Key Performance Indicator (KPI) card worklets on the dashboard.

Result
Norman Chan gives Teresa security permissions to see the financial scorecard. On the Financial
Scorecard custom dashboard, Workday displays these Financial Scorecard worklets in the KPI card layout:
• Revenue.
• Net Income.
• Profit Margin.
The KPI-style worklets display as green, yellow, or red to indicate how well Global Modern Services is
meeting defined targets. Using the Gear icon, Teresa can refresh the data for each worklet. She can select
View More to view details for:
• Metric Period.
• Metric Organization.
• Metric Set.
Teresa can:
• Use the Top 10 Customers by Revenue link to drill down to view the Top 10 Customers by Revenue
report.
• Review comments and recommendations from vice presidents.

Example: Set Up a Financial Executive Scorecard

This example illustrates how you can build a financial executive scorecard to create snapshots of your
organizations financial metrics for a fiscal period.

Context
Teresa Serrano is Chief Financial Officer at Global Modern Services and wants to gain insight into
important financial performance indicators for her company for July 2017.
Teresa talks with the Scorecard Administrator Norman Chan about developing a custom financial executive
scorecard that displays these financial metrics for the consolidated company:
• Net income.
• Revenue and spend per employee.
• Financial ratios.
• Financial operation metrics.
Note: Ledger account summaries and company hierarchies are specific to your Workday tenant and might
be different from the values suggested here.

Prerequisites
• Control access to ledger accounts and ledger account segments to all journals, including accounting
and operational journals.
• Security:
• These domains in the System functional area:
• Metric Management
• Manage Metric Values
• Management Dashboard: Financial Executive Scorecard domain in the Financial Management
functional area.
• Reports: Financial Accounting domain in the Financial Accounting functional area.

Steps
• Enable custom scorecards.
• On the Edit Tenant Setup - Reporting and Analytics task, select the Enable Scorecarding check
box to enable custom scorecards.
• Configure the financial executive scorecard and map aliases.
a) Access the View Analytic Scorecard Profile report.
b) From the Scorecard prompt, select Delivered -> Financial Executive Scorecard.
c) Click OK.
d) From the Financial Executive Scorecard profile, click the Metric Set Details profile group.
e) Click Configure.
f) Enter these field values:

Field Value
Inactive Unchecked
Skip Review Unchecked
Metric Calculation Scope Node including subordinates
Top Level Node 1CON Consolidation - Corporate
Fiscal Schedule Standard Corporate Schedule
Published Period 2017 - Jun
Metric Processing Period Workday automatically populates the next
period of 2017 - Jul.
g) Click OK and then click Done.
h) Click Map Aliases.
i) Map these aliases to your mapped tenant values:

Business Object Standard Aliases Mapped Tenant Value

Ledger Type _Actuals Actuals
Ledger Account Summary _FIN_Scorecard_Cost_of_SalesCost of Sales
Ledger Account Summary _FIN_Scorecard_Current_Assets
Current Assets
Ledger Account Summary _FIN_Scorecard_Current_Liabilities
Current Liabilities
Ledger Account Summary _FIN_Scorecard_Total_Equity Total Equity
Ledger Account Summary _FIN_Scorecard_Total_ExpenseTotal Expense
Ledger Account Summary _FIN_Scorecard_Total_Liabilities
Total Liabilities
Ledger Account Summary _FIN_Scorecard_Total_RevenueTotal Revenue
Account Translation Rule Set _FinAggAccountTranslationRuleSet
Consolidations
Custom Organization _Top_Level_Company_Hierarchy
1CON
Consolidation - Corporate
j) Click OK and then click Done.

• Initialize metric values.

a) From the Financial Executive Scorecard profile, click the Process profile group.
b) Click Initialize.
c) Workday automatically populates these values:

Field Value
Metric Set Financial Executive Scorecard
Period 2017 - Jul
Run Frequency Run Now
Processing Type Process metric set for current period
d) Check Confirm.
e) Click OK and then click Done.
f) Click the Process profile group to update the status.
Workday initializes the metric values for the Financial Executive Scorecard and displays a
notification when complete.
• Calculate and review metric values.
a) Click Calculate.
b) Workday automatically populates these values:

Field Value
Metric Set Financial Executive Scorecard
Period 2017 - Jul
Run Frequency Run Now
c) Check Confirm.
d) Click OK and then click Done.
Workday calculates the metric values for the Financial Executive Scorecard and displays a
notification when complete.
e) Click Start Review.
f) Workday automatically populates these values:

Field Value
Metric Set Financial Executive Scorecard
Period 2017 - Jul
Run Frequency Run Now
g) Check Confirm.
h) Click OK and then click Done.
i) Click the Process profile group to update the process Status.
Workday reviews the metric values for the Financial Executive Scorecard and displays a notification
when complete.
• Publish metric values.
a) Click Publish.
b) Workday automatically populates these values:

Field Value
Metric Set Financial Executive Scorecard

Field Value
Period 2017 - Jul
Run Frequency Run Now
c) Check Confirm.
d) Click OK and then click Done.
e) Click the Process profile group to update the process Status.
Workday publishes the metric values for the Financial Executive Scorecard and displays a
notification when complete.
• Display the Financial Executive Scorecard in Worklets.
a) From the Financial Executive Scorecard profile, click the Reports and Dashboards profile group.
b) Click Maintain Dashboards.
c) Locate the Financial Executive Scorecard you created.
d) Click Edit .
e) On the Dashboard Prompts tab, enter these values:

Prompt Field Label for Prompt Default Type Default Value

Metric Set Metric Set Specify Default Value Financial Executive
Scorecard
Metric Organization Metric Entity Specify Default Value 1CON Consolidation -
Corporate
Metric Period Metric Period Specify Default Value 2017 - Jul
f) Click OK.
g) On the Required Worklets tab, add these Financial Executive Scorecard worklets to the grid:

Field Value
Worklet • Financial Executive Scorecard - Net Income
• Financial Executive Scorecard - Revenue per
Employee
• Financial Executive Scorecard - Operations
• Financial Executive Scorecard - Financial
Ratios
• Financial Executive Scorecard - Spend per
Employee

Worklet Size 1x (for all worklets)

h) Click OK and then click Done.
i) Click Done.
• Configure the home page to display the Financial Executive Scorecard.
a) From your Home page, click the Configure Applications (gear) icon to display the Configure
Worklets page.
b) Under Optional Worklets, add a row and select the Financial Executive Scorecard worklet.
c) Click OK and then click Done.
Workday displays the Financial Executive Scorecard on your home page.
d) Click to open the Financial Executive Scorecard.

Result
Workday displays these Financial Executive Scorecard worklets in the KPI card layout:

• Net Income.
• Financial ratios.
• Revenue and spend per employee.
• Financial operation metrics.
Related Information
Concepts
Concept: Financial Executive Scorecard on page 338

External Financing Sources

Steps: Maintain Access to Investors

Prerequisites
• Understand segment-based security groups and segmented security.
• Determine whether you need to restrict segments of data to groups of workers.

Context
Control access to individual investors through security segments so that workers can access only the
investors that they can see.
Segmented security requires a lot of planning. With:
• Security segments, included values can cross multiple segments or be mutually exclusive.
• Security groups, workers can be part of one or more groups and have access to one or more security
segments.

Steps
1. Edit Domain Security Policies.
Enable members of selected security groups to define security segments.
Configure the Set Up: Investor Security Segments domain in the System Functional Area.
2. Access the Create Investor Security Segment task.
Create enough security segments to cover each unique security access requirement. Example: Create
different segments for executives, managers, and employees. Workday recommends that you build
from least to most restrictive.
If you don't select a Company, workers from any company can access the listed investors.
Security: Set Up: Investor Security domain in the System functional area.
3. Create Segment-Based Security Groups.
Create a Segment-Based Security Group and associate it with an Investor Security Segment to meet
your business requirements.
4. Edit Domain Security Policies.
Edit permissions on the applicable domain security policy to enable members of the new segment-
based security groups to access investor information.
Configure the Access Investor (Segmented) security policy in the Financial Accounting Functional
Area, adding the segment-based security groups with the appropriate access.
5. Activate Pending Security Policy Changes.
6. Test the security policy changes.
Sign in as a different user for each segment and verify that they have access to only the investors
associated with their segment-based security groups.

Result
Workers can select from only the investors that they have security access to.

Example
• Enable members of your senior management team to access only certain investors, and members of
your executive branch to access all investors in your company.
Related Information
Concepts
Concept: Security Groups

Define Investors

Prerequisites
To control access to investor information, create investor security segments.

Context
Create or edit investors for your company.

Steps
1. Access the Create/Edit Investor task.
2. As you complete this step, consider:

Field/Tab Description
Investor Name If you select a value from the Create Investor
from Business Entity prompt, the Investor
Name populates.
Phonetic Name Records the correct pronunciation of the Investor
Name and these details on the Settlement Bank
Account tab:
• Bank Phonetic Name
• Branch Phonetic Name
• Phonetic Name on Account
Displays when:
• You enable phonetic names on the Edit
Tenant Setup - Global task.
• Users select the relevant locale and display
language in their preferences.
The preferred language of the bank account
country must match the language enabled on the
tenant setup.

Create Investor from Business Entity Create an investor from an existing business
entity.
The investor name and ID populates based on the
business entity you select and can't be modified.

Tax Authority Form Type Select the investor's tax authority form type:

Field/Tab Description
• 1042-S for a non-resident alien subject to U.S.
income withholding.
• 1099 MISC to report miscellaneous income to
the IRS.
• TDS to identify tax deducted at source for non-
resident investors.

TIN Type Enter the tax identification type for the investor:
• SSN or ITIN (Social Security Number or
Individual Taxpayer Identification Number)
• EIN (Employer ID Number)

Investor Security Segments Select a security segment to control a worker's

access to this investor.
Tax Document Date Record the date for submitting the tax document.
Default Payment Type Select the Default Payment Type for this
investor. If you specify Automated Clearing House
(ACH), direct debit, direct deposit, or wire, you
must complete information in the Settlement
Bank Account tab.
Contact Information Provide contact details for this investor, such as:
• Billing, Remit To, and Shipping addresses.
• Primary Email account.

Settlement Bank Account Add settlement bank account details for electronic
payments to investors (ACH, direct debit, direct
deposit, or wire).
Alternate Names Examples of using alternate names:
• The Remit To Payee is different from the
investor.
• The investor name is too long to print on a
check. To print a shorter name, enter the
Alternate Name and select Remit to Payee as
the Alternate Name Usage.

Attachments Attach related investor business documents.

Related Information
Tasks
Create Ad Hoc Payments on page 1710

Set Up Loan Information

Prerequisites
• Security: Setup: Loan domain in the Common Financial Management functional area.
• Set up loan investor types using the Maintain Loan Investor Types task.
• Set up loan referral types using the Maintain Loan Referral Types task.
• Set up any custom fields that you want to use for your loan.

Context
Customize customer and supplier loan details specific to your organization for reporting and tracking.

Steps
1. Access the Create Loan task.
2. As you complete the task, consider:
Option Description
Loan Number Enter a value you want to associate with the loan
for reporting and transactions.
You can use the same loan number more than
once, such as when you record loans from more
than 1 company with the same loan number.

Vintage Date Enter the original close year for the loan.
Investor Type You can define the types of investors that are
specific to your organization using the Maintain
Loan Investor Types task. You can typically
categorize investor types under these categories:
• Traditional financiers like banks.
• Hard money investors.
• Portfolio investors.

Referral Type Enter the type of referrer that assisted with the
loan origination. Referrers can include:
• Financial consultants.
• Loan brokers.
• Real estate agents.
You can define the specific referral types for
your organization in the Maintain Loan Referral
Types task.

Related Worktags Set up related worktags for this object using the
related worktag types that you configure on the
Maintain Related Worktag Usage task. Workday
automatically populates transactions with the
values in the Default Worktag column when you
select the object on the transaction.

Result
Use the loan worktag object to track loan transactions, and generate reports on specific loans for these
transactions:
• Customer invoices
• Customer invoice adjustments
• Cash sales
• Supplier invoices
• Supplier invoice adjustments
• Ad hoc payments
• Ad hoc bank transactions

• Accounting journals
You can add custom fields to the loan using the Create Custom Objects task.
Related Information
Concepts
Concept: Worktags
Tasks
Create and Edit Custom Object Definitions
Configure Worktags for Transactions

Multiple Funding Sources

Setup Considerations: Multiple Funding Sources

You can use this topic to help make decisions when planning your configuration and use of multiple
funding sources. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
A funding source is money set aside for a specific purpose that you can use while within limitations or if
you meet conditions. You can pay for costs and transactions directly from the funding sources. When you
process a transaction for funding, Workday reclassifies the transaction using the associated funding source
rule.

Business Benefits
You can fund a project with multiple funding sources. When you fund a project with multiple funding
sources, you can prioritize specific funding sources to pay for costs and expenses. This helps you budget
and track the actual costs of your project, which you can then analyze to help gauge project performance
and budget allocation.

Use Cases
Multiple funding sources enables you to do these things on a project:
• Assign projects to multiple funding sources.
• Reclassify expense transactions using the project worktag to specified funding sources.
• Restrict allocation of funds to funding sources using condition rules.
• Control the priority of funds you charge to a funding source on a funding source rule.
• Track expense transactions that you reclassified to a funding source.

Questions to Consider

Questions Considerations
Do you receive state or governmental funding for Public or government funds frequently have
projects or programs? stipulations that require you only use those funds
for specific purposes, or towards specific expenses.

Questions Considerations
Do you have projects that have restrictive You can use funding source rules and condition
requirements? rules to track funds based on those stipulations.
Do you have sponsorships and grants that you can
only use for specific purposes?

How do you want to restrict funds on your funding Workday enables you to restrict access to funds
source? by either spend restrictions or condition rules. You
can use spend restrictions to limit funds based
on spend categories. You can also use condition
rules to limit funds based on indexed journal line
attributes.
How do you want to structure your worktags and Multiple funding sources can use worktags
worktag types? configured with the project to identify and reclassify
expense transactions to funding sources. When you
build your worktag structure, consider if you need
these:
• Awards
• Cost Centers
• Grants
• Projects
There's frequently worktag type requirements on
the grants that might not be on the funding source.
If you don't account for the restrictions on both the
funding source and the grant, your facilities and
administration expenses might not fully reflect your
funding source transaction.

Recommendations

Functionality Considerations
Funding source rule Workday recommends that you prioritize your most
restrictive funding sources when you configure
funding source rules.
Workday evaluates funding sources from the top
down. When you prioritize a loosely restricted
funding source rule, Workday allocates funds from
that priority first.

Condition rules Workday recommends you configure condition

rules for your funding source rules.
Condition rules add an additional layer of restriction
using indexed journal line attributes as filter criteria.
Without condition rules, any transaction that uses
the correct project worktag can take funds from the
funding source.

Spend restrictions We recommend you configure spend restrictions on

your funding source rule.
Spend restrictions help you include or exclude
spend categories on a funding source, even with

Functionality Considerations
a shared project worktag. The restrictions help
ensure that a funding source only receives the
transactions you want.

Requirements
Before you can use multiple funding sources, you must set up projects and create project hierarchies.

Limitations
You can't create a business process to review and approve the creation of:
• Funding sources.
• Funding source condition rules.
• Funding source rules.
You can only use multiple funding sources with 1 project hierarchy at a time.
You can only create 1 funding source condition rule per priority line.

Tenant Setup
Select a project hierarchy on the Top Project Hierarchy prompt in the Funding Source Options section
of the Edit Tenant Setup - Financials task.
You can also select the Disable Funding Source Reclassifications for WIP Lines check box. This
option prevents Workday from reclassifying work-in-progress transactions when you process a funding
source. Disabling reclassifications lowers the processing time and reduces the possibility of incorrectly
reclassified transactions.

Security
Configure these security domains in the Financial Accounting functional area:

Domains Considerations
Process: Funding Sources Set up to process and reprocess funding sources
Set Up: Funding Sources Set up to create:
• Funding sources.
• Funding source condition rules.
• Funding source rules.

Set Up: Spend Restrictions Set up to create spend restrictions.

Configure the Set Up: Grants domain in the Grant Management functional area if you want to reclassify
expense transactions to your grants.

Business Processes
Configure the Funding Source Reclassification Event business process with an additional approval step to
process or reprocess reclassification events for funding sources.

Reporting

Reports Considerations
Award Spend Restriction Audit Report Enables you to verify that your transactions apply to
the correct grants.
Find Funding Source Reclassification Lines Enables you to review the reclassification lines on
an expense transaction.
View Default Funding Source The details on a funding source.
View Funding Source

View Funding Source Condition Rule The details on a funding source condition rule. Also
helps you find funding source rules that use that
condition rule.
View Funding Source Rule The details on your funding source and funding
source priorities.
View Spend Restriction The configuration of a spend restriction.

Integrations

Web Services Considerations

Get Default Funding Sources Retrieves funding sources. Enables you to view
detailed information across multiple funding
Get Funding Sources
sources.
Get Funding Source Condition Rules Retrieves funding source condition rules assigned
to a funding source rule. Enables you to view
detailed information on those condition rules.
Get Funding Source Rules Retrieves funding source rules. Enables you to view
detailed information across multiple funding source
rules.
Get Spend Restrictions Retrieves details on spend restrictions. Enables you
to view all of your spend restrictions at once.
Put Default Funding Sources Sets a default funding source for the company.
Put Funding Source Condition Rules Creates a funding source condition rule on a
funding source rule.
Put Funding Sources Creates a funding source.
Put Funding Source Rules Creates a funding source rule.
Put Spend Restriction Creates a spend restriction.

Connections and Touchpoints

Functional Areas Considerations

Grant Management A significant source of funding can come from
grants, which organizations frequently award with
restrictions or stipulations. Multiple funding sources
can help you allocate those granted funds, while
maintaining the specified restrictions.

Functional Areas Considerations

Projects Multiple funding sources can help you set up and
maintain your projects. You use funding sources to
allocate funds to a project, which determines the
amount of available money.
Project Tracking You can track the transactions tied to a project
using worktags. Reclassification of a transaction to
a project applies the project worktags and uses any
funds the transaction qualifies for.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Reclassification Journals and Lines on page 371
Reference
2020R1 What's New Post: Condition Rules for Multiple Funding Sources

Steps: Set Up Multiple Funding Sources

Context
You can set up multiple funding sources to enforce funding source restrictions and to allocate funds to
different projects in accordance with the funding agreement.
Funding sources can include grants, awards, subsidies, donations, credit, or venture capital. You can fund
a project by multiple funding sources and can fund multiple projects by a funding source.

Steps
1. Access the Maintain Ledger Account Types task.
If not already enabled, check Expense Source for Account Type Name Expense to classify expense
items.
2. Access the Edit Tenant Setup - Financials task.
On the Funding Source Options section, specify a top-level project hierarchy. You can then select any
project or project hierarchy in the specified top-level hierarchy when you create funding source rules.
3. Configure the Funding Source Reclassification Event business process with an approval step for
reclassification events.
See Steps: Configure Business Process Definitions.
4. Configure Worktags for Transactions.
Configure worktags for the funding source.
5. Create Spend Restrictions on page 364.
Create spending restrictions to specify which expenses you want to fund.

6. Create Default Funding Sources on page 365.

Create a default funding source that a funding source rule can use if no other funding source is
available.
7. Create Funding Sources on page 366.
Create funding sources to specify how much money is available for a specific purpose.
8. Create Funding Source Rules on page 368.
Create funding source rules to prioritize how to disburse funds.
9. (Optional) Access the Create Funding Source Condition Rules task.
Create a set of funding source condition rules that you can add to funding source rules. Determines
when Workday can distribute funds to an eligible transaction from a funding source.
Security: Set Up: Funding Sources domain in the Financial Accounting functional area.
Related Information
Concepts
Concept: Reclassification Journals and Lines on page 371
Tasks
Create Business Process Condition Rules
Reference
2020R1 What's New Post: Condition Rules for Multiple Funding Sources

Create Spend Restrictions

Prerequisites
Security:
• Set Up: Fund domain in the Common Financial Management functional area.
• Set Up: Fund Accounting domain in the Common Financial Management functional area.
• Set Up: Grants domain in the Grants Management functional area.
• Set Up: Funding Sources domain in the Financial Accounting functional area.
• Set Up: Spend Restrictions domain in the Financial Accounting functional area.

Context
You can create spend restrictions to specify expenditure categories you want to fund by sources or grants.
You can restrict spending by Spend Category and Pay Component Group or Object Class.

Steps
1. Access the Create Spend Restriction task.
2. As you complete the task, consider:
Option Description
Entry Type Select Allowable Costs to avoid specifying a
large number of spend categories that you don’t
want to fund.
Select Unallowable Costs to avoid specifying a
large number of spend categories that you want to
fund.

Restricted By To restrict spending for expenditures or payroll,

select Spend Category and Pay Component
Group.

Option Description
To restrict spending only for grants, select Object
Class.

Restrictions If restricting by Spend Category and Pay

Component, you must select at least 1
restriction.
If restricting by Object Class, you must select at
least 1 of the Object Classes.

Next Steps
1. (Optional) Access the View Spend Restriction report to review the parameters of a spend restriction.
2. (Optional) Access the Award Spend Restriction Audit Report to verify that transactions are applied
accurately for grants.

Create Default Funding Sources

Prerequisites
Security: Set Up: Funding Sources domain in the Financial Accounting functional area.

Context
You can create a default funding source that a funding source rule can use when no other funding source
is available for the project.

Steps
1. Access the Create Default Funding Source task.
2. As you complete the task, consider:
Option Description
Not Available for Selection Leave unchecked to enable the default funding
source added to a rule.
If selected, you can't add the funding source to a
new funding source rule. Existing rules with the
funding source previously added will continue to
use it.

Worktags Select worktag types and worktags to define

funding source at a more granular level of detail.
Select from worktags configured for Funding
Source on the Maintain Worktag Usage task.
You can’t select the Project, Project Phase,
Project Task, Spend Category, and Pay
Component worktag types.
When you don't select a worktag type on the
default funding source, Workday:
• Retains worktags of the original transaction on
the reclassification journal lines.
• Adds the funding source as a worktag.

Option Description
When you select a worktag on the default
funding source, the worktag replaces the retained
worktags on the original journal lines when you
reclassify the journal lines.
Example: You create the ABC default funding
source without a worktag for the Cost Center
worktag type. When you reclassify an original
expenditure with a worktag of 1000 for the Cost
Center worktag type, Workday:
• Retains worktags of the original transaction on
the reclassification journal lines.
• Replaces the 1000 worktag on the original
expenditure with no worktag.
• Adds the funding source as a worktag.
• Creates reclassification journal lines with no
Cost Center worktag types.

Next Steps
Use the View Default Funding Source report to view details of the default funding source.

Create Funding Sources

Prerequisites
• Create Spend Restrictions.
• Security: Set Up: Funding Sources domain in the Financial Accounting functional area.

Context
You can create and maintain funding sources to specify how much money is available to fund your projects
and restrict which costs you can fund.

Steps
1. Access the Create Funding Source task.
2. As you complete the task, consider:
Option Description
Owning Company Select a company that is disbursing the funds.
You can’t select a company hierarchy.
Other Allowed Companies Select companies or company hierarchies that:
• Are eligible to use the funds.
• Use the same company currency as the
owning company.

Begin Date Specify the date from which the fund is available
for use.
You can change it whenever you want.

Option Description
On Hold Place a funding source On Hold when you don't
want new transactions to add or remove funds.
Workday can still add or remove funds from an on
hold funding source when you cancel, reverse, or
adjust a reclassified transaction.

Spend Restrictions Leave blank to fund all expenses.

Required Cost Share or Match (%) Enter a percentage of required matching funds if
the funding source is sharing the cost of projects.
Currency The currency of the owning company.
Only companies with the same company currency
can use the funds.

Estimated Facilities and Administration Rate Enter the percentage of direct costs available for
(%) facilities and administration.
Funding Amount for Direct Costs Workday calculates the amount as:
Funding Amount / (1+ Estimated Facilities and
Administration Rate percentage rate in decimals).
Example: If the Funding amount is $100 and the
estimated facilities and administration percentage
rate is 10%, the funding amount calculated for
direct costs is 100/(1+.10) = 90.91.

Allocated to Direct Costs Balance includes all journal sources except

facilities and administration.
Includes unapproved pending reclassification
transactions.

Available Balance for Direct Costs Workday calculates the amounts as:
Funding Amount for Direct Costs - Allocated to
Direct Costs

Worktags Select worktag types and worktags to define

funding source at a more granular level of detail.
Select from worktags configured for Funding
Source on the Maintain Worktag Usage task.
You can’t select the Project, Project Phase,
Project Task, Spend Category, and Pay
Component worktag types.
When you don't select a worktag type on the
funding source, Workday:
• Retains worktags of the original transaction on
the reclassification journal lines.
• Adds the funding source as a worktag.
When you select a worktag on the funding source,
the worktag you select replaces the retained

Option Description
worktags on the original journal lines when you
reclassify the journal lines.
Example: You create the ABC funding source
without a worktag for the Cost Center worktag
type. When you reclassify an original expenditure
with a worktag of 1000 for the Cost Center
worktag type, Workday:
• Retains worktags of the original transaction on
the reclassification journal lines.
• Replaces the 1000 worktag on the original
expenditure with no worktag.
• Adds the funding source as a worktag.
• Creates reclassification journal lines with no
Cost Center worktag types.

Next Steps
(Optional) Use the View Funding Source report to view details of the funding source.

Create Funding Source Rules

Prerequisites
• Specify a project or project hierarchy as the top-level project hierarchy on the Edit Tenant Setup -
Financials task.
• Create a default funding source.
• Create a funding source.
• Security: Set Up: Funding Sources domain in the Financial Accounting functional area.

Context
You can create funding source rules to prioritize and allocate funds across different projects.

Steps
1. Access the Create Funding Source Rule task.
2. As you configure the funding source rule, consider:
Option Description
Project or Project Hierarchy Select a project or project hierarchy in the top-
level project hierarchy you specified on the Edit
Tenant Setup - Financials task.
You can't assign a project or project hierarchy to
more than 1 funding source rule.
You can’t change the project or project hierarchy
after you create the funding source rule.

Default Funding Source Select 1 of the default funding sources you

defined on the Create Default Funding Source
task.

3. (Optional) As you complete the Funding Source Priorities grid, consider:

Option Description
Funding Source Condition Rule Select a funding source condition rule. When an
eligible transaction matches the condition rules,
you can disburse funds from a funding source.
Funding Source Displays the funding sources of the companies
you selected on the Company or Company
Hierarchy prompt.
Each priority can have more than 1 funding
source but all funding sources in a priority must
have the same currency.

Percentage Enter a percentage if the priority has more than 1

funding source. You can change the percentage
whenever you want.
For funding sources with cost sharing:
• Workday automatically populates Maximum
Contribution (%) from the Create Funding
Source task.
• You can change the percentage but it can’t be
more than what you specified as the Required
Cost Share or Match (%) on the Create
Funding Sources task.
• The sum of the percentages within a priority
must equal 100.

Current Available Balance Workday automatically calculates the current

available balance for the funding source, including
pending reclassifications.

Next Steps
(Optional) Use the View Funding Source Rule task to view details of the funding source rule.

Process Funding Sources

Prerequisites
• Set up multiple funding sources.
• Configure the Funding Source Reclassification Event business process and security policy in the
Financial Accounting functional area to approve funding source process.
• Security: Process: Funding Sources domain in the Financial Accounting functional area.

Context
You must process funding sources to allocate funds to existing expense transactions in your company
actual ledger, including:
• Expense transactions.
• Payroll transactions.
• Supplier invoices.
• Ad hoc payments.
• Manual journals.

• Ad hoc bank transactions.

• Expensed assets.
• Depreciation expenses for capitalized assets.
When you process a funding source that's on hold, new transactions don't add or remove funds from a
funding source.

Steps
1. Access the Process Funding Sources task.
2. As you complete the task, consider:
Option Description
Company Select a company. You can’t select a company
hierarchy.
The company currency of the transaction
company must be the same as the company
currency of the funding source.

Project/Project Hierarchy Select a project or project hierarchy in the top-

level project hierarchy you specified on the Edit
Tenant Setup - Financials task.

Result
Workday:
• Creates a new operational transaction with reclassification lines.
• Applies worktags from the funding source and allocates funds by reclassifying the original transaction
based on the funding source rule.
• Creates a new reclassification journal for every project in the journal source that:
• Reverses the original expense entries.
• Displays the new reclassification lines.
• Creates a Funding Sources tab on the original operational journal that displays the reclassification
activity for the journal.

Next Steps
(Optional) Click View Reclassification Event to view the summary of the reclassification journal.
(Optional) Click View Reclassification Lines to view details of the reclassification lines.
(Optional) Select Accounting > View Accounting from the related actions menu of the operational journal
to view the Funding Sources tab.
Related Information
Concepts
Concept: Reclassification Journals and Lines on page 371
Tasks
Steps: Set Up Multiple Funding Sources on page 363

Reprocess Funding Sources

Prerequisites
• Process Funding Sources.

• Configure the Funding Source Reclassification Event business process and security policy in the
Financial Accounting functional area to approve reprocessing funding source.
You can have different approvers for process and reprocess events.
• Security: Process: Funding Sources domain in the Financial Accounting functional area.

Context
You can reprocess funding sources to apply a funding source retroactively to reclassifications entries when
you change a funding source or funding source rule.

Steps
1. Access the Reprocess Funding Sources task.
2. As you complete the task, consider:
Option Description
Company Select a company to reprocess. You can’t select a
company hierarchy.
Project/Project Hierarchy Select a project or project hierarchy in the top-
level project hierarchy you specified on the Edit
Tenant Setup - Financials task.
Workday recommends that you reprocess a
funding source using criteria consistent with the
original process. Example: Perform both process
and reprocess by project hierarchy.

Result
If there are changes to worktags on any reclassification lines when you reprocess funding sources,
Workday:
• Cancels or reverses the reclassification journal.
• Creates a new reclassification journal for every project in the journal source that:
• Reverses the original expense entries.
• Displays the new reclassification lines.
• Marks each existing reclassification line with a status of Reprocessed.
• Creates new reclassification lines with a status of Current.
• Allocates funds to reclassification transactions based on the changed funding source or funding source
rule.
• Creates new reclassification lines with new reclassification journals.
If there are no changes to worktags during reprocessing, Workday:
• Creates a new reclassification line with a status of Unchanged.
• Leaves each existing reclassification line with a status of Current.

Next Steps
Access the Find Funding Source Reclassification Lines report and search by Source Transaction to
review details of the reclassification journal lines.

Concept: Reclassification Journals and Lines

When you allocate funds to existing spend and payroll transactions by running the Process Funding
Sources task, Workday automatically:

• Reclassifies the journal by creating a new reclassification operational journal with reclassification lines.
• Adds the funding source worktags to each reclassification line.
• Creates 1 transaction line for each operational journal line and funding source combination.
Workday creates reclassification lines for spend and payroll operational journal lines that meet these
criteria:
• The ledger account type is an expense source on the Maintain Ledger Account Types task.
• The journal line is posted and not canceled.
• The journal line has a project worktag that is within the top-level project hierarchy.
• There’s no funding source worktag on the accounting journal.
• The journal line isn’t for facilities and administration.
• The journal isn't reversed and doesn't have a reversal journal.

Cancel or Reverse Reclassification Lines

When you process a funding source for a canceled transaction with reclassification lines:
• In an open period, Workday cancels the reclassification journal and the reclassification lines.
• In a closed period, Workday reverses the reclassification journal and the reclassification lines in the
next open period.
When you unpost an accounting journal, which you previously reclassified, that’s in:
• An open period, Workday cancels the reclassification journal and the reclassification journal lines.
• A closed period, Workday reverses the reclassification journal and the reclassification journal lines in
the next open period.

Reclassification Line Statuses

This table lists reclassification line statuses with their description, and the corresponding statuses of
reclassification transaction statuses, and reclassification journal statuses:

Reclassification Line Description Reclassification Reclassification

Status Transaction Status Journal Status
Pending Workday creates Pending Pro forma
the journal lines in
pro forma, but hasn’t
approved or denied the
batch.
Current Workday creates the Current Posted
latest reclassification
line and journal of the
source journal line and
approves the batch
process.
Invalid Workday creates an Invalid
invalid reclassification
line and doesn't create
a journal entry for
the reclassification
transaction.
Validated Workday creates a Invalid
valid reclassification but
doesn't include it in a
journal because another

Reclassification Line Description Reclassification Reclassification

Status Transaction Status Journal Status
reclassification line is
invalid.
Unposted Workday cancels Unposted Unposted
or reverses the
reclassification journal
and unposts the source
journal.
Canceled Workday cancels the Canceled Canceled
source journal and the
reclassification line.
Reversed Workday reverses the Reversed Posted
reclassification journal
and cancels or reverses
the source journal.
Reprocessed Workday reprocesses Reprocessed Posted
the reclassification
journal line and creates
a new reclassification
transaction during
reprocessing.
Unchanged Workday reprocesses Unchanged
the reclassification
journal line with no
change to worktags.
Workday doesn’t
reclassify the original
reclassification journal
line.

Related Information
Tasks
Steps: Set Up Multiple Funding Sources on page 363
Process Funding Sources on page 369

Concept: Financial Accounting

Workday Financial Accounting is the foundation for all Workday Financial Management solutions. It
enables you to satisfy the information requirements of investors, creditors, and regulatory authorities in the
post-Sarbanes-Oxley business environment.
Workday Financial Accounting combines a unique, event-driven accounting approach with a built-in control
framework. It enables you to use a robust multicompany, multicurrency model for delivering financial
records and reports with speed, accuracy, and complete auditability.
The architecture also enables you to adapt to changes in your business as well as new rules and
regulations. With Workday Financial Accounting, you’re able to manage all of your accounting activity and
report on that activity anytime.
This diagram illustrates the flow of financial accounting activities in Workday across a period. It displays
common solutions that you can use throughout the fiscal year to enable your work.

Within a given period, you can use Workday Financial Accounting to process:
• Operational journals to provide accounting results from your approved operational transactions.
• Manual accounting journals to record accounting data not associated with operational transactions.
• Recurring journals to create recurring journals to automate the generation of accounting journals that
you create on a repetitive basis.
• Pro Forma allocations to see the impact of allocations when you view your financial results. The
operational journals that the allocation processing creates have a status of pro forma (rather than
posted). You can include the pro forma operational journals in reporting throughout the period to see
the allocation impact.
You can use Workday Financial Accounting to review:
• Activity reports that provide visibility into your financial activity.
• Trial balances for either an individual company basis or a consolidated entities basis.
• Reconciliation reports to help you in reconciliation of operational transactions to their related ledger
balances.
Example: You can use a report to help reconcile supplier accounts to accounts payable.
• Interim financial statements that you can also define to meet your reporting needs. You can run and
review your financial statements at any time. Workday financial statements also enable you to perform
comparative reporting with other time periods or with financial plans.
While performing period close, you can:
• Record depreciation and decide how often to post that information. When you record depreciation, you
can view all unposted depreciation up to that period and decide what to post.
• Finalize and post allocations you've processed in the period. You can include or exclude finalized
allocations when you run financial statements.
• Run equity pickup to calculate equity earnings of a wholly or partially owned consolidated subsidiary
onto the books of the parent.

• Run revaluations to revalue the foreign currency balances at period end and analyze their impact. You
can create the revaluation journal manually, or use the report to create it automatically using revaluation
rules.
• Update ledger period status to control activities that are available for update.
Example: When you change the ledger period status from Open to Close in Progress for Operational
Accounting, you can't post journals from operational activities. You can still record accounting journals,
recurring journals, and depreciation. Over time you can continue to lock down the activity that can occur
by progressing through the various ledger period statuses.
• Create adjusting journals to mark journals as adjustments and post these adjusting journals to the
period in which they apply. You can include or exclude adjustments when you run financial statements.
• Close the ledger period to control journal entry and journal posting, and compute actual and budget
account balances. After you close a period, you can no longer post anything to it. Workday posts any
pending operational transactions to the next open ledger period once you complete them.
• Produce consolidated financial statements to report consolidated financial information on companies
using the company hierarchies that you define in Workday. You can perform consolidated reporting
throughout the period, and include elimination information in the reporting at any time.
While performing year-end close, you can:
• Roll balances forward to accumulate the balance sheet balances and roll them forward to the new year.
Workday enables you to repeat this task until you’re ready to close the year.
• Roll translated beginning balances forward to have Workday automatically roll forward translated
beginning balances. You can drill down on translated amounts to view the journal line in the company
currency and the translation currencies.
• Close the year at any time after you’ve closed all periods. Closing the year rolls forward the balances
one last time. You can reopen the year if necessary.
In addition to these period activities, you can use:
• Multicurrency to process transactions that occur in a currency other than the base currency of the
recording company.
• Translations to define different account translation rules for different needs.
• Worktags to tag transactions and supporting data. Use worktags to gain a multidimensional view of your
business so that you can easily find and report on information.
• Intercompany accounting to manage and report on business events transacted between related
companies.
• Integrations to upload third-party financial data into Workday and to send data between the systems.
Related Information
Concepts
Concept: Journal Processing on page 108
Concept: Financial Reporting on page 307
Concept: Worktags
Tasks
Steps: Set Up Financial Accounting Structure on page 53
Steps: Set Up Plans or Budgets on page 379
Steps: Set Up Currency Translations on page 175
Close Ledger Periods on page 240
Close a Ledger Year on page 246

Budgets

Budgets and Plans

Setup Considerations: Budget Check

You can use this topic to help make decisions when planning your configuration and use of budget check.
It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Budget check functionality in Workday automatically checks your transactions against your financial plans
and position budgets. Workday handles over-budget transactions by either:
• Warning you that the transaction exceeds the available budget and will fail budget check.
• Skipping budget check. The transaction displays the budget check status as Not Required.
• Automatically passing the transaction. The transaction displays the budget check status as Pass.
When a transaction passes budget check, it also displays the budget check status as Pass.

Business Benefits
You can help your organization:
• Use their funds efficiently.
• Ensure that you don't run out of budget during your fiscal period.
• Reduce manual effort in handling over-budget transactions.

Use Cases
You can use budget check to:
• Control transactions against award budgets to restrict spending to the products and services your
sponsors allow.
• Make hiring decisions based on your available budget after checking staffing transactions.
• Enable budget check reviewers to request overrides and authorized approvers to grant those overrides.

Questions to Consider

Questions Considerations
How strictly do you want to enforce budget check? You can configure budget check to handle over-
budget transactions by:
• Preventing the transactions from passing until
you revise them or amend the plan or budget.

Questions Considerations
• Using tolerance amounts so that your
transaction only fails when it exceeds the
tolerance amount over the budget. When your
transaction exceeds the budget by less than
the tolerance amount, Workday warns you, but
allows it to pass.
• Automatically passing a transaction even when
it's over-budget.
• Skipping checking a transaction even when the
transaction would have failed budget check.

How should you configure budget check for You can configure budget check to restrict
budgets in a virtual parent-child relationship? overspending on either the parent, child, or both
levels. Example: You configure budget check to
restrict overspending on the parent level while
having a more lenient configuration on the child
level. Over-budget transactions on the child level
will pass as long as they don't exceed the budget
sum on the parent.
How do you want to handle credit transactions? You can configure budget check to pass the
transaction automatically. Your transaction fails
budget check with a Fail - Insufficient Budget status
when:
• Your transaction exceeds your budget.
• You don't configure this option.

When should you include reserved journals in You can include reserved journals in budget check
budget check? to reserve funds for transactions that impact the
same budget. Workday reserves these funds after
a transaction passes budget check but before the
business process completes by posting the journal.
Workday doesn't automatically include reserved
journals in budget check.
How can you determine when a transaction is When your budget has optional structured
subject to budget check? dimensions, Workday only checks the included
dimension members and the rest of the dimension
members on the transaction pass as Not Required.
When the optional structured dimension is set to
Include All Members, any dimension member on
the transaction is subject to budget check.

Recommendations
Workday recommends that you:
• Configure commitment accounting to track commitments, obligations, and actuals for spend
authorization, procurement, and payroll transactions.
• Use a more lenient budget check configuration on your child plans and budgets, and a strict
configuration on your parent plan. You can configure Workday to warn you when your transaction is
over the child-level budget and block overspending on the parent level.

Requirements
For Workday to find the correct plan structure and plan lines to check your transaction against, your
transaction worktags must:
• Include all the required structured dimension members on a plan structure.
• Exactly match the worktags on a plan line on the plan structure.
If you configure commitment accounting at a later date:
• For spend and procurement transactions, you must close all open purchase orders first.
• For payroll transactions, you must create initial payroll commitments. Exclude completed payroll periods
so that Workday only creates commitments for ongoing or future payroll periods. If you don't exclude
completed payroll periods, Workday creates commitments for the entire year. Workday begins to
liquidate the commitments after the first payroll of the year.

Limitations
You can only configure up to 50 budgetary control option lines.
Workday doesn't use these structured dimensions to match a transaction to a plan structure and plan lines
for staffing budget check:
• Job Family
• Job Family Group
• Job Profile

Tenant
No impact.

Security
Users with access to the Set Up: Budget General domain in the Budgets functional area can configure
budgetary control for plans and budgets.
When you use budget check overrides, configure the Budget Check Exception Override Approver security
group.

Business Processes
You can add these business processes as a subprocess to your Financial and Staffing business
processes:
• Check Budget (Financial)
• Check Budget (Staffing)
You can configure the Check Budget (Staffing) subprocess to check your staffing transactions for both Job
Management and Position Management positions against your financial plan.
We recommend that you configure the Check Budget (Financial) business process with a batch/job type
Run Budget Check step for better performance. Create a role specifically to run this batch/job step with:
• A profile that doesn't run on a browser.
• A nonexpiring password.

Reporting

Report Data Source Consideration

Plan Lines for Financial Reporting Use to create reports on the plan lines for your
plans and budgets.

Report Data Source Consideration

Journal Lines for Financial Reporting Use to create custom reports on commitments,
obligations, and actuals when you use commitment
accounting.

Integrations
No impact.

Connections and Touchpoints

When you use commitment accounting, Workday posts journal entries to your ledgers after these
transaction types pass budget check:
• Expense
• Payroll
• Procurement
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across
your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Configure Budget Checking for Spend Transactions on page 453
Steps: Check Position Budgets on page 435
Reference
Reference: Budget Check Transactions on page 462
The Next Level: Controlling Your Spend with Budget Check on Financial Plans

Steps: Set Up Plans or Budgets

Context
You can use plans and budgets in Workday to manage your plans, forecasts, and actuals. You can create
an unlimited number of plans and budgets for:
• These plan types, with or without budget checking before transaction approval:
• Award
• Award Proposal
• Financial
• Position
• Project
• Financial, award, award proposal, position, and project budgets with or without budget checking before
transaction approval.
• Comparative reporting and analysis, giving you insight into plan versus actuals ledgers when you
generate financial statements.
You can use the same dimensions and ledger accounts for actuals and plan or budget data to
streamline comparative reporting.

Steps
1. Define Plan Structures on page 382.
Create a plan structure to provide the foundation for your plans or budgets.

2. Access the Maintain Entry Types task.

Define entry types to identify the plan lines for specific plan types, such as financial plans or position
budgets. Workday uses entry types for reporting purposes when you roll over and close plans and
budgets.
You associate an entry type with a structure and company or company hierarchy when you create a
template.
Security: Set Up: Budget General domain in the Budgets functional area.
3. Access the Mass Update Entry Types task.
Assign entry types to existing structures and budget amendment types. Workday updates existing plan
lines and sets default types for future lines.
You can only run this task the first time you roll your budget forward.
Security: Set Up: Budget General domain in the Budgets functional area.
4. (Optional) Access the Map Award and Award Proposal Plan Structures task.
Map award proposal and award plan structures to create an award plan template directly from an award
proposal budget that already exists.
Security: Set Up: Budget domain in Budgets functional area.
5. (Optional) If you select Use Amendments/Approval on your plan structure, configure the Plan Event
and Budget Amendment Event business processes and their security policies:
• Edit Business Processes.
• Edit Business Process Security Policies.
6. (Optional) Access the Maintain Budget Amendment Types task.
Define your budget amendment types.
7. (Optional) Assign identification numbers to budget amendments.
Configure your ID Definition on the ID Generator for Budget Amendment field on any of these tasks:
• Edit Tenant Setup - Financials or Tenant Setup > Financials, for your tenant.
• Edit Company ID Definitions, for individual companies.
Security:
• Set Up: Tenant Setup - Financials in the System functional area.
• Set Up: System in the System functional area.
• Set Up: Company General in the Common Financial Management functional area.
8. (Optional) Set up custom validations to run on plan lines in tasks, reports, workbooks, and web service
imports.
See Steps: Set Up Custom Validations.
9. (Optional) Access the Create Budget Fringe Rate Table task.
Define tables to store and maintain fringe rates for selection during plan or budget detail entry.
Associate the tables with position plan templates to ensure that budget users have access to the most
current and accurate rates. Example: Create tables for different fiscal years to populate standard fringe
rates into yearly position budgets.
Security: Set Up: Budget General domain in the Budgets functional area.

10.(Optional) Access the Edit Consolidation Details task.

To plan by and report on company hierarchies, configure these consolidation details:
• Fiscal Schedule
• Account Set
• Default Reporting Currency
Security: Set Up: Consolidation domain in the Financial Accounting functional area.
11.Create Plans or Budgets on page 386.
Create a plan template to:
• Associate the structure with 1 or more companies or company hierarchies.
• Build the periods and duration.
For award budgets, Workday automatically builds the periods based on the award schedule.
12.(Optional) Access the Create Award Budget Template from Proposal Budget Template task.
Create plan templates for awards directly from plan templates for award proposals. Workday populates
the award template with all of the plan lines from the award proposal budget.
You must create an award from an award proposal before you can create award plan templates from
award proposal plan templates.
Security: Set Up: Budget General domain in the Budgets functional area.
13.Enter or upload plan or budget details for each period:
• Maintain Budget on page 389.
Enter plan or budget details manually.
• Set Up Inbound EIB and Customize EIB Spreadsheet Template.
Upload details using an Enterprise Interface Builder. Workday recommends that you use the Import
Budget web service operation.
14.If you select Use Amendments/Approval on your plan structure:
• Submit a Plan or Budget for Approval on page 392.
• Amend Plans or Budgets on page 393.
Once approved, create amendments to make any changes to the plan or budget.
15.(Optional) Configure project budgets to use Project plan type structures.
See: Steps: Set Up Project Budgets.
16.(Optional) Use budgetary control options to check plans and budgets as part of your business process
workflow before approving financial transactions and HR events:
• Steps: Configure Budget Checking for Spend Transactions on page 453
• Steps: Check Position Budgets on page 435
• Steps: Set Up Position Budgets on page 426
• Steps: Set Up and Manage Award Proposals

Result
You can now use your plans and budgets to compare plan to actuals when you generate financial
statements.

Next Steps
Workday provides a number of standard reports to help you manage your plans and budgets. For a list,
access the Workday Standard Reports report and select the Plans category.

Related Information
Tasks
Steps: Set Up Budgetary Roll Forward and Close on page 395
Create ID Definitions and Sequence Generators
Reference
Reference: Budget Reports on page 403
Reference: Edit Tenant Setup - Financials
FAQ: Project Budgeting on page 1134

Define Plan Structures

Prerequisites
• Create fiscal schedules, summary schedules, years, and periods.
• Define account sets, account types, and ledger account summaries.
• For award and award proposal budget types, define grants, proposal grants, awards, award schedules,
and award summary schedules.
• To use the Book prompt or add Book Code as a structured dimension, and configure your books.
• Security: Set Up: Budget General domain in the Budgets functional area.

Context
Plan structures are the foundation for plans and budgets in Workday. The structures determine:
• The type of plan or budget.
• The fiscal schedule and periods on which to build the periods and duration.
• The ledger accounts and dimensions available to include when defining plans and budgets.
• Whether plans and budgets require approval and other key attributes.
You can use the same structure for multiple companies and company hierarchies.

Steps
1. Access 1 of these tasks:
• Create Plan Structure
• Edit Plan Structure
2. As you complete the task, consider:
Option Description
Use Amendments/Approval Select to:
• Enable amendments on existing plans and
budgets.
• Require approval for new plans and budgets.
Select this check box for true parent and child
plans.
When you select this check box, Workday
displays only approved entries in the totals for the
Actuals vs. Budgets worklet and these reports:
• Budgetary Balance Report
• Financial Budgetary Balance
• Manager Budgetary Balance Report
• Manager Financial Budgetary Balance

Option Description
Otherwise, Workday calculates the totals for
the plans and budgets in all statuses, including
Approved and Denied.

Use Contextual Amendments Select to amend plans or budgets that you create
using this structure in context of your current
budget and current spend.
When you select this check box, Workday
displays the running total of your budget and
these columns on budget amendment tasks:
• Current Plan Amount
• Current Spend
• Remaining Plan
• Percentage Change
• Total Plan
• Proposed Remaining Plan
For awards, Workday also displays the Award
Amount field when you amend the award budget.
You can change this setting at any time.

3. As you complete the Structured Dimensions tab, consider:

Option Description
Account Set Your selection must match the account set for:
• The companies you plan by.
• The company hierarchies you plan by.

Organizing Dimension Type Requires that you enter a plan or budget for 1
dimension value at a time per plan or budget, and
per period. This entry method streamlines review
and approval.
Example: You can select Region on the
Organizing Dimension Type prompt to view all
the plan balances by region on the Current Plan
Report.

Book Once you select a book on the plan structure, you

can't delete the book.
If you enable budgetary control, Workday filters
the budget check based on the book code
associated with the book you select.
For true parent and child plan structures, you
must manually ensure that the parent and child
books match. You don't need to match the books
for virtual parent and child plan structures.
Workday doesn't support budgetary roll forward or
close for plans that use a book.

Option Description
Must Be Empty Select to require that a transaction not contain a
specific dimension. Workday doesn't apply the
transaction to the budget or run budget check.
Example: You want a plan for transactions that
impact certain cost centers and funds, but not
any projects. You can specify that the project
worktag must be empty on the transaction. For
transactions that have the project worktag on the
line, Workday doesn't run budget check.

Dimension Select the dimensions you want as available

worktags when you create or amend plans and
budgets that use this structure.
For multicurrency reporting, include the Ledger
Account dimension. Workday translates
currencies based on ledger accounts and ledger
account summaries.
Workday doesn't support budgetary roll forward
or close for position budgets with Company as a
dimension.

Required Select to require the dimension for entry on each

plan line. If you select the dimension as the
Organizing Dimension Type, you must require
entry of the dimension.
Primary Worktag Select to display the worktag in its own column
rather than as additional worktags on the plan
lines. When you maintain or amend your plan or
budget:
• Workday displays primary worktag columns
in the order that you configure on your plan
structure.
• Primary worktag columns enable you to enter
line information faster.
Because Company and Ledger Account are
required dimensions that automatically display,
you can't select them as primary dimensions.
You can designate up to 10 worktags as primary
worktags for each plan structure.

Top Level Hierarchy Since dimension members can be part of multiple

hierarchies, determine the uppermost hierarchy
and select it as the top-level hierarchy.
To plan and report by company hierarchies, select
a top-level hierarchy for the Company structured
dimension.

Hierarchy Level If you select a top-level hierarchy, select a

hierarchy level on this prompt. This configuration
enables you to include or exclude dimensions

Option Description
as worktags when you create or amend plans or
budgets made from this structure.
Dimensions to Include When you select a company or company
hierarchy for the Company structured dimension,
you can't also select the:
• Superior or subordinate companies.
• Company hierarchies at any other level.
This restriction prevents double-counting budget
between superior and subordinate companies and
company hierarchies.

Result
You can now create a plan or budget for your company based on this structure.
When you select the Use Amendments/Approvals check box on a plan structure with plan lines:
• Workday automatically moves plans from Available status to Draft status. Move plans back to Available
status to use the budget check functionality.
• Workday changes the transaction budget check status to Fail (No Budget) on submitted transactions for
plans with budget check enabled.
You can only clear the Use Amendments/Approvals check box on a plan structure with plan lines if all of
the plans are in Draft status. Workday moves these plans to Available status.
When you select books on plan structures, you can report on books by using the Journal Lines for
Financial Reporting report data source in custom reports.

Next Steps
To compare structures, access the Plan Structures report.
Once you create plans or budgets based on the structure, you can only revise the structure definition in
these ways:
• Rename the structure.
• Add additional optional structured dimensions to the structure.
• Exclude structured dimensions as long as no plan lines exist with those dimensions.
• Select the Primary Worktag check box on a structured dimension.
• Select or clear the Use Amendments/Approvals check box even if plan lines exist.
Related Information
Concepts
Concept: Plan Structures on page 400
Tasks
Steps: Set Up Plans or Budgets on page 379
Define Position Budget Structures on page 427
Create Financial Plan Structures for Adaptive Planning
Steps: Publish Financial Plans from Adaptive Planning
Reference
Workday 33 What's New Post: Company Hierarchies on Financial Plans

Create Plans or Budgets

Prerequisites
• Define a plan structure that matches the fiscal schedule and account set for the companies and
company hierarchies.
• For award proposal budgets, create an award proposal.
• For award budgets, create an award.
• For multicurrency plans, define a currency rate type and conversion rates for currencies used in the
plan.
• Security: Set Up: Budget General domain in the Budgets functional area.

Context
After you define the plan structure, you create a template to specify the configuration for your plan or
budget. On the template, you configure these options for use on your plan or budget:
• Companies. For financial plans, you can also plan by company hierarchies.
• Currencies.
• Time periods.
You can create many templates from a single structure to maximize efficiency as you build plans or
budgets:
• Across companies and company hierarchies.
• From year to year.
For financial plan structures, you can create a single plan template for multiple companies and company
hierarchies. If you plan by companies, Workday also supports plan lines in currencies foreign to the
managing company.

Steps
1. Access the Create Plan Template task.
2. As you complete the task, consider:
Option Description
Plan Structure When creating child plans or budgets, only top-
level parent plan structures are available for
selection.
Company For multicompany financial plan structures, select
the related companies that are available for this
plan and plan lines.
If you don't use an account set on the structure,
Workday validates that the companies and
companies hierarchies use the same account set.

Plan Name (Optional) Specify a plan or budget name

according to the plan type for the selected
structure:
• Financial or Project: Enter a unique name.
• Award: Select an award for the selected
header company.
For parent and child plans or budgets, the name
you enter automatically populates any linked

Option Description
children. You can change these names using the
Edit Plan Structure Hierarchy Name task.

Plan Group Displays only for parent and child plans or

budgets when you enter a plan or budget name.
Workday appends Budget Group to that name for
the plan group name, which you can change here
or on the Edit Budget Group Name task. The
plan group groups together all linked members of
the plan or budget family -- the parent, child, and
associated grandchild plans or budgets.
Use the Plan Group report to view and compare
all plans or budgets in a hierarchy plan, including
the baseline, cost, and revenue plans or budgets
for a company.

Default Entry Type Identifies the entry type for original plan lines for
the template.
Default Reporting Currency For multicurrency financial plans, select a default
currency to use on reports. The default currency
is usually the company base currency.
Workday uses the standard conversion rate
defined for the currency rate type to convert
the different currencies to the specified default
currency.
When a report has a Translation Currency
prompt, the report returns currency based on the
value you entered in the prompt.

Enable Multicurrency (Optional) For multicurrency financial plans, select

this check box to enter plan lines in currencies
other than the company base currency. The plan
will reflect the same currencies as the actual
transactions.
You can enable multicurrency if you make a plan
using companies only.

Currency Rate Type for Budget To convert amounts from child level plans
to virtual parent level plans with company
hierarchies, Workday uses:
• The currency rate type that you select on these
prompts.
• The default reporting currency on the
consolidation details of your company
hierarchy.
• The accounting date on your journal lines for
spend conversions.

Currency Rate Type for Budget Spend To convert company-level spend transactions
to company hierarchy currencies on plan lines,
Workday uses:

Option Description
• The currency rate type that you select on these
prompts.
• The default reporting currency on the
consolidation details of your company
hierarchy.
• The accounting date on your journal lines for
spend conversions.

Enable for Allocations (Optional) Select to enable the plan or budget as

a source or target when creating allocations.
Include only 1 template in allocations for each
unique combination of company, plan structure,
and fiscal year. To enable allocations for a
new template using the same combination of
company, plan structure, and fiscal year:
a. Access the Edit Plan Template task.
b. Clear Enable for Allocations.
Workday disables this option for plan templates
with these configurations:
• Company hierarchies
• Multicompany
• Multicurrency
• True Child
• True Parent

Default Balanced Amendment (Optional) For financial plans, award budgets, and
award proposal budgets, select this check box to
select Balanced Amendment automatically on all
amendments created for this plan or budget.
You can change this setting when you create or
edit amendments if you have access to the Create
Unrestricted Budget Amendment (Segmented)
domain.

Validate Expense Account Amendments (Optional) Select the level of severity that you
want to validate expense account amendments
when they’re less than the current spend. You can
leave this prompt empty.
Workday only displays this prompt if you select
Use Contextual Amendments on your plan
structure.
You can change this setting on the Edit Plan
Template task. Workday only validates budget
amendments that:
• You create or edit while you have a critical or
warning validation configured.
• Have a ledger account that's marked as an
Expense Source.

Option Description
From To define the duration, select the start and end
periods. Select the year and either:
To
• Period, for entry by period.
• Summary Schedule, for entry by summary
schedule.

Result
Workday creates and displays the plan or budget duration and periods based on the specified company,
plan structure, and From and To periods.
You can select the Inactive check box on the Edit Plan Template task to inactivate financial plans.

Next Steps
Input plan or budget amounts or upload them into Workday using the Enterprise Interface Builder.
You can edit your financial plan templates on the Edit Plan Template task after plan lines exist to correct
errors or accommodate unplanned events.
Related Information
Concepts
Concept: Convert Spend to Currencies on Company Hierarchy Plan Lines on page 403
Tasks
Steps: Set Up Plans or Budgets on page 379
Maintain Currency Conversion Rates
Create Ledger Account Types on page 69
Reference
Workday 33 What's New Post: Company Hierarchies on Financial Plans

Maintain Budget

Prerequisites
• Create plan periods for each combination of plan structure and company or company hierarchy.
• For award proposals or awards, create an award proposal plan template or an award plan template.
• To plan by company hierarchies, configure the Default Reporting Currency on the Edit Consolidation
Details task.
• Security: Process: Budget domain in Budgets functional area.

Context
You can enter or update data to define plans or budgets and forecasts for each period in your plan or
budget duration. You can then use this data as the basis for comparative reporting. If the plan or budget
requires approval, you can update details for each period until you submit the plan or budget.

Steps
1. Access the Maintain Budget task.
2. As you complete the first part of the task, consider:
Option Description
Company You can only enter details for 1 currency and 1
company or company hierarchy at a time.

Option Description
Organizing Dimension The organizing dimension type applies to all
plan details for the period, summary period, or
duration.
Plan Currency Workday converts plan credit and debit amounts
from this currency into the company base
currency according to the conversion rate that you
set up.
For multicurrency financial plans, you can add
plan lines with identical ledger accounts and
worktags if you use different currencies on each
plan line.

3. As you complete the second part of the task, consider:

Option Description
Ledger Account/Summary For each plan line, select a unique combination of
ledger account and worktags.
With structured dimensions, you can select the
specified ledger account summaries. Without
structured dimensions, you can only select
the accounts in the specified ledger account
summary.

Worktags For plans or budgets with structured dimensions,

you can only select worktags specified in the
plan structure. These structured dimensions
also determine which worktags are optional
or required. If you don't configure structured
dimensions, you can select any worktag enabled
for plans or budgets.

Example
For a financial plan, you could set a travel plan with 10,000 USD for cost center 10001. You could
configure this plan in 2 ways:
• Set a plan for travel expense to 10,000 USD for cost center 10001. With this configuration, workers in
region A can consume the entire travel plan for the cost center without any allocated expenses used by
another region.
• Set a plan for travel expenses to 4,000 USD for cost center 10001, region A, and 6,000 USD for cost
center 10001, region B. With this configuration, you allocate the plan by region within this cost center.

Next Steps
• Generate financial statements that compare actuals ledgers to plans or budgets across years or
periods.
• Use the View Plan report to view the plan details by period.
Related Information
Tasks
Steps: Set Up Plans or Budgets on page 379
Steps: Set Up Budgetary Roll Forward and Close on page 395
Maintain Currency Conversion Rates

Reference
Workday Community: Import Budget EIB - Inbound

Edit Plan Templates

Prerequisites
• Create an award, award proposal, financial, or project plan or budget.
• Security:
• Manage: Project Budget domain in the Projects functional area.
• Set Up: Budget General domain in the Budgets functional area.

Context
You can edit your plan templates after plan lines exist to correct errors or accommodate unplanned events.

Steps
1. Access the Edit Plan Template task.
2. As you complete the task, consider:
Option Description
Inactive You can only inactivate financial plans.
Changes to this setting might impact existing
report, dashboard, and scorecard references.
If you select this option, you cancel all Budget
Amendment Event and Planning Event business
processes for this plan.

Company You can add or remove companies or company

hierarchies from financial plans. If your plan is
associated with a true plan hierarchy, you can
only add or remove companies.
Enable Multicurrency You can change this setting at any time except
when:
• Plan lines exist. You can't clear this check box.
• You’ve selected a currency rate type.
• You include company hierarchies on your plan
template.

Enable for Allocations You can change this setting on your financial plan
template for all plan structure types except:
• Multicompany
• Multicurrency
• True Child
• True Parent
• Virtual Parent

Default Balanced Amendment You can change this setting when your template
isn't associated with a virtual parent plan
structure.
Validate Expense Account Amendments Select to validate if budget amendments on
expense accounts are less than current spend.

Option Description
Workday only validates expense account
amendments that you create or edit while this
check box is checked.
Workday only displays this check box if you select
Use Contextual Amendments on your plan
structure.

To You can add periods to financial plans when the

plan:
• Has any status other than Available or In
Worksheets.
• Isn't associated with a true plan hierarchy.

Related Information
Concepts
Concept: Inactive Financial Plans on page 402

Submit a Plan or Budget for Approval

Prerequisites
• Enter or upload plan or budget values.
• On the plan or budget structure, select the option to require approvals and amendments.
• Configure the Plan Event business process and corresponding security policy.
• For all plans and budgets in hierarchies (both multicompany and single company), you must approve
the parent before you can submit a child.

Context
You can review a company's plan or budget to ensure that it's complete, then submit for approval. You can
use the approved plan or budget in financial reporting and budget checking during various transactions.

Steps
1. Access the Submit Plan task.
2. Select the Plan Structure and Company for the plan or budget that requires approval.
For multicompany plans or budgets, you can only submit for 1 company at a time. Workday only moves
the overall plan or budget to Available status after you submit and approve every individual company's
plan or budget.
3. Submit the plan or budget for approval.

Result
For a true parent-child plan hierarchy, Workday issues a validation upon submission if the linked child
amounts exceed the parent amounts. You can then adjust the amounts and resubmit.
If you configured custom validations for plan lines, Workday issues those validations upon submission. You
can access the Plan Lines with Custom Validations report to view plan lines with validation errors and
warnings.
Workday initiates the Plan Event business process and sends an inbox item to the reviewer to approve
or deny the plan or budget. Once approved, you can only change the plan or budget values with
amendments.

Related Information
Tasks
Steps: Set Up Plans or Budgets on page 379

Amend Plans or Budgets

Prerequisites
• Select the Use Amendments/Approval check box on your plan structure.
• Select the Use Contextual Amendments check box on your plan structure to amend in context of
your:
• Current budget.
• Current spend.
• Award amount, for an award plan type.
Select the check box for plans or plan hierarchies with company hierarchies.
• Approve the original plan or budget. For multicompany plans or budgets, submit and approve every
individual company's plan or budget.
• For unbalanced amendments, you must be assigned to a segment-based security group on the Create
Unrestricted Budget Amendment (Segmented) domain in the Budgets functional area.
• Configure the Budget Amendment Event business process and corresponding security policy.

Context
To change an approved plan or budget, you can:
• Create a budget amendment.
• Copy or copy and reverse an amendment you already created.
• Revise an amendment as long as that amendment has any status except Available.
You can then submit the budget amendment for approval.
In Workday, amendments are changes, not replacement amounts.
For true hierarchical plans, amendments can impact both the parent and child plans.

Steps
1. Access 1 of these tasks:
• Create Budget Amendment.
• Create Budget Amendment for Organization if you use organization-based roles.
2. As you complete the first part of the task, consider:
Option Description
Company You can only enter details for 1 currency and 1
company or company hierarchy at a time.
Plan Currency Workday converts plan credit and debit amounts
from this currency into the company base
currency according to the conversion rate that you
set up.
For multicurrency financial plans, you can add
amendment lines with identical ledger accounts
and worktags if you use different currencies on
each amendment line.

3. As you complete the second part of the task, consider:

Option Description
Ledger Account/Summary For each budget amendment line in this grid,
select a unique combination of ledger account
and worktags. If your selections match with an
existing plan line on the plan or budget you want
to amend, Workday automatically populates the
existing values into the grid.
Restricted On the Create Budget Amendment for
Organization task, Workday displays Yes when
you don't have access to view current budget and
spend for the budget amendment line.
Percentage Change On the Create Budget Amendment task, you
can amend by entering positive or negative
Amount Change
values on the Amount Change column. Workday
Total Plan converts negative values into credits and
positive values into debits when you submit the
amendment.
On the Create Budget Amendment for
Organization task, you must use the Amount
Change column to amend when you don't have
access to view current budget and current spend.
Workday displays zeroes on all of the other
columns.
If you select Use Contextual Amendments on
the plan structure and use the Create Budget
Amendment task or if you have access to view
current budget and current spend on the Create
Budget Amendment for Organization task,
enter:
• A percent change to a plan line.
• The amount a plan line needs to change by.
• A new total amount on the plan line.
When you enter a value on 1 of these columns,
the other 2 automatically update.

Result
If you configured these validations, then Workday issues the validations when you attempt to submit the
budget amendment:
• Custom validations for plan lines.
• Expense account amendment validations.
Workday initiates the Budget Amendment Event business process. For hierarchical plans or budgets, you
can route amendments to both parent and child approvers.

Next Steps
• If you configure custom validations for plan lines, use the Plan Lines with Custom Validations report
to view plan lines with validation errors and warnings.

• Use these reports to view all changes to a plan or budget.

• Find Budget Amendments
• Find Budget Amendments for Organization
Related Information
Concepts
Concept: Amendments to Plan Hierarchies on page 413
Tasks
Steps: Set Up Plans or Budgets on page 379
Create Custom Business Processes
Maintain Currency Conversion Rates

Steps: Set Up Budgetary Roll Forward and Close

Context
Set up Workday to roll budgets forward at year-end. You can roll unspent budget for specific cost centers,
funds, or other worktag types from the completed ledger year to the next year. You can also close your
unspent budget.

Steps
1. Access the Maintain Entry Types task.
Define entry types to identify the plan lines for specific plan types, such as financial plans or position
budgets. Workday uses entry types for reporting purposes when you roll over and close plans and
budgets.
You associate an entry type with a structure and company or company hierarchy when you create a
template.
Security: Set Up: Budget General domain in the Budgets functional area.
2. Access the Mass Update Entry Types task.
Assign entry types to existing structures and budget amendment types. Workday updates existing plan
lines and sets default types for future lines.
You can only run this task the first time you roll your budget forward.
Security: Set Up: Budget General domain in the Budgets functional area.
3. Define Rules to Roll Budgets Forward and Close on page 395.
4. Roll Budgetary Year-End Balances Forward on page 398.

Result
You can complete the budgetary roll forward and close process using the Create Budgetary Roll
Forward / Close task.

Define Rules to Roll Budgets Forward and Close

Prerequisites
• Create entry types.
• Create budget amendment types.
• Security: Set Up: Budget General domain in Budgets functional area.

Context
Configure rules that:
• Calculate the balance to roll over and close.
• Apply the relevant entry types for year-end plan or budget processing. Workday maps the source entry
types to target entry types when you roll forward budgetary balances to the next year.
The rules enable you to select specific ledger types to add or subtract from your planned amount when you
determine the amount to roll over. You can also exclude the plan or budget from the equation to roll only
specific ledger account types forward.

Steps
1. Access the Maintain Budget Treatment Rules task.
2. Create a rule for each rolling forward or closing transaction.
3. As you complete the task, consider:
Option Description
Plan Treatment Select how you want to treat the plan lines for the
remaining fiscal year and the new fiscal year:
• Close: Select to zero out the balance of the
remaining fiscal year by adjusting the plan
amount.
• Roll as Original without Source
Reversal: Select to roll plan lines from a
source budget to a target budget. These rolled
plan lines replace any existing plan lines on
the plan for that new year. On the new plan,
any rolled plan lines are indistinguishable from
plan lines created when you maintain the plan
directly.
• Roll as Original with Source Reversal: Select
to roll plan lines from a source budget to a
target budget. These rolled plan lines replace
any existing plan lines on the plan for that new
year. On the new plan, any rolled plan lines
are indistinguishable from plan lines created
when you maintain the plan directly. Workday
then creates a reversal budget entry in the
source budget to zero out the budget. Workday
also closes the old plan or budget.
• Roll as Supplemental without Source Reversal:
Select to roll plan lines from the remaining
fiscal year into the plan for the new year. When
you maintain the new plan, Workday displays
the rolled plan lines on a Rolled Budget Lines
tab.
• Roll as Supplemental with Source Reversal:
Select to roll plan lines from the remaining
fiscal year into the plan for the new year. When
you maintain the new plan, Workday displays
the rolled plan lines on a Rolled Budget
Lines tab. Workday also closes the old plan or
budget.

Option Description
Allowed Plan Type The type of plan structure for which you want to
establish the year-end closing rules.
Workday only supports financial and position plan
types.

Source Entry Types Select 1 or more entry types from which you want
to move balances when you close a ledger year.
Decrease by / Increase by Ledger Types Identifies the ledger types to exclude or include
when you move balances over to the new year.
Workday decreases or increases the ledger
amounts by the specified percentage from the
source entry types to determine the balance to roll
over.

Source Rolling Entry Type Select which entry types to apply to plan lines
generated to roll forward or close budgets.
Destination Rolling Entry Type
Closing Entry Type

Result
Use the View Plan Treatment Rules report to review the new rules by plan treatment.

Example
You want to roll over 50% of your unspent budgetary balance for an operating plan. In the plan treatment
rule equation, you specify these values:

Rule Parameter Value

Plan Treatment Roll as Supplemental without Source Reversal
Allowed Plan Type Operating
Source Entry Type Permanent
Decrease by Ledger Types Actuals
Commitment
Obligation

Roll Percentage 50
Source Rolling Entry Type Rolled From
Destination Rolling Entry Type Rolled To

When you specify this rule for budgetary roll, Workday subtracts the actuals, commitments, and obligations
from the permanent plan to calculate the unspent plan. Workday rolls 50% of the calculated amount, and
applies the Rolled From entry type to entries that reduce the plan in the first period. The budgetary roll
process then generates entries with the Rolled To entry type in the new period.

Next Steps
Use these rules on the Create Budgetary Roll Forward/Close task to roll plan lines forward and create
closing entries.

Roll Budgetary Year-End Balances Forward

Prerequisites
• Define plan treatment rules.
• For financial plans, the plan must be:
• In Available status.
• Active.
• Single company.
• Single currency.
• Single year. This year must be the same year as the company's fiscal year.
• For position budgets, the budget must:
• Be active.
• Not use Company as a dimension.
• The plan structure must not use a book.
• To roll forward plan lines, create the plan template for the new year.
• Security: Set Up: Budget General domain in Budgets functional area.
• Configure the Budgetary Roll Forward Close Event business process and security policy in the Budgets
functional area.

Context
Roll budgetary balances forward to establish additional budget in the new ledger year. Example: Transfer
balances to fund non-lapsing accounts in the next year.
You can specify a plan treatment rule to calculate the plan or budget amount to roll from the source entry
type to the target entry type. You can specify another plan treatment rule for closing plans or budgets.
Workday creates plan entries to:
• Reduce the budget for the completed year.
• Establish the rolled amount in the new year.

Steps
1. Access the Create Budgetary Roll Forward / Close task.
2. As you complete the first part of the task, consider:
Option Description
Plan Structure You can specify fiscal year, worktags, and ledger
accounts from the plan structure to filter the plan
lines to roll over.
Source Year Select the fiscal year in the source plan to roll
from or close.
3. As you complete the second part of the task, consider:
Option Description
Structured Dimension You must add Ledger Account as a structured
dimension.
Target Year You can only edit this field if you select a plan
treatment rule that rolls over budget.
Worktag Filters Select specific worktags to use to filter plan lines.

Option Description
Example: Roll the remaining budget forward from
plan lines with specific funds or cost centers.

Plan Treatment Rule Workday uses the rule to calculate the remaining
plan or budget by type to roll over and close.
Workday processes the rules sequentially top to
bottom.

Result
Workday:
• Calculates roll forward balances.
• Creates new plan entries and lines for the target entry type.
• Creates credit entries for the source entry type.

Next Steps
Submit using the Submit Budgetary Roll Forward / Close task.
Use the Budgetary Roll Forward / Close report to review the summary results.
Related Information
Tasks
Steps: Set Up Budgetary Roll Forward and Close on page 395
Roll Procurement Documents Forward

Steps: Set Up Revenue Driven Budget Rules

Prerequisites
Set up plans. See Steps: Set Up Plans or Budgets on page 379.

Context
You can use Revenue Driven Budget Rules to automatically increase available budget amounts based on
revenue recorded in:
• Accounting Journals
• Ad Hoc Bank Transactions
• Cash Sales
Example: A department can spend the amount of collected fees in addition to their approved operating
budget. The approved budget for the department is 100,000 USD. The posted revenue recorded on an
accounting journal is 25,000 USD. When you use revenue driven budget rules, Workday automatically
increases the budget to 125,000 USD when the journal posts. When you turn on budget check for this
budget, the budgetary control amount available for spending is 125,000 USD.

Steps
1. Edit Domain Security Policies
Grant users who can create and maintain revenue driven budget rules access to the Set Up: Revenue
Driven Budgets domain.
2. Activate Pending Security Policy Changes.

3. Access the Create Revenue Driven Budget Rule task.

In the Revenue Source Definition section, enter the source criteria for incoming revenue transactions
to result in a budget line increase.
In the Revenue Budget Increases section, enter the resulting plan and plan line attributes that
Workday creates once the Revenue Source Definition is met.
As you complete the task, consider:

Default ~Entry Type~ Workday recommends accessing the Maintain

Entry Types task to create a new entry type
specific to Revenue Driven Budgets to use on
rules.
~Plan~ Only plans using amendments on approval
display for selection.
Plans must be in Available status to generate
automatic increases to the budget.

Worktags Workday uses worktags to match journals with

revenue source on rules. Journals can have many
worktags but need to have at least the same
worktags as a revenue source or be a subordinate
of a hierarchy value on the rule.
Journal Source Select 1 or more journal sources for supported
transactions to apply to a rule.
4. (Optional) Access the Maintain Revenue Driven Budget Rule Evaluation Order task.
For revenue driven budget rules using hierarchies, assign an order for revenue driven budget rules.
Workday evaluates the ordering of rules from top to bottom set by this task and uses the first rule it
finds with matching criteria.
5. Create Accounting Journals.
Create revenue transactions based on your Revenue Source Definition.
6. (Optional) Edit rules by selecting Revenue Driven Budget Rule > Edit from the related actions menu
of the Company.
You can edit rules to change budget values and point to new budgets for subsequent years. Once
Workday uses a Revenue Source Definition you can't use it in other rules.

Result
When you record revenue on an accounting journal, Workday automatically creates a new budget line that
increases budgets defined by the rule.

Next Steps
You can use the Revenue Driven Budget Balance and Spend report to view a detailed budget to actuals
balance of expense ledger accounts and ledger account summaries for a financial plan that uses revenue
driven budget rules.
Related Information
Reference
2023R1 What's New Post: Revenue Driven Budgets for Accounting Journals

Concept: Plan Structures

Plan Types
Workday uses your Plan Type selection to determine the type of plan structure.

Plan Type Description

Award Use this structure as the basis for award budgets
(such as grant awards for sponsored research).
You can use award budgets to control spend during
spend and staffing transactions.
Award Proposal Use this structure as the basis for preaward
budgets (such as grant awards for sponsored
research). You can use award proposal budgets
to control spend during spend and staffing
transactions.
Financial Use this structure as the basis for financial plans
and when creating parent-child plan hierarchies.
You can use financial plans to control spend during
spend and staffing transactions.
Position Use this structure as the basis for position budgets.
You can use position budgets to control position
approval during staffing events for organizations
with position management staffing models.
Project Use this structure as the basis for project budgets.
You can use project budgets to forecast expenses
and revenue for your projects.

Schedule and Plan Entry By

Workday uses your Plan Entry By selection to create each time period that you define a plan or budget
for.

Plan Entry by Description

Period Base the periods on the periods of the fiscal
schedule or award schedule.
Summary Schedule Base the periods on a summarized group of fiscal
or award periods, such as quarterly or half yearly.
Duration For financial plans and position budgets, a single
period that spans the entire time frame of the plan
or budget.

For financial plans and position budgets, Workday uses your fiscal schedule together with your Plan Entry
by selection and time frame to create periods and duration. Your Schedule selection must match the fiscal
schedule for:
• The companies you plan by, as set on the Edit Company Accounting Details task.
• The company hierarchies you plan by, as set on the Edit Consolidation Details task.
For award and award proposal budgets, Workday uses your award schedule and Plan Entry by selections
to create your budget periods and duration. You can define your award schedule on the Create Award
Schedule task.
Use fiscal or award years to ensure that the same years and periods are always available for comparison
between plans and actuals.

Structured Dimensions
Structured dimensions determine whether transactions are subject to budget. If a transaction has worktags
that match the structured dimension criteria, the transaction is subject to that budget.
To enable budget checking, you must use structured dimensions.
For company hierarchies, you can only select company hierarchies with subordinate companies that use
the same:
• Account set.
• Currency.
• Fiscal schedule.

Fringe
Consider disabling fringe when:
• Workday doesn't include fringe benefits on your commitments, obligations, or actuals.
• You don't budget for fringe.
Related Information
Tasks
Define Plan Structures on page 382

Concept: Pooled Budgets

Pooled budgets are financial and award type budgets that you can share between multiple positions or
staffing activities. You don't need to restrict a pooled budget to any 1 position or staffing model. Example:
You have an annual pool of funds allocated for salary expenses for a department in your organization.
Each staffing transaction gets checked against the pooled budget for that department. The unspent budget
is the salary savings.
Workday requires budget check to use pooled budgets. Workday checks your financial or staffing
transactions against a pooled budget only if the transactions belong to the Job Management staffing
model.

Concept: Inactive Financial Plans

When you inactivate financial plans, Workday:
• Cancels all related Planning Event business processes.
• Cancels all related budget amendments that aren't in Available status.
• Disables all fields and options on the Edit Plan Template task except the Inactive check box.
You can't see inactive financial plans on these tasks and reports:

Tasks Reports
Create Budget Amendment Budget Check Exceptions
Create Budgetary Roll Forward / Close Find Budget Amendment
Edit Budget Check Options View Plan
Edit Budgetary Roll Forward / Close
Maintain Budget
Submit Budget

You can't inactivate financial plans when:

• The plan is part of a plan hierarchy, because the plans and budgets in your hierarchy will fall out of
sync.
• Budget check is enabled, because you’ll remove the plans from the spending approval process. To
inactivate these plans, first clear Enable Budget Check on the Edit Budget Check Options task.

Concept: Convert Spend to Currencies on Company Hierarchy Plan Lines

Workday uses your Currency Rate Type for Budget Spend selection on your plan template to convert
transaction spend. We convert transaction spend to the currencies of the company hierarchies on your
plan lines before we total the amounts when you:
• Amend plans.
• Review transactions on the Budget Check Exceptions report.
• View spend amounts on custom reports created using these report data source (RDS) filters:
• Financial Plan Lines for Company and Reporting Time Period
• Financial Plan Lines for Organization and Reporting Time Period
We only convert in this order when:
• The currencies on your subordinate companies and company hierarchies differ from the currencies of
the company hierarchies on your plan lines.
• The currencies on the companies and company hierarchies of your child plans differ from the currencies
of the company hierarchies on your virtual parent.
Related Information
Tasks
Create Plans or Budgets on page 386
Reference
Workday 33 What's New Post: Company Hierarchies on Financial Plans

Reference: Budget Reports

Workday delivers a number of standard reports to give you greater insight into the health and progress of
your plans and budgets. We provide these financial reports to help you manage your plans and budgets.
For a complete, descriptive list of Workday delivered standard reports for plans and budgets, access the
Workday Standard Reports report and select these report categories:
• Planning
• Plans
• Set Up Plan

Name Security Description

Budget Check Exceptions Reports: Company Financial Displays the budgetary balance
Budgets and Reports: Manager for a budget check exception.
Financial Budgets domains in the Use this report to identify
Budgets functional area. transactions that have failed
budget check during the budget
check process.
Budgetary Balance Reports: Company Financial Displays the budgetary balance
Budgets domain in the Budgets for a financial plan or award
functional area. budget for a company.
Current Plan Manager: Project Budget and Displays all details about the
Process: Budget domains in the current plan or budget for a
Projects and Budgets functional company or company hierarchy.
areas.

Name Security Description

Manager Budgetary Balance Reports: Manager Financial Displays the budgetary balance
Budgets domain in Budgets for a financial plan or award
functional area. budget for an organization.
Award Budget for Fiscal Period Process: Budget and Reports: Displays plan amounts for 1 or
Award domains in the Budgets more awards, with the option to
and Grants Management view awards in fiscal year context
functional areas. using prorations.

Workday also delivers an Actuals vs. Budget worklet, enabling you to see graphical analytics that
compare your plan to your ledger account actuals. To set up the Actuals vs. Budget worklet, access the
Configure Plan Worklet task and select:
• Company.
• Year.
• Business Plan, or the plan or budget for the company.
• Ledger Accounts for which to compare plan to actuals.

Example: Create Financial Plan to Actuals Composite Reports with Eliminations

This example illustrates how to set up a composite report that displays:
• Company plan lines and actuals.
• Intercompany transaction elimination options.

Context
You want to create a composite report that applies intercompany transaction eliminations to your financial
plan and actuals for comparison and viewing.

Prerequisites
• Set up elimination rules for your intercompany ledger accounts.
• Enable intercompany affiliate worktags on intercompany elimination:
• Plan lines for an existing plan.
• Journal lines.
• Security: these domains in the System functional area:
• Custom Report Creation
• Manage: All Custom Reports

Steps
1. Access the Copy Standard Report to Custom Report task.
2. Select Financial Plan to Actuals from the Standard Report Name prompt.
3. Click OK.
4. Enter Financial Plan to Actuals with Eliminations in the Name field.
5. Click OK.
6. Access the Edit Custom Report task.
7. Select Financial Plan to Actuals with Eliminations-Financial Plan Consolidation Sub-Report from the
Report Name prompt.
8. Click OK.

9. In the Prompt Defaults grid on the Prompts tab, clear the Do Not Prompt at Runtime check box for
these fields:
• Eliminations Only for Plan
• Perform Intercompany Eliminations for Plan
10.Click OK.
11.Access the Edit Custom Report task.
12.Select Financial Plan to Actuals with Eliminations from the Report Name prompt.
13.Select Edit from the related actions menu of the C3 column header.
14.On the Value Type column in the Map Sub Report Prompts grid, select Prompt User for Value at Run
Time for these prompt fields:
• Eliminations Only for Plan
• Perform Intercompany Eliminations for Plan
15.Click OK.
16.Access the Prompts tab in the report settings.
17.Select the Populate Undefined Prompt Defaults check box.
When you select the check box, Workday populates the Prompt Defaults grid with undefined prompt
defaults based on the configurations on the subreport. The check box automatically clears once
Workday finishes updating the Prompt Defaults grid.
18.On the Prompt Defaults grid, clear the Do Not Prompt at Runtime check box for these fields:
• Eliminations Only
• Perform Intercompany Eliminations
19.Click OK.
20.Click Run.
Select these check boxes to display only intercompany transaction eliminations lines on your reports:
• Eliminations Only
• Perform Intercompany Eliminations
• Eliminations Only for Plan
• Perform Intercompany Eliminations for Plan
When you don't select the check boxes, Workday displays all plan lines and actuals on your reports.

Result
When you run your custom report, you can compare your data and check for any variances on:
• All plan lines and actuals with eliminations.
• Only intercompany eliminations for plan and actuals.
Related Information
Concepts
Concept: Composite Reports
Setup Considerations: Consolidations and Eliminations on page 205
Tasks
Steps: Create Composite Reports

Plan Hierarchies

Setup Considerations: Plan Hierarchies

You can use this topic to help make decisions when planning your configuration and use of plan
hierarchies. It explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Workday plan hierarchies enable you to link plans and budgets in a hierarchical structure, making it easier
to control and report on multiple plans and budgets simultaneously.
Virtual parent-child plans link multiple child plans to 1 parent plan while true parent-child plans link 1 child
to 1 parent.

Business Benefits
• Parent plans contain their own budget amounts or aggregate amounts from linked child plans. This
enables you to view the details for the parent and linked child plans in 1 place.
• You can use plan hierarchies to run a single budget check for multiple plans simultaneously, reducing
the number of exceptions for review.
• Plan hierarchies improve reporting efficiency by enabling you to consecutively link high-level budgets
to subordinate-level budgets that increase in granularity with each level. As you progress through the
levels, the budget details become more refined.
• You can use plan hierarchies to budget check at higher levels than your budget entries. This gives you
the flexibility to create budgets with more dimensions and control them at levels that aggregate your
budget amounts based on fewer dimensions.
• You can use virtual plan hierarchies to consolidate budget and plan amounts from different plan types
for improved control and reporting.

Use Cases
• You can use a plan hierarchy to report on summary plan amounts using a parent budget and report on
more granular plan amounts using child budgets.
• You can link child budgets from different companies to a parent budget in a virtual plan hierarchy.
• You can ensure that child budget amounts don't exceed the budget limits set at the parent in a true plan
hierarchy.
• You can use a virtual plan hierarchy to consolidate multiple budgets into a single parent summary
amount to budget check your transactions against.

Questions to Consider

Question Considerations
How do you create and manage budget amounts? You can use 1 of these hierarchy types to manage
budget amounts:

Question Considerations
• True plan: Use when you need to enter budget
amounts at multiple levels with varying levels of
granularity. You can create an unlimited number
of hierarchy levels.
• Virtual plan: Use to consolidate individual
budget entries virtually at a summary level and
link position and financial plan types to the same
parent plan structure. You can only create 2
hierarchy levels.

How can you use budget check in a plan hierarchy? You can budget check at these levels:
• Child: Workday checks each child configured
for budget check, giving you tighter control over
your budget and enabling you to identify which
child plan fails.
• Parent: You only need to configure budget
check for 1 budget or plan. Since parents
contain aggregate amounts and fewer
dimensions, you check your transactions against
the overall budget summary instead of the more
granular child budgets. Example: You create
child budgets at the company, ledger account,
and cost center levels for reporting purposes.
You can enable budget check on the parent plan
to control your budgets at the company or ledger
account summary level.
• Both child and parent: Enables you to control
budgets and plans at the aggregated parent
level and more granular child entry level.

How do you want amendments to update existing • Use a true plan hierarchy to amend the
plans or budgets? parent and each child plan level individually.
Amendments on the parent plan don't impact
the child, but amendments on child or grandchild
plans can cascade up to the parent.
• Use a virtual plan hierarchy to make an
amendment on a child budget plan that
impacts the parent summary. You can make
amendments on the child plan or budget but not
the parent.

How do you want to report on plans or budgets in a You can use structured dimensions for reporting.
hierarchy? Example: On a child plan, you report at the
individual cost center level. On the parent plan, you
report at the cost center hierarchy level. The child-
level report provides a detailed view, whereas the
parent-level report returns a summary view.

Recommendations
To avoid double-counting budget amounts when converting historical transactions into hierarchies,
Workday recommends being aware of:
• Existing budgets you link to your new plan hierarchy.

• The sources for the amounts in the budgets that you link in your new plan hierarchy.
Run budget check at the parent level when you link many child plans and budgets to the same parent plan.

Requirements
Child plans are a subset of the parent plan so they must have the same summary schedule as or a more
granular schedule than the parent plan.
For virtual plan hierarchies, parents must include at least 1 structured dimension from the children.
For true plan hierarchies:
• Use a Financial plan type for both parent and child plan structures.
• Children must include all structured dimensions from the parent.

Limitations
• True parent structures only support 1 child per level.
• Virtual parent structures don't contain their own plan lines.
• You can't amend virtual parent budgets or plans.
• Workday only supports 2 hierarchy levels for virtual plan hierarchies. Virtual child plans can’t be a
parent to another child plan.

Tenant Setup
No impact.

Security
Users with access to the Set up: Budget General domain in the Budgets functional area can configure plan
hierarchies.

Business Processes
No impact.

Reporting

Reports Considerations
Child Budget Exceptions • Use to view child plan line amounts that exceed
the parent summary.
• Supports plans in true plan hierarchies.

Plan Consolidation • Use to create aggregated reports based on

multiple financial plans.
• Supports plans in virtual plan hierarchies.

Plan Structure Hierarchy Name • Use to compare the structure dimensions and
schedules of parent and child plans.
• Supports plans in true plan or virtual plan
hierarchies.

View Plan • Use to create reports on individual financial

plans.
• Supports plans in virtual plan hierarchies.

Integrations
No impact.

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Amend Plans or Budgets on page 393
Define Plan Structures on page 382
Edit Plan Templates on page 391
Steps: Create Parent-Child Project Budgets on page 1118
Reference
The Next Level: Structuring Your Budget Hierarchies Leveraging Virtual Parent-Child

Steps: Create Plan Hierarchies

Prerequisites
Security: Set Up: Budget General domain in Budgets functional area.

Context
You can set up your plans or budgets so that you have greater control in managing them at all levels of
your organization. You can link plan structures to create plan hierarchies.
You can create 2 types of plan hierarchies:
• True plan hierarchies enable you to control child and grandchild plans using your parent. You can
link a parent to 1 child and that child to 1 grandchild, and so on; Workday doesn't limit the number of
hierarchy levels.
• Virtual plan hierarchies enable you to report across multiple plan structures. The parent has no lines
of its own, and reflects the total of all its children. You can link a parent to many children, or a child to
many parents; Workday limits you to 2 hierarchy levels.

Steps
1. Define Plan Structures on page 382.
Create a plan structure with these settings:
• Financial as the Plan Type.
• For true hierarchies, Use Amendments/Approval checked.
• For true hierarchies, Required checked for all dimensions on the Structured Dimensions tab.
This structure becomes the primary or parent structure once you use it to create a child or link it to
another structure with the same settings.
For virtual hierarchies, create all parent and child structures. Child structures must have:
• In Plan Entry by, the same time periods as the parent or a subset of these time periods.
• The same structured dimensions as the parent. Children can have more, but if they're required on
the parent, they're required on the children.
2. Create or link plan structures for a true hierarchy or a virtual hierarchy:
• See Create or Link True Child Plan Structures on page 410.
• See Link Virtual Child Plan Structures on page 411.

3. (Optional) Create all additional subordinate plan structures:

• To create a grandchild structure for a true hierarchy, create or link another structure from the related
actions menu of the child structure.
• To create another child structure for a virtual hierarchy, link another structure.
4. Create Plans or Budgets on page 386.
Create plan templates for your hierarchy.
For true hierarchies, create plan templates from the parent plan structure. Workday generates
templates for each child structure within the hierarchy at the same time, and links parent and child
plans.
For virtual hierarchies, create child plan templates before you create your parent template. When you
create your parent template, you can select multiple child templates in the Linked Virtual Children
Budgets prompt.
5. Maintain Budget on page 389.
6. Submit a Plan or Budget for Approval on page 392.

Result
The resulting plan includes all details from all members in the hierarchy.

Next Steps
For virtual plan hierarchies with company hierarchies, you can use these reports to view plan lines for all
your company hierarchies and companies:
• Current Plan
• Plan Consolidation
Related Information
Concepts
Concept: Hierarchies in Plans and Budgets on page 412
Concept: Amendments to Plan Hierarchies on page 413
Reference
Reference: Valid True Plan Hierarchy Relationships on page 415
Reference: Virtual Plan Hierarchy Relationships on page 416
Workday 33 What's New Post: Company Hierarchies on Financial Plans

Create or Link True Child Plan Structures

Prerequisites
• Create a plan structure to be the parent.
• Security: Set Up: Budget General domain in Budgets functional area.

Context
Parent plan structures must use these settings to create a link to a child-level structure:
• Financial as the Plan Type.
• Use Amendments/Approval checked.
• Required checked for all dimensions on the Structured Dimensions tab.
You create a plan hierarchy by creating a child plan structure for your intended parent plan structure, or by
linking a plan structure to your intended parent plan structure. The settings of this child plan structure must
match the parent settings, but can have additional structured dimensions.

Steps
1. Access the Create Child Plan Structure or Link Child Plan Structure tasks from the related actions
menu of your intended parent plan structure.
If you choose the linking method, Workday only displays eligible structures in the True Child Budget
Structure prompt.
2. Select True Parent-Child as the Hierarchy Type.
You can use the Edit Plan Structure Hierarchy Name task anytime to revise the name.
3. In Plan Entry by, select the same time periods as the parent or a subset of these time periods.
Workday automatically populates the same time periods as the parent. You can change these default
time periods as long as you select a subset of the parent time periods.
4. (Optional) On the Structured Dimensions tab, add more dimensions to give more detail to your plan.
Workday automatically populates structured dimensions with Required checked from the parent plan
structure.
If you plan to create a subordinate plan structure from this child plan, select Required on your
additional dimensions. The grandchild plan structure must contain all dimensions from the child and all
are required. This procedure applies to all hierarchy levels.

Result
The child plan structure you created is now linked to the parent plan structure.
You can detach a child plan structure from a parent if no plan lines exist in child plan structure. Access
the Detach Child Plan Structure task from the related actions menu of the child plan structure. After
detaching the child plan structure, both the parent and child are available for linking again.

Next Steps
Create your hierarchical plan using these linked plan structures on the Create Plan Template task.
Related Information
Concepts
Concept: Hierarchies in Plans and Budgets on page 412
Tasks
Steps: Create Plan Hierarchies on page 409
Create Plans or Budgets on page 386
Reference
Reference: Valid True Plan Hierarchy Relationships on page 415

Link Virtual Child Plan Structures

Prerequisites
• Create all parent and child plan structures.
• Security: Set Up: Budget General domain in Budgets functional area.

Context
Financial and project plan type structures are eligible to be the primary or parent structure in a hierarchy.
In financial plan type structures, you can include child structures with financial or position plan types. In
project plan type structures, you can include child structures with project plan types.
You can create a plan hierarchy by linking a plan structure to your intended parent structure. Child
structures must have:
• In Plan Entry by, the same time periods as the parent or a subset of these time periods.

• At least 1 structured dimension in common with the parent. Dimension members must be the same as
the parent or a subset of these dimension members.

Steps
1. Access the Link Child Plan Structure task from the related actions menu of your intended parent plan
structure.
Workday only displays eligible structures in the Virtual Child Budget Structure prompt.
2. Select Virtual Parent-Child as the Hierarchy Type.
You can use the Edit Plan Structure Hierarchy Name task anytime to revise the name.

Result
The child plan structure is now linked to the parent plan structure.
You can detach a child structure from a parent if no plan lines exist. Access the Detach Child Plan
Structure task from the related actions menu of the child structure.

Next Steps
Create your hierarchical plan using these linked structures with the Create Plan Template task.
Related Information
Tasks
Steps: Create Plan Hierarchies on page 409
Create Plans or Budgets on page 386
Reference
Reference: Virtual Plan Hierarchy Relationships on page 416
The Next Level: Structuring Your Budget Hierarchies Leveraging Virtual Parent-Child

Concept: Hierarchies in Plans and Budgets

You can use hierarchical relationships to link your plans and budgets. Workday provides 2 unique
hierarchy types, true parent-child and virtual parent-child. With these plan hierarchies:
• Your organizations can create separate plan structures.
• You can generate structures at different levels of detail.
In Workday, the plan structure is the linking mechanism for these relationships.

True and Virtual Hierarchy Comparison

This table compares true and virtual plan hierarchies:

True Hierarchy Virtual Hierarchy

Purpose Defines a top-down process Enables you to link an unlimited
for plan entry. The parent plan number of plan structures to:
structure defines the summary
• Create aggregated reports.
details and the plan amount,
which are passed down to its • Establish budgetary control at
child plan structure. a more summarized level than
your plan entry.

Hierarchy Levels • Unlimited number of hierarchy • 2 hierarchy levels.

levels. • Parent can have many
• Parent-child relationship is a children, and child can have
1-to-1 relationship. many parents.

True Hierarchy Virtual Hierarchy

• Plans or budgets used in a
true hierarchy can also be a
virtual child.

Plan Types Financial Parent must be Financial.

Children can be Financial or
Position.
Structured Dimensions • Child must have all structured • Parent can have any
dimensions of the parent. structured dimension as long
• Child can have more as it exists on at least 1 child.
structured dimensions than • Child can have more
the parent. structured dimensions than
• Must be required. the parent.
• Can be optional, but if they're
required on the parent, they
must be required on all
children.

Dimension Members Child must be a subset or the Child must be a subset or the
same as the parent. same as the parent.
Time Periods Child must be a subset or the • Child must be a subset or the
same as the parent so it can roll same as the parent so it can
up into the parent time periods. roll up into the parent time
periods.
• Child must contain at least
1 time period defined in the
parent.

Amounts • Child must be equal to or less • Parent has no amounts of its

than the parent. own because virtual parents
• Amendments on the child are summarized totals of their
cascade up to the parent. children.
• Cannot be entered or changed
directly in the parent.

Related Information
Reference
The Next Level: Structuring Your Budget Hierarchies Leveraging Virtual Parent-Child

Concept: Amendments to Plan Hierarchies

When you amend a plan that's part of a true plan hierarchy, the changes can impact both the parent and
child plan. These changes depend on the amendment type. In general, amendments to a child plan can
cascade up to the parent, with some exceptions that depend on whether the amendment is balanced or
unbalanced.
For virtual plan hierarchies, you can only amend at the child plan or budget level. Amendment behavior is
identical to that of plans and budgets not in hierarchies.
In Workday, you can restrict who has the ability to make unbalanced amendments. Assign these users
to a segment-based security group on the Create Unrestricted Budget Amendment (Segmented) domain
security policy. When they amend, they can edit the Balanced Amendment check box.

Amendment Type True Parent True Child

Balanced Amendments to the parent don't Full debit and credit amounts
impact the child plan. You can cascade up to amend the parent
increase the parent plan with no plan regardless of the amount on
impact to the child plan. However, the parent. The only exception is
you can't decrease the parent when there's a net zero change to
plan amount below the child the parent.
amount.
Example: You amend a child
plan with a 10,000 USD debit
for Cost Center 1 and a 10,000
USD credit for Cost Center 2.
There’s no change to the parent
plan because the amendment is
a transfer from one cost center to
another.

Unbalanced Only increases the difference of • Amendment credits on the

the child plan increase, not the child plan don't decrease the
full amount of the amendment parent.
debit on the child. • Amendment debits on the
Example: You amend a child plan only impact the
100,000 EUR child plan with an parent when they cause the
amendment debit of 60,000 EUR. child debits to exceed the
The original parent plan was parent debits.
150,000 EUR, so the new parent
plan becomes 160,000 EUR.

Approval Routing
You can configure the Budget Amendment Event business process definition and security policy to
manage approval and routing for amendments to parent and child plans. You configure the order in which
approval takes place by editing the definition steps. Example: To ensure that the hierarchy manager can
review the amendment before the individual cost center manager, you can use these security groups in this
order:
1. Cost Center Hierarchy Manager
2. Cost Center Manager
Workday routes amendments to plan hierarchies as a single event in the business process. Even though
you can route them to different approvers, any actions taken on an amendment at any level impacts the
entire hierarchy. These actions include:
• Approvals: To move the plan to an approved state, approve the amendment at all hierarchy levels.
If the amendment in the child plan is net zero within the hierarchy, the parent plan doesn’t route for
approval.
• Denials: If an amendment is denied at any level, it’s denied at all levels and the plan won't reach an
approved state.
• Send backs: If an amendment is sent back for changes at any level, all plans are sent back and
any changes at this point are made on all of the plans. These changes then go through the approval
process again. Example: If a manager deletes a line on the child amendment, Workday removes that
line from the parent amendment as well.
Related Information
Tasks
Amend Plans or Budgets on page 393

Reference: Valid True Plan Hierarchy Relationships

This table describes valid relationship rules for true plan hierarchies, to use when you create child plan
structures that are compatible to parent plan structures:

Parent Children and Grandchildren

Hierarchy Relationship Can have only 1 child. • Can have only one parent.
• Each child can have only 1
child.
• Can have multiple levels of
grandchildren, with 1 member
at each level.

Dimensions All are required. • All are required.

• Must include all dimensions
from the parent.
• All dimensions must roll
up to the parent's top level
dimension.
• Dimension members can
be a subset of the parent
dimension.
Example: If the parent
structure includes Cost Center
Hierarchy 1, then the child
structure can include Cost
Center Hierarchy 1.1 or
individual cost centers within
that hierarchy.
• Can have additional Required
or Optional structured
dimensions to give more
granular plans.
Example: For the parent plan, you
choose Cost Center Hierarchy as
your organizing dimension. On
the child plan you include Cost
Center 1 and Cost Center 2. At
the grandchild level, you can drill
further into those cost centers by
identifying specific regions within
them as dimensions to give you a
more granular plan.

Time Periods Largest time periods. The parent Must be a subset or the same as
time periods can't be smaller than the parent so it can roll up into the
any of its children. parent time periods.
Example: If the parent uses a
summary schedule of quarterly
for plan entry, the child and any
grandchildren can be quarterly
or by period, but not use the
duration plan entry.

Parent Children and Grandchildren

Accounts Must include all accounts from Parent accounts must include all
the child and all grandchildren. accounts from the child and all
grandchildren.
Amount Controls the amounts available to • Can't exceed the amount of
the child and grandchild plans. the parent plan. Amounts must
roll up to be within the parent
plan amount.
Example: If the parent plan
is 100,000 EUR, the child
plan can have 4 rows, 25,000
EUR each. An associated
grandchild can have 3 rows
of 25,000 EUR and later be
amended to increase by up to
an additional 25,000 EUR.
• Can be less than the parent
amount.
Workday includes a validation
during the submit plan process
to ensure that the child plan
amounts don't exceed those of
the parent. Use the Child Budget
Exceptions report to identify
which child plan lines exceed the
amount of the parent.

Amendments Don't impact child plans. • Must be within the parameters

of the parent plan.
• Cascade up to the parent to
amend the corresponding line
of the parent, if the child plan
is amended to exceed that of
the parent. Workday doesn't
cascade these amendments
if the parent is configured for
unbalanced amendments.
• Unbalanced amendments to
the child don't cascade if:
• The child amount is
decreased.
• The parent plan amount is
not exceeded.
• Adding a new row and amount
to a child plan, adds a new
row to the parent as well.

Reference: Virtual Plan Hierarchy Relationships

This table describes rules for relationships in virtual plan hierarchies, to use when you create child plan
structures that are compatible with parent plan structures:

Parent Plans Child Plans

Hierarchy Relationship Can have many child plans. • Can have many parent plans.
• Can't have child plans.
• Plan in a true hierarchy can
also be a virtual child.

Structured Dimensions • Can have Optional structured • Must share at least 1

dimensions. structured dimension with the
• Must include all dimension parent plan.
members used in child plans, • Dimension members must be
to ensure that the plans add the same as or a subset of the
up correctly. parent dimension.
• Can have any structured • Can have additional Required
dimension as long as it exists or Optional structured
on at least 1 child plan. dimensions for more granular
plans.

Time Periods Can't have a smaller time period

than any of its child plans.
Example: If the parent plan uses
a quarterly summary schedule
for plan entry, the child plans can
use either a quarterly or a period
schedule, but not duration.

Accounts Must include all child plan

accounts.
Amount Have no amounts of their own
because virtual parent plans are
summarized totals of their child
plans.
Amendments Can't be amended. Can be amended.

Related Information
Reference
The Next Level: Structuring Your Budget Hierarchies Leveraging Virtual Parent-Child

Reference: Plan Hierarchy Reports

For a full picture of your plan hierarchies, use these reports:

Name Plan Hierarchy Type Securities Description

Child Budget True Reports: Company Displays the child plan
Exceptions Financial Budgets and line amounts that exceed
Reports: Manager the amount on parent.
Financial Budgets
domains in the Budgets
and Planning functional
areas
Plan Consolidation Virtual Reports: Manager Displays consolidated
Financial Budgets reporting of ledger
account summaries for

Name Plan Hierarchy Type Securities Description

domain in the Budgets your financial plans and
functional area position budgets. The
report supports reporting
by:
• Virtual parent plan
structures, including
any virtual child
plans.
• Virtual child plan
structures.

Plan Structure True, Virtual Process: Budget and Compares the primary
Hierarchy Name Reports: Manager and subordinate plan
Budgets domains in the structure dimensionality
Budgets and Planning and schedules.
functional areas
View Plan Virtual Process: Budget and Displays a Linked Plans
Manage: Project Budget tab that lists all child
domains in the Budgets plans.
and Projects functional
areas

Appropriations

Steps: Set Up Appropriations

Context
You can create appropriations to include on budgets and on transactions as worktags to track costs for
authorized spend. The appropriations worktag enables you to:
• Report on recorded amounts from the appropriation value.
• Control spend against budgeted appropriation amounts.

Steps
1. Access the Maintain Appropriation Types task.
Create the appropriation types to include and define the usage on appropriations.
Security: Set Up: Appropriation domain in the Common Financial Management functional area.
2. Access the Create Appropriation task.
As you complete the task, consider:
Option Description
Appropriation ID When you don't enter an ID, Workday creates 1
when you submit the appropriation.
Include Appropriation ID in Name Adds the appropriation ID to the appropriation
name. Workday uses the appropriation ID to
create a unique name, enabling you to use a
name multiple times.

Option Description
Appropriation Type Select the type of appropriation to indicate its use.

Security: Set Up: Appropriation domain in the Common Financial Management functional area.
3. (Optional) Create Appropriation Hierarchies on page 419.
4. Configure Worktags for Transactions.
Configure the Appropriation worktag type.
5. Configure Related Worktags.
Configure the worktag usage for the Appropriation taggable and worktag type.

Next Steps
Include appropriations and appropriation hierarchies on:
• Plan structures as structured dimensions.
• Budget lines.
• Transactions as worktags and related worktags.
• Account posting rules as condition dimensions.
• Business process definitions as a condition rule.
Access the Inactivate task from the related actions menu of an appropriation or appropriation hierarchy to
discontinue its use.
Related Information
Tasks
Set Up Account Posting Rules on page 71
Steps: Set Up Plans or Budgets on page 379
Edit Business Processes
Reference
2022R2 What's New Post: Appropriation Organization and Accounting Worktags

Create Appropriation Hierarchies

Prerequisites
• Create appropriations.
• Security: Set Up: Appropriation domain in the Common Financial Management functional area.

Context
You can create a hierarchical structure to group your appropriations for enhanced reporting.

Steps
1. Access the Create Appropriation Hierarchy task.
2. As you complete the task, consider:
Option Description
Appropriation Hierarchy ID When you don't enter an ID, Workday creates one
when you save the appropriation hierarchy. Once
you submit the hierarchy, this ID becomes the
reference ID for integrations.
Include Appropriation Hierarchy ID in Name Adds the appropriation hierarchy ID to the
appropriation hierarchy name. Workday uses

Option Description
the appropriation hierarchy ID to create a unique
name, enabling you to use a name multiple times.
Superior To create the highest level of a hierarchy, leave
the field blank.
To enable a multilevel hierarchy, select a
superior.

Includes Select the appropriations that belong to the

appropriation hierarchy. You can't have the same
appropriation in more than 1 level of a hierarchy.
Assign Roles Create or assign a role to associate with the
hierarchy. Example: Configure an Appropriation
Hierarchy Manager role.

Position Control

Setup Considerations: Position Budgets

You can use this topic to help make decisions when planning your configuration and use of position
budgets. It explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Position budgets in Workday are budgets you can use to manage and budget check your staffing
transactions. They contain the compensation and fringe benefits for a position restriction. You can
generate position budgets using payroll commitments. Workday groups multiple position budgets together
into 1 budget for each plan structure and fiscal year.

Business Benefits
You can use position budgets to:
• Compare budgets against actuals.
• Make staffing decisions based on your overall company budget.
• Identify overspending in any staffing modifications.
• Realize any savings throughout the year.
• Track salaries.

Use Cases
• View and manage compensation and fringe benefit expenses for positions. Example: For a sales
position, you consider a commission rate along with salary, while for IT you only consider salary.
• Control your compensation and costing allocations using budget check to make better staffing and
financial decisions based on your commitments and obligations. Example: As a university budgets

administrator, you decide on the hourly compensation for student jobs based on the time, effort, and
training required.

Questions to Consider

Questions Considerations
Which staffing model do you use? You must use the position management staffing
model to use position budgets since the job
management staffing model doesn't support
position restrictions. However, if you already use
the job management staffing model, you can create
a financial plan to support your staffing transactions
not restricted to any position. If you want to use
both position and job management staffing models,
you can create a virtual plan hierarchy with these
child plans:
• Financial plan with job management structured
dimensions on the plan structure.
• Position budget for position management
positions.

What job dimensions do you want to use? You can use job profiles, job families, and job family
groups to help determine the correct population
of employees to create position budgets for.
Workday locates the position that you want to
create a position budget for by filtering matching
dimensions between your plan structures and
position restrictions.
You can only use 1 of the 3 job dimensions per plan
structure.

Recommendations
Workday recommends:
• You include costing allocation or pay component worktags on your plan structure so that Workday can
perform budget check on your transactions.
• When you're generating position budgets from your payroll commitments, ensure you have the correct
fringe benefit rates to avoid manually revising them later.

Requirements
• You must configure payroll commitment accounting to track commitments, obligations, and actuals for
Workday to reflect accurate compensation for active employees in your available budget.
• Use the position management staffing model.

Limitations
No impact.

Tenant Setup
No impact.

Security
In the Budgets functional area:

Domains Considerations
Access Plan Type (Segmented) Enables you to:
• Control which users have access to different
plan types.
• Configure a segment-based security group for
the financial, position, and award plan type
segment.
You must configure this domain for all budget
types.

Process: Position Budget Enables you to edit and view position budgets.
Process: Manager Position Budgets Enables managers to edit and view these budgets
when assigned to an organization:
• Position budgets.
• Position budget amendments.

Process: Cancel Position Budget Enables you to cancel position budgets and
position budget amendments.
Process: Cancel Position Budget Amendment

Reports: Company Position Budgets Enables you to view position budget and position
budget amendment lines for your company.
Reports: Manager Position Budgets Enables you to report on position budgets by
manager.
Set Up: Budget General • Create and edit plan structures and plan
templates.
• Create a budget fringe rate table.
• Edit budget check options.
• Mass generate position budgets.
• Roll forward or close budgets.
• Submit a position budget group.

Business Processes

Business Processes Considerations

Position Budget Event Enables you to:
• Create, edit, and submit position budgets and
budget amendments.
• Import position budgets using the Import
Position Budget web service.

Position Budget Group Enables you to:

• Create a position budget group to run the Import
Position Budget web service.
• Mass generate position budgets.

Reporting

Reports or Dashboards Considerations

Find Position Budgets and Amendments View:
• A particular position budget.
• All position budgets for your plan structure and
year.
• Information about the position budgets like
current incumbent, compensation budget, and
total plan.

Position Budgetary Balance Report View a summary of your position budgets and the
commitments, obligations, and actuals.

Manager Position Budgetary Balance Report View budgetary balance for position budgets
for the company, plan structure, and year of an
organization. Limited to manager roles.
Position Budgets Use this report data source when creating position
budget reports for organization managers.
View Available Budget View line-level details about your position budgets.

You can also use the Position Budgets report data source when creating position budget reports for
organization managers.

Integrations
You can create an EIB based on the Import Position Budget web service to mass:
• Upload or update position budgets.
• Import budget amendment lines for an approved position budget.
You must import the annual amount when you import position budget amendments.

Connections and Touchpoints

When you use commitment accounting and budget check, Workday checks your compensation and
staffing transactions against position budgets.
To budget check your position budgets, you must have Workday Payroll.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across
your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Position Budgets on page 434
Tasks
Steps: Set Up Position Budgets on page 426
Steps: Generate Multiple Position Budgets on page 431
Define Position Budget Structures on page 427

Steps: Set Up Position Control

Context
Set up position control in Workday. You can use position budgets without commitment accounting and
payroll commitments. Similarly, you can use commitment accounting and payroll commitments without
position budgets.

Steps
1. Create a position and a position restriction as needed for position budget entry.
See Steps: Set Up Job Requisitions for Commitments and Obligations on page 425.
2. Create position budgets.
See Steps: Set Up Position Budgets on page 426.
3. Configure commitment accounting for position control.
See Steps: Configure Commitment Accounting to Control Positions on page 440.
4. Create payroll commitments.
See Steps: Process Payroll Commitment Accounting.
Related Information
Concepts
Concept: Position Control on page 444
Reference
Reference: Position Control Terminology on page 445

Steps: Use Position Control

Prerequisites
Set up position control.

Context
Use and maintain position control in Workday.

Steps
• At the start of the fiscal year:
a) Create position budgets.
See Steps: Set Up Position Budgets on page 426.
b) (Optional) Define position budget checking.
See Steps: Check Position Budgets on page 435.
c) Create Initial Payroll Commitments.
d) Use ad hoc reports to view commitment and obligations once initial calculations have been made.
See Reference: Payroll Commitment Reports.
e) Review Budgetary Balances for Position Budgets on page 441.
Perform detailed budgetary balance reporting to compare your commitment accounting and position
budgets against your actuals.
• Throughout the fiscal year:
a) Calculate real-time payroll commitment adjustments and perform budget checking as needed.
You can adjust payroll commitments (and optionally check position budgets) as part of various
position-related business processes. For a complete list, access the Business Process

Configuration Options report for the Check Budget (Staffing) business process, and review the
Allowed Subprocess For column.
See Automate Payroll Commitment Adjustments and Review Position Budget Check Results on
page 438.
b) Adjust Payroll Commitments Ad Hoc.
Create, calculate, and review bulk payroll commitment adjustments. This task doesn't perform
budget checks.
c) Review fringe benefit actuals. Fringe benefit actuals are calculated automatically when you run each
regular on-cycle and off-cycle pay calculation, or use the stand-alone Run Payroll Fringe Benefits
Accounting task.
See Concept: Fringe Benefit Actuals.
d) View payroll liquidations. Run regular on-cycle and off-cycle payroll, or use the stand-alone Run
Payroll Commitments Liquidation task.
See Concept: Payroll and Fringe Benefit Liquidations.
e) View initial payroll commitment, payroll commitment adjustment, and payroll commitment liquidation
accounting.
See Reference: Payroll Commitment Reports.
f) Review Budgetary Balances for Position Budgets on page 441.
View commitment accounting balance reports. You can filter these reports to view the budgetary
balances for companies or cost centers.
g) Reconcile Ledger Commitment Balances to Payroll Commitments on page 443.
Related Information
Concepts
Concept: Position Control on page 444
Tasks
Steps: Set Up Position Control on page 424
Reference
Reference: Position Control Terminology on page 445

Steps: Set Up Job Requisitions for Commitments and Obligations

Context
The position control process begins with job requisitions. Job requisitions enable you to request approval
to fill a vacant position. Job requisitions are available if you use either the position management or job
management staffing models.
When you turn job requisitions on, all vacant positions that you fill require an open job requisition.

Steps
1. Access the Edit Tenant Setup - HCM task:
• Enable job requisitions for position management, either for all staffing events or based on rules.
• Enable job requisitions for job management.
• Select an ID definition.
Job requisitions trigger the capture of job details needed for commitment calculations. Job requisitions
are required if you're using commitments and obligations. They're optional if you're only using
obligations.
Note: Once you generate commitments, you can't disable job requisitions.
See Reference: Edit Tenant Setup - HCM.

2. Create Positions.
Create a new position. You must have a position (filled or unfilled) to create a position budget.
3. Propose Compensation for Employees or Positions.
Use the Request Compensation Change task to assign compensation to a position. Payroll uses this
information to perform the commitment calculation.
Alternatively, you can include the Request Requisition Compensation subprocess in the Job Requisition
and Job Requisition Change business processes.
4. Steps: Change Organization Assignments for Worker.
Assign organizations to a position by selecting Change Organization Assignments from the related
actions menu of the unfilled position. This provides the information necessary for the correct accounting
of the commitment amount.
Alternatively, you can include the Change Organization Assignments subprocess in the Create Position
business process.
5. Access the Assign Pay Group for Position Restriction task.
Assign a pay group to a position. This provides the information for prorating the planned payroll portion
of the commitment calculation.
6. (Optional) Define Cost Allocations for Position Restrictions.
Allocate costs to the default organization assignment and other cost centers.
7. Create and Edit Job Requisitions.
Workday begins commitment accounting on the Target Hire Date.
Related Information
Concepts
Concept: Position Control on page 444
Tasks
Steps: Set Up Position Control on page 424
Steps: Use Position Control on page 424
Reference
Reference: Position Control Terminology on page 445

Position Budgets
Steps: Set Up Position Budgets

Prerequisites
• Create and approve a position restriction.
• Determine the amounts to budget for compensation and fringe budgets, and identify how to allocate and
account for those costs.
• Define the Position Budget Event business process.

Context
Use these high-level steps to create position budgets and submit them for approval in Workday. Click the
links in each step for details.

Steps
1. Access the Assign Users to User Based Security Group task, and select the Finance Administrator
user-based security group.
2. Select the System Users for the group.

3. Set Up Fiscal Schedules and Years.

4. Access the Create Account Set task to create ledger accounts.
You can use an existing account set across multiple companies.
See Steps: Create and Organize Ledger Accounts.
5. Set up these account posting rules for payroll commitments, payroll obligations, and fringe benefits:
• Payroll Commitment
• Payroll Obligation
• Payroll Earnings
• Fringe Benefit Commitment
• Fringe Benefit Obligation
• Fringe Benefit Expense
• Fringe Benefit Recovery
For details about how these account posting rules relate to commitment transactions, see Concept:
Commitment Accounting for Position Control on page 441.
6. From the Edit Company Accounting Details task, select the Fiscal Schedule, Account Set, and
Account Posting Rule Set you created.
The required currency for position budget accounting is US dollars (USD).
7. Access the Ledger Period Journal Status report and open the periods.
See Change the Status of Ledger Periods.
8. Create a budget structure with plan type of position.
See Define Position Budget Structures on page 427.
9. Create a budget template by associating a company with the budget structure.
See Create Plans or Budgets on page 386.
10.(Optional) If you upload position budgets into Workday, you can create a position budget group.
Use the Position Budget Spreadsheet EIB to group position budgets into logical collections.
See Steps: Create Position Budget Groups for EIB Upload and Approval on page 431.
11.Enter or upload position budgets in Workday:
a) Enter position budgets using the Create Position Budget task.
See Create Position Budgets on page 429.
b) Upload position budgets into Workday.
12.From the Create Position Budget or Submit Position Budget Group task, submit the position budget
or position budget group.
13.(Optional) Amend a budget to make changes to an approved position budget.
See Amend Position Budgets on page 432.

Next Steps
(Optional) Set up position budget checking.
Related Information
Tasks
Steps: Check Position Budgets on page 435

Define Position Budget Structures

Prerequisites
• Create a fiscal schedule, posting intervals, and fiscal year for the company for position budgets.
• Create an account set for the company for position budgets.

• Establish the dimensions used for the position budget.

• To enable only certain members to select ledger account summaries in position budgets, define specific
members of the ledger account summary for the account set.

Context
You can create or update the structure of a position budget and implement position control for your
organization or company. This structure specifies the filtering dimensions and other factors that define your
position budgets. A company can have only 1 budget template per structure.

Steps
1. Access 1 of these tasks:
• Create Plan Structure
• Edit Plan Structure
2. Select Position as the Plan Type.
If you edit a budget structure that's in use, you can only change:
• The name.
• Structured dimension with values not in use on budget or budget lines for the structure.
• Primary worktags.
3. Select the corresponding Schedule, and select an annual fiscal summary from the Summary
Schedule prompt. An annual fiscal summary combines all periods in the annual position budget.
Because position budgets require approval, Workday automatically enables the Use Amendments/
Approval option. This option ensures that the business process requires position budget approvals.
4. Select the Account Set for the fiscal schedule you selected.
5. Define Structured Dimensions to filter budget criteria, and associate the dimension types (such as
Business Unit, Cost Center, Fund, Grant, Pay Component, Position Restriction, Program, Project, or
Region) to the members.
Select 1 structured dimension as the Organizing Dimension Type for position budgets.
Examples:
• Select the Cost Center dimension as the organizing dimension type and include all members.
• Select the Pay Component dimension and include Deduction: Fringe Benefit Commitment, and
Earning: Base Pay - 12 Months for specific members.
6. Select the dimension and require it for entry on each budget line. If you select the dimension as the
Organizing Dimension Type, you must require entry of the dimension.
7. To associate positions to the budget structure, define the job family membership.

Result
The budget structure is available for creating a position budget.

Next Steps
Create a budget template that associates the budget structure and company to use for the position budget.
Related Information
Tasks
Create Plans or Budgets on page 386

Create Position Budgets

Prerequisites
• Create a budget for the fiscal year.
• Set up approved positions.
• Define approval steps in the Create Position business process.
• If you plan to load position budgets into Workday, create the inbound Import Position Budget EIB from
the predefined template.
• Configure the Position Budget Event business process and corresponding security policy.

Context
You can define the compensation and fringe details for position budgets based on the fiscal year.
You can also define budgets for positions assigned to your organization. Organization roles can manage
cost allocations across different organizations at the budget line level.

Steps
1. Access the Create Position Budget task.
To create budgets for positions assigned to your organization, access the Create Position Budget for
Organization task.
2. Enter the control total in the Compensation Budget field. Workday compares this value to the
available budget for this position during budget check processing.
3. As you complete the Plan Lines tab, consider:
Option Description
Fringe Rate Enter a fringe rate for each line, or select a
different rate from a budget fringe rate table
associated with the position budget. If left blank,
Workday calculates the fringe rate based on the
compensation and fringe amounts.
Fringe Amount Workday automatically calculates fringe as a
percentage of compensation based on a default
fringe rate. You can also enter fringe directly on
the lines.
4. (Optional) From the Compensation Information tab, view the default compensation assigned to the
position. This information includes these amounts to assist you in determining values for this position
budget:
• Compensation range maximum.
• Compensation range midpoint.
• Compensation range minimum.

Result
The position budget is ready for review and further processing.
You can use these reports to locate existing position budgets:
• Find Position Budgets
• Find Position Budgets for Organization

Next Steps
Approve position budgets.

Related Information
Tasks
Steps: Set Up Position Budgets on page 426

Create Position Budgets from Commitment Accounting

Context
Create a budget based on the current commitment accounting for a specific position. Workday leverages
payroll commitments, obligations, and actuals to generate compensation and fringe details based on the
fiscal year and account dimensions on the position budget structure.
If you create multiple position budgets at once using the Mass Generate Position Budgets task, Workday
automatically creates these position budgets from payroll commitment journals.

Steps
1. Access either:
• The Create Position Budget task.
• The Create Position Budget for Organization task.
2. Select the Auto-Populate Plan Lines check box.
3. (Optional) From the Compensation Information tab, view the default compensation assigned to the
position. This information includes these amounts to assist you in determining values for this position
budget:
• Compensation range maximum.
• Compensation range midpoint.
• Compensation range minimum.

Result
Workday generates a position budget and budget lines for compensation and fringe benefit amounts based
on payroll journal entries in these statuses:
• Created
• Posted
• Reserved
Workday reserves a payroll commitment or obligation adjustment for budget after passing budget check
and multiple approvals.
Workday groups the budget lines by the dimensions on the budget structure with current costing
allocations (percent splits, worktags, and compensation and fringe benefit amounts) for the position. The
fringe rate automatically populates from the fringe benefit payroll commitment rule.
If no commitment accounting exists, Workday displays the Edit Position Budget task for manual entry. On
this task, Workday only creates the position budget if you click Submit or Save for Later.

Related Information
Tasks
Create Initial Payroll Commitments

Steps: Generate Multiple Position Budgets

Prerequisites
• Configure the Position Budget Group business process with approval steps.
• Create a position budget structure and template.
• Create a position budget group.
• Security: Set Up: Budget General domain in the Budgets functional area.

Context
You can create multiple position budgets for budget structure dimensions and commitment accounting for
future budget years. Workday Payroll creates commitment accounting from planned compensation, staffing
events, and costing allocations to generate compensation and fringe details for each position. You might
also have commitment accounting journal lines from integrations or other sources.

Steps
1. Access the Mass Generate Position Budgets task.
2. Select a position budget group for grouping the position budgets together for approval.
3. (Optional) In the View Position Budget Group report, you can drill down into Total Position Budgets
to view or edit the individual position budgets that Workday generated. Workday includes any position
budgets that you edit in the position group for approval.
If pay component is a structured dimension and fringe is on multiple compensation lines, Workday
attaches the fringe amount to the largest compensation line.
4. Access the Submit Position Budget Group task and submit the group for approval.
If you select Require Fringe on at Least One Line on the position budget structure but no fringe
exists, you can't submit the position budget group for approval until you take 1 of these actions:
• Drill down on each position budget and add fringe amounts.
• Add fringe in commitment accounting and regenerate the position budget group.
• Cancel the position budget that's missing fringe. You submit the rest of the position budget group.

Next Steps
Approve position budgets.

Steps: Create Position Budget Groups for EIB Upload and Approval

Prerequisites
• Create a budget for the fiscal year.
• Set up approved positions.
• Configure the Position Budget Group business process with approval steps

Context
Group position budgets together for streamlined loading into Workday using the Import Position Budget
EIB. Once you load and group position budgets, you can approve all position budgets in that group in 1
approval action.

Steps
1. Access the Create Position Budget Group task.
Define the position budget group. Workday uses the ID and description to associate the position
budgets on your Import Position Budget Spreadsheet Template with the position budget group.
2. Customize EIB Spreadsheet Template.
Generate and modify the Import Position Budget Spreadsheet Template in Workday, and specify the ID
and description you used on the Create Position Budget Group task.
3. Launch EIB Spreadsheet Upload.
Upload the spreadsheet into Workday. The budget years for your company and the associated
budget groups must include unapproved position budgets that you load through the Position Budget
Spreadsheet predefined template.
4. (Optional) If necessary, make corrections to the source data and reload the template.
5. Access the Submit Position Budget Group task and submit the position budgets in the group for
approval.

Result
The approval status of the position budgets in the group is available to review and refine as needed.

Next Steps
Review and approve position budgets.
Related Information
Tasks
Review Position Budget Check Results on page 438

Amend Position Budgets

Prerequisites
• The approval step process for position budgets must be complete.
• Position budgets must be in Approved status.
• An existing amendment must not be in process.
• Configure the Position Budget Event business process and corresponding security policy.

Context
You can amend previously approved position budgets throughout the fiscal year when your company has
compensation or funding changes.

Steps
1. Access the Create Position Budget Amendment task.
2. Select an amendment type, such as Original or Revised for revising the original amendment.
3. In the Position Budget Types table, enter an amount in the compensation Amendment field.
You can overwrite the amounts in Amended Budget fields when necessary. You can enter either a
new total compensation amount, or an amount to increase or decrease the total compensation budget
for the calculated amended budget total.
4. In the Budget Amendment Lines, you can adjust the percentages or amounts of the compensation
and fringe benefit budgets used on existing lines.
The existing transactions amount shows journal lines that match the budget line dimensions. Journal
lines in created and posted status are reflected in the amount.

Result
The position budget amendment is ready for review and any further processing.
Each time you create an amendment, Workday creates a new version of the position budget.

Amend Position Budgets for Organizations

Context
You can amend previously approved position budgets with compensation or funding changes for your
organization throughout the fiscal year.

Steps
1. Access the Create Position Budget Amendment for Organization task.
2. Select an amendment type, such as Original or Revised for revising the original amendment.
3. In the Position Budget Types table, enter an amount in the compensation Amendment field.
You can overwrite the amounts in Amended Budget fields when necessary. You can enter either a
new total compensation amount, or an amount to increase or decrease the total compensation budget
for the calculated amended budget total.
4. In the Budget Amendment Lines, you can adjust the percentages or amounts of the compensation
and fringe benefit budgets used on existing lines.
The existing transactions amount shows journal lines that match the budget line dimensions. Journal
lines in created and posted status are reflected in the amount.

Result
The position budget amendment is ready for review and any further processing.
After approval, Workday creates a new version of the position budget with amended amounts.

Amend Position Budgets from Commitment Accounting

Context
You can amend previously approved position budgets throughout the fiscal year based on the latest
commitment accounting. Workday matches and groups the accounting from all sources into proposed
budget lines according to the account dimensions on the position budget structure.

Steps
1. Access either:
• The Create Position Budget Amendment task.
• The Create Position Budget Amendment for Organization (Aggregate) task.
2. Select an amendment type, such as Original or Revised for revising the original amendment.
3. Click Propose Amendment. This button displays when commitments, obligations, or actuals exist for
a position. It also displays if the current budget total is out of balance with negative compensation and
fringe amounts.
Workday shows the full set of proposed budget lines and highlights the changed amounts that adjust
the current budget.
4. Click Accept Proposed Amendment to add the proposed lines to the amendment.

Result
The position budget amendment is ready for review and any further processing.
After approval, Workday creates a new version of the position budget with amended amounts.

Example
You change the costing allocation for a position with an approved budget from 3 projects to 2 projects.
The new costing allocation triggers commitment accounting adjustments in Workday Payroll. Workday
proposes a budget amendment with an additional budget line to match the current commitments,
obligations, and actuals for the position.
Related Information
Tasks
Create Initial Payroll Commitments
Amend Position Budgets on page 432

Concept: Position Budgets

Position budgets provide your organization capabilities to establish position budgets, which you can use
for budget checking when implementing position control. You track position budgets at the position level
for the fiscal year. The fiscal year budget is adjusted throughout the year to reflect changes such as
compensation and staffing modifications.
When setting up position budgets, you can specify the structure dimensions to include in your position
budget. The available dimensions are from payroll, and include cost center, region, location, and pay
component. Your structured dimensions provide reporting capabilities and accounting functions in
Workday.
By specifying budget check options, you can compare submitted position budgets against the available
budget and determine whether the budget is sufficient. Approvers have insight for making decisions and
taking appropriate actions.
You can also compare position budgets against actuals without using payroll commitments and the
corresponding accounting results. This enables you to report on position budgets without performing
position control.

Commitments
Calculated for Commitments
Fiscal Year Recalculated for
Budgets
Changes in
Amended for
Budgets New Budgets Assignment or
Changes in
Loaded Entered for Compensation
Compensation or
Through New Positions Funding
Interface

Beginning of Commitments Liquidated,

Fiscal Yea
r Actuals Posted

Figure 1: Position Budget Year

Related Information
Concepts
Concept: Position Control on page 444
Reference
Reference: Position Control Terminology on page 445

Position Budget Checking

Steps: Check Position Budgets

Prerequisites
Set up position budgets.

Context
You can set up and check position budgets against proposed payroll commitments and actuals using
position-related business processes. Checking position budgets enables you to identify overspending or
realize savings throughout the year.

Steps
1. Set Control Options for Position Budgets on page 435.
Enable budget checking and set budgetary control options.
2. Automate Payroll Commitment Adjustments.
Set up and run the Check Budget (Staffing) business process as a subprocess for position-related
tasks.

Result
When you check your position budgets against proposed payroll commitments and actuals, Workday posts
commitment accounting journal entries to your ledgers for the approved adjustments.
Related Information
Tasks
Steps: Set Up Position Budgets on page 426

Set Control Options for Position Budgets

Prerequisites
• Set up a budget for the company using a position budget structure.
• Create budget periods for the company for that position budget structure.

Context
Set options to control position budgets for each budget structure and fiscal year combination. These
settings control:
• The budgets enabled for budget checking.
• The level of severity with which to control budget.
Workday only supports up to 50 budgetary control option lines.

Steps
1. Access the Edit Budget Check Options task.
2. For the specified Company, select where you want to set budgetary controls:
Option Description
Plan Structure Select from the structures you use to define the
budgets for the company.
Fiscal Year Select from the years for which you create periods
for the company and budget structure.

You can configure only 1 set of budgetary control options for the duration of a budget, as defined by the
budget structure and fiscal year.
3. As you complete the Position tab, consider:
Option Description
Enable Budget Check Select to enable budget checking for position-
related tasks where the business process
includes the Check Budget (Staffing) subprocess
as a step.
Budget Check Option Select the level of severity with which to control
the budget when performing budget checking on
position-related tasks:
• Warn: Select to permit the reviewer to continue
with transaction approval without taking
corrective actions to resolve the exception.
• Control: Select to prevent transaction approval
until there’s a revision to the transaction or
budget that enables the transaction to pass
budget check.

Control by Period Workday automatically selects this option.

Workday always checks position budgets against
the budget entry period as specified on the budget
structure.
Include Reserved Journal Lines for Budget Select to include journals in reserved posted
Check status in calculations of the available balance.
Example: You have 2 position-related tasks that
impact the same budget. With this check box
selected, you submit the first position-related task.
As soon as the first task passes budget check,
Workday:
a. Immediately places the journals in Reserved
status.

Option Description
b. Considers these reserved journals when
calculating available budget for the second
position-related task.

Ledger Types for Budget Check Select which ledger types to include in the budget
check.
Example: You can include only your position-
related tasks (obligations) for budget check and
exclude your position requisitions (commitments).
With this configuration, Workday automatically
includes:
• Obligation and actual ledgers in the
background if you select the commitment
ledger.
• Actual ledgers in the background if you select
the obligation ledger.

Allow Budget Check Override Select to enable budget check reviewers to

request approvals for budget check exceptions.
If an authorized approver grants an override,
Workday displays Override Granted next to the
budget check status on the transaction for all
subsequent approvers. Once the override is
approved, the transaction moves forward to the
next step in the parent business process.
Note: You must first select Control for the
Budget Check Option.

4. On the Entry Periods tab, review the years and periods for the budget to see when these settings are
in effect.
5. (Optional) As you complete the Budgetary Control Option Line tab to create budget check rules for
certain combinations of ledger account and dimensions, consider:
Option Description
Budget Check Option Pass: Select to create a rule that allows a
transaction to pass budget check even when it's
over budget.
Skip: Select to create a rule allowing a transaction
to skip budget check and display a Not Required
status even if the transaction fails budget check
otherwise.
The budget check options you select must differ
from the budget check option you configure on
the Position tab. If no rules on the grid apply to
your transaction, Workday uses the budget check
option you configure on the Position tab.

Tolerance Percentage Enter a tolerance percentage or amount so that

your transaction only fails budget check when it
Tolerance Amount
exceeds the tolerance amount over budget.

Note: You can select only 1 worktag of each type per budgetary control option line.

Result
Workday uses these settings to determine the behavior of the Check Budget (Staffing) business process.
You can add Check Budget (Staffing) as a subprocess step to various position-related business processes
where required, such as after the initiation, review, or approval steps. For a list of business processes that
enable this subprocess, view the Business Process Configuration Options report.

Review Position Budget Check Results

Prerequisites
• Include the Check Budget business process as a step in position-related business processes.
• Set up position budgetary control options for each budget structure and fiscal year.
• Perform the position-related task.

Context
Review the results of the failed budget check for a staffing transaction and decide how to proceed. Your
choices depend on whether you configured the budgetary control to:
• Warn if it failed budget check.
• Control the budget and prevent transaction approval until it passes budget.
Workday only displays transaction lines that failed budget check on the Inbox item, not transaction lines
that met any Pass or Skip budget check rules.
The failed transaction can be subject to budgets across multiple companies and budget structures.
Workday displays all budgets that a transaction fails to pass on the Review Budget Check Inbox item.

Steps
1. Access the Review Budget Check Inbox item.
2. As you review the budget check on the Inbox item, consider:
Option Description
Request Override Sends a request for overriding a failed budget
check to an authorized approver. If an authorized
approver grants an override, Workday displays
an Override Granted status next to the budget
check status on the transaction for all subsequent
approvers. Once approved, the transaction moves
forward to the next step in the parent business
process.
Control Periods The periods that Workday controlled budget
against. They can differ from your budget entry
periods. Example: You can enter budget amounts
by month but control by grouping the entire
budget amount across a quarter or budget
duration. A transaction can impact multiple
budgets, which could have different control
periods.
Budget Check Option The budget check option that caused the
transaction to fail budget check.
• Warn: Enables you to continue with transaction
approval without taking corrective actions to
resolve the exception.

Option Description
• Control: Prevents transaction approval until
there’s a revision to the transaction or budget
that enables the transaction to pass budget
check.

Plan to Date If you configured the budget check option to use

cumulative control periods, Workday determines
the budget amount based on the current control
period and any prior control periods.
View For each budget, click to view the Budget Check
Exceptions report.
The report displays the impact of the transaction
on the budget, and how much it's over budget.
To pinpoint what's causing the exception in the
proposed payroll journal, you can:
• Drill into the Current Transaction value on
this report.
• Access the Payroll Commitment Summary
report for the transaction.

3. After you’ve reviewed the information about why the transaction failed budget check, take 1 of these
actions:
• Amend the budget.
• Fix the journal error.
• Send the transaction back to the requester for revision. Example: You send the transaction back to
the requester because they requested too much.
• Deny the request.
• Continue with transaction approval anyway. You can only continue despite failing budget check if
you configured budget check as Warn.
4. Return to the Review Budget Check Inbox item and click Submit to rerun budget checking for the
transaction.

Result
Once the transaction passes budget:
• The position-related business process completes.
• Workday posts the accounting for the approved transaction to the commitment, obligation, or actuals
ledger.

Next Steps
Access the Position Budgetary Balance Report report to review the available balance.

Concept: Position Budget Checking Processing

When budget checking for position-related events, Workday:
• Initiates the Check Budget subprocess as a step in the position-related business process.
• Calls the Run Payroll Commitment Accounting and Budget Check service step to calculate the journal
and check the budget.
• Runs the Review Budget Check action step.
During the Review Budget Check action step, Workday:

• Determines whether the budgetary control is set to Warn or Control for each budget that the event is
subject to.
• Evaluates the event against both the budget date and the accounting date. Example: A biweekly pay
run falls between 2 fiscal years. The accounting dates for both payroll actuals are the same but the
budget dates are different. When you look at the budget for the previous fiscal year, Workday displays
an extra payroll actual that affects the next fiscal year.
• Calculates the available remaining budget.
• Determines whether the position-related event passes or fails budget check.
• Sends the reviewer an inbox item for transactions that exceed the budget or for journal errors.
When events are within the budget, Workday automatically approves the event and completes the position-
related business process. When events fail budget check, the reviewer can perform actions based on
whether the budgetary control is set to Warn or Control.

Commitment Accounting for Position Control

Steps: Configure Commitment Accounting to Control Positions

Context
You can configure Workday to post journal entries to your commitment and obligation ledgers from these
transactions:
• Fringe benefit
• Payroll commitment
• Payroll obligation
You can activate job requisitions to account for commitments on your unfilled positions. Job requisitions
trigger the capture of job details required for commitment and obligation calculations.

Steps
1. (Optional) Access the Edit Tenant Setup - HCM task.
This step is optional if you're only using obligations.
Select the Enable Job Requisitions for Job Management check box in the Job Requisitions
section.
Note: You can't switch off job requisitions after you generate commitments.
See Reference: Edit Tenant Setup - HCM.
2. Set Up Account Posting Rules.
Set up these rules for your commitment accounting transactions:
• Payroll Commitment
• Payroll Obligation
• Payroll Earnings
• Fringe Benefit Commitment
• Fringe Benefit Obligation
• Fringe Benefit Expense
• Fringe Benefit Recovery
3. Create Ledgers.
Related Information
Concepts
Concept: Position Control on page 444

Tasks
Review Budgetary Balances for Position Budgets on page 441
Steps: Process Payroll Commitment Accounting
Reference
FAQ: Position Control on page 448

Concept: Commitment Accounting for Position Control

Commitment accounting for position control contains the journal entries that post to your commitment,
obligation, and actuals ledgers. Workday follows the account posting rules for payroll commitment
transactions involving positions that you set up. You can use budgetary balance reporting to compare your
position budgets against your commitments, obligations, actuals, and remaining balance.
Processes that trigger the commitment accounting for positions in your organizations include:
• Hiring an employee.
• Changing compensation.
• Reassigning an employee to another organization.
Payroll processes generate the accounting for commitments, obligations, and fringe benefits including:
• Initial payroll commitments at the beginning of your fiscal year.
• Liquidations to back out commitments that turn to obligations, and obligations that turn to actuals.
• Year-round adjustments for activity that occurs after the initial commitment calculations.
The accounting posts when Workday completes the standalone process or the parent business process.
To determine unspent budget:
1. Load position budgets using the EIB web service, or use the Mass Generate Position Budgets task or
the Create Position Budget task to create a position budget for a new position (add budget).
2. Create commitment when you open a position (subtract commitment).
3. Calculate obligation when you fill a position and liquidate commitment (subtract obligation).
4. Liquidate obligation to determine payroll actuals (subtract expenditure).
The result is the salary savings or unspent budget.
Related Information
Concepts
Concept: Position Control on page 444
Reference
Reference: Position Control Terminology on page 445
FAQ: Position Control on page 448

Position Control Reporting

Review Budgetary Balances for Position Budgets

Prerequisites
• Set up a balance for position budgets to compare them against actuals.
• Set up commitment accounting and payroll commitments to compare commitments and obligations
against position budgets and actuals.
• Security: Set Up: Budget General domain in Budgets functional area.

Context
You can perform detailed budgetary balance reporting for your position budgets throughout the fiscal year
by dimension.

The budgetary balance reports for position budgets pull in:

• Position budgets and amendments in active status.
• Payroll commitments, obligations, fringe benefits, and adjustments from transactions posted to your
company's actuals, commitments, and obligation ledgers where the transactions contain a position ID.
This reporting of the budgetary equation enables you to compare your commitment accounting with your
position budgets and actuals to see available balances. Examples:
• A cost center manager can review the budget across their organization.
• A position budget administrator can review all position budgets by company.
The budget structure that's tied to the company budget serves as the data filter for the report, providing
the dimensions that you can drill down into and across. Example: A budget structure has an accounting
dimension member that's a specific ledger account summary, and structured dimensions that are specific
pay groups and cost centers. This budget structure aggregates transaction journal entries that populate the
ledger accounts in the summary for only the specified pay groups and cost centers.

Steps
1. Access the Position Budgetary Balance report or Manager Position Budgetary Balance report.
2. Filter by these and other criteria to limit the data aggregated in the report:
Option Description
Company The specified cost center must be a member of its
structured dimensions.
Summarize by Account Aggregate filtered data into summarized rows
by ledger account based on the accounting
dimension of the budget structure. Example: The
report rows can include rows for ledger accounts
in an account set, or only the ledger accounts
within a ledger account summary.
Summarize by Organizing Dimension Aggregate filtered data into summarized rows
based on the organizing dimension of the budget
structure. Example: If the organizing dimension is
region, then the report contains a summary row
for each member region.
Negative Balances Only Use to see where you've overspent; specifically,
where your commitments, obligations, and actuals
have exceeded your position budget and left you
with a negative balance.
Non-Zero Balances Only Use to see where you're out of balance;
specifically, where you have either excess or
insufficient position budget balances.
3. For each ledger account or organizing dimension, compare the summarized position budget against
summarized commitments, obligations, and actuals ledger balances subtracted from budget.
• The column names are configurable.
The name of the position budget column is the name of the budget. The name of the commitment,
obligation, and actuals columns are the ledger names for the company's ledger type.

4. Drill down into summarized numbers to see the supporting details from the position budgets and
ledgers.
Details include the related journal entries, transactions, budget specifics, and positions involved.
If a position has 2 incumbents, Workday processes payroll commitments and obligations only for the
primary incumbent. The actuals include both the primary and secondary (overlap) incumbent.

Next Steps
Adjust your position budgets as necessary to balance your budget.
Related Information
Tasks
Steps: Configure Commitment Accounting to Control Positions on page 440

Reconcile Ledger Commitment Balances to Payroll Commitments

Prerequisites
• Set up commitment accounting and payroll commitments to compare payroll commitment transaction
actuals with posted journal entries.
• Security: Set Up: Budget General domain in Budgets functional area.

Context
You can compare the operational transactions of your payroll commitments to what's posted in journal
entries in the related ledger. For a select company, ledger, and ledger period, you can see:
• A summary of detailed commitment transaction results (for initial, adjustments, and liquidations)
compared to the journal entries that actually posted to the commitment or obligation ledger.
• Differences between the operational transaction and the amount posted.
• A count of positions that make up the commitment transaction results, with the ability to drill down into
activity details.

Steps
1. Access the Commitment Balance to Payroll Commitment Reconciliation Report.
2. Review the data aggregated in the report.
Option Description
Operational Balance at Period End Total payroll commitment transactions in the
ledger period.
Operational Activity in Future Accounting Total payroll commitment transactions in the
Period ledger period posted to a future period.
Calculated Operational Balance at Period End Sum of Operational Balance at Period End
and Operational Activity in Future Accounting
Period.
Ledger Balance at Period End Total ledger activity actually posted during the
ledger period.
Difference Calculated operational payroll commitment
transactions amount, minus the actual ledger
activity in the period. Typically zero, but if there's
a difference, use the information to identify
configuration errors.

Option Description
Positions with Activity Number of unique positions in the period with
payroll commitment transactions. If there are
differences related to particular positions,
Workday displays a count of positions with
differences. You can then drill down into the
transaction details for the position to identify and
isolate issues.
Positions with Differences Number of positions in the period with a difference
between the calculated operational balance and
the ledger balance at period end.

Result
If there's a difference between an operational transaction and the amount posted, use this information to
identify errors in your configuration.

Concept: Position Control

Service organizations can have specific human resource, payroll, and financial management needs due to
their financial, legal, and regulatory obligations. While they share some transaction and reporting needs,
Workday takes into account that different entities have different reporting and levels of management
oversight needs. Additionally, some activities and assets require legal and accounting segregation.
Businesses can use Workday to better manage staff payroll and expenses.
Workday's position control functionality enables you to create and staff new positions if they're part of an
authorized headcount and staffing framework. The full use of position control requires a subscription to
Workday Human Capital Management and Payroll. A subscription to Workday Financial Management is
not required. Job requisition is a key human resources feature and enables you to manage the full process
from approval to filling vacant positions. A position profile compiles information about a single position and
makes it easy to view and manage its:
• Budget.
• Fill activity.
• Accounting for planned and actual costs.
Your payroll commitments and obligations calculations at the start of the fiscal year provide a snapshot
across your entire company. However, since you continue to have transactions throughout the year
which impact your projected payroll, Workday also calculates your payroll commitments and obligations
throughout the year to provide accurate real-time budget check.
Position control extends Workday core financial, human resources, and payroll functionality. Its features
include:
• Position budgets, which provide position budgeting, position control, and encumbrance.
See Concept: Position Budgets on page 434.
• Payroll commitments, which uses Human Capital Management and Financial Management to track and
control payroll costs.
See Steps: Process Payroll Commitment Accounting.
• Commitment accounting, which contains journal entries that post to your commitment, obligation, and
actuals ledgers for transactions that involve positions.
See Concept: Commitment Accounting for Position Control on page 441.
Position budget and commitment accounting are only available for employees in supervisory organizations
that use the position management staffing model.

You can use position budgets without commitment accounting and payroll commitments. Similarly, you can
use commitment accounting and payroll commitments without position budgets.

Reference: Position Control Terminology

This table describes important position control terms:

Term Meaning
Position vs Position Restriction vs Job
Requisition
Position Filled position or chair.
Position Restriction Unfilled position or chair.
Job Requisition Approved request to fill a position or chair.
Commitment vs Obligation / Payroll vs Fringe
Benefit
Commitment Amount reserved for unfilled positions. Workday
terminology for pre-encumbrance.
Obligation Amount reserved for filled positions. Workday
terminology for encumbrance.
Payroll Amount reserved for compensation.
Fringe Benefit Amount reserved for burden (estimated employer
expense).
Initial Commitment Amount reserved at the beginning of a fiscal year
for commitments and obligations.
Commitment Adjustment Value that represents the difference between:
• The previous commitment amount calculated for
a position restriction.
• The current amount calculated.
Examples include:
• Mid-year compensation changes.
• Mid-year costing allocation changes.
• Hires.
• Adding additional jobs.
• Open positions.
Can be calculated in real time with budget check or
in bulk without budget check.

Budget Checking
Budget Checking Determines if sufficient position budget is available
before enabling a position change that impacts the
position budget.
Warn and Control Options to control budget check.

Related Information
Concepts
Concept: Position Control on page 444

Concept: Commitment Accounting for Position Control on page 441

Concept: Position Budgets on page 434
Tasks
Steps: Process Payroll Commitment Accounting

Reference: Position Control Transactions

This table describes:
• Payroll commitment transactions.
• Type of ledger in which the event posts the accounting.
• The task to run to create the Payroll commitment transactions.
• Posting rules that the event uses to determine which account to post the debit and credit sides of the
journal entries of the same name.

Transaction (Ledger Description Task to Run Account Posting Rules

Type) (Debit/Credit)
Payroll Commitment Create a payroll Run the Create Initial Payroll Earnings/
commitment. Payroll Commitments Commitment
business process using
the task of the same
name.
Payroll Commitment Activities that occur Run the Check Budget Payroll Earnings/
Adjustment after the initial payroll business process Commitment
commitment run that using the task of the
adjust commitment same name, or add
amounts or accounting. the Propose Payroll
Commitment Adjustment
step to a position-related
business process.
Payroll Obligation Create a payroll Run the Create Initial Payroll Earnings/
obligation. Payroll Commitments Obligation
business process using
the task of the same
name.
Payroll Obligation Activities that occur Run the Create Payroll Earnings/
Adjustment after the initial payroll Payroll Commitment Obligation
commitment run that Adjustments business
adjust commitment process using the task
amounts or accounting. of the same name, or
add the Propose Payroll
Commitment Adjustment
step to a position-related
business process.
Fringe Benefit Create a fringe benefit Run the Create Initial Fringe Benefit Expense/
Commitment commitment. Payroll Commitments Commitment
business process using
the task of the same
name.
Fringe Benefit Activities that occur after Run the Create Fringe Benefit Expense/
Commitment Adjustment the initial payroll run Payroll Commitment Commitment
that adjust fringe benefit Adjustments business

Transaction (Ledger Description Task to Run Account Posting Rules

Type) (Debit/Credit)
commitment amounts or process using the task
accounting. of the same name, or
add the Propose Payroll
Commitment Adjustment
step to a position-related
business process.
Fringe Benefit Obligation Create a fringe benefit Run the Create Initial Payroll Earnings/Fringe
obligation. Payroll Commitments Benefit Obligation
business process using
the task of the same
name.
Fringe Benefit Obligation Activities that occur after Run the Create Payroll Earnings/Fringe
Adjustment the initial payroll run that Payroll Commitment Benefit Obligation
impact fringe benefit Adjustments business
obligation amounts or process using the task
accounting. of the same name, or
add the Propose Payroll
Commitment Adjustment
step to a position-related
business process.
Payroll Commitment Periodic liquidation of a Run regular on- Payroll Commitment/
Liquidation payroll commitment. cycle and off-cycle Earnings
payroll, or use the Run
Payroll Commitments
Liquidation task to run
the standalone process.
Payroll Obligation Periodic liquidation of a Run regular on- Payroll Obligation/
Liquidation payroll obligation. cycle and off-cycle Earnings
payroll, or use the Run
Payroll Commitments
Liquidation task to run
the standalone process.
Fringe Benefit Periodic liquidation Run regular on- Fringe Benefit
Commitment Liquidation of a fringe benefit cycle and off-cycle Commitment/Expense
commitment. payroll, or use the Run
Payroll Commitments
Liquidation task to run
the standalone process.
Fringe Benefit Obligation Periodic liquidation of a Run regular on- Fringe Benefit
Liquidation fringe benefit obligation. cycle and off-cycle Obligation/Expense
payroll, or use the Run
Payroll Commitments
Liquidation task to run
the standalone process.
Fringe Benefit (Actuals) Create actual fringe Run regular on-cycle Fringe Benefit Expense/
benefits charges. These and off-cycle payroll, Recovery
charges are based on or use the Run Payroll
payroll actuals. Fringe Benefits task

Transaction (Ledger Description Task to Run Account Posting Rules

Type) (Debit/Credit)
to run the standalone
process.

Related Information
Concepts
Concept: Position Control on page 444

FAQ: Position Control

• How do I see the available budget and commitments on an unfilled position? on page 448
• When does payroll commitment accounting post to the ledgers? on page 448

How do I see the available budget and View the position budget for the position restriction.
commitments on an unfilled position? This insight is helpful when you're making hiring
decisions for unfilled positions.
1. Access the View Position Restrictions report,
which displays the position profile. To access the
position profile, you can:
• Navigate directly to the report and select the
position restriction.
• From the related actions menu of the
position, select Position Restrictions >
View.
• Drill into the position restriction from the View
Open Positions report.
2. If a position budget exists, click View on the
Position Budget tab to view position budget
balance, budget details, and a summary of
commitments.

When does payroll commitment accounting Journal entries for commitment accounting post to
post to the ledgers? your ledgers at different times depending on the
type of payroll commitment and processing you
perform:

Types of When Payroll Accounting

Payroll Commitment Date
Commitment Accounting
and Posts to
Processing Ledgers
Performed
Initial payroll Posts The first day
commitments. commitments, of the fiscal
obligations, year for which
and fringe you’re running
benefits the process.
accounting
when you
complete
the Create
Initial Payroll

Types of When Payroll Accounting

Payroll Commitment Date
Commitment Accounting
and Posts to
Processing Ledgers
Performed
Commitments
business
process.

• Payroll Posts journals The date the

commitments and journal regular pay
• Obligations entry lines to calculation run
your ledgers completes.
• Fringe
when you
benefit
complete
liquidations
the Run Pay
and fringe
Complete
benefit
business
actuals
process.
Ad hoc and Posts journals The date you
batch payroll and journal specify on the
commitment entry lines to Create Payroll
adjustments your ledgers Commitment
that you when you Adjustments
perform using complete the task when
the Create corresponding you run the
Payroll business process.
Commitment process.
Adjustments
task.
Automatic Posts journals The date of the
payroll and journal posting.
commitment entry lines to
adjustments your ledgers
that you when you
perform by complete
including the parent
the Propose business
Payroll process.
Commitment
Adjustments
subprocess as
part of position-
related tasks.

If the ledger period is closed, Workday posts the

accounting to the first day of the next open period.

Related Information
Concepts
Concept: Commitment Accounting for Position Control on page 441

Spend Control

Commitment Accounting for Spend Transactions

Steps: Configure Commitment Accounting for Expenses

Context
After you configure commitment accounting for expenses, you can track your commitment amounts using
spend authorizations. You can create commitments in their respective ledgers and control spend from the
originating transaction to the spend authorization that posts actuals.

Steps
1. Set up the Spend Authorization Commitment and Spend Authorization Commitment Liquidation
journal sources and transactions for accounting.
This setup enables you to:
• Post commitment journal entries to your books for your expense transactions.
• Map the journal sources to their corresponding transactions.
See Steps: Set Up and Update Journal Sources.
2. Update the company chart of accounts account set to add accounts (typically Liability) for Reserve for
Spend Commitments.
See Steps: Create and Organize Ledger Accounts.
3. To record the reservation for spend commitments, configure the account posting rule for Spend
Commitment with Reserve for Spend Commitments as the default ledger account.
When you create a spend authorization, this posting rule and the Spend posting rule ensure that
your commitments for expenses post to the correct ledger account. Workday debits and credits the
appropriate account according to this posting rule.
See Set Up Account Posting Rules.
4. Create Ledgers.
Create commitment ledgers to enable the creation of commitments for spend authorization transactions.
5. Create and open ledger years and ledger periods for processing.
See Steps: Create and Open Ledger Years and Periods.
6. (Optional) To control your expenses spend against a budget, configure budget checking.
See Steps: Configure Budget Checking for Spend Transactions on page 453.

Result
Track commitments and their resulting accounting when you create spend authorizations.

Steps: Configure Commitment Accounting for Procurement

Context
Use these high-level steps to configure commitment accounting for procurement. You can create
commitments and obligations in their respective ledgers, and control spend from the originating transaction
to the supplier invoice that posts actuals.

Steps
1. Set up the Spend Commitment Liquidation, Spend Obligation Liquidation, and Supplier Contract journal
sources and transactions for accounting.
This setup enables you to:
• Post commitment and obligation journal entries to your books for your spend transactions.
• Map the journal sources to their corresponding transactions.
See Steps: Set Up and Update Journal Sources.
2. Update the company chart of accounts account set to add accounts (typically Liability) for:
• Reserve for Spend Commitments.
• Reserve for Spend Obligations.
See Steps: Create and Organize Ledger Accounts.
3. To record the reservation for spend commitments and obligations, configure these account posting
rules:
• Spend Commitment (with Reserve for Spend Commitments as the default ledger account).
• Spend Obligation (with Reserve for Spend Obligations as the default ledger account).
When you create requisitions and purchase orders, these posting rules and the Spend posting rule
ensure that your commitments for requisitions and obligations post to the correct ledger account.
Workday debits and credits the appropriate account according to these posting rules.
See Set Up Account Posting Rules.
4. Steps: Create Supplier Contracts.
Set up supplier contracts to create obligations for manual and scheduled supplier invoices.
a) Access the Maintain Supplier Contract Types task.
b) Add a row to create obligations for schedules invoices.
c) Select the Scheduled Invoices and Create Obligations check boxes.
d) Add another row to create obligations for manual invoices.
e) Select the Manual Invoices and Create Obligations check boxes.
5. Create Ledgers.
Define the commitment and obligation ledgers for the company.
• Update ledger types to name the commitment and obligation ledger associated with an actuals
ledger.
• Create commitment and obligation ledgers.
Enable the creation of commitments and obligations, or just obligations, for procurement spend
transactions.
6. Create and open ledger years and ledger periods for processing.
See Steps: Create and Open Ledger Years and Periods.
7. (Optional) To control your procurement spend against a budget, configure budget checking.
See Steps: Configure Budget Checking for Spend Transactions on page 453.
8. Set up prepaid supplier invoices to prepay supplier invoices during accounting periods that occur before
the periods when you amortize expenses.
See Steps: Set Up Prepaid Supplier Spend.

Result
Track commitments and obligations and their resulting accounting when you create:
• Requisitions
• Purchase orders

• Supplier invoices
• Supplier invoice adjustments created from supplier invoices.
• Supplier contracts and amendments

View Accounting for Spend Commitments and Obligations

Prerequisites
• Configure commitment accounting for spend transactions.
• Complete the business process for the initiating transaction.

Context
View the commitment and obligation information that Workday posts to your journals for spend transactions
that involve commitment accounting.

Steps
1. Select Accounting > View Accounting as a related action on the transaction.
Workday posts accounting to the applicable ledger and makes this page available after the completion
step of the business process of the transaction.
For multicompany purchase orders with commitment accounting enabled on 1 or more companies, you
can view the obligation journals per unique line company in the View Accounting for Purchase Order
section.
2. Review the header information and tabs for the journal:
Option Description
Journal Lines Displays the commitment journal entry for
requisitions and the obligation journal entry for
either purchase orders or supplier contracts.
Tax is obligated when you allocate it to the
purchase order or supplier contract line level.
Also select the tax applicability to allocate for
nonrecoverable taxes.

Accounting History Lists all of the accounting activity for the spend
transaction.
Liquidations For transactions that liquidate (expense reports,
purchase orders, supplier invoices, and invoice
adjustments), displays the liquidation entries and
enables you to drill into the details. Displays only
after the liquidation occurs.
Workday has built in safeguards to prevent over
liquidation.

Liquidating Journals Liquidated transactions display details about

the liquidated journal within the commitment or
obligation ledger.
• On requisitions, this tab is available after you
source the requisition and issue the purchase
order.
• On purchase orders, this tab is available
after you create a supplier invoice from the
purchase order.

Option Description
• On spend authorizations, this report is
available after you create an expense report
from the spend authorization.
• On supplier contracts, this tab is available
after you create the supplier invoice from the
contract.

Balances Displays by line or split line the quantity and

amount committed or obligated, liquidated, and
remaining. You can see any remaining balancing
for goods and services that you committed or
obligated to purchase. If you want to liquidate the
remainders without procuring anything, you can
close the requisition, purchase order, or supplier
contract transaction.
Year End Roll Forward Displays operational journals generated after
rolling forward commitments and obligations from
procurement documents. Journals and statuses
display for the previous and new fiscal years.

Related Information
Tasks
Close Procurement Documents

Spend Budget Checking

Steps: Configure Budget Checking for Spend Transactions

Prerequisites
• Set up financial, award, award proposal, and project plans or budgets.
• Configure commitment accounting to track:
• Commitments and obligations for procurement transactions.
• Commitments for spend authorization transactions.

Context
You can configure budget check to control spend transactions as part of business process workflows. You
can configure commitments, but not obligations, for spend authorization transactions.

Steps
1. Create Ledgers.
Select the View Budget Date check box to budget check actuals for procurement and expense
transactions.

2. Edit Business Processes.

Configure the Check Budget (Financial) business process and security policy in the Procurement
functional area:
a) Add the Review Budget Check step to notify configured users to review the budget check results for
the transaction.
b) (Optional) Add the Override Budget Check step for approving overrides to budget check exceptions.
c) (Optional) Add the Reserve Budget in Budget Check step to reserve journal entries after budget
check and before posting.
Add the Check Budget (Financial) business process as an action step after review or approval steps
on your procurement, expense report, or spend authorization business processes to enable them for
budget checking. To ensure an accurate final budget check, add the Check Budget action step after
review or approval steps on business processes.
To ensure an accurate budget check for financial transactions, leave the Don't wait for this step to
complete, move immediately to the next step. check box unchecked on the Business Process >
Configure Batch/Job Step task from the related actions menu of the Run Budget Check business
process step.
3. Edit Domain Security Policies.
Grant security groups permission to the Process: Budget Date domain security policy in the Budgets
functional area.
4. Set Control Options for Spend Plans on page 454.
Enable budget check and configure the default budgetary control options and rules.

Next Steps
Review budget check results for spend transactions that workers submit.
Related Information
Tasks
Steps: Set Up Plans or Budgets on page 379
Steps: Configure Commitment Accounting for Procurement on page 450
Review Budget Check Results for Spend Transactions on page 457
Edit Business Process Security Policies
Steps: Configure Commitment Accounting for Expenses on page 450
Reference
Reference: Budget Check Transactions on page 462
The Next Level: Controlling Your Spend with Budget Check on Financial Plans

Set Control Options for Spend Plans

Prerequisites
Create your financial plans or award proposal, award, or project budgets.

Context
Set budgetary control options for each plan that you want to budget check. These settings control:
• The plans or budgets enabled for budget checking.
• The level of severity with which to control budget.
• The periods you control budget against.
• Whether plan or budget amounts accumulate from prior periods.
Workday only supports up to 50 budgetary control option lines.

Steps
1. Access the Edit Budget Check Options task.
2. As you complete the Financials tab, consider:
Option Description
Fiscal Year You can configure only 1 set of budgetary control
options for the duration of a plan or budget, as
defined by the structure and fiscal year.
Enable Budget Check Select to enable budget check for financial
transactions where the business process includes
the Check Budget (Financial) subprocess as a
step.
Include Reserved Journal Lines Select to include journals in Reserved status
in calculations of the available balance.
Workday also includes reserved journal lines
on the Current Spend column when you
amend financial plans with Use Contextual
Amendments selected on the plan structure.
Example: You have 2 purchase requisitions that
impact the same budget. With this check box
selected, you submit the first requisition. As soon
as the first requisition passes budget check,
Workday:
a. Immediately places the journals in Reserved
status.
b. Considers these reserved journals when
calculating available budget for the second
requisition.
You can select this check box even if you don't
also select Enable Budget Check. With Enable
Budget Check cleared, you can still include
reserved journals in commitment accounting even
without running budget check.

Budget Check Option Select the level of severity with which to control
budget. Both options alert the person responsible
for reviewing the impact of a transaction on a plan
or budget when:
• There are insufficient funds for the transaction.
• No plan lines match the journal lines on the
transaction.
Warn: Select to permit the reviewer to continue
with transaction approval without taking corrective
actions to resolve the exception.
Control: Select to prevent transaction approval
until there’s a revision to the transaction or budget
that enables the transaction to pass budget
check.

Cumulative Control Periods Select to accumulate the amount from all control
periods up to the budget date or accounting date.

Option Description
Unspent budget from prior periods carries forward
into the next period and is available for use in that
next period.
Clear to check the transaction only against the
amount for the control period that the budget date
or accounting date of the transaction falls in.
Example: If a requisition created halfway through
the year is subject to a budget, then Workday
checks the transaction against the accumulative
budget amount across the first 6 months.

Control by Entry Periods Specify which periods to control budget against.

You can control your amount by different periods
than your plan entry periods.
Example: You can enter budget amounts by
month and control by grouping the entire budget
amount across a quarter or budget duration.
If you control by duration, you can’t select
Cumulative Control Periods.

Ledger Types for Budget Check Select which ledger types to include in the budget
check.
Example: You can include only your purchase
orders (obligations) for budget check and exclude
your purchase requisitions (commitments).
With this configuration, Workday automatically
includes:
• Obligation and actual ledgers in the
background if you select the commitment
ledger.
• Actual ledgers in the background if you select
the obligation ledger.

Allow Budget Check Override Select to enable budget check reviewers to

request approvals for budget check exceptions.
If an authorized approver grants an override,
Workday displays the Override Granted status
next to the budget check status on the transaction
for all subsequent approvers. Once the override
is approved, the transaction moves forward to the
next step in the parent business process.
Note: You must first select Control for the
Budget Check Option.

3. (Optional) As you complete the Budgetary Control Option Line tab to create budget check rules for
certain combinations of ledger account and dimensions, consider:
Option Description
Budget Check Option Pass: Select to create a rule that allows a
transaction to pass budget check even when it's
over budget.

Option Description
Skip: Select to create a rule that allows a
transaction to skip budget check and display a
Not Required status even if the transaction would
have failed budget check otherwise.
The budget check options you select must differ
from the budget check option you configure on
the Financials tab. If no rules on the grid apply to
your transaction, Workday uses the budget check
option you configure on the Financials tab.

Tolerance Percentage Enter a tolerance percentage or amount so that

your transaction only fails budget check when it
Tolerance Amount
exceeds the tolerance amount over budget.

Note: You can select only 1 worktag of each type per budgetary control option line.

Result
Workday uses these settings to determine the behavior of the Check Budget (Financial) business
process. You can add Check Budget (Financial) as a subprocess step to financial business processes to
check budget before approving the spend transaction. For a list of business processes that enable this
subprocess, view the Business Process Configuration Options report.
You can use the View Budgetary Control Options report to review your budget check configuration for a
company and plan structure.
Related Information
Tasks
Steps: Set Up Plans or Budgets on page 379

Review Budget Check Results for Spend Transactions

Prerequisites
Configure budget checking for spend transactions.

Context
Review the results of the failed budget check for a spend transaction and decide how to proceed. Your
choices depend on whether you configured the budgetary control to:
• Warn if it failed budget check.
• Control the budget and prevent transaction approval until it passes budget.
Workday only displays transaction lines that failed budget check on the Inbox item, not transaction lines
that met any Pass or Skip budget check rules.
The transaction on the Inbox item can be subject to budgets across multiple companies and plan
structures. Workday displays all budgets that a transaction fails to pass.
The Check Budget (Financial) step of the procurement, expense report, or spend authorization business
process performs the budget check for procurement and spend authorization transactions by:
• Calculating commitment accounting for the transaction.
• Comparing that unposted commitment to the various budgets that the transaction is subject to. For
procurement transactions, the subprocess also compares that unposted obligation.
For procurement and expense transactions, you receive an Inbox item to review the failed budget check if:

• There's insufficient budget for the transaction.

• There's a journal error (such as posting accounting to an unopened ledger period).
If the transaction passes budget check, Workday bypasses this review step and the procurement or
expense report business process completes the approval.

Steps
1. Access the Review Budget Check Inbox item.
2. As you review the budget check on the Inbox item, consider:
Option Description
Request Override Sends a request for overriding a failed budget
check to an authorized approver. If an authorized
approver grants an override, Workday displays
an Override Granted status next to the budget
check status on the transaction for all subsequent
approvers. Once approved, the transaction moves
forward to the next step in the parent business
process.
Control Periods The periods that Workday controlled budget
against, which can differ by your budget entry
periods. Example: You can enter budget amounts
by month, but control by grouping the entire
budget amount across a quarter or budget
duration. A transaction can impact multiple
budgets, which could have different control
periods.
Budget Check Option The budget check option that caused the
transaction to fail budget check.
• Warn: Permits you to continue with transaction
approval without taking corrective actions to
resolve the exception.
• Control: Prevents transaction approval until
there’s a revision to the transaction or budget
that enables the transaction to pass budget
check.

Plan to Date If you configured the budget check option to use

cumulative control periods, Workday determines
the budget amount based on the current control
period and any prior control periods.
View For each budget, click to view the Budget Check
Exceptions report.
The report displays the impact of the transaction
on the budget, and how much it's over budget.
You can drill into the Current Transaction value
to pinpoint what is causing the exception.
If you access the report from global search
for plans or plan hierarchies with company
hierarchies, you must manually enter the full
transaction ID on the Transaction prompt to
select your transaction.

Option Description
Transactions Click this tab to view the transactions that failed
this budget check.
From here, you can drill into the transaction to see
the amount and worktags associated with each
line. The transaction also displays the Budget
Check Status.

3. If you have permission to view transactional journals, select Accounting > View Accounting from the
related actions menu of the transaction to access the accounting details.
4. As you review the accounting details of the transaction, consider:
Option Description
Operational Journal Information Review the Accounting Date, which determines
which journal period to post the accounting entries
for the transaction, and the Ledger (commitment,
obligation, or actuals).
Journal Lines Review the impacted ledger accounts, debits
and credits, and worktags. You can also see the
budget date, which you can use to determine
the budget amounts and control periods that this
transaction is subject to.
5. After you’ve reviewed the information about why the transaction failed budget check, take 1 of these
actions:
• Amend the budget.
• If you budget check by budget date, change the budget date of the transaction so that all or part of
the transaction hits a different control period.
• Fix the journal error.
• Send the transaction back to the requester for revision. Example: You send the transaction back to
the requester because they requested too much.
• Deny the request.
• Continue with transaction approval anyway. You can only continue despite failing budget check if
you configured budget check as Warn.
Example: If you have submitted multiple purchase orders in a group, and only 1 of the purchase
orders has insufficient budget, the group displays a budget check status of Fail (Insufficient Budget).
All 3 purchase orders within the group have pending status. Cancel the purchase orders, make any
necessary corrections, and reissue them in 2 separate transactions.
6. Return to the Review Budget Check Inbox item and click Submit to rerun budget checking for the
transaction.

Result
Once the transaction passes budget, the procurement and expense report business process completes
and Workday posts the accounting for the approved transaction:
• For procurement transactions, Workday posts accounting to the commitment, obligation, or actuals
ledger.
• For expense reports and spend authorizations, Workday posts accounting to the commitment and
actuals ledger.
• For all transactions and to enable transactions to reserve budget, Workday posts accounting to journals
in reserved posting status within the appropriate ledger after the initial budget check passes. Workday
only posts accounting this way if you select Include Reserved Journal Lines on your plan.

Workday posts accounting to journals in posted status after the approval and completion steps of the
business process.
Related Information
Tasks
Steps: Configure Budget Checking for Spend Transactions on page 453
Review Balances for Spend Plans on page 461
Reference
The Next Level: Controlling Your Spend with Budget Check on Financial Plans

Change the Budget Date for a Spend Transaction

Prerequisites
• Grant security groups permission to the Process: Budget Date domain security policy in the Budgets
functional area.
• Submit the spend transaction.

Context
If you budget check by budget date and not accounting date, you can review and update the budget date
on transaction lines to change the control period that Workday checks the transaction against during
budget checking.
Example: If a transaction fails budget, you can change the budget date so that the transaction hits a
different budget control period, and Workday checks it against the budget for that period. You can change
the budget date for all lines, select lines, or portions of lines.
By default, Workday uses the transaction date of the initiating document as the budget date and carries
that date forward to subsequent documents. Example: A worker submits a requisition on May 15. You
source the requisition to a purchase order on June 1, and create a supplier invoice for the purchase order
on June 15. The budget date for all 3 documents is May 15.

Steps
1. From the related actions menu of the spend transaction, select Budget Date > Edit Budget Date to
access the Edit Budget Date for Transaction Lines task.
2. Review the transaction details to help decide which new date to select.
3. For each transaction line, change the Budget Date column as needed.
If the transaction line is split, you can change the date for each part of the split. This functionality
is useful when portions of a transaction line apply to different worktags, and are subject to different
budgets and control periods.

Result
When you check the transaction against budgets, Workday uses the new budget dates to determine the
control periods that the transaction impacts.

Next Steps
Continue with the business process workflow for the procurement transaction. If you already reached the
Review Budget Check step because the transaction failed budget, return to that Inbox item and resubmit to
rerun budget checking.

Review Balances for Spend Plans

Prerequisites
Set up financial plans, or either award proposal or award plans.

Context
Check how you're tracking against your spend plan anytime throughout the year. Example: A cost center
manager can review the plan across their organization, or a plan manager can review each plan of a
company.
Set up budget checking for spend transactions. The Manager Budgetary Balance Report pulls in all
completed transactions that are subject to plans and whose accounting Workday has already posted to the
commitment, obligation, or actuals ledger.
This reporting of the budgetary equation enables you to compare your plans to your subtracted
commitments, obligations, and actuals to see available balances.

Steps
1. Access the Manager Budgetary Balance Report.
2. (Optional) Select the Include Reserved Journals check box to include journals in reserved posting
status in the calculation of available balance. Workday places transactions in reserved status after
passing an initial budget check.
3. (Optional) Click one of the Saved Filters to use for run parameters.
To add a new filter, fill in your run parameters, enter the name in the Filter Name field, and click Save.
Click Manage Filters to access all the filters that you've saved to your Workday account to delete a
filter or edit its report run parameters.
4. Filter by these criteria to limit the data aggregated in the report:
Option Description
Organization Select from the organizations that you manage.
Company Select from the companies with a plan or budget
whose structure is for financial, award proposal,
or award activity, and contains the specified
organizations as a member of its structured
dimensions.
Plan Structure Of the plans available for the specified company,
select a structure to identify the specific plan. The
plan structure also provides the dimensions that
you can drill into and across within the report.
Award Select from the award years for the specified
award budget.
Year Select from the plan years for the specified
financial plan.
Summary Period Narrow the time frame of the plan information that
you want to view.
Period

Plan to Date Select this option to report the current year and
period plus any prior periods.

5. Analyze your plan as funds flow from commitments to obligations to actuals:

Option Description
Ledger Account / Summary All the ledger accounts or ledger account
summaries that are part of the selected plan.
Plan The planned amount. Workday uses the plan
name as the column name.
Commitment The total commitment amount for all commitment
journal entries that Workday has posted to your
commitment ledger for spend transactions.
Workday uses the commitment ledger name as
the column name.
Obligation The total obligation amount for all obligation
journal entries that Workday has posted to your
obligation ledger for spend transactions. Workday
uses the obligation ledger name as the column
name.
Actuals The total actuals amount for all actuals journal
entries that Workday has posted to your actuals
ledger for spend transactions. Workday uses the
actuals ledger name as the column name.
Balance The remaining plan after subtracting
commitments, obligations, and actuals.

The report displays the summarized amounts of all transactions across the time frame you've specified
in the report criteria.
6. Drill into summarized amounts by different worktag dimensions to see the supporting data behind the
numbers.
Details include the journal entries, transactions, accounting and budget dates, and worktags. Drill into
the journal entries and transactions for more specifics.

Result
Adjust your plans as necessary to balance your plan.

Reference: Budget Check Transactions

You can add the Check Budget (Financial) business process as an action step on:

Transaction Type Business Process

Actuals Accounting Adjustment Event
Expense Report Event
Internal Service Delivery Event
Supplier Invoice Event

Commitments Requisition Event

Spend Authorization

Commitments, obligations, and actuals Accounting Journal Event

Procurement Card Transaction Verification Event

Transaction Type Business Process

Obligations Purchase Order Event
Create Purchase Order from Contingent Worker
Contract
Purchase Order Issue Event
Supplier Contract Event
Supplier Contract Amendment Event

Related Information
Tasks
Steps: Set Up Plans or Budgets on page 379
Edit Business Process Security Policies
Edit Business Processes
Reference
The Next Level: Controlling Your Spend with Budget Check on Financial Plans

Troubleshooting: Budgets for Capital Projects Double Counted

Cause: The financial or project budget plan structure doesn't have a value to differentiate the generated
journal lines.
Solution:

Steps
1. Define Plan Structures on page 382.
Create a new plan structure based on your budgetary reporting needs:
• For granular budget amounts, add a Ledger Account structured dimension and enter the expense
or asset ledger account as the Dimensions to Include.
• For less granular budget amounts, add a Ledger Account structured dimension and enter the
ledger account summary for all expense or asset ledger account types as the Dimensions to
Include.
2. (Optional) Link Virtual Child Plan Structures on page 411.
For less granular budget amounts at the project level, link the new plan structure to a virtual parent that
includes the project dimension.
3. Create a new plan and budget for your plan structure.
See: Steps: Set Up Plans or Budgets on page 379.

Accounting Center

Setup Considerations: Accounting Center

You can use this topic to help make decisions when planning your configuration and use of Accounting
Center. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.

• Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is
Accounting Center is a fully integrated solution built on an analytic engine that enables you to:
• Bring into Workday high-volume operational transactions from external sources.
• Transform and enrich the external business transactions into accounting journals.

Business Benefits
You can:
• Ingest, enrich, and transform external transactions into Workday journals.
• Manage and track transactions in batches from ingestion to summarized accounting.
• Generate detailed and summarized accounting.
• Post summarized journals to your ledger.
• Report on both the detailed and summarized balances for financial, operational, and managerial
reporting in both the primary and alternate ledger accounts.
• Close your books with full audit capability.

Use Cases
You can use Accounting Center to bring in to transform and combine external transactions with Workday-
generated accounting to include them in your Workday ledger.
Examples:
• For insurance companies - Transform policy and claims data.
• For healthcare companies - Transform healthcare provider insurance plan data.
• For media companies - Transform business events for production shows, including casting, payroll, set
designs, visual effects, and campaign costs through award seasons.
• For retail companies - Transform point of sales and subscription billing services.
• For banking companies - Transform loan information.

Questions to Consider

Questions Considerations
Will you be ingesting multiple records and including Ingestion is the process of moving external
those records in a single transaction? transactions into a dataset from where you can
access and analyze them.
Use Transaction Grouping ID in enrichment
validation stages and the Accounting Source
Configuration to properly group records for:
• Error Management: Ensures that even if 1
record in the transaction has an error, all
records in the transaction error out.
• Balancing at the transaction level: Ensures that
the journal balances at the transaction level.
Note: Transaction Grouping ID is alpha-numeric
and isn’t case-sensitive.

How many enrichment steps do you want to create Enrichment is the process of enhancing your
for an accounting source? source data so you can use it for detailed and

Questions Considerations
summarized accounting. Example: adding worktag
mapping, reformatting or removing field and so on.
You can create a maximum of 3 enrichment stages.
You can't change the number of enrichment stages
once you create the accounting source.

How do you want Workday to process each batch You can configure the Accounting Center Process
in a stage? to specify how you want Workday to process each
batch for a stage. You can select to process and
advance each batch:
• Always Advance to Next Stage and Dismiss Any
Errors to Next Batch.
• Manually Select Next Action.
• Only Advance to Next Stage if No Errors.
Note: To remove records from further
processing, add a custom dismiss to your
process.
To specify how you want to process each batch
in a stage, access the Edit Accounting Center
Process Configuration task and select an option.
Will you be including additional information on the Include fields as additional attributes from the
detailed journal lines? enrichment dataset in the detailed journal lines.
Workday recommends you use text as your primary
format for attributes.

What information do you want to include on the Use Worktag Mapping Tables and dataset joins
summarized journal lines? to bring necessary business objects into your
enrichment datasets.
Once these fields exist on your enriched datasets,
you can select these fields on your Accounting
Source journal line rules.

Will you be using custom validations? Ensure that your transactions meet your specified
conditions by:
• Creating validation stages in the enrichment
datasets for identifying specific errors.
• Creating critical custom validations for the
Accounting Center Detailed Journal type.

Will you be dismissing certain error-free Create a custom dismissal step to remove certain
transactions? transactions from a batch.

Will your ingested data include records with no Ingested records with no value can cause batch
value? errors. Workday must account for every transaction
in a batch.
You can either:
• Filter out the records with no value in the
derived dataset that is the source for the Data
Change Task used in the Accounting Source.

Questions Considerations
This will reduce the count of transactions or
records that the Accounting Center processes.
• If you need to maintain records of each ingested
record, remove these records from detailed
accounting using custom dismissal.

Will you be using custom account posting rule Use a Join to instantiate the custom account
dimensions? posting rule dimension to the applicable field in your
ingested data.
Will you be using multicurrency journals? Consider whether you need to include the instance
of the transaction currency code in your enriched
data.
Also, consider:
• If you want to record both the transaction
amount and the ledger amount.
• Have Workday calculate the ledger amount
using currency conversion rates.

Will the ingestion data include cash journals and Include the instance of the bank account in your
will you reconcile the cash journals? ingested data. Also, include the bank account
worktag as a worktag type in the accounting
configuration and select Reconcile to Bank.
Also, use the Transaction Reference field when
selecting Reconcile to Bank.
Include condition rules to separate your cash and
bank accounts from your other lines.

Do you want to track the number of transactions Access the Find Accounting Center Batch report
Workday dismisses from a current batch? and view the Dismissed Transactions column.
Do you require notifications of certain events as the Set up custom notifications in the business process
Accounting Center is processing the batch through definition using report fields on the Accounting
various stages? Center event.
Will you be using alternate account sets for Access the Edit Company Accounting Details
reporting? task and select an alternate account set for the
company to generate reports that map alternate
account sets or statutory account sets to your
preferred account set.
Once you create or post journals, you can't change
the alternate account set.

Will you be controlling access for creating and Create and assign roles enabled for the Source
editing mapping table definitions or mapping tables System.
based on role assignments? • Access the Maintain Assignable Roles task.
• Enter a role and for the Enable for field, select
Source System.
• Access the View Mapping Table Definition
report.
• From the related actions of the Source System,
selectRoles > Assign Roles .

Questions Considerations
• On the Assign Roles task, assign the Source
System role you previously created to a user.
• Create a role-based security group (constrained)
using the newly created role.
• Add the newly created role-based security group
(constrained) to the security domain policy for
Set Up: Mapping Table Definitions or Set Up:
Mapping Tables.
Users will only be able to access the Mapping
Table Definitions and Mapping Tables, which
contain a source system value for which the user
has an assigned role.

When will you schedule your weekly maintenance? Ensure that you don't schedule any jobs or
processes to run near the start of your weekly
maintenance. Once maintenance starts, all
currently active jobs and processes will stop
running and error out. As Workday doesn't support
an automatic restart, you'll have to restart the jobs
or processes manually.

Recommendations

Option Recommendations
Ingestion Source for Accounting Source • Use a table as your ingestion source.
• Use the Edit Data Change Task (Accessed
from the related actions menu of the Data
Change Task) to populate fields on the
Accounting Source Ingestion table. Consider
using these updates for simple transformations
that you might require on your ingestion table:
• Creating a Transaction Grouping ID.
• Adding or deriving an accounting date.
• Field names shouldn't contain:
• Contain the word 'id.'
• Contain any special characters (Example:, !
@#$%^&*, etc.).
• Exceed 255 characters in length.
• End in an underscore.
• Start with “WPA_” (reserved prefix for Prism
system fields).

Enriching Data • Create a new dataset for enrichment between

the System Filter {_UnprocessedForBatch}
and the User dataset {_UserConfiguration}and
perform all enrichment steps in the new dataset.
• When expanding 1 record per transaction into
many records per transaction in Enrichment, use
Transaction Grouping ID as a unique ID for each
row in your ingested data.

Option Recommendations
• For complex enrichments, create separate
enrichment stages. Separate enrichment stages
ensure that Workday persists data at each stage
separately, for diagnostic purposes.
• Keep Mapping and Validation stages separate.

Validating Data • Create a new derived dataset containing your

validation stages between the System Filter
{_UnprocessedForBatch} and the User dataset
{_UserConfiguration}.
• Add the validation stage on the last Enrichment
stage.

Currency Decimal Precision The transaction and ledger amounts in detailed

accounting must match the currency precision of
the transaction and ledger currencies.
If the amounts don't meet the currency precision
of the relevant currencies, you must round these
amounts to the correct currency precision in
Enrichment.

Requirements
The ledger period must be open for the journal to post.
Before you can initiate a batch, ensure it contains at least 1 transaction.
A stage must be complete with no errors before advancing to the next stage.

Limitations
• If there are more than 10,000 validation exceptions, the entire batch errors out.
• Summarized journals won't check for budget check and will post even if they cause the budget to
exceed.
• When entering 2-sided intercompany transactions between companies, you can only have companies
with the same ledger currency.
• When entering multicurrency transactions, ensure you use the same transaction currency for all journal
lines created from a transaction. To accomplish this, you can add transaction currency to your grouping
ID if you're using one.
• You can't use Worktag Balancing functionality on transactions. Manually configure your accounting
source to create the accounting correctly.
• For Accounting Center journals, Workday will only support mapping rules from the primary to the
alternate account set.

Tenant Setup
No impact.

Security
You can access the Domain Security Policies for Functional Area report to view all security domains for
Accounting Center.
The security domains that you can configure include:

Domain Considerations

Process: Accounting Center in the Accounting Can configure accounting center processes and
Center functional area. reports.

Set Up: Accounting Sources in the Accounting Can create and edit accounting source tasks
Center functional area. and web services (except creating and updating
mapping table and mapping table definitions).
Set Up: Mapping Tables in the Accounting Center Can create and update mapping tables.
functional area.
Set Up: Mapping Table Definitions in the Can create and update mapping table definitions.
Accounting Center functional area.

Business Processes
• Configure the Accounting Center Batch Initiation Event business process to initiate an accounting
center batch.
• Configure the Accounting Center Enrichment Event business process to enrich data.
• Configure the Accounting Center Detailed Accounting Event business process to generate detailed
accounting.
• Configure the Accounting Center Summarization Event business process to create summarized
accounting.

Reporting
You can access the Workday Standard Reports report to view all reports for Accounting Center.

Reports or Dashboards Considerations

Batches Impacted During Disaster Recovery Enables you to identify batches impacted during
report disaster recovery.
Run Time Metrics at Batch Level report Enables you to monitor trending run time metrics at
the batch level.
Run Time Metrics at Batch Stage Level report Provides trending run time metrics for all stages in
a batch or batches.
Run Time Metrics at Batch Run Level report Enables you to report on trending run time metrics
at the batch run event level.
View Accounting Source Snapshot report. Provides details of a specific effective dated
accounting source snapshot configuration.

You can also create custom reports using these report data sources:
• Accounting Center Batch
• Accounting Center Batch Run
• Accounting Center Batch Stage
• Custom Account Posting Rule Types

Integrations
You can use these web services to migrate and maintain accounting sources between different tenants:
• Get Accounting Center Implementations
• Put Accounting Center Implementations

• Get Source Condition Rules

• Get Accounting Source Process Configurations
• Get Accounting Source Snapshots
• Put Accounting Source Condition Rule
• Put Accounting Source Process Configuration
• Put Accounting Source Snapshots
You can use these web services to maintain account posting rules or mapping tables in Accounting Center:
• Get Custom Account Posting Rule Dimensions
• Get Custom Account Posting Rule Types
• Get Mapping Table Definitions
• Get Mapping Tables
• Put Custom Account Posting Rule Dimension
• Put Custom Account Posting Rule Type
• Put Mapping Table
• Put Mapping Table Definition
You can use the Put Accounting Center Batch web service to create a new batch.
You can use these web services to retrieve and update resolution details for dismissed transactions:
• Get Dismissed Transactions
• Put Dismissed Transaction
Refer to the web service directory on Workday Community for more web services.

Connections and Touchpoints

You can use Accounting Center with Financial Accounting to process journals, produce financial records,
and perform period and year-end close.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Other Impacts
Together with Workday Prism Analytics, Workday Accounting Center provides improved statutory,
operational, and regulatory reporting.
Related Information
Concepts
Concept: Accounting Center on page 540
Concept: Accounting Source on page 483
Concept: Enrichment on page 472
Concept: Data Change Tasks
Tasks
Create Accounting Source on page 483
Edit an Enrichment Dataset on page 476
Create Workday Instances with Prism Join on page 478
Create Validation Stages for Enrichment on page 481
Create Accounting Center Batches from Source Systems on page 501
View Detailed Accounting Results on page 536
Custom Dismiss Transactions on page 517
Stop Accounting Center Business Process Event on page 516
Create a Data Change Task

Reference
Reference: Guidelines for Reporting on Accounting Center Datasets on page 539
The Next Level Presentation: Accounting Center Configuration Guide
Introduction to Accounting Center

Data Management

Create Prism Analytics Table

Prerequisites
• Set up your tenant for Prism Analytics.
• Review these topics to familiarize yourself with Prism Analytics terminology, such as tables, datasets,
Prism data sources, stages, and so on:
• Concept: Prism Analytics Data Management Workflow.
• Steps: Set Up Tenant for Prism Analytics.
• Concept: Tables.
• Concept: Datasets.
• Concept: Dataset Stages.
• Steps: Create a Dataset with External Data (Upload a File).
• Steps: Create a Dataset Using Workday Data.
• Security: These domains in the Prism Analytics functional area:
• Prism Datasets: Manage.
• Prism Datasets: Create.
• Prism Datasets: Publish.

Context
Prism Analytics enables you to bring in non-Workday data, such as business transactions, and enrich
and transform it without exporting it into separate applications. You can then combine external accounting
transactions with Workday-generated accounting and include them in your Workday ledger.
You can create a Prism Analytics table to bring in your external accounting transactions.

Steps
1. (Optional): Create custom dimensions and custom account posting rule types. See Create Custom
Dimensions and Custom Account Posting Rule Types on page 495.

2. As you create the table, consider these guidelines:

• When naming columns, ensure you that don't use these column names:
• AND
• AS
• ASC
• BY
• dataSourceFilter
• DESC
• effectiveMoment
• EMPTY
• entryMoment
• FROM
• GROUP
• HAVING
• id
• IN
• IS
• LIMIT
• NOT
• NULL
• OR
• ORDER
• SELECT
• WHERE
• Use version 2 of the Prism Analytics dataset REST API.
• Use the REST API or the Prism web interface to both create the table and load data into the table.
• Select Append when loading incremental data into the table.
• Use the table as your Ingestion Source prompt when you create the accounting source.

Next Steps
Enrich your data to create detailed and summarized accounting.

Data Enrichment

Concept: Enrichment
You enrich data to enhance and refine your source data that you can use in detailed and summarized
accounting.
Enriching the dataset is a continuous process. You might have to perform these tasks to enrich your data
to meet Accounting Center requirements:
• Map Worktags: Create worktag mapping to enrich your data by assigning worktags to your transactional
data that you can use in detailed accounting and reporting. See Steps: Create Instance Mapping on
page 473.
• Add fields/data using stages and Prism calculated fields in the enrichment derived dataset. See Create
Validation Stages for Enrichment on page 481.
• Reformat or remove fields.
• Create multiple derived tables based off the ingestion table.

• Create and join other tables/datasets (containing Workday data) to convert external text data to
Workday Instance data.
Note: When expanding 1 record per transaction into many records per transaction in Enrichment,
Workday recommends that you use Transaction Grouping ID as a unique ID for each row in your ingested
data.
You can enrich the data by mapping the source data to the corresponding Workday field types.

Steps: Create Instance Mapping

Context
You can create instance mapping to enrich your data by assigning worktags or ledger accounts to your
transactional data that you can use in detailed accounting and reporting.
Note: You can also use account posting rules to derive ledger accounts. See Create Custom Dimensions
and Custom Account Posting Rule Types on page 495.

Steps
1. Create Mapping Table Definition on page 473.
You create a mapping table definition to define a structure for your mapping table rules.
2. Create Mapping Table on page 474.
You create a mapping table to define rules to map your worktags.

Create Mapping Table Definition

Prerequisites
Use the Maintain Worktag Usage task to enable worktag as either a primary or alternate dimension for
the taggable type of Mapping Table Definition.
Security: Set Up: Mapping Table Definitions domain in the Accounting Center functional area.

Context
You can create a mapping table definition to:
• Define the number of input values in your mapping table.
• Define the number and type of outputs.
In addition to 1-to-1 mapping, you can also map:
• One input value to many output values.
• Many input values to 1 output value.
• Many input values to many output values.
You can also use the table definition to configure how to define input values by using wildcards and
ranges.
Note: Once you create a mapping table definition and create a mapping table based on the definition, you
can't edit the mapping table definition.

Steps
1. Access the Create Mapping Table Definition task.
2. Enter a name for the mapping table definition.
3. (Optional) Create or select a Source System.
4. Enable Ledger Account if you want to map ledger accounts.

5. Select an Account Set if you're mapping to a ledger account.

6. Click the Parameters tab.
7. As you complete the parameters inputs for the mapping definition, consider:

Option Description
Display Name Enter the display name for each parameter.
Example: Policy, State.
Allow Wildcards Select if you want to enable wildcards when you
define mapping rules.
Note: Workday doesn’t support wildcards in
ranges.
If you have wildcards (* and ?) in your dataset and
want to evaluate them as string values, you might
not want to enable this option.

Range Field Select if you want to specify a range when you

define mapping rules.
You can't specify a range and wildcard for the
same external code.

Note: You can enter a maximum of 20 parameter inputs.

8. Click the Worktags tab.
9. As you complete the Primary Worktag Types and Additional Worktag Types grids, consider:

Field Description
Accounting Worktag Types Select worktag types to which you want to map
your transactional data.
Worktag Type Required Set up worktag types as required. If you require a
worktag type, you must select a worktag value for
every row when you create mapping table rules.
Disallow Inactive Values Select for Workday to remove inactive values
automatically.

Each primary worktag type you define is displayed in a separate column. All additional worktag types
are displayed in a single column, enabling you to select additional worktags from a single column.
10.Click OK to create the structure for the mapping table.
Related Information
Reference
2022R1 What's New Post: Mapping Table Security

Create Mapping Table

Prerequisites
You've created a mapping table definition.
Security: Set Up: Mapping Tables domain in the Accounting Center functional area.

Context
You can create a mapping table to define rules to map your input values to your target output values.

Steps
1. Access the Create Mapping Table task.
2. For Mapping Table Definition, select the mapping table definition you previously created, and click
OK.
Workday displays the mapping table with the structure of the selected definition.
Once you create a mapping table based on the definition, you can't edit the mapping table definition.
Note: To display accounting worktags for a mapping table when using an Enterprise Interface Builder
(EIB), you must edit the template to add the Accounting Worktag columns. See Customize EIB
Spreadsheet Template.
3. As you complete mapping inputs to target output values, keep these guidelines in consideration:

Mapping Functionality Guidelines

Input Values For each row, enter a combination of input values
that map to a particular output value.
If you leave value blank, Workday won't evaluate
the column for that row.

Operators When entering input values, you can use these

Wildcard Expressions If you selected to include wildcards when defining

a parameter on the mapping definition, use ?
to match any single character. Example: 10?0
matches these codes: 1020, 1030, 1080.
Use * to match any number of characters.
Example: A*00 matches all codes starting with A
and ending with 00, such as A100, A1000, A1100,
A1200.

Range Expressions If you selected Range Field on the mapping table

definition, enter a Range Start and Range End
value.
You can enter Alphanumeric ranges. Example:
A100 - D300

Mapping Functionality Guidelines

Workday evaluates range expression as a string.
Example: Value of 5 falls outside a range of 1-19,
but value of 05 falls within a range of 01-19.

Output Values Select the desired output value resulting from the
combination of input values.

Note: Workday evaluates rules from the top down and once it finds the mapping, it stops further
evaluation. Therefore, order rules from most to least specific using Order.
4. Once you complete creating all rules, click OK and then Done.
Related Information
Reference
2022R1 What's New Post: Mapping Table Security

Edit an Enrichment Dataset

Prerequisites
• Create a derived dataset.
Create Worktag Mapping. See Steps: Create Instance Mapping on page 473.
• Create any datasets or tables to join in additional data to instantiate Workday values.
Workday recommends you create a new dataset for enrichment between the System Filter
{_UnprocessedForBatch} and the User dataset {_UserConfiguration}.

Context
You can edit an enrichment dataset to prepare further your data for detailed and summarized accounting.
Example: Adding worktag types (cost center) to each individual transaction for greater granularity.

Steps
1. Access the View Accounting Source report.
2. Select an accounting source.
3. From the related actions menu of the accounting source, select Accounting Source > View
Implementation.
4. For the Enrichment stage, click to open the User Dataset.
5. Click Edit.

6. As you edit your derived dataset, consider these guidelines:

a. To add worktag mapping to enrich your data, see Include Mapping in a Dataset on page 477.
b. To add validation rules for your enriched data, see Create Validation Stages for Enrichment on page
481.
c. Adding Fields: When adding fields to the enriched dataset, ensure that the field names don't contain
spaces. Also, ensure that the field name, field type, and business object are the same on the dataset
and table.
Select the new fields when you edit the accounting source. Workday adds the fields to the detail
accounting table when you next run the Accounting Center Process.
d. When defining numeric attributes, ensure that the numeric values have a maximum of 15 digits
to the left of the decimal place and 3 digits to the right of the decimal place. If the numeric value
exceeds these limits, you'll receive an error during the Detailed Accounting Stage.
e. Removing Fields: Before you manually remove a field from a table, consider if the table contains
data. Removing a field will remove all of its data.
Note: Workday recommends you shouldn't remove fields in a production environment.
f. Reuse Existing Enrichment Pipelines: Workday creates an enrichment user dataset as a single blank
dataset. You can reference the user dataset on the accounting source enrichment stage, as there’s
currently no way to reference another enrichment dataset.
Where there’s an existing enrichment dataset, or enrichment rules are complex that you need to
break them into multiple datasets, you must reconfigure the dataset relationships. This enables
the enrichment dataset to import your custom dataset, so that your custom dataset can import the
system filter dataset.
g. Enrichment is a continuous process. Therefore, you must manually add and remove fields if you
want to include the fields down stream.
7. From related actions menu of the Enrichment stage, select Accounting Source Stage > Sync
Schema.
Workday synchronizes the schema of the Enrichment table to include or exclude fields added or
removed in your User dataset.
Related Information
Concepts
Concept: Accounting Center on page 540
Concept: Accounting Source on page 483
Tasks
Create Prism Analytics Table on page 471
Create Accounting Source on page 483

Include Mapping in a Dataset

Prerequisites
• You've created a mapping table based on the mapping table definition.

Context
You can include mapping to populate a dataset with worktag or ledger account values. To include mapping
in a dataset, you must associate the columns in your dataset with the inputs defined in your mapping table
definition.

Steps
1. Access the Data Catalog report.
2. Right-click the dataset for which you want to use the mapping functionality and select Edit.

3. Click Add Stage and select Value Mapping to add a new Value Mapping stage.
4. Select a mapping table you want to use as your mapping rule.
5. Map the required Input Fields associating fields in your Prism dataset with input fields from your
mapping table. If you map a column in your dataset with no data in the mapping table, Workday ignores
the column during the mapping process and uses the remaining columns.
6. Select Output Fields and if needed, rename the field names. Ensure that there are no spaces in the
names as Workday writes these values to a table. Also for better clarity, consider a naming convention
for these fields. Example: inst_ or wtg_.
Workday provides a Condition field as an output field. This output field provides link to the mapping
rule applied.
7. After configuring the Prism stage, click Done.

Result
Workday populates the worktag instances for each transactional line per the mapping rules you defined.

Create Workday Instances with Prism Join

Prerequisites
• Security: These domains in the System functional areas:
• Custom Report Creation
• Manage: All Custom Reports
• Prism Datasets: Create domain in the Prism Analytics functional area when creating a dataset.
• Any of these security requirements when editing an existing dataset:
• Prism Datasets: Manage domain in the Prism Analytics functional area.
• Dataset Editor permission on the dataset.
• Dataset Owner permission on the dataset.

Context
You can use Prism Join to derive an instance of a Workday business object for use in your accounting
source configuration.
Examples:
• You can match field values in your Prism dataset with custom list values. This matching enables you
to populate the instances of the custom account posting rules dimensions created from these custom
list values in your Prism dataset. You can then use these instances as custom dimensions for a custom
accounting posting rule type configured for an accounting source.
• If you have a text value in your Accounting Center source system that represents a Workday worktag
value, you don't need to maintain a separate mapping table. You can instead use Join to instantiate it.

Steps
1. Create a Custom Report
Create a custom report to create a list of all values and instances of all those values.
a. Access the Create Custom Report task.
b. Enter:

Field Value

Report Name A unique name for your custom report. Workday

recommends that you either name or tag reports
that you want to use in Prism to identify them.
Report Type Advanced
Data Source Select an appropriate data source for the
business object values you wish to instantiate.
Example: Custom List Values for Custom List.

Enable As Web Service Select Enable As Web Service.

c. Click OK.
d. On the Columns tab, enter:

Field Value
Business Object Select an appropriate business object.
Business Object. Example: Custom List Value.

Fields Select a value for the Business Object Value in

these formats:
• Text. Example: Custom List Value (Text)
• Instance. Example: Custom Account Posting
Rule Dimension Value (Single Instance).
e. (Optional) On the Prompts tab, enter any desired prompts. If you don't require any prompts, enter:

Field Value
Default Type Select No Default Type.
Do Not Prompt at Run Time. Check
f. On the Advanced tab, enter:

Field Value
Enable as Web Service Confirm it's enabled.
Enable for Prism Check
g. Click OK.
See Create Custom Reports.
See Concept: Creating Reports to Import into Tables and Datasets.
2. Create a Dataset from the Custom Report
• Create a base dataset using the custom report as the source for the dataset. See Steps: Create a
Dataset Using Workday Data.
Note: When you create a dataset from the custom report, Workday recommends that you consider
using a run frequency to schedule updates to the values in the dataset.

3. Create a Join Stage

Create a Join stage to combine fields from the Custom Report dataset and your dataset.
a. Access the View Accounting Source report.
b. Select the accounting source for which you want to create a Join stage.
c. From the related actions of the accounting source, select Accounting Source > View
Implementation.
d. For the Enrichment stage, click to open the User Dataset.
e. Click Edit.
f. Click Add Stage.
g. Select Join.
h. As you create the Join, consider:

Field Description
Join Pipeline Select the dataset you created from the custom
report.
Match Rows • Primary Pipeline: Select the Text field in
your Primary Pipeline to match with the
Business Object Value Text field from your
Custom Report dataset.
• Custom Report Dataset: Select the
Business Object Value Textfield to match
with the selected field from your Primary
Pipeline.

Include Rows That Exist In Select Primary Pipeline. You don't want to drop
records that you’re unable to join.
Select Fields Primary Pipeline tab: Select Select All.
Custom List Report Dataset tab:
• Select Instance and enter the Instance field
from the custom report.
• Include other fields from the report dataset as
desired.
Ensure that all fields have no spaces. If they
do, replace the spaces with an underscore.
i. Click Done and then Save.
See Reference: Join Stages.
4. Synchronize Dataset Schema Changes in Enrichment
Synchronize the schema to include fields added in the Join stage to the schema of the output dataset.
a. Access the View Accounting Source report.
b. Select the accounting source for which you created a Join stage.
c. From the related actions menu of the accounting source, select View Implementation.
d. From related actions menu of the Enrichment stage, select Accounting Source Stage > Sync
Schema.
e. Select Confirm and then click OK.
Note: If you sync the schema for the last enrichment stage, you don't need to publish the system
dataset for Detailed Accounting because Workday will automatically publish the system dataset.

5. Edit Accounting Source

Edit your accounting source configuration to use the instance fields added in the Join stage.
Note: The fields aren’t available in the accounting source configuration until you or Workday
automatically publishes the system data for the Detailed Accounting stage. To confirm that the Schema
Status for the Detailed Accounting stage has a status of Published, select View Implementation from
the related actions menu of the accounting source.
See Edit Accounting Source on page 487.

Result
• When you run Enrichment, Workday populates on each transaction the instance derived through the
Join stage.
• When you run detailed accounting, Workday uses the field instances to drive accounting that is based
on your accounting source journal header and journal line configuration.
Related Information
Tasks
Create Prism Analytics Table on page 471

Create Validation Stages for Enrichment

Prerequisites
• You've created an accounting source with user and error tables.

Context
You can create validation stages and include rules in your enrichment data in Prism. You can then include
transactions identified by these validation rules in an error dataset to prevent them from progressing to
detailed accounting.

Steps
1. Access the View Accounting Source Stages report.
2. Select an accounting source for which you want to create validation stages.
3. From the related actions menu of the User dataset for which you want to create the validation rules,
select Dataset > Edit.
Note: Workday recommends you create a new dataset containing your validation stages between
the System Filter {_UnprocessedForBatch} and the User dataset {_UserConfiguration}. Workday also
recommends to add the validation stage on the last Enrichment stage.
4. Click Add Stage.
5. Select the Validation stage.
6. As you complete the Validation stage, consider:

Option Description
Rules To add Validation rules, click the plus sign. To
identify the validation, specify:
• Validation Code
• Validation Message
• Exception Conditions: Enter a validation
expression to exclude rows that match the
invalid condition. Example: To exclude rows

Option Description
that have no cost center worktag, enter
[Cost_Center] IS NULL.
To add multiple rules, repeat the process.
Breaking up rules will make it easier to
troubleshoot errors.

Grouping Field Use only when expanding 1 record per

transaction into many records per transaction
in Enrichment. Workday uses the field to group
rows together by value. If a row generates an
exception, all other rows in that group will also
generate an exception.
Note: If you use Grouping Field, you must map
the field you select for Grouping Field under Field
mapping.

Exceptions Threshold Workday automatically populates the amount. We

recommend that you don't change the amount.
If errors exceed the threshold, Workday will stop
processing the transactions.

Table for Exceptions Select the error table in your accounting source to
which you want to send the invalid transactions.
Note: Enter the correct error table, otherwise
all subsequent validations will fail. It should be
same as the error table for the stage that is
displayed in the Error Datsets column on the
View Accounting Source Stagesreport.

Field Mapping Is only displayed when you select the Exception

table.
• Validation Code and Message: Map your
user dataset validation code and message to
your validation code and message in your error
dataset.
• Dataset Fields: Depending on your
configuration, you can map as many dataset
fields as you want. You must map these 5
user dataset fields to your error dataset fields:
• WPA_Load ID to load_ identifier.
• WPA_RowIDto row_ identifier.
• AC_Transaction_ID to
AC_Transaction_ID.
• AC_Batch to AC_Batch.
• AC_Batch_Run to AC_Batch_Run.
Workday recommends that you use the
custom fields to retrieve key information to
help troubleshoot errors.

7. Click Done and then Save.

Next Steps
Create an accounting source.
Related Information
Concepts
Concept: Accounting Source on page 483
Tasks
Create Accounting Source on page 483

Accounting Generation

Concept: Accounting Source

An accounting source is a Workday configurable object that defines the steps, ingestion source, and rules
for processing input rows in Accounting Center.
You can use an accounting source to:
• Bring into Workday external transactions in incremental batches using the data management solution of
Workday Prism Analytics.
• Enrich transactions with worktag mapping and unique calculations, and create custom validations.
• Manage rules to generate accounting for high-volume transactions generated by non-Workday sources.
• Transform external operational transactions into accounting journals.
• Create, modify, and maintain custom accounting rules and custom account posting rules to generate
detailed and summarized accounting.
• Post summarized journals to your ledger.
• Orchestrate and have visibility over the entire data transformation process, and view, resolve, and
reprocess errors.
You must have a table of external transactions prepared for enrichment and accounting generation in
Prism called an Ingestion Table. You can use an ingestion table to build your enrichment and accounting
rules beginning with the Create Accounting Source task.
As you create ingestion tables, consider:
• You can't use the same data source for more than 1 accounting source.
• Workday recommends you create an ingestion table as the ingestion source for the accounting source.
Related Information
Reference
The Next Level: Accounting Center

Create Accounting Source

Prerequisites
• You must have created an ingestion table.
• Security:
• These domains in the Accounting Center functional area:
• Set Up: Accounting Sources.
• Process: Accounting Center.

Context
You can create an accounting source from the ingestion table to create tables and datasets for these 4
stages:
• Initiation
• Enrichment (maximum of 3 stages)
• Detailed Accounting
• Summarization

Steps
1. (Optional) Create a Data Change Task.
See Create a Data Change Task.
2. Access the Create Accounting Source task.
3. As you complete the task, consider:

Field Description
Name Enter a name for the accounting source.
No special characters. Only letters, numbers, and
spaces.

Enrichment Steps Select the number of enrichment steps that you

want to use for the accounting source. You can't
change the number of enrichment steps once you
create the accounting source.
The number of enrichment steps you select
depends on:
• The type and complexity of enrichment
transformations and validations.
• Your data processing needs.
Note: Any accounting source that uses a
Validation stage that references the result of a
Value Mapping stage must have the Validation
stage in a subsequent enrichment step. Example:
When creating 2 enrichment steps, create the
Validation stage on the last enrichment step.
Workday recommends that you create separate
enrichment steps:
• For complex enrichments so that Workday
can persist data at each step separately, for
diagnostic purposes.
• For persisting data that you can use for:
• Reporting.
• Exporting to other systems.
• Downstream processing. Example:
Calculating deferred revenue.
Workday also recommends that you configure the
mapping stages before you expand your data.
Configured mapped stages reduce the number of
rows required for mapping.

Field Description
Ingestion Source Select the ingestion table for your transactions
that you want to use for accounting.
You can only select a Prism table and not a
derived dataset as an ingestion source.
When you create a Prism table for an accounting
source, you can optionally add 2 columns with
the exact names Source_WPA_LoadID and
Source_WPA_RowID to track ingestion source
WPA_LoadID and WPA_RowID. The value in
these fields automatically populates in the Batch
Mapping table for reference when you initiate an
accounting center batch.
You can't use a data source for more than 1
accounting source.

Data Change Task (Optional) Select a Data Change Task to load

transformed data automatically from the derived
dataset to the ingestion source table when
processing an accounting center batch.
If you don't select the task, you must manually
populate the ingestion source table with new data.

4. Click OK.
5. To refresh the page, click the magnifying icon.
Workday displays the View Accounting Source report.
6. To complete the process, refresh the report.
7. From the related actions of the accounting source, select Accounting Source > Edit Accounting
Source.
8. As you complete the task, consider:

Field Description
As Of Date Specify a date field to configure the accounting
source.
The As Of Date value for each transaction
• Determines which version of the accounting
source Workday uses at run time.
The earliest effective date of the accounting
source configuration should be earlier than the
As Of Date values on the incoming data.
You can create multiple versions of an accounting
source configuration with different effective dates.
Select a date column from your enriched data
source to determine which effective-dated
configuration you want Workday to apply to the
enriched transactions to generate accounting.
Example: You have these 2 snapshots of an
accounting source configuration:

• Snapshot dated 01/10/2019

• Snapshot dated 01/15/2019
If the As Of Date column value is 01/17/2019
for a sample transaction, Workday applies the
configuration dated 01/15/2019 to the enriched
transaction.

Transaction Grouping ID When expanding 1 record per transaction into

many records per transaction in enrichment,
Workday recommends that you use Transaction
Grouping ID as a unique ID for each row in your
ingested data.
If you leave this field blank, Workday treats each
enriched row in your data source as a unit of
work. If you specify a grouping criteria, Workday
creates a unit of work from many rows that share
a Transaction Grouping ID value.
Example: Select Policy Number if you want to
bring in multiple premium amounts for a specific
policy number as a single transaction in detailed
accounting. This will affect the Transaction Count
on your Batch run, while the Record Count will
count each row.

Enable Multicurrency Select to enable the fields on your accounting

source for multicurrency setup.
Note: Once you create an effective-dated
accounting source configuration, you can't change
this option.

Stop Publishing Error Datasets (Optional) For existing Accounting Sources, select
the check box to stop publishing error datasets
and have Workday query Prism tables directly.
We recommend you select this check box in order
to complete your batches faster.
Existing error datasets will no longer include any
errors generated on future batches.
For new Accounting Sources that you create,
Workday won't create error datasets for
Enrichment and Detailed Accounting.

9. Click OK and then Done.

10.From the related actions of the Accounting Source, select Accounting Source > View Implementation
and confirm that accounting source creates datasets and tables for each stage.
See Reference: Accounting Source Datasets and Tables on page 496.

Next Steps
Edit an accounting source to define journal header and header line rules.
Related Information
Concepts
Concept: Accounting Center on page 540

Reference
2021R2 What's New Post: Automated Pre-Batch Processing in Accounting Center
2022R2 What's New Post: Accounting Center - Miscellaneous Enhancements

Edit Accounting Source

Prerequisites
• Configure an accounting source.
• Edit enriched dataset.
• Security: These domains in the Accounting Center functional area:
• Set Up: Accounting Sources.
• Process: Accounting Center.

Context
You edit an accounting source to:
• Define accounting groups that contain journal header and header line rules.
• To generate detailed accounting, define journal header and header line rules.
• Enter an effective date for accounting groups.
• (Optional): Enter a transaction Grouping ID for the accounting source.
• (Optional) Change the Data Change Task.
Note: You can't change the Data Change Task when a batch is in progress.
• (Optional) Specify a new As Of Date for the accounting source.
• (Optional) Configure your related worktag configurations to populate default related worktags
automatically on Accounting Center detailed journal lines.
Note: Before you edit an accounting source, ensure that Workday has successfully created the accounting
source and all stages in the accounting source. To verify, access the View Accounting Source report,
select your accounting source, and confirm it has a status of Awaiting Configuration.
Creating multiple accounting groups for an accounting source enables you to create efficient accounting
source configurations to support your business needs. Example: Accounting for a single transaction under
multiple book codes.
For each accounting group you can:
• To generate detailed accounting for the accounting group, specify separate header and journal line
configurations.
• Configure different journal header rules (Example: book code) and journal line rules.
• Create accounting group condition rules for a transaction.
• Generate more than 1 set of detailed accounting entries from a single transaction.
• To generate detailed accounting for each accounting group, apply 1 or more accounting groups to each
transaction in a batch.

Steps
1. (Optional) Create Custom Account Posting Rule Dimensions and Custom Account Posting Rule Types.
See Create Custom Dimensions and Custom Account Posting Rule Types on page 495.

2. (Optional) If you want to default your related worktag values on Accounting Center detailed journal lines
ensure, you:
• Select Enable Worktag Type Precedence on the Maintain Worktag Type Precedences task.
• You properly order Worktag Types from which you want to default related worktag values on the
Order of Precedence list on the Maintain Worktag Type Precedences task.
Note: Before you enable or modify the configuration on the Maintain Worktag Type Precedences
task, consider the impact this will have on operational transactions, accounting journals, and their
corresponding web services.
3. Access the View Accounting Source report.
4. For Accounting Source, select the accounting source you previously created and click OK.
5. (Optional) Select a new Data Change Task.
6. Click Edit Configuration.
7. Enter an Effective Beginning date for the accounting group.
The effective date must be the same or earlier than the value in the As Of Date field. Otherwise, you
can have transactions that Workday can't process as the transactions are unable to find a matching
configuration. Workday recommends you create your initial configuration with a date earlier than any
transactions that you plan to bring into the Accounting Center.
Each time you select Edit Configuration, you can:
• Create a new snapshot for an existing accounting group by entering a new effective date.
Note: For existing Accounting Groups, Workday automatically populates the effective date of the
current snapshot of the selected Accounting Group. You can change the effective date.
• Create an initial snapshot for a new accounting group.
• Edit an existing snapshot of an accounting group, by selecting the accounting group and entering the
same effective date as the snapshot you want to edit.
Note: Workday, therefore recommends that before you edit your configuration, you:
a. Access the View Accounting Source.
b. Click Effective Date Snapshots to check if you have prior snapshots in your Effective Date history.
8. For Accounting Group, select Create New and enter an Effective Beginning date to create a
snapshot for a new accounting group.
9. Click OK.
10.As you create a new accounting group, consider:

Field Description
Accounting Group Name Enter a unique name for the accounting group.
Condition Rule Select a condition rule for the accounting group.
Workday applies the accounting group condition
rule to a transaction if the condition rule is met.
Condition rules are specific to an accounting
source. You can use condition rules across all
accounting groups and journal line rules in the
same accounting source, but can't use same
condition rules in another accounting source.
You can create condition rules for the accounting
group from the Create Accounting Source
Configuration Rule task, which you can also
access from this field.

If you don't select a condition rule, Workday

applies the accounting group to all transactions in
the batch.
Note: For Many to 1 transactions, all rows
with the same Grouping ID must pass the
accounting group condition rule to generate
detailed accounting.

11.Click the Journal Header Rules tab.

12.As you complete the task, consider:

Field Description
Ledger Company Map the source data to the corresponding
Workday field type. The mapping enables you
Ledger Type
to select a value from the data source when
Journal Source configuring the accounting source.
Otherwise, you must select from a list of instance
values in your tenant when configuring your
accounting source.

Accounting Date Map the source data to the corresponding

Workday field type. The mapping enables you
to select a value from the data source when
configuring the accounting source.
Is the date the journal posts to the ledger. You
can use this date to determine the period to post
the journal entry to.
Select the date of the transactions from the
enriched data source. Workday retrieves the
value for the Date field in the enriched data
source.
Accounting date is usually the same as the As
of Date, but can be different. This enables you
to have an accounting source configuration date
earlier than the journal posting date. It's similar to
transaction and accounting date in Workday.

Book Code (Optional) Select a book code for the accounting

group.
Either select a field from your source data or
select an instance value.
You can select a separate book code for each
accounting group based on your reporting
requirements. Example: For the same accounting
source, you can select a GAAP book code for 1
accounting group and Local GAAP Adjustments
book code for another accounting group.

Memo Optional

Note: This value will only carry forward

to detailed accounting, and won't populate
summarized journals.

External Reference ID This value will only carry forward to detailed

accounting and won't populate summarized
journals.
Create Reversals Optional
Select if you want to create a reversal for
transactions on the first day of the next available
period.

Alternative Reversal Date Optional

Include this field if you:
• Create reversals.
• Want to use a date other than the default
option, which is the first day of the next period.
The alternate reversal date must be in your
enriched data and formatted as a date.

Alternative Currency Rate Type Is available only when you select Enable
Multicurrency.
Select values from either the enriched data
source or a list of values in your tenant. If you
select None of the above, Workday uses the
default currency rate type for the company. If no
company rate type is specified for the company,
Workday uses the default currency rate type in
your tenant.

13.Click the Journal Line Rules tab.

14.As you complete the task, consider:

Field Description
Condition Rule Optional
Workday evaluates and posts transactions to
specific ledger accounts based on rules you
create.
Condition rules are specific to an accounting
source. You can use condition rules across all
accounting groups and journal line rules in the
same accounting source, but can't use same
condition rules in another accounting source.
You can create condition rules from the Create
Accounting Source Configuration Rule task,
which you can also access from this field.
If you don't create a condition rule, Workday
processes this row for every data row in your file.

Line Company Optional

Leave as the default value unless you’re

configuring intercompany accounting. Workday
automatically populates the value from the Ledger
Company on the Journal Header Rules tab.
For intercompany transactions, you can select
values either:
• From the enriched data source.
• List of values in your tenant.
Note: Companies with intercompany transactions
must share the same ledger currency.

Ledger Account Map the source data to the corresponding

Workday field type if you want to select a value
from the data source when configuring accounting
source.
Otherwise, you must select a value from a list
of values in your tenant, or a posting rule type
(including custom posting rule type).
See Create Custom Dimensions and Custom
Account Posting Rule Types on page 495
See Create Workday Instances with Prism Join on
page 478.

Additional Posting Rule Dimensions Optional

Must enter a value when you select a posting rule
type in the Ledger Account field.
Map your source data column to the Custom List
that you created for a custom account posting
rule dimension. See Create Custom Dimensions
and Custom Account Posting Rule Types on page
495.
When using a posting rule, this field should
contain valid posting rule dimension data for the
specified posting rule type.
Add dimensions from your posting rule type
here, including configured custom posting rule
dimensions.
Don't add the Company dimension, as Workday
automatically derives the dimension.

Transaction Amount Amount in the transaction currency.

Select from the enriched data source. Unless you
enable multicurrency for the accounting source,
you must enter the transaction amount in the
company ledger currency.

Transaction Currency Select from the enriched data source or a list of

values in your tenant.
Ledger Amount Leave this blank, if you want Workday to convert
source transactions to your ledger currency.

If you’ve already converted to ledger amount,

select from the enriched data source.

Worktags Optional, but Workday recommends that you map

1 or more fields to worktag dimensions. Workday
persists the worktags on your summary journals
in the ledger. The worktags summarizes your
detailed accounting entries.
Worktags you specify here are displayed in both
detailed and summarized accounting.

Enable Default Related Worktags Select the check box to populate default related
worktag values that are derived from the worktag
values from your enriched transactions.
This can reduce the need to define these worktag
values using mapping tables, lowering the
ongoing maintenance of your mapping tables.
Workday will only default Worktag types that you
select on the Worktags prompt for each journal
line rule.
Note: A worktag value from your enriched data
will always take precedence over a default related
worktag value.
Workday considers the related worktag values
added to your detailed journal lines:
a. When evaluating the account posting rule for
the journal line rule, if applicable.
b. When evaluating detailed accounting custom
validations, if applicable.
c. In summarization, and includes them on the
resulting Accounting Center summary journal
lines.
You can only select the Enable Default Related
Worktags option if you enable the Worktag Type
Precedence task.

Additional Attributes Optional, but Workday recommends that you

include 1 or more fields of additional attributes.
Include any other attributes that you want to
include in addition to worktags. Example: Agent
Number, Policy Number.
Additional attributes won’t carry forward to
summary journals in the ledger, but are available
for reporting in your detailed accounting results.

Reconcile to Bank Select the check box if you want to reconcile

summarized cash journal lines.
Journal lines you select are available for
reconciliation and displays a Transaction
Reference if there’s one.

You can then match the selected journal lines

with your bank statement. See Steps: Use Bank
Account Reconciliation on page 1763.

Transaction Reference Only assign a transaction reference if you’ve

enabled Reconcile to Bank option. A transaction
reference helps you in reconciling cash journal
lines with your bank statement line.
Workday displays the transaction reference on the
journal line during summarization.

15.Click the Summarization Rules tab to review how Workday groups and summarizes journals for all
accounting groups in the accounting source:
a) Summarized Journal Header Fields: Displays journal header summarization logic.
b) Summarized Journal Line Fields: Displays journal line summarization rules, including worktags.
Note: Workday excludes additional attributes in summarization, but makes them available for reporting
in your detailed accounting.
16.Click OK and then Done.

Next Steps
Create accounting center batches.
Related Information
Reference
2021R2 What's New Post: Automated Pre-Batch Processing in Accounting Center
2022R2 What's New Post: Default Related Worktags in Accounting Center

Inactivate Accounting Source

Prerequisites
Security: Set up: Accounting Source – Inactivate domain in the Accounting Center functional area.

Context
You can inactivate an accounting source that is incomplete, wrongly configured or that you longer need.
When you inactivate an Accounting Source, Workday automatically disables all tasks for editing a
configuration or initiating a batch from the accounting source.
You can though still report on the inactivated accounting source and its transactional data.
Once you inactivate an accounting source, you can't reactivate it.
Before you inactivate an accounting source, we recommend that you check for and resolve:
• In-progress manual accounting center detailed journals.
• Transactions in the ingestion table that Workday hasn't processed. If you want to process these
transactions, ensure that you inactivate the accounting source after the next batch run.
• Transactions in DismissedTransactionsConsolidated table that have a resolution of Process with Next
Batch. If you don't want to process these transactions, ensure that you inactivate the accounting source
after the next batch run.

Steps
1. Access the View Accounting Source report.

2. Select the Accounting Source that you want to inactivate.

3. From the related actions of the accounting source, selectAccounting Source > Inactivate Accounting
Source.
4. Enter an Inactivation Reason and then select Confirm.
5. Click OK.
6. Review the Errors and Alerts.
7. If you still want to inactivate the accounting source, click OK and then Done.

Result
Workday:
• • Disables all configuration and batch initiation tasks.
• Doesn’t process any transactions that's waiting to be processed in the next batch.
• Removes access to the Accounting Center Error Manager.
• Won't display these related actions on an inactive accounting source:
• Accounting Center Error Manager
• Create Accounting Center Detailed Journal
• Configure Detailed Journal Additional Attributes task.
• Edit Accounting Source
• Edit Accounting Source Configuration
• Edit Accounting Center Process Configuration
• Initiate Accounting Center Batch
• Monitor Accounting Source Job Status
• Removes the related action of Cancel Accounting Center Batch on a batch.
• Disables these related actions on a detailed journal:
• • Add/Change Attachment for Accounting Center Detailed Journal.
• Edit Accounting Center Detailed Journal.
• Will no longer display an inactive Accounting Source from the Accounting Source field when you access
these tasks:
• Accounting Center Error Manager
• Configure Detailed Journal Additional Attributes
• Create Accounting Center Detailed Journal
• Create Accounting Source Configuration Rule
• Edit Accounting Source
• Edit Accounting Center Process Configuration
• Edit Accounting Source Configuration Rule
• Initiate Accounting Center Batch
• Monitor Accounting Source Job Status
• Disables these buttons on the View Accounting Source report:
• Edit
• Edit Configuration
Related Information
Concepts
Concept: Accounting Source on page 483
Tasks
Create Accounting Source on page 483

Reference
The Next Level: All Things 2023R1 in Accounting Center
2023R1 What's New Post: Inactivate Accounting Source

Create Custom Dimensions and Custom Account Posting Rule Types

Prerequisites
Security: Set Up: Custom Accounting Posting Rule Types domain in the Accounting Center functional area.

Context
You create custom dimensions and custom account posting rule types to create rules for transactions you
want to bring into Workday.
Note: Workday doesn't support resulting worktags configured on custom account posting rule types or
other account posting rules in Accounting Center.

Steps
1. Access the Create Custom List task.
Use this task to create custom list values that you can then enable for use as custom account posting
rule dimensions.
2. Access the Create Custom Account Posting Rule Dimension task.
Use the task to enable the custom list objects as your custom dimensions.
3. Access the Create Custom Account Posting Rule Type task.
Use the task to create a custom account posting rule type and link the custom posting rule dimension.
To add the custom account posting rule type automatically to the existing account posting rule set, save
the custom account posting rule type.
4. Access the View Account Posting Rule Set report.
Select the custom posting rule type that you created, click Edit Posting Rule to add the detail to the
posting rule to determine the ledger account. You can now use this posting rule type to build your
configuration.
5. Use a Join to map this custom list to the corresponding column in your raw dataset in Prism. The map
enables you to instantiate the value in your enriched data source. Workday makes the value available
that you can use in posting rules. See Create Workday Instances with Prism Join on page 478.
Related Information
Tasks
Set Up Account Posting Rules on page 71
Reference
The Next Level: All Things 2023R1 in Accounting Center

Concept: Custom Validations for Detailed Accounting

Based on your requirements, you can create custom validations to display error messages when
transactions that are created in detailed accounting from the source system or manual detailed accounting
journals meet certain conditions. Custom validations prevent Workday from processing transactions in
detailed accounting that you identify as invalid. You can share these validations in accounting journals as
long as the fields exist in both places.
Note: When creating custom validations, ensure that you don't use quotes or special characters in the
description. Examples: @, #, $, &.

Use the Accounting Center Detailed Journal report field to specify whether you want to apply the custom
validation condition rule only to manual Accounting Center detailed journals and not traditional detailed
journals.
Select the Accounting Center Detailed Journal type of transaction to create custom validations. See Steps:
Set Up Custom Validations on page 50.
Workday displays the error message when it processes the transactions that meet the conditions for the
validations.
For Workday-delivered validations, see The Next Level: Accounting Center Configuration Guide- Delivered
Validations.

Reference: Accounting Source Datasets and Tables

When you create an accounting source, Workday creates these datasets and tables:
Note: Workday uses System datasets for internal Accounting Center processing. Don't edit or import
these System datasets into another derived dataset. Only edit System datasets under these 2 conditions:
• If fields change after you process an accounting center batch. You might need to edit the system
datasets manually in order to sync schema. This ensures that Workday selects the fields on join or filter
stages. Don't do any other transformations within system datasets.
• The only system dataset that you should read from is the XX_ENR_#_SYS_UnprocessedForBatch
dataset within the Enrichment stage. Workday recommends importing the dataset into a derived dataset
from where you can perform transformations.

Stage Dataset/Table Comments

Batch Initiation Input Dataset The first dataset for the
stage and displayed in your
Accounting Center header.
This dataset is the Ingestion
table for Batch initiation and
will be the output of the Data
Change Task if you’ve have
one.

System Datasets The datasets are necessary

for processing the batch.
• XX_INIT_SYS_NetNewLoadIDs
• XX_INIT_SYS_UnprocessedForBatch DON'T EDIT ANY SYSTEM
DATASETS.

Output Dataset This dataset contains results

of the Initiation stage.
XX_INIT_TBL_BatchMapping
Identifies records picked up
by the Accounting Center for
processing in a batch.
Is part of the Input dataset for
the Enrichment stage.

Stage Dataset/Table Comments

Enrichment Input Dataset The first dataset for the
enrichment stage.
XX_SYS_MappedIngestionData
Is a join of Output dataset
from the Initiation stage and
your Ingestion table.
For multiple enrichment
stages, the input is the output
of the previous enrichment
stage.

System Datasets These datasets contain data

that Workday is processing
• XX_ENR_#_SYS_ContextDataForErrors
for the batch.
**
• XX_ENR_#_SYS_Error ** DON'T EDIT ANY SYSTEM
• XX_ENR_#_SYS_UnprocessedForBatch: DATASETS.
You can import this dataset into a derived
dataset where you can transform or enrich
your accounting source.
** Are available only in existing Accounting
Sources. For new Accounting Sources that
you create, Workday won't create these error
datasets.

User Dataset This dataset is unique to the

Enrichment stage.
XX_ENR_#_USR_UserConfiguration
These datasets only process
transactions for the batch
and don't store records.
Instead of adding
transformations directly
in this dataset, Workday
recommends that you
make transformations
in derived datasets that
you’ve imported from the
XX_ENR_#_SYS_UnprocessedForBatch
dataset and then connect to
this User Dataset.
Workday also recommends
that you create
your transformation
datasets between the
UnprocessedForBatch
dataset and
UserConfiguration dataset.

Stage Dataset/Table Comments

Output Dataset This dataset contains results
of the Enrichment stage.
XX_ENR_#_TBL_EnrichedData
The Input table for the
Detailed Accounting stage or
the next enrichment stage if
there are multiple enrichment
stages.

Error Dataset This dataset contains

processing errors for the
XX_ENR_#_TBL_EnrichedError
Enrichment stage.
Detailed Accounting Input Dataset This dataset is the first table
for the Detailed Accounting
XX_ENR_#_TBL_EnrichedData
stage.
The Output dataset from the
last Enrichment stage.

System Datasets These datasets are

necessary for processing the
• XX_DTL_SYS_ContextDataForErrors **
batch.
• XX_DTL_SYS_UnprocessedForBatch
DON'T EDIT ANY SYSTEM
** Is available only in existing Accounting DATASETS.
Sources. For new Accounting Sources that
you create, Workday won't create this error
dataset.

Output Tables These tables contain results

of the Detailed Accounting
XX_DTL_TBL_DetailedAccounting
stage.
The Input table for the
Summarization stage.

Error Tables These tables contain

processing errors for the
• XX_DTL_TBL_DetailedAccountingError
Detailed Accounting stage.
• XX_DTL_TBL_DetailedAccountingErrorDetails

Summarization Input Table This table is the Input table

for the Summarization stage.
XX_DTL_TBL_DetailedAccounting
The Output table from the
Detailed Accounting stage.

System Datasets These datasets are

necessary for processing the
• XX_SUM_SYS_Error
batch.
• XX_SUM_SYS_JournalToDTLRowIDLinkage
• XX_SUM_SYS_SummarizedAccounting DON'T EDIT ANY SYSTEM
• XX_SUM_SYS_UnprocessedForBatch DATASETS.

Output Datasets These datasets contain

results of the Summarization
• XX_SUM_TBL_JournalToDTLRowIDLinkage
stage.
• XX_SUM_TBL_JournalToKeyLinkage

Stage Dataset/Table Comments

Error Tables These tables contain
processing errors for the
XX_SUM_TBL_JournalToKeyLinkageError
Summarization stage.
Reporting Dataset This dataset is unique to the
Summarization stage.
XX_SummaryandDetailedAccountingReference
Links DetailAccounting
records and the Summarized
Accounting records.

In addition, Workday also creates these systems and user-configured dismiss datasets:

Dataset Type Dataset/Table

Dismiss System Datasets XX_SYS_DismissedTransactionsConsolidated
XX_SYS_DismissedTransactionsPopulatedForReprocessing
XX_SYS_UserDirectedForDismissal
XX_TBL_DismissedTransactionsConsolidated
XX_TBL_UserDirectedForDismissal

User Configured Dismiss System Dataset XX_USR_UserDirectedForDismissal

Use this dataset to configure your custom
dismissals.

Batch and Error Management

Edit Accounting Center Process Configuration

Prerequisites
You've created an accounting source and defined header and journal line rules.
Security: Set Up: Accounting Sources domain in the Accounting Center functional area.

Context
You can configure the Accounting Center Process to:
• Specify how you want Workday to process each batch for a stage.
• Set maximum error thresholds by count and percent for each stage in an accounting source. When
errors exceed the threshold, Workday pauses the batch so that you can review the errors. You'll have to
advance the batch manually.
Note: Once you run summarization, you can't roll back and rerun the batch. Workday therefore
recommends that during your testing and design phase, you set detailed accounting to progress manually.

Steps
1. Access the Edit Accounting Center Process Configuration task.

2. As you complete the task for each stage, consider:

Option Description
Processing Options Select how you want to process batches for the
next stage on completion of a stage.
• Select Always Advance to Next Stage and
Dismiss Any Errors to Next Batch if you
want Workday to proceed automatically to the
next stage and dismiss any errors to the next
batch.
• Select Always Advance to Next Stage and
Dismiss Errors from the Batch if you want
Workday to advance the batch automatically
to the next stage and dismiss any errors in the
batch to the Accounting Center Error Manager.
Note: Errors are available in the Error
Manager once the batch completes.
• Select Manually Select Next Action if you
want to start and process the batches for the
next stage manually.
• Select Only Advance to Next Stage If No
Errors if you want Workday to proceed
automatically to the next stage when there are
no errors.

Error Threshold Specify a threshold by count, percent or both for

these 2 processing options:
• Always Advance to the Next Stage and
Dismiss Any Errors to Next Batch
• Always Advance to the Next Stage and
Dismiss Errors from the Batch
Note: The threshold count or percent can't
exceed the Workday-defined threshold of 100,000
errors for a batch.
You can also specify a maximum error threshold
by both count and percent but when errors
exceed the most restrictive threshold, Workday
will pause the batch. Example: A stage consists of
50,000 incoming transactions. You have set the
error threshold of both 10,000 error count and 10
percent of the incoming transactions (5,000). As
soon as there are 5,000 errors in the stage (10%
of transactions), Workday will ignore the threshold
error count, and will pause the batch.

Count Specify a threshold error count between zero and

100,000.
Percentage Specify a threshold percent of the transactions
that are coming into a stage. The percent can be
between zero and 100 percent.
3. Click OK.

Next Steps
Create a batch.
Related Information
Reference
2022R2 What's New Post: Configure Error Thresholds to Pause Batch Processing

Create Accounting Center Batches from Source Systems

Prerequisites
Configure the Accounting Center process using the Edit Accounting Center Process Configuration
task.
Configure these business processes:
• Accounting Center Batch Initiation Event.
Include the Accounting Center Batch Initiation Primary Process as Batch/Job in the business process
definition.
• Accounting Center Enrichment Event.
Include the Accounting Center Enrichment Primary Process as Batch/Job in the business process
definition.
• Accounting Center Detailed Accounting Event.
Include the Accounting Center Detailed Accounting Primary Process as Batch/Job in the business
process definition.
• Accounting Center Summarization Event.
Include the Accounting Center Summarization Primary Process as Batch/Job in the business process
definition.
See Steps: Configure Business Process Definitions.
Security: Process: Accounting Center domain in the Accounting Center functional area.

Context
Depending on the sources, you can create these 2 type of batches in Accounting Center:
• Primary Source: Batches that contain processed transactions that are created by a source system.
• Manual Detailed Journals: Batches that contain transactions created by manual detailed accounting
journals. See Create Manual Accounting Center Detailed Journals on page 506.
You create a Primary Source batch to process a set of source transactions to:
1. Enrich data.
2. Generate detailed accounting.
3. Generate summarized accounting.

Steps
1. Initiate Accounting Center Batch
When you initiate a batch, it:
• Associates the WPA_Row_ID and WPA_Load _ID on each ingested row from the source system to
an:
• AC_Transaction_ID
• AC_Batch
• AC_Batch_Run
• Creates a persisted mapping table.
Note: Before you can initiate a batch ensure that the batch contains at least 1 transaction.
a) Access the Initiate Accounting Center Batch task.
b) As you complete the task, consider:

Field Description
Accounting Source Select the accounting source for which you want
to initiate a new batch.
Initiating Stage Workday automatically populates Batch
Initiation.
Process Options Workday automatically populates Initiate Batch.
Confirm Check
c) Click OK and then Done.
Workday:
• Initiates the Accounting Center Batch Initiation Event business process.
• Automatically launches Enrichment 1 to enrich data for detailed and summarized accounting.
d) On the Initiate Accounting Center Batch page, click the batch.
Workday displays the View Accounting Center Batch page.
e) Click Refresh.
f) On the Current View by Stage tab, confirm that the Batch Initiation stage has an In Progress status.
g) Click the View by All Runs tab and confirm that the Batch Initiation stage run event has an Primary
Process In Progress run status.
h) Refresh the page to confirm that the Run Status for the Batch Initiation stage run event has a status
of Completed.
Once the Batch Initiation stage is complete, Workday automatically launches Enrichment 1.
Note: The input table for the Enrichment stage is different from the output table of the Initiation
stage.

2. Create Enriched Data

When you enrich data, it prepares the data source for detailed and summarized accounting.
a) On the View Accounting Center Batch page, select the Current View by Stage tab, and confirm
that the Enrichment stage has an In Progress status.
b) Click the View by All Runs tab and confirm that the Enrichment stage has a Primary Process In
Progress run status.
c) Refresh the page to confirm that the Run Status for the Enrichment stage has a status of Completed.
If you have no errors but still want to rerun the process:
• Click Run.
• For Process Options, select Rollback to Selected Stage and Reprocess.
• For Select Stage, select Enrichment.
• For Include Dismissed, leave unchecked.
• Click OK.
Workday rolls back the transactions to the Enrichment stage and reprocesses the transactions.
If there are any errors in the run, you'll see a View Errors button for the stage on the View by All
Runs tab.
d) Click View Errors to view any errors. See View, Resolve, and Reprocess Errors on page 520.
Note: Before you run detailed accounting, ensure you've resolved or dismissed all errors from the
Enrichment 1 stage.
3. Create Detailed Accounting
You can generate detailed accounting for financial, operational, and managerial reporting.
a) (Optional) Create Custom Validations, see Concept: Custom Validations for Detailed Accounting on
page 495.
b) Access the Find Accounting Center Batch report.
c) On the Find Accounting Center Batches page, for Batch Type, select Primary Source.
d) Click the Batch for which you want to create detailed accounting.
e) On the View Accounting Center Batch page, select the Current View by Stage tab.
f) For the Detailed Accounting stage, click Run.
Workday displays the Run Accounting Center Event page.
g) As you complete the task, consider:

Field Description
Accounting Source Workday automatically populates these fields:
Stage • Accounting Source
Batch • Stage
• Batch details

Field Description
Process Options Select Run Unprocessed Transactions to
have Workday create detailed accounting for
unprocessed transactions.
h) Click OK and then Done.
The process initiates an Accounting Center Detailed Accounting event.
i) On the Current View by Stage tab, confirm that the Detailed Accounting stage has an In Progress
status.
j) Click the View by All Runs tab and confirm that the Detailed Accounting stage has an Primary
Process In Progress run status.
k) Refresh the page to confirm that the Run Status for the Detailed Accounting stage has a status of
Completed.
If you have no errors but still want to rerun the process:
• Click Run.
• For Process Options, select Rollback to Selected Stage and Reprocess.
• For Select Stage, select Detailed Accounting.
• For Include Dismissed, leave unchecked.
• Click OK.
Workday rolls back the transactions to the Detailed Accounting stage and reprocesses the
transactions.
If there are any errors in the run, you'll see a View Errors button for the stage on the View by All
Runs tab.
l) Click View Errors to view any errors. See View, Resolve, and Reprocess Errors on page 520.
Note: Before you run Summarization, ensure you've resolved or dismissed all errors from the
Detailed Accounting stage.
4. Create Summarized Accounting
You can generate summarized accounting to aggregate detailed accounting results.
Note: Summarized journals won't check for budget check and will post even if they cause the budget to
exceed.
a) On View Accounting Center Batch page, select the Current View by Stage tab.
b) For the Summarization stage, click Run.
Workday displays the Run Accounting Center Event page.
c) As you complete the task, consider:

Field Description
Accounting Source Workday automatically populates these fields:
Stage • Accounting Source
Batch • Stage
• Batch details

Field Description
Process Options Select Run Unprocessed Transactions to
have Workday create summarized accounting
for unprocessed transactions.
d) Click OK and then Done.
The process initiates the Summarization Event process.
e) On the Current View by Stage tab, confirm that the Summarization stage has an In Progress
status.
f) Click the View by All Runs tab and confirm that the Summarization stage has an Primary Process
In Progress run status.
g) Refresh the page to confirm that the Run Status for the Summarization stage has a status of
Completed.
If there are any errors in the run, you’ll see a View Errors button for the stage.
h) Resolve, fix, and reprocess any errors. See View, Resolve, and Reprocess Errors on page 520.
Note: Before you can view summarized accounting, ensure you’ve resolved all errors from the
Summarization stage.
5. Review Summarized Journals for the Batch
a) From the related actions menu of the batch, select Accounting Center Batch > View Accounting
Center Summary Journals.
b) Click the journal for which you want to view summarized accounting.
c) To navigate back to the Accounting Center batch, from the related actions menu of the journal,
select Journal Entry > View Accounting Center Batch.
To review all summarized journals for the accounting source, see View Summarized Journals on page
537.
Related Information
Tasks
Cancel Accounting Center Batches on page 510

Configure Detailed Journal Additional Attributes

Prerequisites
Create an accounting source and run at least 1 batch in the accounting source.
Security: Set Up: Accounting Source in the Accounting Center functional area.

Context
You can configure a maximum of 10 additional attributes to be available for selection on the Accounting
Center Detailed Journal Lines for each Accounting Source. You can then specify which of the configured
additional attributes you want available on the manual detail journal entry lines and which additional
attributes are required.
Note: Workday restricts you from modifying the Reference IDs on Additional Attributes.

Steps
1. Access the Configure Detailed Journal Additional Attributes task.
2. Select an Accounting Source.
3. Click OK.
4. Add a row for each additional attribute that you want available on the Accounting Center Detailed
Journal lines.

5. As you complete the task, consider:

Option Description
Additional Attribute Select the additional attributes that you want on
your manual detailed journal entry lines.
Only additional attributes present on the Detailed
Accounting Output Table schema for the selected
Accounting Source are available for selection.

Edit on Journal Entry Lines Grid For each attribute, select if you want to edit the
attribute on the manual detailed journal entry lines
when you create a manual detailed journal.
Required For each attribute, select to require the additional
attribute on all manual detailed journal entry lines.
6. Click OK.

Result
The configured additional attributes are available on the manual detailed journal entry lines where
indicated.

Next Steps
Create a manual detailed journal.
Related Information
Reference
The Next Level: All Things 2023R1 in Accounting Center
2023R1 What's New Post: Manual Accounting Center Detailed Journal

Create Manual Accounting Center Detailed Journals

Prerequisites
• Configure these business processes:
• Accounting Center Detailed Journal Approval Event to route manual accounting center detailed
journals for approval.
Configure Approvals on the Accounting Center Detailed Journals.
• Accounting Center Detailed Journal Batch Initiation Event.
Include the Accounting Center Detailed Journal Batch Initiation Primary Process as Batch/Job in the
business process definition.
• Accounting Center Summarization Event.
Include the Accounting Center Summarization Primary Process as Batch/Job in the business
process definition.
See Steps: Configure Business Process Definitions.
• Configure Detailed Journal Additional Attributes on page 505.
If you want to create a manual detailed journal with additional attributes, configure the detailed journal
additional attributes first.
• Security: Process: Accounting Center Detailed Journals in the Accounting Center functional area.

Context
You can create a manual journal with worktags and additional attributes in Detailed Accounting for a
number of purposes, including:
• Correct data created by traditional batch processing.
• Create reversing accruals in the current period for source data that isn’t yet in the Accounting Center.
You can only process manual detailed journals directly in the Detailed Accounting and Summarization
stages. There are no Ingestion or Enrichment stages for manual detailed journals.
For Manual Detailed Journal batches, Workday:
• Ignores any processing options that you’ve configured for the accounting source on the Edit
Accounting Center Process Configuration task.
• On the Run Accounting Center Event page:
• Disables the Dismiss Errors and Process with Future Batch option as you can't dismiss
transactions for the Manual Detailed Journal batch types.
• Only displays the Summarization stage when you click Run and select Rollback to Selected
Stage and Reprocess.
Note: The Accounting Center Detailed Journals don't post directly to your ledger but Workday instead
summarizes them before posting to the ledger.

Steps
1. (Optional) Configure an ID Generator for Accounting Center Detailed Journal.
Access 1 of these tasks:
• Edit Tenant Setup - Financials to configure an ID for all manual accounting center detailed journals
at the tenant level.
• Edit Company ID Definitions to configure an ID for all manual accounting center detailed journals
at the company level.
Note: The company ID sequence generator values take precedence over the Tenant Setup
configuration.
See Create ID Definitions and Sequence Generators.
2. (Optional) Use the Batch Type report field to create a condition rule on the Accounting Center
Summarization Event business process.
3. Access the Create Accounting Center Detailed Journal task.
4. As you complete the journal header, consider:
Option Description
Accounting Source Select the accounting source for which you want
to create the manual detailed journal.
Ledger Select a company that includes an Actuals ledger.
Workday doesn't support entering detailed journal
in either of these ledgers:
• Commitment
• Obligation
You can also use the Ledgers by Company
Hierarchy prompt category to navigate a
company hierarchy and then select the company
ledger.

Option Description
Currency The company currency used on financial
transactions. Workday populates the field based
on the Ledger that you select.
Journal Source Displays journal sources you configured as an
Accounting Source on the Maintain Journal
Sources task
Currency Rate Type You can specify a currency rate type when you
select the Enable Multicurrency check box.
If you don't specify a type, Workday uses the
Currency Rate Type Override on the Edit
Company Accounting Details task.
Book Code Leave blank to post to the blank book code.
External Reference ID (Optional) Enter the reference ID. The reference
ID enables you to track source system
transactions for auditing purposes that you import
into Workday.
Enable Multicurrency (Optional) Select to enable the Currency Rate
Type if you want to use a currency rate type other
than the default.
Workday populates the Enable Multicurrency
check box selection based on whether the
selected Accounting Source is enabled for
multicurrency.

Create Reversal Select to enable the Reversal Date so that you

can enter the date you want to have journal
entries reversed. The default is the next open
period.
Both the journal period and the reversal period
must be open.

Reconcile to Bank Select the check box if you want to reconcile the
summarized cash journal lines.
Manual journal lines you select are available
for reconciliation and displays a Transaction
Reference if there’s one.
You can then match the selected journal lines
with your bank statement. See Steps: Use Bank
Account Reconciliation on page 1763.

5. Click Continue.
The additional attributes that you configured on the Configure Detailed Journal Additional
Attributes task and selected is Editable in the Journal Entry Lines Grid are available on the Journal
Entry Lines grid.
6. As you complete the Journal Entry Lines grid, consider:
Option Description
Ledger Account Displays the ledger accounts for the Company
based on the restricted-to companies you

Option Description
configured on the Create Account Set task. If
you selected the company as a dimension in your
account posting rules, Workday validates that you
can use the ledger account with the company or
company hierarchy.
Worktags Use worktags as keywords to classify and find
transactions easily. Configure the allowed worktag
types on the Maintain Worktag Usage task.
When you select a worktag type that has related
worktags, Workday automatically populates
transactions with the related worktag values.
When you add a new line, Workday populates the
worktags from last edited line on the new line.

Additional Attributes Enter a value for each Required additional

attribute.
You configure additional attributes as Required
on the Configure Detailed Journal Additional
Attributes task.

7. (Optional) Expand Attachments and use the Drop files here or Select files option to add attachments.
Security: Process: Accounting Center Detailed Journals – Add/Change Attachment domain in the
Accounting Center functional area.
8. (Optional) Click Generate Draft.
Workday:
• Performs system and custom validations for the as-entered and generated journal lines.
• Displays expected journal lines for the manual detailed journals based on the as-entered lines.
Note: Workday won't submit the detailed journal lines for approval until you click Submit.
9. Review and click Submit to submit the journal lines for approval.
Workday initiates the Accounting Center Detailed Journal Approval Event to route manual accounting
center detailed journals for approval.
On approval, Workday automatically initiates the Accounting Center Detailed Journal Batch Initiation
Event business process to create a batch for detailed accounting and summarization.
10.Access the Find Accounting Center Batches report.
11.On the Find Accounting Center Batches page, for Batch Type, select Manual Detailed Journal.
12.Click to open the batch created by the detailed manual journal.
13.(Optional) If the Detailed Accounting stage has a status of Failed, click Retry to submit the batch again.
14.(Optional) If the Summarization stage has an In Progress status, with error transactions, click Run.
For Process Options, select Rollback to Selected Stage and Reprocess and for stage, select
Summarization.
15.Refresh the page to confirm that the batch has a Completed status.
16.From the related actions of the batch, select Accounting Center Batch > View Accounting Center
Detailed Journals.
17.On the View Accounting Center Detailed Journal report, confirm that the detailed journal has an
Approved status and the batch has a Completed status.
For high-volume journal lines, Workday displays the first 1000 journal lines before displaying
the Summarized Journal Lines grid. The grid enables you to review more journal lines without
performance degradation. You can still view the detailed lines of a summarized Accounting Center

Detailed Journal by clicking the Display Journal Lines Details button, but note that this will affect
performance for high-volume journal lines.
If you’ve configured an ID Generator for the Accounting Center Detailed Journal on the Edit Tenant-
Financials task, Workday uses it to create a unique manual detailed accounting journal number. This
numbering is separate from the traditional numbering for journals that post to the ledger.
18.To navigate back to the batch, from the related actions of the detailed journal, select Accounting
Center Detailed Journal > View Accounting Center Batch.
19.From the related actions of the batch, select Accounting Center Batch > View Accounting Center
Summary Journals.
20.On the View Accounting Center Summary Journal page, confirm that summary journal has a Posted
status.
Because Workday posts the summarized journals to the ledger, note that it uses the numbering for
traditional journals.
21.To navigate back to the batch, from the related actions menu of the journal, select Journal Entry >
View Accounting Center Batch.
Related Information
Reference
The Next Level: All Things 2023R1 in Accounting Center
2023R1 What's New Post: Manual Accounting Center Detailed Journal

Cancel Accounting Center Batches

Prerequisites
You've created an accounting center batch.
Security: Process: Accounting Center domain in the Accounting Center functional area.
You can optionally cancel an in-progress or completed batch that contains posted summarized journals.
This eliminates the need to enter reversal journals manually in your ledger when the source system sends
duplicate or bad data.
You can't cancel a batch when:
• You've selected journals for settlement or have settled them.
• You've reconciled Journal lines to a bank statement.
• Ledger periods aren't open for all the journals.
• The Business Process event associated with the Summarization stage has an In Progress status.

Steps
1. (Optional) Enable the Always Reverse Accounting and Accounting Center Summary Journals
option on the Edit Setup – Financials task, if you want Workday to reverse the journals, otherwise
Workday will cancel the journals.
2. Access the Find Accounting Center Batches report.
3. To cancel a batch, from the related actions menu of the batch, select Accounting Center Batch >
Cancel Accounting Center Batch.
4. Enter a cancellation reason, select Confirm, and click OK.

Result
Workday deletes transactions from the success output tables and error tables for the canceled batch.
If you’ve enabled the Always Reverse Accounting and Accounting Center Summary Journals option
on the Edit Setup – Financials task, Workday will reverse the journals, otherwise Workday will cancel the
journals.

For in progress batches:

• Workday only terminates new transactions from further processing.
• Eliminates all successful and error transactions for both the enriched and detailed accounting
stages.
• Doesn’t include the transactions in future batches and ignores original data permanently. If you need
to use the data in future batches, you must prepare the data again for ingestion.
• Workday will include transactions that were being reprocessed (prior dismissed transactions) for the
canceled batch in a subsequent batch.
For completed batches:
• Workday will terminate new transactions that were successful and any error transactions, which you
dismiss from further processing. Reinsert the terminated transactions to process them in a subsequent
batch.
• New and reprocessed error transactions, which Workday dismisses to an Error Manager will be
available in Error Manager for you to resolve.
• New and reprocessed error transactions that Workday dismisses to a future batch are available in a
new batch.
• Reprocessed transactions that Workday includes in this batch and were successful are available for a
new batch.
See also, Reference: Results for New and Reprocessed Transactions in a Canceled Batch on page 533.
Related Information
Tasks
Create Accounting Center Batches from Source Systems on page 501
Reference
2022R1 What's New Post: Cancel Batch with Summarized Journals

Review Details of Batches, Stages, and Runs

Prerequisites
Create Accounting Center batches.
Security: Process: Accounting Center domain in the Accounting Center functional area.

Context
You can review details of batches, stages, and runs for a batch.

Steps
1. Access the Find Accounting Center Batches report.
2. Select the accounting source that you created and click OK.
The Find Accounting Center Batches page displays these details of the batch:

Columns Description
Batch Displays the instance number to the Display ID of
the batch. Number format of the instance is based
on your preferred location.
You can click the batch to drill down to view the
View Accounting Center Batch report from
where you can click Run to run the stages.

Columns Description
Created Date Workday creates the batch.
Accounting Source The name of the accounting source that created
the batch.
Batch Status The status of the present batch. Possible values
are:
• In Progress
• Completed
• Canceled

Transactions In Number of transactions included in an accounting

center batch. Each transaction might consist
of one or more records based on a common
identifier.
Might be different than Records In for a many-to-1
scenario.

In Process Transactions Transactions that Workday processes in the

batch. Includes the number of transactions
in the batch, less completed and dismissed
transactions.

Completed Transactions Transactions that Workday successfully

processes and includes in summarized journals
for the batch. Excludes dismissed transactions.

Dismissed Transactions Transactions that Workday dismisses in an

accounting center batch run.
Includes:
• Error transactions.
• Transactions that you identify to dismiss. See
Custom Dismiss Transactions on page 517.

Records In Number of records included in the batch. One or

more records can make up a transaction based
on a common identifier.
You can use these records count to reconcile to
the source Workday.

3. Click to open a batch.

The Batch Level Counts section displays a summary count of these transactions in the batch:
• Transactions In
• In Process Transactions
• Completed Transactions
• Dismissed Transactions
• Records In
The Current View by Stage tab displays these details of all stages for the batch:

Columns and Buttons Description

Stage The stage of an accounting center batch that
Workday is processing.
Status The status of a stage for an accounting center
batch. Possible values are:
• Not Started
• In Progress
• Completed
• Aborted
• Failed

Records In Accessed from the related actions menu of the

Stage.
Number of records, less dismissed records,
included in an accounting center batch for a
specific stage. One or more records can make up
a transaction based on a common identifier.

Success Records Accessed from the related actions menu of the

Stage.
Number of successful records, less records
associated with dismissed transactions, in an
accounting center batch for a specific stage. One
or more records can make up a transaction based
on a common identifier.

Transactions In Number of transactions, less dismissed

transactions, included in an accounting center
batch for a specific stage. Each transaction
can consist of one or more records based on a
common identifier.
Success Transactions Number of successful transactions, less
dismissed transactions, in an accounting center
batch for a specific stage. Each transaction
can consist of one or more records based on a
common identifier.
Error Transactions Number of error transactions, less dismissed
transactions, in an accounting center batch for
a specific stage. Each transaction can consist
of one or more records based on a common
identifier.

Columns and Buttons Description

Total Error Records Number of errors, less errors associated with
dismissed transactions in an accounting center
batch for a specific stage.
Run Click to create a new run event and run the job.
Retry Click to create a new run event for a failed or
aborted run event in an accounting center job with
the same parameters.
You can use the Retry option:
• If the pre-step fails or aborts before the
accounting center primary process starts.
• If the accounting center primary process fails.
• If the post-step fails or aborts after the
accounting center primary process completes
for the Enrichment or Detailed Accounting
stage.
Note: You can't use the Retry option if the post-
step fails or aborts after the accounting center
primary process completes for the Summarization
stage.

Force Complete If the post-step fails or aborts after the accounting

center primary process completes, you can Force
Complete the event.
Click to skip the post steps of a run event for an
Accounting Center Process, and mark the run
status as Force Completed. You must therefore,
complete the post steps manually.

4. Click the View by All Runs tab.

The View by All Runs tab displays these details of all runs for the batch:

Columns Description
Run Event Displays these details of the event:
• Overall status
• Initiated On
• Accounting Source
• Stage
• Batch
• Process Option
• Primary Process
• Primary Process Status

Run Number The sequential number of the run number in an

accounting center batch across all stages.
Run Status The status of an accounting center batch run for a
specific stage. Possible values are:
• Pre-Step in Progress
• Primary Process in Progress

Columns Description
• Post-Step in Progress
• Completed
• Force Completed
• Failed
• Aborted
• Validation Error

Stage The stage of an accounting center batch runs that

Workday is processing.
Process Option The run option selected for an event when
running the accounting center process.
Primary Process Main processing step required for the run event.
Includes:
• Initiation
• Enrichment
• Detailed Accounting
• Summarization

Records In Accessed from the related actions menu of the

Primary Process.
Number of records included in an accounting
center batch run for a specific stage. Workday
doesn't update record counts when you dismiss
errors. One or more records can make up a
transaction based on a common identifier.

Success Records Accessed from the related actions menu of the

Primary Process.
Number of successful records in an accounting
center batch run for a specific stage. Workday
doesn't update record counts when you dismiss
errors. One or more records can make up a
transaction based on a common identifier.

Transactions In Number of transactions included in an accounting

center batch run for a specific stage. Each
transaction might consist of one or more records
based on a common identifier.
Success Transactions Number of successful transactions in an
accounting center batch run for a specific stage.
Each transaction might consist of one or more
records based on a common identifier.
Error Transactions Number of error transactions in an accounting
center batch run. Each transaction might consist
of one or more records based on a common
identifier.
Dismissed Transactions Transactions that Workday dismisses in an
accounting center batch run.
Includes separate totals in different rows for:

Columns Description
• Error transactions.
• Transactions that you identify to dismiss. See
Custom Dismiss Transactions on page 517.

Total Error Records Number of errors in an accounting center batch

run for a specific stage.

Next Steps
View detailed and summarized accounting.
Related Information
Tasks
Create Accounting Center Batches from Source Systems on page 501
View Summarized Journals on page 537

Stop Accounting Center Business Process Event

Context
You can optionally, configure the Accounting Center Event to stop the business process if the business
process meets certain conditions. Example: If the Prism dataset fails to publish you can use the Publish
Prism Dataset Job Status field as an entry condition to abort the business process.
You can stop the business process for any of these stages:
• Enrichment
• Detailed Accounting
• Summarization

Steps
1. Access the Accounting Center Event business process definition for which you want to abort the event if
it meets certain conditions.
Example:
• Accounting Center Enrichment Event business process for the Enrichment stage.
• Accounting Center Detailed Accounting Event business process for the Detailed Accounting stage.
• Accounting Center Summarization Event business process for the Summarization stage.
2. Add an additional step of Service and in the Specify column, select Abort Accounting Center Event.
3. Add conditional rules to create conditions when the Accounting Center process should or shouldn't
run the Abort event. Example: Add a conditional rule of True for the Publish Prism Dataset Job
Status field if you want the Accounting Center process to skip the Abort step when the Prism dataset is
successfully published. Add a conditional rule of False if you want the Accounting Center process to run
the Abort event when the Prism dataset fails to publish.
See Steps: Configure Business Process Definitions.
When adding conditional rules, consider using these 4 Custom Fields:

Field Description

• Custom Field 1 Use these text fields in condition rules to define

• Custom Field 2 your Accounting Center Business Process
Definition.

Field Description
Use the Put Accounting Center Event Field web
service to update these fields for your event.

• Custom Field 3 Use these fields in condition rules to define your

• Custom Field 4 Accounting Center Business Process Definition.
Possible values are True and False.
Use the Put Accounting Center Event Field web
service to update these fields for your event.

Example: You can create an Integration type that checks the results based on the published results. If
the input and out values for a stage aren’t the same, integration uses the Put Accounting Center Event
Field web service to update these fields. You can then use the fields as conditions to abort the business
process.
4. Click OK and then Done.

Result
Workday aborts the business process if the business process meets the defined conditions.

Next Steps
You can either Retry or Force Complete the business process.

Custom Dismiss Transactions

Prerequisites
• Ensure that your accounting source has automatically created the USR_UserDirectedForDismissal
dataset.
• Security:
• These domains in the Accounting Center functional area:
• Set Up: Accounting Sources.
• Process: Accounting Center.
• Necessary security to edit the Accounting Center Event business processes.

Context
You can optionally, configure the Business Process Definitions for both enrichment and detailed
accounting to dismiss specific Accounting Center transactions from a batch. This enables you to:
• Dismiss transactions that the regular Accounting Center error process might not otherwise dismiss.
• Example uses include:
• Dismiss success transactions that are related to dismissed error transactions in order to group
these transactions for error handling.
• Dismiss and terminate bad data ingested from a source system.
Workday by default runs custom dismissal processing before error dismissal processing. Therefore, if you
direct an error transaction for custom dismissal, Workday:
• Dismisses the error transaction by custom dismissal processing.
• Excludes the error for delivered error dismissal processing.

You can, if required, configure the business process so that custom dismissal processing runs after error
dismissal processing.
Example: You can create a condition rule of (Transactions In for a Stage = Success Transactions for
a Stage) and apply this as an entry condition on the business process step for the Request Dismiss
Transactions job. Configuring the step condition enables you to run Request Dismiss Transactions after
Workday dismisses the error transactions for the stage.

Steps
1. Dismissing Transactions for Enriched Data
a) Configure your UserDirectedForDismissal dataset to include the AC_Transaction_IDs of what you
want to dismiss.
Workday recommends that you only bring the current Accounting Center batch into the
USR_UserDirectedFor Dismissal dataset. This improves performance and ensures that Custom
Dismissal only runs when needed.
b) Configure the Accounting Center Enrichment Event business process definition with Batch/Job and
Integration types.
See Steps: Configure Business Process Definitions.
As you configure the business process definition, consider these guidelines:

Types Name and Description Guidelines

Integration Custom integration. • Configure the business
Use it to identify transactions process definition so that
you want to dismiss Integration runs before
and populate the the Request Batch/Jobs.
AC_Transactions_IDs of the This configuration ensures
identified transactions in the that the Request process
USR_UserDirectedForDismissal can access the dismissed
dataset. transactions in the
USR_UserDirectedForDismissal
dataset.
• Configure the Integration
to run after the Accounting
Center Enrichment Process.

Batch/Job • Request Dismiss • Configure only 1 of the

Transactions and Process Request Batch/Jobs.
with Future Batch • Configure to run the Batch/
(Enrichment). Job after the Accounting
• Request Dismiss Center Enrichment Primary
Transactions and Remove Process.
from Further Processing • If the request job fails or
(Enrichment). aborts, you can either:
• Request Dismiss
• Click Retry to process
Transactions from the Batch
the batch again.
(Enrichment)
• Click Force Complete to
Note: Dismissed complete the batch run.
transactions are available in • Click Cancel to cancel
the Error Manager once the the batch.
batch completes.
Retrieves
AC_Transaction_IDs from the

USR_UserDirectedForDismissal
dataset for custom dismissals
and stores them in the
TBL_UserDirectedForDismissal.

Note: Workday doesn't support configuring the Batch/Job to run before the Accounting Center
Enrichment Process.
c) (Optional) Configure a condition rule to specify when Request Dismiss Transactions will run.
Example: Create a condition rule that states that the Request Dismiss Transactions job will run when
the Enrichment stage is complete. Example: (Transactions In for a Stage = Success Transactions for
a Stage). Configuring the rule enables you to run Request Dismiss Transactions as the last step in
the Enrichment stage, before progressing to detailed accounting.
2. Dismissing Transactions for Detailed Accounting
a) Configure the Accounting Center Detailed Accounting Event business process definition with Batch/
Job and Integration types.
As you configure the business process definition, consider these guidelines:

Types Name and Description Guidelines

Batch/Job • Request Dismiss • Configure only 1 of the

Transactions and Process Request Batch/Jobs.
with Future Batch (Detailed • Configure to run the Batch/
Accounting). Job after the Accounting
• Request Dismiss Center Detailed Accounting
Transactions and Remove Process.
from Further Processing • If the request job fails or
(Detailed Accounting). aborts, you can either:
• Request Dismiss
• Click Retry to process
Transactions from the Batch
the batch again.
(Detailed Accounting).
• Click Force Complete to
Note: Dismissed complete the batch run.
transactions are available in • Click Cancel to cancel
the Error Manager once the the batch.
batch completes.
Retrieves
AC_Transaction_IDs from the
USR_UserDirectedForDismissal
dataset for custom dismissals

and stores them in the

TBL_UserDirectedForDismissal.

Note: Workday doesn't support configuring the Types (Integration and Batch/Job) to run before the
Accounting Center Detailed Accounting Process.
b) (Optional) Configure a Condition Rule to specify when Request Dismiss Transactions will run.
Example: Create a condition rule that states that the Request Dismiss Transactions job will run
when the Detailed Accounting stage is complete. Example: (Transactions In for a Stage = Success
Transactions for a Stage). Configuring the rule enables you to run Request Dismiss Transactions as
the last step in the Detailed Accounting stage, before progressing to summarization.

Result
If the Request Batch/Job identifies transactions for dismissal, Workday initiates the Accounting Center job
with the Dismiss Transactions processing option.
Depending on which Request Batch/Job you initiate, Workday automatically processes your requests as
described in this table:

Request Batch/Job Processing Options

• Request Dismiss Transactions and Process with Workday runs the Dismiss Transactions and
Future Batch (Enrichment). Process with Future Batch process for the specified
• Request Dismiss Transactions and Process with stage.
Future Batch (Detailed Accounting). Workday dismisses the selected transactions from
the batch and processes them with a future batch.

• Request Dismiss Transactions and Remove Workday runs the Dismiss Transactions and
from Further Processing (Enrichment) Remove from Further Processing process for the
• Request Dismiss Transactions and Remove specified stage.
from Further Processing (Detailed Accounting). Workday removes the selected from further
processing.

• Request Dismiss Transactions from the Batch Workday runs the Dismiss Transactions from the
(Enrichment) Batch process for the specified stage.
• Request Dismiss Transactions from the Batch Workday removes custom-dismissed transactions
(Detailed Accounting) from the batch and sends them to the Accounting
Center Error Manager for resolutions.

Related Information
Examples
Example: Custom Dismiss Zero Amount Transactions on page 529

View, Resolve, and Reprocess Errors

Prerequisites
Create an accounting center batch.
Configure the Request business process with these additional business objects, to track errors, and submit
approval requests for error response:
• Accounting Source
• Custom Account Posting Rule Dimension
• Custom Account Posting Rule Type
• Account Posting Rule Set

• View Mapping Table

See Setup Considerations: Requests.

Context
You can review and resolve errors for each stage. After you resolve the errors, you can then reprocess
them.

Steps
1. View and Resolve Errors for Enriched Data
a) Access the Find Accounting Center Batches report.
b) Select From date and click OK.
Workday displays the Find Accounting Center Batches page.
c) Click the batch for which you want to resolve errors.
Workday displays the View Accounting Center Batch page.
d) Click the View By All Runs tab.
e) For the Enrichment stage, click View Errors.
The View Summary by Error Type page displays the summarized errors and the number of
transactions with the error type.
f) For each error message, click View Details.
The View Errors for Accounting Center Batch Run page displays all Transaction_IDs for the
specific error. For more information on Transaction_ID, see View Detailed Accounting Results on
page 536.
g) For each AC Transaction ID, click View Details.
The View Error Details page displays error details for the selected transaction, such as:
• Transaction_ID
• Batch
• Batch Run
In addition, the View Error Details page also displays these 2 grids:
• Error Summary: Expand the grid to display details for the Transaction ID error in the Enriched
dataset, such as:
• Error Message.
• Prior Stage WPA_RowID that you can use to find the Actual Row ID of the input dataset for
the stage.
• Accounting Source Snapshot.
• Accounting Group Name.
• Prior Stage Transaction: Expand the grid to display the first 25 fields of the records included
in the transaction from the prior stage. Number of lines displayed on the grid depends on the

number of records in the specified transaction. If the transaction contains 1 record, the grid will
display 1 line. If the transaction contains more that 1 record, the grid will display multiple lines.
You can select the Show All button to review all error fields.
You can also use the Configure Error Details – Prior Stage Fields task to configure the Prior
Stage Transaction grid to display up to 25 error fields that you want to review.
h) Review and fix the errors before proceeding further.
i) On the View Accounting Center Batch page, select the Current View By Stage tab and select
Run. For Process Options, select one of these options:

Field Description
Processing Options To process errors:
• Select Rollback to Selected Stage and
Reprocess to have Workday roll back
transactions to the selected stage and then
reprocess the rolled back transactions.
• For Select Stage, select Enrichment.
• Check Include Dismissed, to include
dismissed transactions with the rolled
back transactions, and click OK.
Note: This option is also available when a
run completes with no errors.
• Select Process Errors Within Stage to have
Workday create enriched transactions for
batch errors only.
• Select Dismiss Errors from the Batch
to have Workday dismiss errors to the
Accounting Center Error Manager.
Note: Errors are available in the Error
Manager once the batch completes.
• Select Dismiss Errors From Further
Processing to have Workday dismiss
all errors from further processing. The
dismissed records won’t be available for a
future batch and you’ll have to ingest them
again for processing.
• Select Dismiss Errors and Process with
Future Batch to have Workday process the
dismissed errors with a future batch.
Note: Dismissed transactions will be available
in a future batch when the batch is complete or
canceled.

2. View and Resolve Errors for Detailed Accounting

a) On the View Accounting Center Batch page, select the View by All Runs tab.
b) For the Detailed Accounting stage, click View Errors.
The View Summary by Error Type page displays the summarized errors and the number of
transactions with the error type.
c) For each error message, click View Details.
The View Errors for Accounting Center Batch Run page displays all Transaction_IDs for the
specific error. For more information on Transaction_ID, see View Detailed Accounting Results on
page 536.
d) For each Transaction_ID, click View Details.
The View Error Details page displays error details for the selected transaction, such as:
• Transaction_ID
• Batch
• Batch Run
In addition, the View Error Details page also displays these 3 grids:
• Error Summary Grid: Expand the grid to display details for the Transaction ID error in the
Detailed Accounting dataset, such as:
• Error Message.
• Prior Stage WPA_RowID that you can use to find the Actual Row ID of the input dataset for
the stage.
• Accounting source journal line rule are rules that you specified on the Journal Line Rules
tab when you configured your accounting source.
Note: This value will be unavailable if errors occur at the journal header level or if condition
rules fail to select a journal line rule.
• Accounting Source Snapshot.
• Accounting Group Name.
• Error Details Grid:
Displays these 2 tables that can help you to resolve errors. The tables display these details:
• From the user configuration on the Accounting Source Snapshot.
• On the user-defined Custom Validations.

Table Description
Configured Header and Lines Displays results of merging your enrichment
data with your configured accounting source
snapshot. Not all fields contain an error,
therefore, some fields can be blank.
Expected Detailed Accounting Journals Displays details of the expected detailed
accounting journals. Not all fields contain an
error, therefore, some fields can be blank.
Additionally, this table will be blank if the errors
only occur on the Configured Header & Lines
table.
• Prior Stage Transaction: Expand the grid to display the first 25 fields of the records included
in the transaction from the prior stage. Number of lines displayed on the grid depends on the

number of records in the specified transaction. If the transaction contains 1 record, the grid will
display 1 line. If the transaction contains more that 1 record, the grid will display multiple lines.
You can select the Show All button to review all error fields.
You can also use the Configure Error Details – Prior Stage Fields task to configure the Prior
Stage Transaction grid to display up to 25 error fields that you want to review.
e) Review and fix the errors before proceeding further.
f) On the View Accounting Center Batch page, select the Stage tab and click Run. For Process
Options, select one of these options:

Field Description
Process Options To process errors:
• Select Rollback to Selected Stage and
Reprocess to have Workday roll back
transactions to the selected stage and then
reprocess the rolled back transactions.
• For Select Stage, select Enrichment or
Detailed Accounting.
• Check Include Dismissed, to include
dismissed transactions with the rolled
back transactions, and click OK.
Note: This option is also available when a
run completes with no errors.
• Select Process Errors Within Stage to have
Workday create detailed accounting for batch
errors only.
• Select Dismiss Errors from the Batch
to have Workday dismiss errors to the
Accounting Center Error Manager.
Note: Errors are available in the Error
Manager once the batch completes.
• Select Dismiss Errors From Further
Processing to have Workday dismiss
all errors from further processing. The
dismissed records won’t be available for a
future batch and you’ll have to ingest them
again for processing.
• Select Dismiss Errors and Process with
Future Batch to have Workday process the
dismissed errors with a future batch.
Note: Dismissed transactions will be
available in a future batch when the batch is
complete or canceled.

3. Review and Resolve Errors for Summarization

a) On the View Accounting Center Batch page, select the View by All Runs tab.
b) For the Summarization stage, click View Errors.
The View Summary by Error Type page displays the summarized errors and the number of
transactions with the error type.
c) Review and fix the errors before proceeding further.
d) On the View Accounting Center Batch page, select the Current View By Stage tab and select
Run.
e) For Process Options, select Rollback to Selected Stage and Reprocess .
Related Information
Reference
2022R2 What's New Post: Accounting Center - Miscellaneous Enhancements

View and Resolve Errors in Error Manager

Prerequisites
Create an accounting center batch with errors dismissed to the Accounting Center Manager.
Configure the Request business process with these additional business objects, to track errors, and submit
approval requests for error response:
• Accounting Source
• Custom Account Posting Rule Dimension
• Custom Account Posting Rule Type
• Account Posting Rule Set
• View Mapping Table
See Setup Considerations: Requests.

Context
You can use the Accounting Center Error Manager to track and resolve dismissed errors and custom
dismiss transactions for completed and canceled batches in an accounting source.
Unresolved errors and custom dismiss transactions that you dismiss out of a batch will be visible in the
Error Manager once the batch is complete.
You can use the Accounting Center Error Manager to:
• View:
• Dismissed transactions by error.
• Nature of each error.
• Number of error transactions.
• Number of transactions pending resolution.
• Use transactional data to filter and group error transactions in the error manager.
• Apply resolutions at the transaction level.
After you process error resolutions, Workday will remove them from the Accounting Center Error Manager.

Steps
1. Access the Accounting Center Error Manager task.

2. As you complete the task, consider:

Option Description
Accounting Source Select an accounting source for which you want to
resolve errors.
Batch Status You can only select canceled or completed
batches.
Batch You can select a single batch or multiple batches.
From Specify a date range for the created batch or
batches.
To

3. Click OK.
The Accounting Center Manager displays all errors in the Errors in Batches grid for all selected
batches across all stages.
4. For the error you want to resolve, click Apply Resolutions.
Workday displays the Apply Resolutions task.
5. Expand Error Details to review these details of the error:
• Accounting Source
• Batch Status
• Batch Name
• Stage
• Error Details
• Number of transactions that contain the error.
6. (Optional) Click Download Prior Stage Transactions to download and analyze prior stage
transactions. After clicking download, you'll receive a notification when the file is ready to download
from My Reports.
Workday recommends you perform this task first.
Note: This option isn't available for Custom Dismiss transactions and for canceled batches.
7. (Optional) Click Download Ingested Data if you decide to terminate the transactions and want to
download the source data again.
Note: This option isn't available for canceled batches.
8. As you retrieve error transactions that you want to resolve, consider:
Option Description
Search Criteria Use the Stage Input Fields to select input fields
to the error stage to display in the Error Record
Details grid. Example: If there are errors in the
Enrichment 2 stage, you can select fields from the
Enrichment 1 output table. Based on the type of
error, you can narrow your search to select fields
that are useful to resolve the error. Example: If
you have an error for a missing cost center, you
can select input fields that were evaluated in the
Value Mapping Stage and any other fields that
can help you resolve the error.
You can select a maximum of 10 input fields
to the error stage for Enrichment and Detailed
Accounting errors.

Option Description
Workday automatically sets the criteria to Show
Transactions Pending Resolutions.
If you want to see resolved transactions that you
haven’t processed, select Show Transactions
Pending Processing and click Apply Search
Criteria .

9. Click Apply Search Criteria to retrieve the error transactions.

Workday updates the Error Record Details grid with the selected stage input fields, displaying the
field values for each transaction. Workday also applies your selection to Show Resolutions Pending
Resolutions or Show Transactions Pending Processing.
10.(Optional) Filter fields on the Error Record Details grid to organize and group transactions with
common attributes to which you want to apply common resolutions.
11.As you resolve the errors, consider:
Option Description
Resolution You can select to:
• Resolve a single transaction or multiple
transactions in the Error Record Details grid.
• Apply the same resolution to all transactions
in the grid, or apply a resolution to each
transaction individually.
Note: When applying resolutions, ensure that
you first:
a. Select the transactions in the Error Record
Details grid.
b. Then select a resolution at either the header or
line level in the grid.
To apply the same resolution to all transactions:
• Select each transaction in the Error Record
Details grid. You can select the Select All
check box to select all transactions in the grid.
• At the header level, select how you want to
resolve the transactions:
• Select Process with Next Batch to
dismiss the transactions and process them
with the next batch.
• Select Terminate to terminate the
transactions.
To apply different resolutions to transactions in
the grid:
• Select a row in the Error Record Details grid.

Option Description
• In the Error Record Details grid, for
Resolutions, select how you want to resolve
the transaction:
• Select Process with Next Batch to
process it with the next batch.
• Select Terminate to terminate the
transaction. It will no longer be available for
processing.
Note: When you cancel completed batches:
• Workday will terminate new transactions that
were successful and any error transactions,
which you dismiss from further processing.
You can reinsert the terminated transactions to
process them in a subsequent batch.
• New and reprocessed error transactions,
which Workday dismisses to the Error
Manager will be available in Error Manager for
you to resolve.
• New and reprocessed error transactions that
Workday dismisses to a future batch are
available in a new batch.
• Reprocessed transactions that Workday
includes in the batch and were successful, are
available in a new batch.

Clear Resolutions (Optional) Click to clear resolutions from selected

rows in the Error Record Details grid.
Click Save to delete the previously saved
resolutions.

View Error Details (Optional) Select if you want to view details of the
error.
Note: This option isn't available for Custom
Dismiss transactions and for canceled batches.

12.Click Save to save the resolutions.

You can view these saved resolutions by selecting Show Transactions Pending Processing and
clicking Apply Search Criteria.
13.To process resolutions, close the Apply Resolution window.
14.On the Accounting Center Manager task, click Process Resolutions to view and then click OK to
process the resolutions.
Note: The Process Resolutions button is only available if there are resolutions pending for the
selected accounting source.
15.On the Monitor Accounting Source Job Status report, click Refresh to confirm that the process
completes successfully.

Result
• Workday removes the processed errors from the Accounting Center Error Manager.
• Transactions that you resolved with the Process with Next Batch option are available with the next
scheduled batch.

Related Information
Tasks
View, Resolve, and Reprocess Errors on page 520
Reference
2022R1 What's New Post: Accounting Center Error Manager
2022R2 What's New Post: Transactional Data in Error Manager

Manage Accounting Center Maintenance Window

Prerequisites
Setup: Accounting Sources domain in the Accounting Center functional area.

Context
When Workday is performing Accounting Center upgrades during the maintenance and upgrade window,
you might want to schedule a time to delay these upgrades. This delay ensures that:
• No updates to data can occur during the time you schedule.
• You can continue running your scheduled business-critical Accounting Center batches as planned.
Once the scheduled time expires, Workday will start the Accounting Center upgrades and will continue
the upgrades till they’re complete. Example: You schedule to delay the upgrades starting on Monday from
12.00 am to 3.00 pm and again on Monday from 4.00 pm to 7.00 pm. If the upgrades start on Monday at
3.15 pm, Workday will continue the upgrades till completion. If the upgrades aren’t complete by 4.00 pm,
Workday will ignore the processing delays you scheduled for 4.00 pm.

Steps
1. Access the Maintain Accounting Center Processing Windows task.
2. In the Maintain Accounting Center Processing Windows grid, set the day and time to delay the
Accounting Center upgrades. Add a row for each Day of the Week, Start Time, and Duration for
which you want to delay the Accounting Center upgrades.
3. Click OK and then Done.

Example: Custom Dismiss Zero Amount Transactions

This example illustrates how to custom dismiss zero amount transactions during batch processing for
ingestion and tracking in the Accounting Center batch.

Context
You want to dismiss all zero amount transactions from a batch before submitting the transactions to
Detailed Accounting.
Additional considerations to note in this example when custom dismissing zero amount transactions:
• Dismiss transactions from the Enrichment 1 stage.
• Dismiss transactions from further processing.
• Dismiss transactions after you dismiss all errors from the Enrichment 1 stage.
• Dismiss transactions that have a zero amount in a field. Example: TRNS_AMT # field.
Note: Accounting Source and dataset names are specific to your Workday tenant and might be different
than the names used in this example. Use the information as a guide.

Prerequisites
Security:

• Necessary security to edit the Accounting Center Event business processes.

• These domains in the Accounting Center functional area:
• Set Up: Accounting Sources.
• Process: Accounting Center.
• Prism Datasets: Manage domain in the Prism Analytics functional area.
Ensure that you have:
• Created an Accounting Source.
• Enriched the data by creating the Enrichment dataset.

Steps
1. Configure the UserDirectedForDismissal Dataset to Access Your Enrichment Table
Configure the delivered UserDirectedForDismissal dataset to access the table with the
AC_TransactionID that contains zero transaction amounts by editing the USR_UserDirectedFor
Dismissal dataset. You can then use the ENR_1_TBL_EnrichedData output as the import source.
The dataset must contain AC_TransactionIDs, otherwise custom dismiss won't complete successfully.
Workday custom dismisses transactions at the AC_TransactionID level.
Note: Workday recommends that you only bring the current Accounting Center batch into the
USR_UserDirectedFor Dismissal dataset. This action improves performance and ensures that Custom
Dismissal only runs when needed.
a. Access the View Accounting Source report.
b. In the Accounting Source field, select the accounting source for which you want to custom dismiss
zero amount transactions. Example: AC 1TO1 MC.
c. Click OK.
d. From the related actions of the Accounting Source, select Accounting Source > View
Implementation.
e. Scroll to the bottom of the page.
f. Click to open the dataset User Configured Dismiss System Dataset. Example: AC
_1TO1_MC_USR_UserDirectedForDismissal.
g. Create a new derived dataset to import the Enrichment output dataset and then create an inner join
with the UnprocessedForBatch dataset for that stage. To access the enriched data for the most

recent batch, join the datasets on the Accounting Center Batch and Accounting Center Transaction
ID. Example: AC _1TO1_MC_ENR_1_EnrichedData_CurrentBatch_DDS.
h. Under Change Pipeline, change the import source to the new dataset you created that contains the
Transaction IDs of the transactions that you want to dismiss.
• Click the Pencil icon next to the Import stage.
• On the Change Source page, select the enriched dataset from above. Example:
AC_1TO1_MC_ENR_1_EnrichedData_CurrentBatch_DDS and click Select.
i. Select Edit Transformations to configure a filter for dismissing all zero amount transactions in the
enriched table.
j. Select Stage and then Filter.
k. For Description, enter: Exclude Transactions = 0 for the stage to filter out all zero amount
transactions.
l. Click Add Filter.
m. Select If All of the following conditions are met.
n. For the Edit Filter Condition, select the field that contains zero amount transactions. Example:
TRNS_AMT # field.
o. For is equal to, enter 0.
p. On the Edit Filter Condition header, click the Checkmark.
q. Click Done.
r. Click Save to save the dataset.
2. Configure the Business Process and Condition Rules for the Enrichment Stage
a. Access the Accounting Center Enrichment Event (Default Definition) business process.
b. From the related actions of the business process definition, select Business Process > Edit
Definition.
c. For Effective Date, select today date.
d. Click OK.
e. Click Add Row.
f. Enter:

Field Value
Order Enter an order of where you want to place
the step. It must be after the primary process.
Example: c
Type Batch/Job
Specify Request Dismiss Transactions From Further
Processing (Enrichment)

Field Value
Run An User Name of the user or your integration system
user that runs Accounting Center batches.
Example: Accounting Center Administrator 01
g. Click OK.
h. From the related actions of Order c, select Business Process > Maintain Step Conditions.
i. For Effective Date, select today date.
j. Click OK.
k. Click Add Row.
l. In the Rule field, select Create Condition Rule.
m. Click OK.
n. For Description, enter Dismiss $0 from Enrichment Stage of these Sources.
o. In the Rule Conditions grid, enter:

Field Value
Source External Field or Condition Rule Accounting Source Stage
Relational Operator in the selection list
Comparison Type Value specified in this filter
Comparison Value <Name of your Enrichment dataset>
Example: AC 1TO1 MC - AC 1to1 dds -
Enrichment 1
p. Click OK.
q. Click Add Row to add another condition rule to dismiss transactions after dismissing all errors from
the Enrichment stage.
Apply this condition rule as an entry condition on the business process step for the Request Dismiss
Transactions job.
r. In the Rule field, select Create Condition Rule.
s. Click OK.
t. For Description, enter Successful Transactions.
u. In the Rule Conditions grid, enter:

Field Value
Source External Field or Condition Rule Transactions In for a Stage
Relational Operator equal to
Comparison Type Value from another field
Comparison Value Success Transactions for a Stage
v. Click OK.
w. Click OK.
x. Click Done.

Result
Workday custom dismisses all zero amount transactions for the Enrichment 1 stage.
Related Information
Tasks
Custom Dismiss Transactions on page 517

Reference: Results for New and Reprocessed Transactions in a Canceled Batch

New Transactions
This table describes expected results for new ingested transactions in a canceled batch:

Success Error Error Error For an In For a

Transactions? Transactions Transactions Transactions Progress Completed
Dismissed Dismissed to Dismissed to a canceled canceled
from Further Error Manager Future Batch Batch Batch
Processing
Yes No No No Transaction is: Transaction is:
• Terminated. • Terminated.
• Deleted from • Deleted from
the enriched the enriched
and detailed and detailed
output output
tables. tables.
Note: No Note: No
data is data is
available in the available in the
Consolidated Consolidated
Dismissed Dismissed
table. table.

No Yes No No Transaction is: Transaction is:

• Terminated. • Terminated.
• Deleted • Deleted
from the from the
enrichment enrichment
and detailed and detailed
output output
tables. tables.
• Deleted
from the
Consolidated
Dismissed
table.

No No Yes No Transaction is: Transaction is:

• Terminated. • Available
• Deleted in Error
from the Manager.
enrichment • Deleted
and detailed from the
output enrichment
tables. and detailed
• Deleted output
from the tables.
Consolidated
Dismissed
table.

Success Error Error Error For an In For a

Transactions? Transactions Transactions Transactions Progress Completed
Dismissed Dismissed to Dismissed to a canceled canceled
from Further Error Manager Future Batch Batch Batch
Processing
No No No Yes Transaction is: Transaction is:
• Terminated. • Available
• Deleted for pickup
from the by the next
enrichment batch.
and detailed • Deleted
output from the
tables. enrichment
• Deleted and detailed
from the output
Consolidated tables.
Dismissed
table.

Reprocessed Transactions
This table describes expected results for reprocessed and ingested transactions in a canceled batch:

Success Error Error Error For an In For a

Transactions? Transactions Transactions Transactions Progress Completed
Dismissed Dismissed to Dismissed to a canceled canceled
from Further Error Manager Future Batch Batch Batch
Processing
Yes No No No Transaction is: Transaction is:
• Available • Available
for pickup in for pickup in
next batch. next batch.
• Deleted from • Deleted from
the enriched the enriched
and detailed and detailed
output output
tables. tables.
Note: No Note: No
data is data is
available in the available in the
Consolidated Consolidated
Dismissed Dismissed
table. table.

No Yes No No Transaction is: Transaction is:

• Available • Terminated.
for pickup in • Deleted
next batch. from the
• Deleted enrichment
from the and detailed
enrichment
and detailed

Success Error Error Error For an In For a

No No Yes No Transaction is: Transaction is:

• Available • Available
for pickup in in Error
next batch. Manager.
• Deleted • Deleted
from the from the
enrichment enrichment
and detailed and detailed
output output
tables. tables.
• Deleted
from the
Consolidated
Dismissed
table.

No No No Yes Transaction is: Transaction is:

• Available • Available
for pickup in for pickup
next batch. by the next
• Deleted batch.
from the • Deleted
enrichment from the
and detailed enrichment
output and detailed
tables. output
• Deleted tables.
from the
Consolidated
Dismissed
table.

Related Information
Tasks
Cancel Accounting Center Batches on page 510

Reporting

View Detailed Accounting Results

Prerequisites
Security: Prism Datasets: Create in the Prism Analytics functional area.

Context
Create a custom report to view detailed accounting results.

Steps
1. Access the View Accounting Source report.
2. Select an accounting source for which you want to view detailed accounting.
3. From the related actions menu of the accounting source, select Accounting Source > View
Implementation.
4. In the Output Dataset column, click the Detailed Accounting dataset.
5. On the Fields tab, click the Table View icon.
6. Review some of the fields displayed:
• Worktags and Additional Attributes: Are displayed in the far right of your dataset, with Additional
Attributes prefixed with AA.
• AC_Transaction_ID: Is a system-generated field that uniquely identifies transactions. When each
row of your enriched data generates a balanced entry, each row represents a single transaction for
which Workday generates a unique transaction ID. When Accounting Center groups multiple rows
to generate a balancing entry with a user-supplied Transaction Grouping ID, Workday generates a
unique transaction ID using the user-supplied Transaction Grouping ID.
• Accounting Center Batch: Indicates the batch number for the detailed transactions.
• Accounting Center Batch Run: Indicates the Detailed Accounting Batch Run stage completed by
the batch run.
• Accounting Source Snapshot: Click the snapshot to view the accounting source configuration that
generated this line in detailed accounting. The format of this value is:
• Name of the Accounting Source
• Effective Date
• Last Updated
• Accounting_Source_Journal_Line_Rule: Refers to the row on your Journal Line Rules tab when
you configure your accounting source.
These fields might have Null values depending on your configuration.
Note: Null values aren’t errors.
• Original Date of Reversed Journal: For reversal journals, displays the original date of the journal.
• Intercompany Affiliate: For intercompany transactions, displays the name of the intercompany
affiliate.
• Intercompany Direction: Indicates whether line is an Intercompany Receivable or Payable.
• Intercompany Type: Indicates intercompany accounting type. Workday supports the 2-sided use
case and automatically generates both due-to and due-from entries in detailed accounting.
• Transaction Debit and Credit Amounts: Amounts in your transaction currency.
• Transaction Currency: The currency that you associate with a transaction when you create or edit
it.
• Ledger Debit and Credit Amounts: Transaction amounts in your ledger currency.

7. These fields relate to currency conversion features:

• Rounded as Biggest Line: Workday applies rounding adjustments to the largest line. Automatically
populates to False.
• Currency Rate Type: Type that identifies the source and purpose of a set of rates. Example:
Current, Average, Historic.
• Currency Rate: Rate used to convert transaction amounts to ledger amounts.
• WPA_LoadID and WPA_LoadTimestamp: Are Workday generated columns.
8. Create a derived dataset based on the Detailed Accounting dataset.
9. Edit the data source security for the derived dataset to grant access to team members who need to see
the data.
10.Create a custom report using the Prism data source.

Result
Report on your detailed accounting results with worktags and additional attributes as dimensions.

View Summarized Journals

Prerequisites
Security: Prism Datasets: Create in the Prism Analytics functional area.

Context
You can review the link between detailed accounting lines and their associated summary journals, and for
each transaction drill into each journal.

Steps
1. Access the View Accounting Source report.
2. Select an accounting source for which you want to view summarized journals.
3. From the related actions menu of the accounting source, select Accounting Source > View
Implementation.
4. In the Output Dataset column, click the Summary and Detailed Accounting Reference dataset. This
dataset maps detailed accounting to their respective summary journals.
5. On the View Dataset page, select the Fields tab, and click the Table View icon.
6. Review some of the fields displayed:
• Accounting Center Batch: Indicates the batch number for the detailed transactions.
• Accounting Center Batch Run: Indicates the Detailed Accounting Batch Run and not the
Summarized Accounting Batch Run completed by the batch run.
• Batch Run Column in Summary and Detailed Accounting Reference dataset refers to the Detailed
Accounting Batch Run, not Summarization Batch Run.
• Accounting Source Snapshot: Click the snapshot to view the accounting source configuration that
generated this line in detailed accounting. The format of this value is:
• Name of the Accounting Source
• Effective Date
• Last Updated
7. For each transaction, scroll to the Journal Entry column and click to display the journal.
Note: Access to the Journal Line column is restricted.

Result
Workday displays the summarized journals that are an aggregation of detailed accounting for the selected
company, year, and period.

Next Steps
• Build a summarized dataset that you want to use for reporting.
• Build composite or custom matrix reports to drill from summarized accounting to underlying detailed
accounting and enriched transactions. See Set Up Grouping and Summarizing for Matrix Reports and
Steps: Create Composite Reports.

Publish Prism Datasets

Prerequisites
Security: Process: Accounting Center domain in the Accounting Center functional area.
Ensure you have the necessary security to edit the Accounting Center Event business processes.

Context
You can optionally, use the Accounting Center Process to publish a Prism dataset and use it for reporting.
You can publish a Prism dataset for any or all of these stages:
• Enrichment
• Detailed Accounting
• Summarization

Steps
1. Access the Accounting Center Event business process for which you want to create a Prism dataset.
Example:
• Accounting Center Enrichment Event business process for the Enrichment stage.
• Accounting Center Detailed Accounting Event business process for the Detailed Accounting stage.
• Accounting Center Summarization Event business process for the Summarization stage.
2. From the related actions menu of the business process, select Business Process > Edit Definition.
3. Click OK.
4. Configure an additional step of Service and click OK.
5. Click Configure Publish Prism Dataset.
Note: You can't select the same dataset for parallel published steps.
6. As you complete the Configure Event Service task, consider:

Field Description
Prism Dataset Only displays publishable Prism datasets.
Run As User Enter a user name with access to both:
• The publishable dataset.
• All datasets in the lineage.

Abort Business Process Event Check if you have parallel published steps
and want to stop the business process from
progressing when the publish job fails or aborts.

Field Description
Workday will set the batch stage status to Aborted
and the Business Process status to Canceled.
If the publish job fails before the accounting
center job started, you can Retry the event.
If the publish job fails or aborts after the
accounting center job completes for the
Enrichment or Detailed Accounting stage, you can
Force Complete or Retry the event.
If the publish job fails or aborts after the
accounting center job completes for the
Summarization stage, you can only Force
Complete the event.
If you’re defining nonparallel publish steps,
use this field and this service step to stop the
Business Process event if the Prism dataset fails
to publish:
• Publish Prism Dataset Job Status field.
• Abort Accounting Center Event service step.

7. Click OK and then Done.

See Steps: Configure Business Process Definitions.

Result
Workday publishes the Prism dataset when processing the Accounting Center event and makes the data
available when the process is complete.

Next Steps
Use the published dataset for reporting.

Concept: Period Close Activity Group for Accounting Center

Workday provides an Accounting Center Summary Journals period close activity group, enabling you to
close your Accounting Center summary journals separately from other journals. You can now close these
2 groups independently providing greater control and flexibility in processing different types of journals as
you work through your ledger period close. You still have the ability to add them to your configured groups.
See Concept: Ledger Close Activity Groups on page 254.

Reference: Guidelines for Reporting on Accounting Center Datasets

Consider these guidelines when you report on Accounting Center datasets:
• You can only use the AS_SummaryandDetailedAccountingReference dataset to report on your detailed
accounting results using these 2 reporting tools:
• Workday Report Writer
• Workday Discovery Boards

• Reference your Accounting Center subscription agreement for:

• The maximum number of prior months you can report for all
AS_SummaryandDetailedAccountingReference datasets.
Workday determines the number of prior months by the Accounting Date on journal details reported
on the AS_SummaryandDetailedAccountingReference dataset for each accounting source as of the
report execution date.
• The maximum number of custom columns you can include in aggregate across all
AS_SummaryandDetailedAccountingReference datasets.
Workday creates a custom column in an AS_SummaryandDetailedAccountingReference dataset
when you include an additional attribute on an accounting source journal line rule.
• You can use temporary reportable datasets to support limited ad hoc reporting as determined by your
subscription agreement.

Concept: Accounting Center

Accounting Center is a fully integrated solution that incorporates Prism Analytics functionality enabling you
to:
• Import high-volume non-Workday external business events into Workday.
• Reduce time and complexity in integrating external transactions into Workday.
• Maintain and configure mapping rules to transform imported business events from various industries
into accounting journals.
• Generate period end accounting journals automatically.
• Report on both detailed and summarized journals for financial, managerial, operational, and external
reporting.
• Create accounting with confidence using Finance-owned data transformation.
• Analyze and act on insights to understand profitability and drive strategy.
• Maintain data integrity and quality while importing non-Workday external business events into Workday.
• Ensure data security by auditing changes and managing user access.
• Efficiently scale as volume of processing transactions increase.
See Accounting Center Product Flow.
You can use Accounting Center to bring transactions from disparate systems into 1 solution and automate
accounting to:
• Recognize revenue - Transform operational data, such as policy, media production, or technology order
data into accounting to recognize revenue, including premium revenue spread and deferred revenue.
• Recognize expenses - Recognize expenses from business events, including deferred and prepaid
expenses, to match the revenue being recognized in the same period.
• Record cash sales - Recognize cash sales, credit card sales, billings, and payments from cash
transactions and transform them into accounting.
• Summarize journals - Transform summarized journals into more granular detail, providing richer
financial and operational reporting.
• Record period end accruals, including stock-based compensation.
Examples of business events that you can automatically create period end accounting journals for, include:
• Insurance companies - Policy and claims data, including premium revenue spread over the life of the
policy.
• Healthcare companies - Healthcare provider insurance plan data and external billing systems.
• Media companies - Events for production shows, including casting, payroll, set designs, visual effects,
and campaign costs through award seasons.
• Retail companies - Physical and digital product sales.

• Banking companies - Loans and deposits information.

Together with Prism Analytics, Accounting Center offers advanced reporting with a richer reporting dataset
enabling you to access enriched and detailed accounting in Prism datasets.
Accounting Center reporting provides full data lineage to the source transactions giving you full audit
capability. You can gain more visibility by reporting by line of business, product, sales region, and
salesperson. You can then produce detailed reports with data visualizations and distribute these reports
through dashboards and scorecards to key decision makers.
With Accounting Center, you can:
• Create an ingestion table as an ingestion source to load data from Prism Analytics into an accounting
source. See Create Prism Analytics Table on page 471.
• Create an accounting source. See Create Accounting Source on page 483.
• Enrich and refine data by mapping the source data to the corresponding Workday field types. See
Concept: Enrichment on page 472.
• Configure journal header and journal line rules to drive accounting. See Edit Accounting Source on
page 487.
• Define how you want to process each batch. See Edit Accounting Center Process Configuration on
page 499.
• Create and process source transactions in batches to create detailed and summarized accounting. See
Create Accounting Center Batches from Source Systems on page 501.
• View and resolve data errors in batch processing. See View and Resolve Errors in Error Manager on
page 525.
• Report on and analyze the journal entries with full drill-down visibility into the source transactions.
See:
• View Detailed Accounting Results on page 536.
• View Summarized Journals on page 537.
• Improve data quality and reporting, as well as streamline your consolidation and close process.
Related Information
Concepts
Concept: Enrichment on page 472
Concept: Prism Analytics Data Management Workflow
Tasks
Set Up Grouping and Summarizing for Matrix Reports
Steps: Create Composite Reports
Reference
The Next Level: Accounting Center

Financial Transaction Taxes

Transaction Taxes

Setup Considerations: Transaction Taxes

You can use this topic to help make decisions when planning your configuration and use of transaction
taxes. It explains:
• Why to set them up.
• How they fit into the rest of Workday.

• Downstream impacts and cross-product interactions.

• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

You can configure Workday to report on the taxes that you pay, self-assess, or collect when you purchase
or sell goods and services.
To populate the tax details and calculate the tax amounts on your transactions, you can use either:
• Workday.
• A third-party tax integration, for customer or supplier invoices.

Business Benefits
Workday:
• Populates the tax attributes on your transaction lines based on the tax configuration, minimizing errors
and streamlining your compliance with tax authority regulations.
• Calculates the amount of tax that you pay, self-assess, or collect on your transaction lines based on the
tax rates and line amounts, minimizing your manual effort in assessing taxes.
• Allocates the tax amounts to your spend lines or creates separate journal lines for tax, streamlining your
tax accounting and reporting.

Use Cases
• You can configure Workday to populate the tax attributes on your spend or purchase transactions
based on the other attributes of your transactions.
• Accounts payable specialists can configure tax attributes as they create purchase transactions like
supplier invoices.
• Accounts receivable specialists can configure tax attributes as they create revenue transactions like
customer invoices.
• Employees can select the tax codes on expense lines as they create expense reports. Workday
calculates the amount of tax from the expense total, based on the tax code.
• Expense partners can review the expense reports and override the tax attributes.
• Tax managers can:
• Run reports to review and reconcile transaction taxes.
• Correct transaction taxes.

Questions to Consider

Question Considerations
Do you use a third-party service to calculate taxes You can set up a third-party tax integration to
on your transactions? populate the tax details on your customer or
supplier invoices. Third-party tax integrations
enable you to use Workday's accounting and
reporting framework, without the need to maintain
the tax configurations in Workday.
To which jurisdictions do you pay or report taxes, You can configure multiple tax authorities that:
and what currency do they use?
• Represent the jurisdictions to which you pay or
report on taxes.

Question Considerations
• Drive the tax reporting currency of your tax
rates.

What tax rates do you pay or collect? You can:

• Configure the individual tax rates that your tax
authorities assess. Examples: British Columbia
provincial sales tax (PST), Canada goods and
services tax (GST), Germany standard value-
added tax (VAT).
• Configure tax categories for tax rates that share
common attributes. Examples: Withholding tax,
sales tax, or VAT.

Which tax rates or combinations of tax rates apply You can configure tax codes that combine 1 or
to your transaction lines? more tax rates, so you only need to select 1 tax
code on each transaction line.
Example: You configure a tax code for British
Columbia that combines the PST and the GST tax
rates.

Do you reclaim or offset a percentage of the taxes You can configure tax applicability and
that you pay to your suppliers or tax authorities? recoverability codes to:
• Indicate whether to calculate tax on a
transaction line.
• Populate the tax recoverabilities for each tax
code on your transaction lines.
• Reclaim or offset a percentage of the tax
amount for a given tax code on a transaction
line.
• Allocate the nonrecoverable portion of tax
to your spend lines or to a separate ledger
account.
You can use tax recoverability and applicability in
your account posting rules.
Workday always considers tax on these documents
as nonrecoverable:
• Ad hoc bank deposits.
• Cash sales.
• Customer invoices.

On a spend transaction line, do you pay tax to the For each tax code on a spend transaction line, you
supplier or to the tax authority? can:
• Let Workday assess the tax due to the tax
authority.
• Let Workday calculate the tax due to the
supplier.
• Manually enter the tax due to the supplier.
See Reference: Tax Options on page 554 .

Recommendations
• To reduce the risk of employees selecting the wrong tax attributes on transactions, configure Workday
to automatically populate as many tax attributes as possible. See Setup Considerations: Transaction
Tax Rules on page 562.
• To reduce the risk of inaccuracies in your tax reporting, add a tax review step to your business
processes on spend and purchase transactions.
• To record partial self-assessments of tax when suppliers undercharge you tax, create tax-only invoices.

Requirements
Before you can use a third-party tax service to import the tax details on your transactions in Workday:
• Your third-party tax service provider must deploy the third-party tax integration to your Workday tenant.
Workday delivers 2 web services that your third-party tax provider can call to get the information they
need to calculate tax and to import the results into Workday:
• Get Taxable Document for Tax Calculation.
• Import Taxable Document Tax Details.
• Add the third-party tax service integration as a step on the Customer Invoice or Supplier Invoice
business process, following the instructions from your third-party tax service provider.
• Enable the third-party tax options for your company on the Edit Company Tax Details task.
• Your third-party tax service provider must create empty tax rates for Workday to store the tax rate
percentages from the third-party service.

Limitations
No impact.

Tenant Setup
You can use the Edit Tenant Setup - Financials task to enable options to:
• Configure the tax point date on transactions.
• Populate the tax fields from your tax rules on:
• Supplier invoices created from supplier invoice requests.
• Supplier invoices created from a purchase order or supplier contract.
• Hide the Enable Tax check box on expense reports when your organization doesn't require tax
reporting.

Security

Domains Considerations
Set Up: Tax domain in the Common Financial Configure transaction taxes.
Management functional area
Reports: Transaction Tax domain in these View transaction tax reports.
functional areas:
• Customer Accounts.
• Common Financial Management.

Business Processes
No impact.

Reporting

Reports Considerations
Transaction Tax Detail for Tax on Invoice Displays the transaction tax details for the taxable
Transactions document lines that don't have a Tax Point Date
Type of Payment Date at the document line level.
Transaction Tax Detail for Tax on Payment Displays the transaction tax details for taxable
Transactions document lines that have a Tax Point Date Type of
Payment Date.
Transaction Tax Liability Calculates the net tax due to each tax authority,
which is the collected and self-assessed tax minus
the recoverable tax. Displays the tax liability for
sales and purchasing transactions.

Integrations

Web Services Considerations

Get Taxable Document for Tax Calculation Provides third-party tax services with the tax
fields and values that they need to calculate the
transaction taxes on your taxable documents.
Import Taxable Document Tax Details This asynchronous web service enables third-party
tax services to import the calculated tax details into
Workday.

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Self-Assessed Tax on page 553
Concept: Tax-Only Supplier Invoices on page 1433
Setup Considerations: Transaction Tax Rules on page 562
Tasks
Create Tax Declarations on page 593
Steps: Set Up Third-Party Tax Service Integrations on page 559
Reference
Reference: Edit Tenant Setup - Financials
Global Financials Reference Book

Steps: Set Up Transaction Taxes

Prerequisites
• Review setup considerations for transaction taxes.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can configure:

• How Workday populates tax attributes on your transactions.

• How Workday calculates transaction tax amounts.
• The ledger accounts where Workday posts transaction taxes.

Steps
1. Set Up Tax Authorities on page 546.
2. Set Up Tax Categories on page 547.
3. Set Up Transaction Tax Rates on page 548.
4. Set Up Transaction Tax Codes on page 549.
5. Set Up Tax Recoverabilities for Financial Transactions on page 549.
6. Set Up Tax Applicability for Financial Transactions on page 551.
7. Set Up Company Tax IDs for Financial Transactions on page 551.
8. (Optional) Access the Maintain Tax ID Grouping task.
Create tax ID groupings for countries that require more than 1 tax ID on supplier or customer invoices.
9. Set up transaction tax account posting rules.
See:
• Set Up Account Posting Rules on page 71.
• Concept: Transaction Tax Account Posting Rules on page 582.
10.Configure how Workday populates tax attributes on expense reports.
See Steps: Set Up Taxes for Expense Reports on page 1551.
11.Configure how Workday populates tax attributes on revenue transactions.
See Steps: Set Up Taxes for Revenue Transactions on page 823.
12.Configure how Workday populates tax attributes on spend transactions.
See Steps: Set Up Taxes for Purchase Transactions.
13.(Optional) Configure Transaction Tax ID Exceptions on page 573.
14.(Optional) Map external tax codes to combinations of an internal tax code and a tax applicability.
See Steps: Create External Tax Codes and Map to Internal Tax Codes on page 713.

Next Steps
For a list of tax-related reports, access the Workday Standard Reports report and select the Set Up
Taxes report category.
Related Information
Concepts
Concept: Effective Dating for Transaction and Withholding Tax Rates on page 628

Set Up Tax Authorities

Prerequisites
Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can create tax authorities for the jurisdictions where you pay or report on taxes. Example: New York
State Department of Taxation and Finance.
Tax authorities drive the tax reporting currency of your tax rates.
When you want to pay tax authorities with supplier invoices, create tax authorities from existing business
entities and select suppliers.

Steps
1. Access the Create Tax Authority task.
2. As you complete the task, consider:
Option Description
Create Tax Authority from Business Entity Select a business entity for Workday to add tax
authority details to. Once you select a business
entity, you can't change it.
Tax Reporting Currency Select the currency to calculate and report taxes
for the tax authority. Example: Your company
currency is USD, but you report taxes for your
European headquarters in EUR. You select EUR.
You can't change the reporting currency after you
create a tax rate for the tax authority.

Rounding Definition Select or create a rounding definition for Workday

to round tax amounts:
• In tax reporting currency for tax reports and tax
declarations.
• In company currency for posting to ledger
accounts, when the company currency is the
same as the tax reporting currency.
• In transaction currency for display on taxable
documents, when the transaction currency is
the same as the tax reporting currency.
When you don't select a rounding definition,
Workday rounds the tax amounts to the nearest
currency precision. Example: Workday rounds
amounts in EUR to the nearest 2 decimals.

Next Steps
You can:
• Access the Update Tax Authority Logo task to upload a logo for this tax authority.
• Access the Create Tax Declaration Run task to report taxes to a tax authority.
• Create supplier invoices or ad hoc payments to pay the tax authority.
Related Information
Tasks
Create Supplier Invoices on page 1395
Create Ad Hoc Payments on page 1710

Set Up Tax Categories

Prerequisites
Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can create tax categories to group tax rates with the same attributes. Examples:
• Withholding tax.

• Value-added tax (VAT).

• Vertex.
• Avalara.

Steps
1. Access the Maintain Tax Categories task.
2. As you complete the task, consider:
Option Description
Subject to Recoverability Select this check box to calculate the recoverable
tax amount for the tax rates in this tax category.
Examples:
• VAT.
• Goods and services tax.

Withholding Tax Select this check box to calculate withholding

taxes for spend and revenue transactions. See
Steps: Set Up Withholding Taxes on page 575.
Use Third Party Tax Service Select this check box when you use a third-party
service to calculate taxes on your transactions.

Set Up Transaction Tax Rates

Prerequisites
Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can configure the individual transaction tax rates that your tax authorities assess. Examples:
• State of California (7.25%).
• County of Los Angeles (0.25%).
• Central City of Los Angeles (1.5%).

Steps
1. Access the Create Transaction Tax Rate task.
2. As you complete the task, consider:
Option Description
Subject to Recoverability Workday populates this value from the
Transaction Tax Category that you select.
Note: Workday always assesses the recoverable
tax amount as zero for tax rates that aren’t
subject to recoverability. Even when you select
a recoverable tax applicability on the transaction
line.

Third Party Tax Rate Workday populates this check box from the
Transaction Tax Category that you select.
Tax Rate Workday uses this percentage to calculate the tax
amounts on transaction lines.

Option Description
Workday doesn't prompt you for a tax rate when
you set up a third-party tax rate.

Set Up Transaction Tax Codes

Prerequisites
Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can configure the transaction tax codes that you select on your transaction lines. A transaction tax
code combines 1 or more transaction tax rates.
Example: You configure a tax code for the City of Los Angeles with these 3 tax rates:
• State of California (7.25%).
• County of Los Angeles (0.25%).
• Central City of Los Angeles (1.5%).
When you select the City of Los Angeles tax code on a supplier invoice, Workday populates these 3 tax
rates on your supplier invoice.

Steps
1. Access the Maintain Transaction Tax Codes task.
2. As you complete the task, consider:
Option Description
Transaction Tax ID Required Select for Workday to display the transaction tax
ID on customer invoices.
Tax Rate Select all the tax rates that you want Workday
to populate on your transaction lines when you
select this tax code.
You can't mix third-party tax rates with other tax
rates in the same tax code.

Set Up Tax Recoverabilities for Financial Transactions

Context
You can configure tax recoverability codes that indicate, for a tax rate on a transaction line:
• The percentage of the tax amount that you can reclaim or claim as input tax credit.
• Whether you want to allocate the nonrecoverable portion of tax to your spend lines, or post the tax
amount to a separate ledger account.
You can configure multiple tax recoverability codes so that Workday accurately applies recoverable
percentages on these transaction lines:
• Ad hoc payments.
• Expense reports.
• Purchase orders.
• Requisitions.

• Supplier contracts.
• Supplier invoices.
• Supplier invoice adjustments.
Workday always considers tax on these documents as nonrecoverable:
• Ad hoc bank deposits.
• Cash sales.
• Customer invoices.

Steps
1. Access the Maintain Tax Recoverabilities task.
Workday automatically populates the recoverable percentage on the transaction line based on the
specified tax applicability and tax code. You can override this selection. When you specify the tax
recoverability, Workday applies the recoverable percentage and the allocation method to the tax
amount for tax rates within a tax code.
2. As you complete the task, consider:
Option Description
Type Fully and partially recoverable taxes enable you to
reclaim or offset taxes that you pay on purchases
and expenses against taxes collected for value-
added tax (VAT) purposes.
Recoverable % Workday applies this percentage to the tax
amount in purchase and expense transactions
for tax rates that are subject to recoverability. A
different percentage applies if you select the Use
Company Recovery Pro Rata Factor check box.
Allocate Nonrecoverable Tax Select to allocate the nonrecoverable tax on
purchase transactions across each of the lines
where specified tax applicability is:
• Taxable.
• Nonrecoverable or partially recoverable.
Through allocation, the tax becomes part of the
spend line. You can allocate transaction tax to the
lines regardless of how you enter or calculate tax.
If you select Enter Tax Due to Supplier on
the Tax Option prompt of the transaction, you
can't select a tax applicability that allocates
nonrecoverable tax.
You can leave this option unchecked for:
• Ad hoc payments.
• Purchase orders.
• Supplier invoices and invoice adjustments.

Use Company Recovery Pro Rata Factor Select to enable the recoverable tax amount.
The recoverable percentage is based on the
Company Tax Recovery Pro Rata Factor
Percentage that you specify on the Edit
Company Tax Details task.

Set Up Tax Applicability for Financial Transactions

Context
You can aid transaction entry and approval by assigning a default tax applicability to sales, purchase,
and expense items in transaction lines. You can also configure tax rules that specify an override tax
applicability that automatically populates on transaction lines for specific items in specific countries. You
can specify tax applicability on these types of transaction lines:
• Customer invoices
• Invoice adjustments
• Cash sales
• Purchase orders
• Supplier invoices
• Ad hoc payments
• Expense reports

Steps
1. Access the Maintain Tax Applicability task.
2. As you complete the task, consider:
Option Description
Tax Applicability Code Enter a name for the tax applicability that displays
for selection within transactions.
Taxable Select to enable tax applicability when Workday
calculates the tax amount on transactions.
Default Tax Recoverability Select an available tax recoverability that defaults
to the tax recoverability on transactions.

Result
Workday uses the tax applicability and tax code on the transaction line to:
• Calculate recoverable and nonrecoverable tax amounts for each tax rate within the tax code.
• Segregate transactions for reporting.

Set Up Company Tax IDs for Financial Transactions

Prerequisites
Security:
• Set Up: Company General domain in the Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in the Core Payroll functional area.

Context
You can configure multiple country-specific tax and business identification numbers for your companies.
You can then automatically use the appropriate tax identification numbers in transactions to comply with
regulatory requirements.

Steps
1. Access the Edit Company Tax Details task.

2. As you complete the Tax IDs tab, consider:

Option Description
Country for Tax ID Type The prompt displays only the countries with
Workday-delivered tax ID types.
Tax ID Type The prompt displays Workday-delivered tax ID
types for the country that you specify.
Transaction Tax ID Select the check box to have the transaction
tax ID display and print on customer invoices.
For each country, you can select 1 identification
number as a transaction tax ID.
Note: Tax IDs don't display on supplier invoices.
Use reports to view the tax IDs on supplier
invoices.

Primary Tax ID Select the check box to indicate the main tax ID
when managing multiple IDs. Settlement uses the
primary tax ID for payment information.

Next Steps
• Maintain tax ID groupings for countries that require more than 1 tax ID on customer or supplier invoices.
• Configure transaction tax account posting rules for your company.

View Transaction Tax Liability for Companies

Context
View a summary of your company tax liability for sales and purchasing transactions.

Steps
1. Access the Transaction Tax Liability report.
2. To narrow your search, specify the company, currency, and date range.
3. As you review the tabs, consider:

Tab Description
Transactions by Tax Authority View a list of transactions by:
• Tax authority.
• Total sales amount and tax collected for sales
transactions.
• Total purchase amount and tax paid or self-
assessed for purchase transactions.
• Recoverable amount of the tax paid.
The report also calculates the net tax due to the
tax authority, which is the combination of collected
and self-assessed tax minus the recoverable tax.
Click each amount to see the transactions that
make up the amount.

Tab Description
Transactions without Tax Code Lists total sales and purchase amounts for
transactions without a tax code, grouped by tax
applicability.

Concept: Self-Assessed Tax

Self-assessed tax enables you to pay tax to the authorities when a supplier or payee doesn't charge you
tax. You can self-assess tax on these invoices and financial transactions:
• Supplier invoices.
• Ad hoc payments.
• Procurement card transactions.
• Purchase orders.
• Change orders.
Note: The tax amounts that you self-assess on purchase orders and change orders are estimates only.
Workday does not include these amounts in your reportable amounts.

Sample Configurations

Use Case Example Considerations

You self-assess value-added tax Your Irish company purchases You can set up:
(VAT) or goods and services tax goods from a Dutch supplier who
• A transaction tax status for
(GST). isn't registered for VAT in Ireland
suppliers who aren't registered
and doesn't charge you VAT.
for VAT in your ship-to
You self-assess the Irish VAT on
addresses.
the supplier invoice and pay it to
the Revenue Commissioners of • Transaction tax rules for
Ireland. countries:
• With a condition on the
supplier status.
• That override the Tax
Option with Calculate Self-
Assessed Tax.

You have spend items or spend Your US company purchases You can set up:
categories for which the supplier laptops for its employees from
• A transaction tax status for
doesn’t charge tax for your ship- an out-of-state US supplier.
suppliers who aren't registered
to locations. The supplier doesn't have
for VAT in your ship-to
nexus in the ship-to location
addresses.
and doesn’t charge you sales
tax for the laptops. You self- • Transaction tax rules for
assess tax for the laptops on the countries:
supplier invoice and pay the tax • With conditions on the
authorities. supplier status and on the
items or spend categories
that you self-assess.
• That override the Tax
Option with Calculate Self-
Assessed Tax.

You have invoices with tax codes Your Canadian company You can set up transaction
where 1 tax rate is payable to the purchases goods from a tax rules that override the Tax
Canadian supplier who charges Option with:

Use Case Example Considerations

supplier and another is payable to goods and services tax (GST), • Calculate Self-Assessed Tax
the tax authority. but not provincial sales tax (PST). for the tax rate that you self-
You: assess.
• Pay the GST to the supplier. • Calculate Tax Due to Supplier
for the tax rate that you pay to
• Self-assess the PST and pay
the supplier.
it to the tax authorities.
Then, when you select a tax code
on a transaction:
• Workday populates the tax
option for each tax rate
included in the tax code
with the tax option you've
configured.
• You can change the tax option
for each tax rate included in
the tax code.

Concept: Tax ID Groupings

In Workday, you can create tax ID groupings to add more than 1 tax ID to your customer and supplier
invoices. This helps you comply with local tax requirements.
You can create 1 tax ID grouping per country. A tax ID grouping comprises 1 or more lines with:
• 1 principal tax ID type.
• 1 or more additional tax ID types.
When you create customer or supplier invoices with a principal tax ID type, Workday saves the additional
tax IDs on the same tax ID grouping line with the customer or supplier invoice.
To view the list of all the tax IDs on a taxable document, you can create custom reports with the report
fields:
• Company Tax IDs for supplier or customer invoices.
• Customer Tax IDs for customer invoices.
• Supplier Tax IDs for supplier invoices.
Note: For Workday to populate the Customer Tax IDs report field on customer invoices, you must use a
tax code where the Transaction Tax ID is required.

Reference: Tax Options

The Tax Option indicates how you want to record tax on transaction lines. Workday populates the tax
option from:
• The value of the Procurement Tax Option prompt in your company accounting details.
• Transaction tax rules.

Tax Options

Option Description
Calculate Self-Assessed Tax Select this option when:
• You pay the tax to the tax authority.
• You want Workday to calculate the amount of
tax that you owe to the tax authority.

Option Description
Example: A supplier doesn't charge you VAT or
GST.

Calculate Tax Due to Supplier Select this option when:

• You pay the tax to the supplier.
• You want Workday to calculate the tax amount
that you owe to the supplier.
• The tax amount is partially or fully recoverable.
• You report the tax amount to the tax authorities.
Example: A supplier charges you value-added tax
(VAT) or goods and services tax (GST).

Enter Tax Due to Supplier Select this option when:

• You want to record the tax amount that the
supplier charges you.
• The tax amount is nonrecoverable.
• You don't report the tax amount to the tax
authorities.
You must have at least 1 line with a tax applicability
that is taxable and enabled for allocation.
Example: A supplier charges you the United States
Sales tax.
When you select this option:
• You can enter the total amount of tax on the
transaction header manually.
• You can allocate the amount to the taxable lines
that are eligible for allocation.
• You can't select a tax code.
• Workday doesn't create accounting for the tax
amount.
• Workday doesn't include the tax amount in the
tax declaration reports.
• Workday doesn't generate any Tax Rate
Application or Line Tax Rate Application on the
transaction.

Availability of Tax Options for Transaction Types

Transaction Type Tax Options

Ad Hoc Bank Transactions Workday can calculate how much of the extended
amount on ad hoc bank transactions is tax.
Ad Hoc Payments • Calculate Self-Assessed Tax.
• Calculate Tax Due to Supplier.
• Enter Tax Due to Supplier.

Cash Sales Workday can calculate the tax that you collect on
cash sales.

Transaction Type Tax Options

Customer Contracts Workday can estimate the tax that you collect on
customer contracts.
Customer Invoices Workday can calculate the tax that you collect on
customer invoices.
Expenses Workday can calculate how much of the extended
amount on an expense line is tax.
When your organization doesn't require tax
reporting on expense reports, you can hide the Tax
check box with the Edit Tenant Setup - Financials
task.

Manual Journals You can enter the tax amount on manual journals.
Procurement Card Transaction Verifications Workday can self-assess tax on procurement card
transaction verifications.
Purchase Orders • Calculate Self-Assessed Tax.
• Calculate Tax Due to Supplier.
• Enter Tax Due to Supplier.

Requisitions When you enable tax reporting on requisitions for a

company, Workday can calculate the amount of tax
on requisitions.
Supplier Invoices • Calculate Self-Assessed Tax.
• Calculate Tax Due to Supplier.
• Enter Tax Due to Supplier.

Related Information
Tasks
Adjust Supplier Invoices on page 1420
Assign Company Accounting Details on page 62
Create Ad Hoc Payments on page 1710
Create Purchase Orders
Create Supplier Invoices on page 1395
Create a Non-PO Supplier Invoice on page 1410
Reference
Reference: Company Procurement Options

Reference: Transaction Tax Business Objects

To report on taxes for different use cases, Workday saves transaction tax details and amounts in various
business objects. This table details how Workday calculates transaction taxes by business object:

Business Object Description

Taxable Document Workday calculates the total tax on a taxable
document. Example: Total transaction tax on a
supplier invoice.
For ad hoc bank withdrawals and expense reports,
which are tax-inclusive, Workday calculates how
much of the total amount is tax.

Business Object Description

For tax-exclusive documents, Workday adds tax to
the extended amount.

Taxable Document Line Workday calculates the transaction and recoverable

tax on the lines of taxable documents.
Tax Rate Application (TRA) On taxable documents, Workday creates 1 TRA
business object per combination of tax:
• Applicability.
• Code.
• Option.
• Point date.
• Rate.
• Recoverability.
Workday consolidates the tax amounts at the TRA
level to create tax accounting for tax documents.
Example: You create a supplier invoice with 4 lines
that share the same tax attributes. Workday creates
1 TRA for the supplier invoice.

Payment Tax Rate Application (PTRA) Workday creates 1 PTRA business object for each
payment that you apply to an invoice. PTRAs
enable you to report on taxes at the time of
payment.
Line Tax Rate Application (LTRA) Workday distributes the tax amounts of the TRA
business objects to the transaction lines and
creates 1 LTRA business object per transaction
line. LTRAs enable you to report to tax authorities
that have different reporting requirements based on
spend categories or items.
Manual Journal Tax Rate Application On manual journals, Workday saves the tax
amounts that you enter for accounting and reporting
purposes.

Related Information
Concepts
Concept: Business Objects, Data Sources, and Fields

FAQ: Why do 2 identical invoice lines have different tax amounts?

To calculate transaction tax amounts on a taxable document, Workday first calculates these amounts at
the tax rate application (TRA) level:

TRA Calculation
Taxable Amount The sum of the extended amounts on the lines that
share the TRA attributes.
Transaction Tax Amount Tax rate × TRA taxable amount
Recoverable Tax Amount Recoverability percentage × TRA transaction tax
amount

Workday rounds these amounts based on the rounding definition of your tax authority.
Then, Workday distributes the tax amounts to the lines on the taxable document and rounds them.
To balance the sum of the line tax amounts with the TRA tax amounts, Workday adjusts the line with the
greatest extended amount. When several lines have the same extended amount, Workday adjusts only the
line with the lowest line ID. As a result, 2 identical lines might have different transaction tax amounts.
Workday applies the same calculation and rounding to withholding taxes.
Example: You want to calculate transaction tax amounts on a supplier invoice with these lines:

Line ID Extended Amount (USD) Tax Rate (%)

1 100.05 8
2 100.05 8
3 100.05 8
4 100.05 8

On all these lines, you enter the same tax:

• Applicability
• Code
• Option
• Rate
• Recoverability
You also configure the tax authority to round tax amounts to the nearest 2 decimal places.
Since these lines share the same tax attributes, Workday creates 1 TRA:

TRA Calculation Total

Taxable Amount 100.05 × 4 400.20
Tax Amount 8% × 400.20 32.016 (rounded to 32.02)

Workday then:
• Distributes the TRA transaction tax amount to the 4 lines: 32.02 ÷ 4 = 8.005, rounded to 8.01, for a total
of 32.04.
• Adjusts the transaction tax amount of line 1 to 7.99 to balance the line and TRA totals to 32.02.
As a result, the transaction tax amount of line 1 differs from the other lines:

Line ID Extended Amount Tax Rate (%) Tax Amount (USD)

(USD)
1 100.05 8 7.99
2 100.05 8 8.01
3 100.05 8 8.01
4 100.05 8 8.01

Third-Party Tax Service Integrations

Steps: Set Up Third-Party Tax Service Integrations

Prerequisites
• Ensure that your third-party tax service provider deploys the third-party tax integration to your Workday
tenant.
• Add the third-party tax service integration as a step on 1 of these business processes:
• Customer Invoice
• Supplier Invoice
• Set up a tax authority.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can use a third-party tax service integration to calculate, import, and store tax details on customer or
supplier invoices.

Steps
1. Access the Third-Party Tax Options tab on the Edit Company Tax Details task.
2. When you use an integration with the reporting option, add a row to the Third-Party Tax Options grid.
3. As you complete the task, consider:
Option Description
Operational Transaction Source Select the type of documents for which you want
to use a third-party tax service.
Tax Service Name The tax service name displays on customer or
supplier invoices to let you know which third-party
tax service the document uses.
Enabled Select to enable the third-party tax service
provider at the company level.
4. When you use a nonreporting integration for customer invoices, complete the Customer Invoice Non-
Reporting Option section.
5. Set up a tax category for your third-party tax rates.
See Set Up Tax Categories on page 547.
6. Set up empty third-party tax rates for your third-party tax codes.
The number of tax rates that you set up depends on your tax jurisdiction and country.
See Set Up Transaction Tax Rates on page 548.
7. Set up empty third-party tax codes that Workday uses to store the tax details from the integration.
See Set Up Transaction Tax Codes on page 549.

Result
When you create a customer or supplier invoice, leave the tax code and tax applicability fields empty.
When you submit the customer or supplier invoice, Workday starts your third-party tax integration, which
imports the tax details onto your invoice. You can view the tax amounts on the Tax tab of the invoice and
drill down to the line level.

Next Steps
After the third-party tax service provider calculates and imports tax details into Workday, you can view tax
details in these reports:
• The Transaction Tax Detail for Tax on Invoice Transactions report lists all invoices and their tax
details.
• The Tax Declaration report lists all tax declarations.

Concept: Third-Party Tax Service Integrations

You can use a third-party tax service integration to calculate, import, and store transaction tax details on
customer or supplier invoices. Using a third-party tax service integration eliminates the need to:
• Maintain transaction tax configurations in Workday, such as:
• Transaction tax rates.
• Transaction tax rate applications.
• Transaction tax rules.
• Select transaction tax codes and tax applicabilities on your transaction lines.

Reporting and Nonreporting Options

When you use an integration with the reporting option, you can use Workday to:
• Report on the transaction taxes that your third-party tax service calculates.
• Calculate withholding tax amounts on your customer or supplier invoices.
Workday supports the reporting option for:
• Customer invoices.
• Supplier invoices.
Workday supports the nonreporting option for customer invoices only. We recommend that you use the
reporting option, as you can't use Workday's reporting framework and withholding tax calculations with the
nonreporting option.

Withholding Tax Calculations

When you use an integration with the reporting option, you can still use Workday to calculate withholding
tax amounts:
1. You enter the withholding tax code on your transaction lines.
2. Workday populates the withholding tax amount on your document at the same time that the integration
imports the tax details from your third-party tax service into Workday.
Related Information
Concepts
Concept: Taxes in Customer Invoice and Cash Sale Web Services on page 693
Reference
Workday 33 What's New Post: Tax Framework for Third-Party Tax Service Integration

Example: Set Up Third-Party Tax for Customer Invoices

This example illustrates how to configure Workday when you use a third-party tax service integration to
populate the tax details on customer invoices.

Context
Your company, Global Modern Services, Inc. (USA), uses a third-party tax service provider to import tax
details onto your customer invoices.

Your third-party tax service provider maintains 3 different tax rates for city, county, and state tax.
To import the tax details from the third-party tax service provider onto your customer invoices, you:
• Enable your company for third-party tax on customer invoices.
• Configure a tax category for the third-party tax rates.
• Configure 3 empty tax rates as a placeholder to store the taxes that your third-party tax service provider
imports into Workday.
• Group these 3 tax rates into 1 tax code that your third-party tax service provider references.

Prerequisites
• Set up a Third-Party Tax Service integration, following the instructions from your third-party tax service
provider.
• Add the third-party tax service integration as a step on the Customer Invoice business process.
• Create a tax authority that you name Tax Authority.
• Security:
• Set Up: Tax domain in the Common Financial Management functional area.
• Business Process Administration domain in the System functional area.

Steps
1. Access the Edit Company Tax Details task.
2. Select the Global Modern Services, Inc. (USA) option from the Company prompt.
3. Click OK.
4. On the Third-Party Tax Options tab, add a new row with these values:

Operational Transaction Tax Service Name Enabled

Source
Customer Invoice Third-Party Tax Service Select the check box.
5. Click OK.
6. Access the Maintain Tax Categories task.
7. Add a new row with these values:

Tax Category Name Use Third-Party Tax Service

Third-Party Tax Category Select the check box.
8. Click OK and Done.
9. Access the Create Transaction Tax Rate task.
10.Enter these values:

Field Value
Country United States of America
Tax Rate Name Third-Party City Tax Rate
Tax Authority Tax Authority
Transaction Tax Category Third-Party Tax Category
11.Click OK and Done.
12.Access the Create Transaction Tax Rate task.

13.Enter these values:

Field Value
Country United States of America
Tax Rate Name Third-Party County Tax Rate
Tax Authority Tax Authority
Transaction Tax Category Third-Party Tax Category
14.Click OK and Done.
15.Access the Create Transaction Tax Rate task.
16.Enter these values:

Field Value
Country United States of America
Tax Rate Name Third-Party State Tax Rate
Tax Authority Tax Authority
Transaction Tax Category Third-Party Tax Category
17.Click OK and Done.
18.Access the Maintain Transaction Tax Codes task.
19.Add a new row with these values:

Tax Code Name Country Tax Rate

US Third-Party Tax Code United States of America Select these 3 tax rates:
• Third-Party City Tax Rate
• Third-Party County Tax Rate
• Third-Party State Tax Rate

20.Click OK.
21.Verify that you've correctly configured your US Third-Party Tax Code.
The Tax Code Rate Total percentage for third-party taxes displays as zero.
22.Click Done.

Result
When you create a customer invoice for Global Modern Services, Inc. (USA), leave the tax code and
tax applicability fields empty. When you submit the customer invoice, Workday starts your third-party tax
integration, which imports the tax details onto your customer invoice. You can view the tax amounts on the
Tax tab of the customer invoice and drill down to the line level.

Transaction Tax Rules

Setup Considerations: Transaction Tax Rules

You can use this topic to help make decisions when planning your configuration and use of transaction tax
rules. It explains:
• Why to set them up.
• How they fit into the rest of Workday.

• Downstream impacts and cross-product interactions.

• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Transaction tax rules in Workday enable you to add these tax attributes on financial transactions
automatically:
• Tax applicability.
• Tax code.
• Tax recoverability for expenses and supplier accounts.
• Tax option for supplier accounts only.

Business Benefits
Transaction tax rules:
• Automate the selection of tax attributes to minimize the number you must enter manually on taxable
documents.
• Populate tax attributes for specific countries, items, spend categories, and tax item groups so that you
don't have to determine which attributes to use on transactions.
• Increase the accuracy of tax reporting.
• Simplify data entry.

Use Cases
You can create transaction tax rules to populate tax attributes on financial documents to:
• Automatically add the tax code of the travel destination where you incur an expense on the expense
line.
• Automatically include the ship-to address country on a domestic purchase.
• Automatically charge zero-rated tax on an intra-EU customer invoice.
When a supplier doesn't charge tax, you can:
• Select the self-assess tax option at the line level of the financial document.
• Create a transaction tax rule to select the self-assess tax option automatically.

Questions to Consider

Questions Considerations
Do you need a minimum set of transaction tax You can create item rules for exceptions instead of
rules? creating tax rules for all scenarios.
Can you configure tax rule exceptions to account You can configure exceptions to transaction tax
for tax rules by country? rules to use a different address for the default tax
attributes on a transaction. Workday matches the
country tax rule to the country of the alternative
address.
Can you configure tax rules for self-assessed tax You can select a self-assess tax option on supplier
selection? invoices and invoice adjustments at the line level.
Can you configure country-specific tax rules? You can use tax statuses to configure country-
specific tax rules based on the status of a
customer, supplier, or company, such as:

Questions Considerations
• EU Company VAT Registered
• EU Company Exempt

Recommendations
Create generic transaction tax rules for particular countries and add item rules for exceptions.

Requirements
No impact.

Limitations
No impact.

Tenant Setup
You can select tenant-wide configurations on the Edit Tenant Setup - Financials task to:
• Enable Company Tax Options for Supplier Invoice Request Invoices
Populate transaction tax rules for supplier invoices created from supplier invoice requests.
• Enable Tax Defaulting for International Expenses
Populate tax codes and tax applicability for international expenses.
• Hide Tax Checkbox on Expense Report
Prevent employees from specifying tax values on their expense reports or enable tax reporting on
expense reports.

Security
Enable the Set Up: Tax domain in the Common Financial Management functional area to configure
transaction tax rules.

Business Processes
You can add Review Tax as an action step on the Expense Report Event business process. This ensures
that tax managers can review, modify, and approve tax attributes on an expense report.

Reporting
No impact.

Integrations
These web services create transaction tax rules:
• Create Transaction Tax Rule Exception for ~Country~: creates a transaction tax rule that is an
exception to all other transaction tax rules for a country.
• Create Transaction Tax Rule for ~Country~: creates a transaction tax rule for a country.
• Create Transaction Tax Rule for Items: creates a transaction tax rule for an item within a country.
• Create Tax Rule for Worktags: creates a transaction tax rule for a worktag that applies to an item within
a country.

Connections and Touchpoints

Transaction tax rules use the ship-to address, item, and spend category to populate tax attributes at the
line level in these areas:
• Ad hoc payments
• Customer contracts
• Customer invoices
• Purchase orders
• Requisitions
• Supplier invoices
Transaction tax rules use the originating region, destination region, item, and spend category to populate
tax attributes at the line level in expense reports.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across
your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Configure Transaction Tax Rules on page 565
Configure Transaction Tax Rules for Items on page 567
Configure Transaction Tax Rules for Countries on page 568
Configure Transaction Tax Rules Using Worktags on page 570
Configure Transaction Tax Rule Exceptions on page 572

Steps: Configure Transaction Tax Rules

Prerequisites
Security: These domains in the Common Financial Management functional area:
• Set Up: Company General
• Set Up: Tax

Context
When you configure transaction tax rules, Workday automatically populates the appropriate tax code and
tax applicability when you enter taxable documents.

Steps
1. Access the Maintain Transaction Tax Item Groups task.
Create groups to:
• Organize purchase, expense, and sales items.
• Use as dimensions in transaction tax rules for items.
When you assign items to a group, you can include only items of the selected type. In transaction tax
rules for items, you can use:
• Sales item groups for revenue rules.
• Purchase item and expense item groups for spend rules.
2. Access the Assign Items to Transaction Tax Item Group task.

3. Access the Maintain VAT or GST Groups task.

Create groups to:
• Organize companies that share the same Value Added Tax (VAT) or Goods and Services Tax (GST)
requirements.
• Use as dimensions in transaction tax rules for countries.
4. Access the Assign Companies to VAT or GST Group task.
Add 2 or more companies to a group. Use effective dates to track changes to the group over time.
5. Access the Maintain Transaction Tax Statuses task.
Create transaction tax statuses for a country, such as EU Company VAT Registered or EU Company
Exempt. You can associate these tax statuses with companies, customers, and suppliers. You can then
use them as a dimension in transaction tax rules for countries.
6. Access the Edit Company Tax Details task.
Configure transaction tax statuses by company to use as matching criteria in transaction tax rules for
countries.
As you complete the Tax Statuses tab, consider:
Option Description
Country Select a country to associate with a specific tax
status for the company. You can only select 1
transaction tax status per country.
Transaction Tax Status Select the appropriate tax status that applies to
the company.
7. Create Suppliers.
You can assign Tax Statuses by country to a supplier to populate tax information automatically.
8. Create Customers on page 635.
You can assign Tax Statuses by country to a customer to populate tax information automatically.
9. Access the Maintain Tax Rule Exception Groups task.
Create a group to enable exceptions for a ship-to country with tax rules different from the shipping
country. You can use these exception groups to create tax rules for a country and tax rule exceptions
for ship-to countries.
10.Configure Transaction Tax Rule Exceptions on page 572.
Configure tax exception rules for countries and items to determine if the place of supply country should
be different than the ship-to address country on an invoice. The ship-to address country on an invoice
is usually the place of supply, but you may need to override this when the billing company, supplier, or
customer’s country should be the country for tax purposes.
11.Configure Transaction Tax ID Exceptions on page 573.
Configure exception rules to override the selection of transaction tax IDs for companies, customers, and
suppliers on customer invoices and supplier invoices.
12.Configure Transaction Tax Rules for Countries on page 568.
Create a transaction tax rule for each country where you file a tax declaration.
13.Configure Transaction Tax Rules for Items on page 567.
Create transaction tax rules for revenue and spend items to be used in your transaction tax rules for
country. By using the transaction tax item groups, one item rule line defaults for all purchase, sales, or
expense items in the tax item group.
14.Configure Transaction Tax Rules Using Worktags on page 570.
Configure tax defaulting rules using worktags on document lines to enable Workday to populate
transaction tax attributes at the line level on supplier invoices, purchase orders, and ad hoc payments.

Result
Workday evaluates transaction tax rules in this order:
1. Transaction tax rules for countries based on VAT or GST groups. Only when it's a direct intercompany
transaction and both companies are in the same VAT or GST group.
2. Transaction tax rules for countries based on exception groups.
3. General transaction tax rules for countries.
4. Transaction tax rules for items.
5. Transaction tax rules for worktags.
These rules override all other tax transaction rules.

Configure Transaction Tax Rules for Items

Prerequisites
• Create a transaction tax item for a country.
• Create transaction tax item groups.
• Create tax applicability.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can override all other tax codes and tax applicability by defining tax code and tax applicability rules.
Workday uses these rules to calculate taxes for specific items.

Steps
1. Access the Create Transaction Tax Rule for Items task.
2. In the Tax Item Rule Type prompt, select:
• Revenue for sales items.
• Spend for purchase items and expense items.
3. As you complete the task, consider:
Option Description
Spend Category Workday populates the revenue or spend item
for selection depending on whether you specify
Revenue Category
Revenue or Spend in the Tax Item Rule Type
prompt. Select a category to apply the rule line to
all items in that category.
The Revenue Category or Spend Category is
unavailable for selection if you specify the Tax
Item Group.

Tax Item Group Select a tax item group to apply the rule line to all
items in that item group.
The Tax Item Group is unavailable for selection
if you specify the Revenue Category, Spend
Category, or Item.

Item Select an item to apply the rule line to only that

item.
The Item is unavailable for selection if you specify
the Tax Item Group.

Option Description
Tax Applicability Override Select the tax applicability to use on transaction
lines for this rule. This value overrides other
tax applicabilities that Workday automatically
populates on revenue or spend transactions.
Tax Code Override Select the tax code to use on transaction lines
for this rule. This value overrides the tax code
specified in a tax rule for a country that references
this rule.
Tax Recoverability Override Select the tax recoverability to use on transaction
lines for Tax Code Override tax rates. This rule
overrides other tax recoverabilities that Workday
automatically populates on spend transactions.
Tax Option Override Select the tax option to use on specific tax rates
for transaction lines. This rule overrides other tax
options that Workday automatically populates on
spend transactions.

Example
If using both procurement and expenses, account for purchase items and expense items. You design a
country tax rule that focuses only on the tax status of the company transaction. That rule might match on
both supplier invoices and expense transactions and use the associated item tax rule.

Next Steps
You can associate your tax rules for items with tax rules for countries.
Related Information
Tasks
Configure Transaction Tax Rules for Countries on page 568
Configure Transaction Tax Rules Using Worktags on page 570

Configure Transaction Tax Rules for Countries

Prerequisites
• Create Value Added Tax (VAT) or Goods and Services Tax (GST) groups.
• Create transaction tax statuses.
• (Optional) Create tax rule exception groups.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
For each country and its regions, you can specify the default tax code and tax applicability. Workday
automatically populates this information onto spend and revenue transaction lines that meet the rule
criteria. You can also create transaction tax rules for countries for VAT or GST groups and exception
groups.

Steps
1. Access the Create Transaction Tax Rule for Country task.

2. Select the Country that the transaction tax rule applies to.
To determine the country rule that applies to a purchase or revenue transaction, Workday uses the
ship-to address on the supplier or customer invoice. For expense transactions, Workday uses the travel
country on the expense line or travel country preference on the employee profile.
Workday uses the transaction tax rule when the Country you select matches the:
• Ship-to address on supplier or customer invoices for purchase and revenue transactions.
• Travel country on expense lines for expense transactions.
• Travel country preference on the employee profile for expense transactions.
3. Select the type of transaction tax rule that you want to create:
• VAT Group: Select to create a rule for companies in the same country that qualify for special
consolidated VAT or GST filing and exemptions. You can use these rules for direct intercompany
transactions. Workday uses this rule based on whether the company and intercompany company
are within the same VAT or GST group.
• Exception Group: Select to create rules for transactions where the ship-to country isn't the correct
country of taxation.
• None of the Above: Use this default for standard tax rules for countries.
4. As you complete the task, consider:
Option Description
Company You can select multiple companies to create a
rule that addresses scenarios for recoverability
percentages.
Transaction Tax Status You can match on transaction tax statuses for
company, customer, or supplier based on the
country.
5. Select the region of a country such as State, Territory, or Province for defining a tax rule.
When defining country rules for expense items, leave country region and Postal Code Range blank.
6. As you complete the task, consider:
Option Description
Postal Code Range Start To have Workday automatically populate the tax
code to all transactions whose ship-to address is
within that jurisdiction, leave blank.
When defining country rules for expense items,
leave country region and Postal Code Range
blank.

Postal Code Range End To have Workday automatically populate the tax
code to all transactions whose ship-to address is
within that jurisdiction, leave blank.
When defining country rules for expense items,
leave country region and Postal Code Range
blank.

Classification Select Goods or Services so that Workday will

automatically populate tax attributes, with items or
categories classified as either goods or services
on spend or revenue transaction lines.

Option Description
Default Tax Applicability Select to have Workday automatically populate
the tax applicability on the spend or revenue
transaction lines that meet this rule line criteria.
Default Tax Code Select to have Workday automatically populate
the tax code on the spend or revenue transaction
lines that meet this rule line criteria.
Default Tax Recoverability Select the tax recoverability for the selected tax
rates in the Default Tax Code.
Default Tax Option Select the default tax option that Workday
populates on spend transaction lines that meet
the criteria for this rule.
Tax Rule for Spend Items Select a tax rule for spend items to have Workday
evaluate the items within the transaction.
Tax Rule for Revenue Items Select a tax rule for revenue items to have
Workday evaluate the items within the
transaction.

Next Steps
You can configure transaction tax rule exceptions.
Related Information
Tasks
Configure Transaction Tax Rules for Items on page 567
Configure Transaction Tax Rules Using Worktags on page 570

Configure Transaction Tax Rules Using Worktags

Prerequisites
• Create transaction tax rules for countries.
• Create groups for transaction tax items.
• Create transaction tax rules for items.
• Create tax applicability.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can define tax defaulting rules using worktags on document lines to automate the selection of:
• Tax codes.
• Tax applicability.
• Tax recoverability.
• Tax options.
Workday populates these tax attributes at the line level on supplier invoices, purchase orders, and ad hoc
payments.
Example: Your healthcare company buys a large number of bandages from a supplier. The supplier
invoices the bandages to your company, and your company distributes them to 3 different cost centers:
one for a hospital, one for a pharmacy, and another for a medical center. The supplier configures worktag
rules for the cost centers to populate the correct tax details on these supplier invoice lines:

• Zero-rated VAT for the hospital.

• A standard 20 percent VAT for the medical center.
• A specific tax recoverability percentage for the pharmacy.

Steps
1. Access the Create Tax Rule for Worktags task.
2. As you complete the task, consider:
Option Description
Order The order of the worktag rules is very important.
Workday evaluates rules from the top down and
from the most general to the most specific. Place
the most general rule first in the list and the most
specific rule last in the list.
Worktags Select a worktag to apply the rule to that worktag
only.
The Worktag is available for selection only when
you specify a Tax Item Group. When you select a
tax item group, Workday applies the worktag rule
to all items in that item group.

Tax Applicability Override Select the tax applicability to use on transaction

lines for this rule. This value overrides other
tax applicabilities that Workday automatically
populates on revenue or spend transactions.
Tax Code Override Select the tax code to use on transaction lines
for this rule. This value overrides the tax code
specified in a tax rule for a country that references
this rule.
Tax Recoverability Override Select the tax recoverability to use on transaction
lines for Tax Code Override tax rates. This rule
overrides other tax recoverabilities that Workday
automatically populates on spend transactions.
Tax Option Override Select the tax option to use on specific tax rates
for transaction lines. This rule overrides other tax
options that Workday automatically populates on
spend transactions.

Next Steps
After you create your worktags tax rules, you can:
• Assign the new worktags tax rules to a transaction tax rule for items.
• Assign the transaction tax rule for items to a transaction tax rule for a country.
Related Information
Tasks
Configure Transaction Tax Rules for Items on page 567
Configure Transaction Tax Rules for Countries on page 568

Configure Transaction Tax Rule Exceptions

Prerequisites
• Create tax rule exception groups.
• Create transaction tax statuses.
• Create transaction tax item groups.
• Configure transaction tax rules for countries based on exception groups.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can configure rule exceptions for transaction tax rules when the ship-to country isn't the appropriate
country to match country tax rules.

Steps
1. Access the Create Transaction Tax Rule Exception for Country task.
2. Design the country rule lines from top to bottom.
The best practice is to place rule lines for your most specific use cases first. Place less specific rule
lines toward the bottom.
As you complete the task, consider:

Option Description
Transaction Tax Status Select to match using transaction tax statuses
for company, customer, or supplier based on the
country.
Transaction Tax Item Group Select to have the rule line apply to all items with
an item group rather than adding a line for each
item.
Spend Category Select to define purchase category, which
automatically updates the Item column to list
purchase items only.
If you leave Item blank, select a spend category
to apply the rule line to all purchase items with the
selected category.

Revenue Category Select to define sales category, which

automatically updates the Item column to list
sales items only.
If you leave Item blank, select a revenue category
to apply the rule line to all sales items with the
selected category.

Item Select a purchase or sales item to create a rule

line that applies specifically to that item. To have
the rule apply to all items in a spend or revenue
category, leave blank.
Exception Group If the transaction matches the dimensions of this
rule line, Workday uses the transaction tax rule for
country based on this exception group.

Example
The country, tax status, or item type might produce a different answer for a supplier invoice versus a
customer invoice in cross border scenarios.
• Transaction ship-to is France, buyer is French VAT registered, but Netherlands (NL) supplier isn't
French VAT registered.
• Supplier Invoice self-assesses VAT in country of Ship To (France).
• Related customer invoice charges zero rated (NL) VAT in billing country (NL) of the company.

Configure Transaction Tax ID Exceptions

Prerequisites
Security: These domains in the Common Financial Management functional area:
• Set Up: Company General
• Set Up: Tax

Context
Configure exception rules to override the default selection of transaction tax IDs for companies, customers,
and suppliers on customer invoices and supplier invoices. This ensures that Workday automatically
populates the tax IDs that you specify on customer and supplier invoices.

Steps
1. Access the Maintain Transaction Tax ID Exception Rules task.
2. Select the Revenue tab to create tax ID exception rules for sales items or the Spend tab to create tax
ID exception rules for purchase items.
3. Create a tax ID exception rule.
Workday processes rule lines on the invoice from the most specific rule to the least specific rule so you
should order your revenue and spend tax ID exception rule lines accordingly. Workday processes:
• The invoice header for the parties to the invoice.
• The ship-to address for the country.
• The invoice lines for the tax applicability.
Workday applies the highest ordered rule that results in a match.
4. As you complete the grid, consider:
Option Description
Company or Supplier Select one or more companies or suppliers that
the exception rule applies to on customer or
supplier invoices.
Ship-to-Country Select one or more countries that the exception
rule applies to on a spend or revenue transaction.
Workday uses the exception rule when the
country or countries you select match the ship-to
address on supplier or customer invoices.
Ship-to-State/Region Select a ship-to state or region within the ship-
to country. The ship-to state or region is only
selectable if you select only one ship-to country.
Logic for Company Tax ID Type, Logic for Select one of these options to specify what tax ID
Customer Tax ID Type, or Logic for Supplier to return:
Tax ID Type

Option Description
• Default Behavior: select if you want to return
the default tax ID for the company, customer,
or supplier.
• Specific Tax ID Type: select if you want to
return the exception tax ID that you set up for
the company, customer, or supplier.
• Transaction Tax ID of Primary Business
Address ~Country~: select if you want to
return the tax ID for the company's primary
business address.
• Transaction Tax ID of Ship-To ~Country~:
select if you want to return the tax ID for the
company's ship-to country.
Note: If you select any option other than Default
Behavior, and that option doesn't return a tax ID
for the company, customer, or supplier, Workday
returns the default tax ID.

Company Tax ID Type Override, Customer Select one of these options to choose the specific
Tax ID Type Override, or Supplier Tax ID Type (exception) tax ID that you want to override the
Override default tax ID.

Result
Workday uses the tax ID exception rule on the invoice line to return the correct tax ID on customer and
supplier invoices.

Example
A customer receives goods in Northern Ireland, which is in the UK. The company that ships the goods is
in France, which is an EU country. You have two UK tax IDs set up for the customer: one tax ID for UK
VAT, which is flagged as the transaction tax ID, and one tax ID for UK Northern Ireland VAT, which is not
flagged as a transaction tax ID. When Workday processes the customer invoice, the transaction tax ID that
Workday normally returns for the customer is the UK VAT tax ID. You set up a transaction tax ID exception
rule so that Workday returns the UK Northern Ireland VAT tax ID for the customer instead.

Next Steps
• Configure Transaction Tax Rules for Countries on page 568. Create a transaction tax rule for each
country where you file a tax declaration.
• Configure Transaction Tax Rules for Items on page 567. Create transaction tax rules for revenue
and spend items to be used in your transaction tax rules for country. By using the transaction tax item
groups, one item rule line defaults for all purchase, sales, or expense items in the tax item group.
• Configure Transaction Tax Rules Using Worktags on page 570.Create tax defaulting rules using
worktags on document lines to enable Workday to populate transaction tax attributes at the line level on
supplier invoices, purchase orders, and ad hoc payments.

Withholding Taxes

Steps: Set Up Withholding Taxes

Prerequisites
Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can configure Workday to automatically calculate and post withholding tax at the line level on taxable
documents. This automation:
• Reduces manual entry mistakes and calculation errors.
• Enables you to comply with tax withholding and reporting requirements.

Steps
1. Set Up Tax Authorities on page 546.
When you want to pay your tax authority with supplier invoices, create the tax authority from an existing
business entity and select your supplier.
2. Set Up Tax Categories on page 547.
Select the Withholding Tax check box for Workday to calculate withholding taxes for spend and
revenue transactions. You associate these tax categories with withholding tax rates.
3. Set Up Tax Rates for Withholding Tax on page 576.
4. Access the Maintain Withholding Tax Codes task.
You can configure withholding tax codes by country, assigning multiple withholding tax rates to each tax
code. During transaction processing, you select a withholding tax code for each document line that is
subject to withholding tax. Workday calculates a separate amount for each tax rate of the tax code.
The Tax Rate lists withholding tax rates available for the country. Specify 1 or more rates that
collectively make up a complete tax percentage for the tax code.
5. Set Up Company Tax IDs for Financial Transactions on page 551.
6. Set Up Account Posting Rules on page 71.
Configure the Withholding Tax Payable account posting rule for your company. Posting to a liability,
asset, or expense account depends on the collection or payment of taxes.
7. Configure how Workday populates tax attributes on revenue transactions.
See Steps: Set Up Taxes for Revenue Transactions on page 823.
8. Configure how Workday populates tax attributes on spend transactions.
See Steps: Set Up Taxes for Purchase Transactions.
9. (Optional) Access the Maintain Withholding Tax Exemptions task.
You can create a withholding tax exemption on a withholding tax rate for a supplier. Workday
automatically applies the exempt withholding percentage on the supplier invoice when calculating the
withholding tax.

Result
When you create taxable documents such as customer invoices and supplier invoices, Workday calculates
the withholding tax amounts and resulting accounting for the lines. Workday also calculates the withholding
tax accounting for realized payments on supplier invoices during settlement.
For a list of tax-related reports, access Workday Standard Reports and select the Set Up Taxes report
category.

Related Information
Tasks
Set Up Tax Rates for Withholding Tax on page 576

Set Up Tax Rates for Withholding Tax

Prerequisites
• Create tax authorities for the country.
• Set up tax categories for withholding tax.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
Set up the withholding tax rates for each tax authority within a country and categorize them. Configure
single or progressive tax rates. You can also configure individual thresholds to apply the withholding tax
only when transactions cross the thresholds that you specify.

Steps
1. Access the Create Withholding Tax Rate task.
2. As you complete the task, consider:
Option Description
Realization Point Select when to calculate withholding tax and
generate accounting:
• Payment: Calculate estimated withholding tax
amounts at invoice time for supplier invoices,
but generate accounting at time of payment.
Withholding tax amounts at time of payment
include any discounts.
• Invoice: Calculate withholding tax amounts and
generate accounting at invoice time.
• Customer Invoice Self Withholding: Calculate
withholding amounts and generate accounting
at invoice time for customer invoices. Record
the accounting for withholding tax expense and
payable for the company issuing the customer
invoice.

Tax Base Type Select the base amount on which to calculate

withholding tax to deduct from invoice payment:
• Gross Amount: Withhold on the extended line
amount and transaction tax amount.
• Net Amount: Withhold on the extended line
amount only. Excludes transaction taxes and
discounts.
• Tax: Withhold on the line amount only of the
transaction tax.

Tax Base Percentage Select to calculate the withholding tax on the

percent of the tax base.
Example: The withholding tax rate is 10%. The
tax base is 50% of net amount. If the extended

Option Description
line amount is 1000 HKD, then the withholding
amount is 10% of 500 HKD, 50 HKD.

Rate Type Select single or progressive tax rate.

Threshold Type Select the type of threshold to apply on the
withholding tax rate:
• Individual: Calculate withholding tax based on
individual invoice or payment.
• Accumulated: Calculate withholding tax
based on accumulated invoice or payment.
• None of the Above: Calculate withholding tax
without thresholds.
Select Net Amount to set up withholding
tax rates with thresholds or to create a
multitiered withholding tax rate. Workday
calculates withholding tax amounts only when
transactions meet the threshold amounts.

Accumulation Schedule Specify the fiscal schedule for the withholding tax
rate.
Include In Progress for Accumulation Clear this check box to exclude all in-progress
invoices when calculating the withholding tax rate
using accumulated thresholds.
3. Specify an Effective Date. The effective date is the initial invoice or payment date on which Workday
applies the associated tax rate percentage, thresholds, or progressive rate tiers.
4. Specify the tax rate percentage to calculate the withholding tax.
5. Specify the individual or accumulated threshold limits on the withholding tax rate.
• Transaction Threshold Amount: Withhold when the transaction amount meets the transaction
threshold.
• Threshold Combination: Calculate withholding tax rate when transaction threshold AND rate
thresholds are met, or calculate when transaction OR rate threshold is met.
• Rate Threshold Amount for individual threshold settings: Withhold when the rate amount meets the
rate threshold.
You can't add a threshold amount for a Realization Point of Payment.
•Rate Threshold Amount for accumulated threshold settings: Enter the threshold amount for the
withholding tax rate.
6. Specify the values for progressive tiers and the tax rate percentage to calculate the withholding tax.

Next Steps
Configure withholding tax codes by country based on the tax rates.
Related Information
Concepts
Concept: Effective Dating for Transaction and Withholding Tax Rates on page 628
Concept: Withholding Tax Accounting on page 583

Steps: Configure Withholding Tax Rules

Prerequisites
Security: These domains in the Common Financial Management functional area:
• Set Up: Company General
• Set Up: Tax

Context
You can configure withholding tax rules so that Workday automatically populates the appropriate
withholding tax codes when you enter taxable purchase and revenue documents.

Steps
1. Access the Maintain Withholding Tax Item Groups task.
Create groups to:
• Organize purchase, expense, and sales items.
• Use as dimensions in transaction tax rules for items.
As you complete this task, consider:

Option Description
Tax Item Group Type Select the type of items that you want to include
in the group. When you assign items to a group,
you can include only items of the selected type. In
withholding tax rules for items, you can use sales
item groups for revenue rules and purchase item
groups for spend rules.
Country You can create multiple tax item groups of the
same or different types for a country.
2. Access the Assign Items to Withholding Tax Item Group task.
Add specific purchase or sales items to your withholding tax item groups. When you select this item
group as a dimension in withholding tax rules for items, Workday evaluates all items in the group. You
can only assign a specific item to 1 group for each country.
3. Configure Withholding Tax Rules for Items on page 579.
4. Access the Maintain Withholding Tax Statuses task.
Create withholding tax statuses relevant to a country. It's best to use more precise names, such as
Individual-Non Resident- J1 or F1 Visa. You can then associate these tax statuses with companies,
customers, and suppliers and use them as a dimension in tax defaulting rules for countries.
5. Access the Edit Company Tax Details task.
Configure withholding tax statuses by company to use as matching criteria in withholding tax rules for
countries.
As you complete the Tax Statuses tab, consider:

Option Description
Country Select a country to associate with a specific tax
status for the company. You can only select 1
withholding tax status per country.
Withholding Tax Status Select the appropriate tax status that applies to
the company.

6. Create Suppliers.
Assign Tax Statuses by country to a supplier for tax defaulting.
7. Create Customers on page 635.
Assign Tax Statuses by country to a customer for tax defaulting.
8. Configure Withholding Tax Rules for Countries on page 580.

Result
When you create taxable purchase and revenue documents, Workday checks them against your
withholding tax rules to determine the appropriate withholding tax code to use in transactions. If the
rule dimensions and transaction data match, Workday uses the tax defaults from the matching rule line.
Workday processes rule lines from the most specific match to the least specific match. Workday evaluates
tax rules in this order:
1. Withholding tax rules for countries.
2. Withholding tax rules for items if the matching tax rule line for the country contains a tax rule for spend
or revenue items.
If the items on the transaction match a tax rule line for items, Workday uses the withholding tax code.
The tax code comes from the matching rule line for the item instead of the country.
Related Information
Tasks
Steps: Set Up Withholding Taxes on page 575
Steps: Set Up Taxes for Purchase Transactions
Steps: Set Up Taxes for Revenue Transactions on page 823

Configure Withholding Tax Rules for Items

Prerequisites
• Create withholding tax item groups.
• Assign items to the tax item groups.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can define withholding tax codes for specific items. You can then map these rules to locales within
country-specific tax rules to override all other withholding tax code defaulting.

Steps
1. Access the Create Withholding Tax Rule for Items task.
2. In the Tax Item Rule Type prompt, select:
• Revenue for sales items.
• Spend for purchase items.
3. As you complete the task, consider:
Option Description
Spend Category If you leave Item blank, select a spend or revenue
category to apply the rule line to all purchase,
Revenue Category
expense, or sales items with the selected
category.
Tax Item Group Select a tax item group to apply the rule line to all
items in that item group.

Option Description
Item Select an item to apply the rule line to only that
item.
Tax Code Override Select the withholding tax code to use on
transaction lines for this rule. This value overrides
the default withholding tax code specified in a tax
rule for any country that references this rule.

Next Steps
You can associate your withholding tax rules for items with tax rules for countries.
Related Information
Tasks
Steps: Set Up Withholding Taxes on page 575

Configure Withholding Tax Rules for Countries

Prerequisites
• Create withholding tax item groups.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
For each country, you can specify the withholding tax code that Workday populates on spend and revenue
transaction lines that meet the rule criteria. You can also specify rules for each region, if needed.

Steps
1. Access the Create Withholding Tax Rule for Country task.
2. In the Source Country prompt, select the ship-to country that a supplier or customer invoice provides.
With no ship-to country, select the country for the primary address of the payer.
3. As you complete the task, consider:
Option Description
Payee Supplier The prompt doesn't include contingent workers.
Payee Country Workday uses the primary business address of
the:
• Supplier for supplier invoices.
• Company for customer invoices.

Payer Withholding Tax Status You can match the withholding tax status of the
payer to the source country of the transaction.
Workday compares this status to the withholding
tax status of the:
• Company for supplier invoices.
• Customer for customer invoices.

Payee Withholding Tax Status You can match the withholding tax status of the
payee to the source country of the transaction.

Option Description
Workday compares this status to the withholding
tax status of the:
• Company for supplier invoices.
• Customer for customer invoices.

4. Design the country rule lines from top to bottom.

The best practice is to place rule lines for your most specific use cases first. Place less specific rule
lines towards the bottom.
As you complete the grid, consider:
Option Description
Classification Select Goods or Services so that Workday will
automatically populate tax attributes, with items or
categories classified as either goods or services
on spend or revenue transaction lines.
Default Tax Code When you select this, Workday populates the
withholding tax code on the transaction lines.
Tax Rule for Spend Items When you select an item-specific withholding
tax rule, Workday evaluates the items within the
Tax Rule for Revenue Items
transaction. If the items match the withholding
item-level tax rule, Workday uses the withholding
tax code from that rule instead.

Related Information
Tasks
Steps: Set Up Withholding Taxes on page 575

Example: Calculate Withholding Tax Using Progressive Rates

This example illustrates how to configure progressive rates for calculating withholding tax on customer or
supplier invoices.

Context
As an accounts payable or accounts receivable specialist, you need to determine the withholding tax rate
using progressive rates. You determine that each invoice line has the same withholding tax rate for a
supplier invoice. The invoice contains 3 lines in amounts of 10,000, 15,000, and 25,000 USD.

Steps
1. Access the Create Withholding Tax Rate task.
2. Enter these values:

Field Value
Realization Point Invoice
Tax Base Type Net Amount
Rate Type Progressive
Threshold Type None of the above
3. Specify an Effective Date when you can apply the progressive rate percentage on a withholding tax
rate. Workday applies the progressive rate percentage on or after the specified effective date.

4. In the Progressive Rate Tiers section, add rows with these values:

Minimum Amount Maximum Amount Max Tier Tax Rate

20,000 Checked 30
1,000 20,000 Unchecked 20
0 1,000 Unchecked 0
5. Click OK.
6. Submit the supplier invoice.
Workday calculates the withholding tax amount and displays the tax rate on the invoice.

Tier Taxable Amount Tax Rate Tax

First 1,000 0 0
Second 19,000 20 3,800
Third 30,000 30 9,000
Total 50,000 12,800

Related Information
Tasks
Set Up Tax Rates for Withholding Tax on page 576

Tax Accounting

Concept: Transaction Tax Account Posting Rules

You might post tax amounts to a liability, asset, or expense account depending on whether:
• You're collecting or paying taxes.
• You can recover a portion of this tax amount.
You can set up transaction tax account posting rules that define the ledger accounts where Workday posts
transaction tax based on dimensions such as:
• Tax Type
• Tax Recoverability
• Tax Code
• Tax Applicability
Example: To post the Canadian QST and GST to 2 different ledger accounts, you set up a transaction tax
rule with a condition on the Tax Rate dimension.
To set up transaction tax account posting rules, access the View Account Posting Rule Set report and
edit these posting rules:
• Transaction Tax
• Transaction Tax on Payment

Tax Recoverability Type

The Tax Recoverability Type dimension makes it easier for you to develop transaction tax account posting
rules for recoverable and nonrecoverable tax.
Use these guidelines when you develop your transaction tax account posting rules:

• Since recoverability doesn't apply to these documents, Workday evaluates their Tax Recoverability
Type as Non Recoverable:
• Customer invoices.
• Cash sales.
• Ad hoc bank transactions of type Deposit.
• When the tax recoverability of a transaction is Non-Recoverable + Allocation, Workday automatically
allocates the nonrecoverable tax amount to the spend ledger account. You don't need to set up tax
account posting rules to post the nonrecoverable portion of tax to the spend ledger account.
• When the tax recoverability of a transaction is Non-Recoverable + no Allocation, you can post the
nonrecoverable tax amount using a condition where:
• The Tax Recoverability Type dimension has a value of Non Recoverable.
• The Tax Type dimension has a value of Tax Paid or Tax Self-Assessed.

Tax Type
You can configure tax account posting rules on the Tax Type dimension to define a ledger account where
Workday posts the transaction tax paid, collected, or self-assessed on these documents:

Document Type Tax Type

• Ad Hoc Bank Transaction of type Withdrawal Tax Paid

• Ad Hoc Payment
• Expense Report

• Ad Hoc Bank Transaction of type Deposit Tax Collected

• Cash Sale
• Customer Invoice

• Ad Hoc Payment Tax Self-Assessed

• Procurement Card Verification

Supplier Invoice Tax Paid or Tax Self-Assessed

Related Information
Tasks
Set Up Account Posting Rules on page 71
Reference
Reference: Account Posting Rules on page 83

Concept: Withholding Tax Accounting

You can use Workday to:
• Create accounting for the withholding taxes on supplier and customer invoices.
• Set up withholding tax account posting rules that define the ledger accounts where Workday posts
withholding tax based on dimensions such as:
• Realization Point
• Tax Authority
• Tax Base Type
• Tax Rate

Withholding Tax Realization Point

When you create withholding tax rates, you must select 1 of these withholding realization points to specify
how and when you pay tax:

Realization Point Supported Document Considerations Example

Types
Invoice • Supplier Invoice For supplier invoices, A supplier issues a
• Customer Invoice your company withholds 1,000 USD invoice to
the tax on supplier your company with 100
invoices and pays the USD withholding tax.
remaining amount to You:
the supplier. Workday
• Pay the supplier 900
credits the withholding
USD.
tax account as a
withholding tax liability • Account for a 100
on the supplier invoice. USD liability on the
supplier invoice.
For customer invoices,
your company accounts You issue a 1,000 USD
for potential withholding customer invoice. You
tax by your customer anticipate that your
and collects only the customer will withhold
remaining amount 100 USD and pay you
from the customer. 900 USD. You account
Workday debits the for 100 USD as a
withholding tax account withholding tax expense
as a withholding tax on the customer invoice.
expense.

Payment Supplier Invoice Your company withholds A supplier issues a

the tax on supplier 1,000 USD invoice to
invoices and pays the your company with 100
remaining amount to USD withholding tax.
the supplier. Workday You:
credits the withholding • Pay the supplier 900
tax account as a USD.
withholding tax liability • Account for a 100
on the supplier payment. USD liability on the
payment.

Customer Invoice Self- Customer Invoice You collect the full You issue a 1,000
Withholding amount from your USD customer invoice
customer and pay and self-assess 100
the withholding tax USD withholding tax.
to the tax authority. You agree with your
Workday debits the customer that you'll pay
withholding tax account the tax authority. Your
as a withholding tax customer pays you the
expense and credits the full 1,000 USD. You:
withholding tax account
• Credit 100 USD
as a withholding tax
as withholding tax
liability.
liability.

Realization Point Supported Document Considerations Example

Types
• Debit 100 USD
as withholding tax
expense.

Withholding Tax Account Posting Rules

To set up withholding tax account posting rules, access the View Account Posting Rule Set report and
edit the Withholding Tax Payable posting rule.

Withholding Tax Accounting

This table summarizes the different realization points, document types, accounting, and account posting
rules.

Withholding Tax Document Type Accounting Account Posting Rule

Realization Point Condition
Invoice • Supplier Invoice • Supplier Invoice: • Supplier Invoice: Tax
• Customer Invoice Credit - Withholding Type = Tax Collected.
tax liability. • Customer Invoice:
• Customer Invoice: Tax Type = Tax Paid.
Debit - Withholding
tax expense.

Payment Supplier Invoice • Supplier Invoice: Tax Type = Tax

No accounting for Collected.
withholding tax.
• Payment of Invoice:
Credit - Withholding
tax liability.

Customer Invoice Self- Customer Invoice • Debit - Withholding • Debit - Tax Type =
Withholding tax expense. Tax Paid.
• Credit - Withholding • Credit - Tax Type =
tax liability. Tax Collected.

Related Information
Tasks
Set Up Tax Rates for Withholding Tax on page 576
Set Up Account Posting Rules on page 71

Tax Declarations

Setup Considerations: E-Filing VAT Returns (UK)

You can use this topic to help make decisions when planning your configuration and use of e-filing for
Value Added Tax (VAT) returns in the UK. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.

• Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is
The e-filing functionality enables you to submit VAT returns electronically to HM Revenue and Customs
(HMRC).

Business Benefits
E-filing helps you:
• Streamline the process of creating and submitting VAT returns.
• Comply with the Making Tax Digital initiative, which requires businesses to submit VAT returns
electronically.

Use Cases
You can use the Workday e-filing functionality to:
• Grant Workday permission to access your UK Government Gateway.
• Submit VAT returns for a company or a VAT or Goods and Services Tax (GST) group.
• Correct errors on e-filed VAT returns.

Questions to Consider

Questions Considerations
Have you already configured a VAT number on E-filing requires a 9-digit VAT registration number
your company tax details? with no alphabetical characters. You can configure
this VAT registration number using the E-File VAT
Registration Number tax ID type for the UK.
When you e-file for a VAT or GST group, Workday
uses the VAT registration number of the primary
company in the group.

Have you already configured Workday to create E-filing requires you to change your existing tax
VAT returns? declaration definitions. Also, ensure that your tax
declaration components produce information in the
correct format for e-filing, as you can't change the
format manually after creating the VAT return.
Example: Configure rounding and truncation
options for the appropriate boxes on the VAT 100
form.

How many companies do you plan to e-file VAT Workday supports e-filing for multiple companies
returns for? or VAT or GST groups. When you submit for more
than 1 company, ensure that you:
• Maintain a valid VAT registration number for
each company.
• Sign in to the UK Government Gateway for each
company in your browser before you submit.

Recommendations
Access the Test HMRC Authentication report to test the connection between Workday and HMRC when
setting up this feature.

Requirements
• Register your company for Making Tax Digital.
• Configure tax declaration components and a tax declaration definition to gather the data required by the
VAT 100 form.
• Enable e-filing on your tax declaration definition.

Limitations
• Workday supports e-filing for VAT returns in the UK only.
• HMRC doesn't accept amendments through e-filing.
• On the Test HMRC Authentication report, Workday doesn't explicitly confirm successful authorization.
When authorization is successful, the browser redirects you back to Workday.
• You can't test e-filing in Sandbox tenants as HMRC doesn't provide a test facility.

Tenant Setup
No impact.

Security

Domains Considerations
These domains in the Common Financial You can configure either domain to enable users
Management functional area: to e-file. Ensure that security groups that e-file tax
declarations have:
• Reports: Create Tax Declaration
• Set Up: Tax • View and Modify access for tasks and reports.
• Get and Put integration permissions.

Reports: Transaction Tax domain in the Common Users secured to this domain can view transaction
Financial Management and Customer Accounts tax reports, enabling them to:
functional areas
• Find tax declarations to e-file.
• Check the e-file status of submitted tax
declarations.

When you submit a VAT return using HMRC's e-filing process, certain information about your device
(including a unique cookie ID) will be sent to HMRC for its anti-fraud purposes. See HMRC’s mandatory
fraud prevention requirements for more information.
Workday sends these headers when you e-file:

Headers Considerations
Gov-Client-Browser-Do-Not-Track Indicates whether the user has selected the Do Not
Track option on their browser.
Gov-Client-Browser-JS-User-Agent Provides a JavaScript-reported user agent string
from the device used to e-file.
Gov-Client-Browser-Plugins Identifies any browser plugins that the user
submitting the VAT return has installed.

Headers Considerations
Gov-Client-Connection-Method Identifies the connection method used for the
request.
Gov-Client-Device-ID Identifies the user's device uniquely and
permanently.
Gov-Client-Local-IPs Lists all local IP addresses (IPv4 and IPv6)
available to the device.
Gov-Client-Local-IPs-Timestamp Records the time that Gov-Client-Local-IPs is
collected.
Gov-Client-Public-IP Provides the public IP address of the device.
Gov-Client-Public-IP-Timestamp Records the time that Gov-Client-Public-IP is
collected.
Gov-Client-Public-Port Provides the public TCP port that the device uses
when initiating the request.
Gov-Client-Screens Provides information about the screen of the
device.
Gov-Client-Timezone Provides the local time zone of the device.
Gov-Client-User-IDs Provides the username of the person who submits
the VAT return.
Gov-Client-Window-Size Provides the size of the window on the device.
Gov-Vendor-Forwarded Provides details about any hops over the internet
between services that terminate TLS.
Gov-Vendor-Product-Name Identifies Workday as the product used to submit
the VAT return.
Gov-Vendor-Version Identifies the Workday version used to submit the
VAT return.

Business Processes
Configure the Tax Declaration Event business process and security policy to enable separate users to
create and approve tax declarations before e-filing.

Reporting

Reports Considerations
Test HMRC Authentication You can use this report to grant Workday authority
to access your UK Government Gateway and test
the connection between Workday and the HMRC
APIs.
View Tax E-File Template You can use this report to determine whether
a tax e-file template is appropriate for your tax
declaration definition.

You can use the Tax Declaration Results report data source to create custom reports on e-filed VAT
returns.

Integrations
The Submit E-File task uses these web services to share information with HMRC APIs:
• Get Mapped Tax Declaration E-Filing Results
• Put Tax Declaration E-Filing Result

Connections and Touchpoints

Features Considerations
Banking and Settlement Workday populates tax declarations using tax-
relevant data from transactions in these areas.
Customer Accounts
Expenses
Projects
Supplier Accounts

Transaction Taxes E-filing interacts with the tax declaration framework,

consisting of:
• Tax declaration components.
• Tax declaration definitions.
• Tax declarations.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Reference
Workday 32 What's New Post: Electronic Value Added Tax Returns for UK
Preconfigured Content: Financials Delivered Configurations

Steps: Create Tax Declarations

Context
You can configure tax declarations to extract information about transaction taxes from your accounts to
report to a tax authority. You can export the information to submit it or, in the United Kingdom, submit it
electronically.

Steps
1. (Optional) Configure the Tax Declaration Event business process.
Use this business process when the person who creates a tax declaration doesn't have authority to
finalize it. Example: A GL accountant creates tax declarations and a tax manager approves them.
2. Create a tax authority.
See Steps: Set Up Transaction Taxes on page 545.
3. Create Tax Declaration Components on page 590.
4. Create Tax Declaration Definitions on page 592.
5. Create Tax Declarations on page 593.
6. Submit your tax declaration to the tax authority.
7. (Optional) Access the Update Tax Filing Date task from the related actions menu of the tax
declaration.
When you e-file a tax declaration, Workday populates the tax filing date for you.

Next Steps
Create custom reports to gain insight into tax declaration results.
Related Information
Reference
Workday 32 What's New Post: Create Tax Declaration by Value Added Tax Group
Workday 32 What’s New Post: Electronic Value Added Tax Returns for UK

Create Tax Declaration Components

Prerequisites
Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can configure tax declaration components to use on tax declaration definitions. These components
determine how:
• Workday returns values on tax declaration lines.
• Different tax declaration components function and relate to each other.
Example: You create a Calculation-type component to calculate the difference between the values of 2
other tax declaration components:

Option Description
Name VAT Collected Minus VAT Paid
Tax Declaration Component 1 VAT Collected
Operator Subtract
Tax Declaration Component 2 VAT Paid

You can't change some fields on a component when:

• A tax declaration definition uses the component.
• A tax declaration that uses that definition is In Progress or Approved.

Steps
1. Access the Create Tax Declaration Component task.
2. As you select a Component Type, consider:
Option Description
Accumulation Select to accumulate total amounts from tax-
relevant transactions.
Calculation Select to perform a mathematical operation on 2
other tax declaration components.
Numeric Constant Select to enter a number to either:
• Display directly on a tax declaration line.
• Use in a Calculation-type component to modify
the value of another component.

Text Constant Select to enter a text string that you can use on a
tax declaration definition.

Option Description
Example: You use a Text Constant-type
component on the tax declaration definition to
display Sales Tax Collected as a section header
on a tax declaration.

Total Select to calculate the sum of 1 or more

Accumulation-, Calculation-, or Total-type
components.
3. As you complete the task, consider:
Option Description
Tax Type (Accumulation-type components only.)
Determines your options in these prompts:
• Transaction Type
• Amount to Accumulate

VAT on Payment (Accumulation-type components only.)

Select to accumulate transactions that use VAT
on Payment.
Leave unchecked to accumulate transactions that
don't use VAT on Payment.

Tax Declaration Report Date (Accumulation-type components only.)

Select the type of date Workday uses to
determine which transactions to include when you
run the tax declaration.
To use the tax point date, select the Enable
Tax Point Date Configuration for Transaction
Taxes check box on the Edit Tenant Setup -
Financials task.

Tax Declaration Time Frame (Accumulation-type components only.)

Current Period includes transactions that
are within the start and end dates of the tax
declaration.
Prior Periods includes transactions that are
within the Number of Intervals Prior and Date
Interval on the tax declaration definition. Workday
includes transactions through the last day of the
period before the start date of the tax declaration
run.
Example:
• On the tax declaration component, you select
Prior Periods as the Tax Declaration Time
Frame.
• On the tax declaration definition, you select
Month as the Date Interval and 2 as the
Number of Intervals Prior.

Option Description
• When you create a tax declaration, you select
2018-03-01 as the start date.
• The tax declaration includes transactions from
2018-01-01 to 2018-02-28.

Reverse Sign When Result is Negative (Calculation-type components only.)

To e-file VAT returns in the United Kingdom,
select this check box on the component
corresponding to box 5 on the VAT 100 form.

Rounding To e-file VAT returns in the United Kingdom,

select Truncate to Whole Number and
Truncate to Whole Number
a Rounding option for the components
corresponding to boxes 6 through 9 on the VAT
100 form.
Rounding determines how Workday converts
decimals to whole numbers:
• Round up: Round away from zero.
• Round down: Round toward zero.
• Round: Round to the nearest value, rounding
up from .5.
• Round half down: Round to the nearest value,
rounding down from .5.

Related Information
Reference
Workday 31 What's New Post: Tax Point Date at Line Level

Create Tax Declaration Definitions

Prerequisites
• Create tax declaration components.
• Security: Set Up: Tax domain in the Common Financial Management functional area.

Context
You can configure a tax declaration definition to compile the data required by a tax form. You create a tax
declaration definition using a combination of tax declaration components, then create a tax declaration
using the definition.
You can't delete a tax declaration definition after you create a tax declaration from it. When you edit a tax
declaration definition after you create a tax declaration from it, Workday reflects your changes when you:
• Rerun a Draft tax declaration.
• Amend or replace an Approved tax declaration.

Steps
1. Access the Create Tax Declaration Definition task.

2. As you complete the task, consider:

Option Description
Number of Intervals Prior These fields apply only to Accumulation-type tax
declaration components that use Prior Periods as
Date Interval
the Tax Declaration Time Frame.
Workday uses these fields to determine which
transactions dated before the start of the tax
declaration to include in the tax declaration.

Enable E-File Select to:

• Display the Tax E-File Template prompt.
• Enable the Tax E-File Template Line column
on the Definition Component Lines grid.

Tax E-File Template Select UK VAT 100 Template to e-file a VAT

return in the United Kingdom.
Report Line Reference Enter a value to refer to box or line numbers on
the tax form.
Tax Declaration Component Select a Tax Declaration Component to
represent each box or line on the tax form.
Tax E-File Template Line Map each tax declaration component to a Tax E-
File Template Line.
E-File Disclosure Enter a message that users must acknowledge
before they e-file a tax declaration.
Enable XML Creation Select to:
• Display the Integration System and VAT
Return Year prompts.
• Map tax declaration definition lines to
integration system fields using the Tax
Declaration Result Line Amount report field.
• Enable the Create XML file task on approved
tax declaration runs created from this tax
declaration definition.

Integration System You can only select 1 integration system for each
tax declaration definition.

Related Information
Reference
Workday 32 What’s New Post: Electronic Value Added Tax Returns for UK

Create Tax Declarations

Prerequisites
• Create a tax declaration definition.
• Security: Reports: Create Tax Declaration domain in the Common Financial Management functional
area.

Context
You can create a tax declaration to extract tax information for a specific period from your accounts to report
to the tax authority.
You can't edit tax declarations, but from the related actions menu you can:
• Cancel or rerun Draft tax declarations.
• Amend or replace Approved tax declarations.
• Delete Canceled tax declarations.
An amendment only includes transactions that weren't part of the original tax declaration. A replacement
includes all transactions.
After you create a tax declaration, you can't change ad hoc payments that you included on the declaration.
To change those payments, cancel the tax declaration while it's in Draft status and then delete it.

Steps
1. Access the Create Tax Declaration Run task.
2. As you complete the task, consider:
Option Description
Tax Grouping When you select a Value Added Tax (VAT) or
Goods and Services Tax (GST) group, Workday:
• Compares the date range of the tax
declaration with any effective dates on the VAT
or GST group.
• Includes transactions from any company that
was part of the group during the date range.
When a company wasn't in the group for the full
date range, Workday only includes transactions
from dates on which it was part of the group.

Primary Company Displays when you select:

• A VAT or GST group in the Tax Grouping
prompt.
• An e-filing enabled tax declaration definition.
• An XML enabled tax declaration definition.
You can select a different primary company from
the one assigned on the VAT or GST group.

Report by Ledger Currency Select to accumulate transactions by base

currency. Otherwise, Workday accumulates
transactions by tax currency.
3. (Optional) Drill down on the Tax Declaration on the Tax Declaration Result tab to ensure it's correct.
4. (Optional) If you configured the Tax Declaration Event business process, select Tax Declaration >
Send for Approval from the related actions menu of the tax declaration.
Related Information
Reference
Workday 32 What's New Post: Cancel Draft Tax Declarations
Workday 32 What’s New Post: Create Tax Declaration by Value Added Tax Group
Workday 32 What’s New Post: Electronic Value Added Tax Returns for UK

Steps: E-File VAT Returns (UK)

Prerequisites
• Review setup considerations for e-filing VAT returns.
• Confirm that your Making Tax Digital registration is active.
• Enable e-filing on a tax declaration definition that meets HMRC requirements.
• Create and approve a tax declaration using this definition.
• Security: Either of these domains in the Common Financial Management functional area:
• Reports: Create Tax Declaration
• Set Up: Tax

Context
E-filing enables you to submit VAT returns electronically, as required by HMRC.
You can't e-file:
• Tax declaration amendments, as HMRC doesn't accept them through e-filing.
• Tax declarations for which an adjustment exists. To e-file the original, delete the adjustment then e-file
the tax declaration.

Steps
1. Access the Edit Company Tax Details task.
Enter a 9-digit number as the E-File VAT Registration Number tax ID type for the UK.
Workday uses the VAT registration number of your company to connect to the HMRC APIs. When you
e-file for a VAT or GST group, Workday uses the VAT registration number of the primary company in
the group.
See also: Set Up Company Tax IDs for Financial Transactions.
2. Sign in to the UK Government Gateway for your company in your browser.
3. Access the Submit HMRC Credentials report from the related actions menu of your tax declaration.
Select I'm Signed in to HMRC to ensure that Workday authenticates correctly.
Workday redirects you to the HMRC site, where you can grant Workday permission to view and change
your VAT return data.
Note: When Workday indicates that the process is finishing in the background, don't go back in your
browser or refresh the page.
See also: Setup Considerations: E-Filing VAT Returns (UK).
4. Access the Submit E-File task from the related actions menu of the tax declaration.
When the HMRC APIs respond, Workday stores the response on the tax declaration and updates the e-
file status.
5. (Optional) If HMRC returns an error, select 1 of these options from the related actions menu of the tax
declaration and make the necessary corrections:
• For date range errors: Correct E-File Errors.
• For other errors: Create Replacement.
See also: Troubleshooting: E-Filed VAT Return Fails to Submit (UK).
6. (Optional) Send the corrected tax declaration for approval.
7. (Optional) Resubmit the corrected tax declaration.
Related Information
Reference
Workday 32 What’s New Post: Electronic Value Added Tax Returns for UK

Troubleshooting: E-Filed VAT Return Fails to Submit (UK)

When e-filing fails, Workday populates the E-File Error Code field on the tax declaration to indicate
why the submission failed. You can use this information to diagnose and resolve common problems that
prevent you from submitting your VAT return.

Cause Solution
Authorization Required 1. Access the Edit Company Tax Details task.
CLIENT_OR_AGENT_NOT_AUTHORISED Configure the E-Filing VAT Registration Number
INVALID_CREDENTIALS tax ID type for the United Kingdom.

invalid_grant Enter the 9-digit numeric VAT number that you

registered for Making Tax Digital.
MISSING_CREDENTIALS
Security:
Missing Tax ID
• Set Up: Company General domain in the
UNAUTHORIZED Common Financial Management functional
VRN_INVALID area.
• Set Up: Tax domain in the Common
Financial Management functional area.
• Set Up: Payroll - Company Specific
(Accounting) domain in the Core Payroll
functional area.
2. Sign in to your UK Government Gateway in your
browser.
3. Select Tax Declaration > Create Replacement
from the related actions menu of the tax
declaration.
Create and approve a replacement tax
declaration.
4. Select Tax Declaration > Submit HMRC
Credentials from the related actions menu of
the replacement tax declaration.
5. Select Tax Declaration > Submit E-File from
the related actions menu of the replacement tax
declaration.

INVALID_DATE_FROM 1. Select Tax Declaration > Correct E-File

INVALID_DATE_RANGE Errors from the related actions menu of the tax
declaration.
INVALID_DATE_TO
Ensure that the date range is for 1 full period
MULTIPLE_PERIOD_KEYS starting after 2019-04-01 or, if applicable for
NOT_FOUND your organization, 2019-10-01.
2. Select Tax Declaration > Submit E-File from
the related actions menu of the tax declaration.

Missing Period Key - Resubmit E-File 1. Ensure that HMRC isn't undergoing scheduled
GATEWAY_TIMEOUT maintenance.
2. Select Tax Declaration > Submit E-File from
INTERNAL_TIMEOUT_UNABLE_TO_SUBMIT_VAT the related actions menu of the tax declaration.
SCHEDULED_MAINTENANCE 3. (Optional) If the submission fails several times,
contact Workday Support.
SERVER_ERROR

Cause Solution
INTERNAL_SERVER_ERROR 1. Resubmit the VAT return by selecting Tax
Declaration > Submit E-File from the related
actions menu of the tax declaration.
2. (Optional) If the issue persists for more than 72
hours, contact the HMRC VAT Online Services
Helpdesk.

INTERNAL_TIMEOUT_UNABLE TO VIEW VAT 1. Access your UK Government Gateway in your

browser and check if HMRC received the VAT
return.
2. If the submission was unsuccessful, contact
Workday Support.

VAT_NET_VALUE 1. Access the Edit Tax Declaration Component

task.
On the component mapped to box 5, select
Reverse Sign When Result is Negative.
2. Select Tax Declaration > Create Replacement
from the related actions menu of the tax
declaration.
Create and approve a replacement tax
declaration.
3. Select Tax Declaration > Submit E-File from
the related actions menu of the tax declaration.

VAT_TOTAL_VALUE 1. Access the Edit Tax Declaration Component

task.
Change the component mapped to box 3 to a
Calculation-type component that contains the
sum of boxes 1 and 2.
2. Select Tax Declaration > Create Replacement
from the related actions menu of the tax
declaration.
Create and approve a replacement tax
declaration.
3. Select Tax Declaration > Submit E-File from
the related actions menu of the tax declaration.

Related Information
Tasks
Create Tax Declaration Components on page 590
Set Up Company Tax IDs for Financial Transactions on page 551

Tax Reporting

Setup Considerations: SAF-T

You can use this topic to help make decisions when planning your configuration and use of the Standard
Audit File for Tax (SAF-T) functionality. It explains:

• Why to set it up.

• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Workday enables you to create an integration that generates a SAF-T XML file to submit to auditors or tax
authorities.

Business Benefits
The Workday SAF-T functionality helps you to:
• Create SAF-T quickly without manually processing the data.
• Comply with tax auditing requirements.

Use Cases
Security administrators can:
• Configure integrations to create SAF-T for Norway.
• Assign security to enable users to launch SAF-T integrations.
Integration consultants can:
• Configure integrations to create SAF-T using the OECD SAF-T v2.0 schema.
• Add or disable fields within the structure of OECD SAF-T v2.0, override field mappings, and set
maximum lengths for fields.
• Configure custom integrations to transform the output for schemas that have a different structure than
OECD SAF-T v2.0.
Tax managers or accounting managers can:
• Create tax master records to populate the TaxTable element in SAF-T.
• Map ledger accounts to the standard account IDs required for Norway.
• Create SAF-T to submit to tax authorities.

Questions to Consider

Questions Considerations
Which users do you want to create SAF-T? Consider that users who can create SAF-T can
view sensitive information about:
• Bank accounts.
• Customers.
• Ledger accounts.
• Payments.
• Suppliers.
• Transaction taxes.
Users can view this information even when they
don't have access to the relevant domains.

Which SAF-T schema do you plan to use? The SAF-T Norway integration template produces
an output file based on the Norwegian SAF-T

Questions Considerations
financial schema v1.10. You can configure a
document retrieval step to use a newer version of
the schema.
The SAF-T Core integration template produces an
output file based on the OECD SAF-T v2.0 schema,
including a subset of the optional fields. You can
configure field overrides to include optional fields
that Workday doesn't populate by default.
When your country uses a schema that:
• Uses the OECD SAF-T v2.0 structure but
changes fields, you can use the SAF-T Core
integration template and configure a document
retrieval step to provide your schema.
• Changes the OECD SAF-T v2.0 structure, you
can use the SAF-T Core integration template
and then use the output file as a data source for
a custom integration to transform the structure
and add fields as required.
See also: Concept: SAF-T Integrations.

What transaction data does the tax authority require With the SAF-T Core integration template, you can
you to include in SAF-T? include approved accounts payable or accounts
receivable transactions in the output.
Before you enable these integration services,
consider how your schema differs from OECD
SAF-T v2.0, as you might need to configure your
integration to support those differences. Example:
To include canceled invoices in the output, as
Workday doesn't include these by default.

How do the fields and structure of your schema When your schema:
differ from the OECD SAF-T v2.0 schema?
• Adds fields to the TaxTable element, you can
configure the fields on the tax master template
for a country. Workday populates this element
using tax master records that you create when
you set up the SAF-T functionality.
• Changes fields in other elements but follows the
same structure as OECD SAF-T v2.0, you can
configure field overrides and extensions on your
integration.
• Adds fields outside the designated extension
points, you can configure a custom integration to
transform the output file as required.

(Norway only) Your choice determines the number of ledger

account summaries required to map your ledger
Which set of standard account IDs do you plan to
accounts to the Norwegian standard account IDs.
use?
The 2-digit set requires less setup but the 4-digit set
enables more granular reporting.

Recommendations
When you:
• Create ledger account summaries for Norway, include the corresponding standard account ID in the
name to make each summary easy to identify.
• Set up a tax master template, enter default values to save time when you populate the tax master
records.
• Configure field overrides or extensions, use calculated fields to populate static values or enumerations.
Calculated fields are the easiest way to populate these values.
See also:
• Steps: Set Up SAF-T.
• Set Up Integration Field Overrides for DIS.

Requirements
When you plan to provide your own schema, ensure that the schema is available for integration document
retrieval using a supported transport protocol.

Limitations
On the SAF-T Core integration template, Workday supports a subset of the optional fields in the OECD
SAF-T v2.0 schema.

Tenant Setup
No impact.

Security
The SAF-T output contains sensitive financial data and is unencrypted, as required by tax authorities.

Domains Considerations
In the Integration functional area: Enable users to configure and run integrations
using SAF-T templates.
• Integration Build
• Integration Configure
• Integration Event

Process: Audits and Corrections in the Financial Enables users to assign journal line numbers to
Accounting functional area posted journals.
Process: Tax Master in the Common Financial Enables users to maintain tax master data and view
Management functional area related reporting.
Set Up: Accounts in the Common Financial Enables users to configure ledger account
Management functional area summaries. Required to configure SAF-T for
Norway only.
Set Up: Company Accounting in the Common Enable users to configure company accounting
Financial Management functional area settings to meet SAF-T requirements. Ensure that
users who set up the SAF-T functionality have
Set Up: Payroll - Company Specific (Accounting) in
access to 1 of these domains.
the Core Payroll functional area

Set Up: Tax in the Common Financial Management Enables users to view and modify information
functional area relevant to tax auditing.

Business Processes
No impact.

Reporting
You can use the Tax Masters report data source to create custom reports.
See also: Concept: Tax Master Records.

Integrations

Integration Templates Considerations

SAF-T Core Enables you to create SAF-T using the OECD SAF-
T v2.0 schema.
SAF-T Norway Enables you to create SAF-T using the Norwegian
SAF-T v1.10 schema.

Connections and Touchpoints

Features Considerations
Banking and Settlement You can use the SAF-T functionality to extract tax-
relevant data from these areas to submit to tax
Customer Accounts
authorities.
Person
Supplier Accounts
Transaction Taxes
Worktags

Financial Accounting You can use the SAF-T functionality to extract data
relating to:
• Companies.
• Journals.
• Ledger accounts.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Reference
2020R1 What's New Post: Standard Audit File for Tax (SAF-T)
Workday Community: Global Financials Reference Book
Workday Community: SAF-T OECD Version 2 - Supported Fields

Steps: Set Up SAF-T

Prerequisites
• Review setup considerations for Standard Audit Files for Tax (SAF-T).
• In your company accounting details, enable automatic journal line numbering and disallow changes to
operational transactions in closed periods.

Context
You can:
• Prepare data required to create SAF-T.
• Extract tax-relevant data and create SAF-T.
See Setup Considerations: SAF-T.

Steps
1. (Optional) Access the Assign Line Numbers to Previously Posted Journals task.
Use when you have posted journals that don't have line numbers.
Security: Process: Audits and Corrections domain in the Financial Accounting functional area.
2. (Optional) For Norway, map ledger accounts to standard account IDs.
See Steps: Assign Standard Account IDs to Ledger Accounts (Norway) on page 602.
3. Access the Set Up Tax Master Template task.
Enable any additional fields required by your SAF-T schema.
Security: Set Up: Tax domain in the Common Financial Management functional area.
See also: Concept: Tax Master Records.
4. Access the Create Tax Master task.
Workday generates tax master records then displays the Maintain Tax Master task. Enter values for
any incomplete fields.
Workday recommends that you complete this task each time you want to run your SAF-T integration to
ensure that your tax master records are up to date.
Security: Process: Tax Master domain in the Common Financial Management functional area.
5. Create SAF-T.
See Steps: Set Up SAF-T Integration.
Related Information
Reference
2020R1 What's New Post: Standard Audit File for Tax (SAF-T)

Steps: Assign Standard Account IDs to Ledger Accounts (Norway)

Prerequisites
Create ledger accounts.

Context
You can map the standard account IDs required for SAF-T in Norway to your ledger accounts. Use:
• Ledger account summaries to group ledger accounts that relate to the same standard account ID.
• Integration reference IDs to specify which standard account ID applies to each ledger account
summary.
• A ledger account summary hierarchy to store the mappings in 1 structure.
You direct your SAF-T integration to the top-level summary in the hierarchy to access the mappings.
When you add or remove ledger accounts from your account set, update the mappings to continue
generating valid SAF-T.

Steps
1. Access the Create Ledger Account Summary As Of task.
Create ledger account summaries for each standard account ID. Assign the relevant ledger accounts to
each summary.
Create another ledger account summary as the top-level summary and include the other summaries
you created as subordinates.
See Steps: Manage Ledger Account Summaries on page 77.
2. Access the Maintain Reference IDs task.
For each subordinate ledger account summary, enter a reference ID that contains the relevant standard
account ID.
Example: Enter CompanyGL_3020 to assign the standard account ID 3020 to the ledger accounts in a
particular summary.
Note: Don't include any digits other than the standard account ID. Workday only interprets 1 set of
digits when identifying the standard account ID.
See Set Up Reference IDs.

Example
You create a ledger account summary hierarchy with this configuration:

Ledger Account Contains Ledgers Reference ID Value Maps to Standard

Summary Account ID
CompanyGL (top level) None None None
CompanyGL_15 1200: Accounts 15 15 (Short-term
(subordinate) Receivable receivables)
CompanyGL_30 4000: Revenue 30 30 (Sales revenue,
(subordinate) subject to VAT)
4260: F&A Revenue

When you run the integration system, the output file includes the standard account ID:
• 30 for ledger accounts 4000 and 4260.
• 15 for ledger account 1200.

Next Steps
Set up a tax master template for Norway.

Concept: Tax Master Records

Workday generates tax master records from transaction tax information to populate the TaxTable element
in Standard Audit Files for Tax (SAF-T).
Workday derives tax master records from these fields on tax-relevant transactions for a company:
• Country
• Effective Tax Recoverability Percentage
• Tax Applicability
• Tax Code
• Tax Rate
• Tax Rate Percentage
• Tax Recoverability
• Tax Recoverability Percentage

• Tax Type
Each unique combination of values for these fields is 1 tax master record.
On the Set Up Tax Master Template task, you can:
• Create a tax master template for a country.
• Enable additional fields that your SAF-T schema requires.
• Enter default values for fields with no corresponding data in Workday.
On the Create Tax Master task, you can select a company to create tax master records for. Workday then:
• Generates tax master records from your taxable documents and assigns a tax master tax code to each
record.
• Populates the tax master records on a tax master template.
• Displays the Maintain Tax Master task.
On the Maintain Tax Master task, you can:
• Review data that Workday populated from taxable documents.
• Enter or change values for fields that you enabled on the tax master template.
To change values that Workday populates from taxable documents, change the information on your
taxable documents or configure field overrides on your SAF-T integration.
See also:
• Setup Considerations: SAF-T
• Steps: Set Up SAF-T

1099 Reporting

Setup Considerations: 1099 Reporting

You can use this topic to help make decisions when planning your configuration and use of 1099 reporting.
It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
The 1099 reporting feature generates IRS 1099 forms from your payments to suppliers, contingent
workers, investors, ad hoc payees, and miscellaneous payees.

Business Benefits
• Helps you maintain IRS compliance when filing 1099 MISC and 1099 NEC forms.
• Reduces the administrative burden of exporting payment data to third-party applications.
• Supports data integrity by automatically calculating the federal and state income and tax withheld
amounts from your Workday data.

Use Cases
As your organization prepares for 1099 processing, you:

• Run the 1099 Audit Report to ensure that you've correctly configured your 1099 payees. You find 1099
payees who are missing a primary address or tax ID number. You update these payees and rerun the
1099 Audit Report.
• Run the 1099 Report to preview your 1099 reportable amounts and details by payee and 1099
category. You identify that a reportable payment that happened in a legacy system is missing. You
create a 1099 adjustment so that the 1099 NEC form issued to the payee reflects everything your
organization has paid them this year. You rerun the 1099 Report and continue to make corrections to
your configuration, payees, and payments as necessary.
• Generate a test file from Workday and upload it to the IRS FIRE test system during the test period.
As your organization starts 1099 processing, you:
• Generate 1099 MISC and 1099 NEC forms that you print and mail to all your 1099 payees. You select
Copy B and print on blank paper with truncated tax IDs.
• Generate electronic 1099 MISC and 1099 NEC forms in Workday and upload them to the IRS FIRE
system.
After you mail the 1099 forms to payees and file with the IRS:
• A supplier contacts you because they never received their 1099 form. You reprint the 1099 for this
individual payee.
• A supplier calls your organization to let you know that their 1099 form erroneously reports them as
FATCA. You create a supplier change in Workday, print a corrected form for the payee, and generate a
corrected file that you submit to the IRS.

Questions to Consider

Questions Considerations
What 1099 MISC and 1099 NEC boxes do you With the Update 1099 Configuration task, you
report on? can:
• Map spend categories or spend category
hierarchies to boxes on the 1099 forms.
• Specify threshold amounts across 1 or more
categories.

How do you submit your 1099 information returns to Workday enables you to e-file your 1099 returns
the IRS? and print 1099 forms for your payees. You can file
for multiple companies under a single transmitter
control code.
Do you file 1099 returns to states that participate Workday can generate electronic 1099 returns that
in the Combined Federal/State Filing (CF/SF) meet the CF/SF Program requirements.
Program?
When you consolidate supplier payments on behalf Workday populates the payer on 1099 forms with
of multiple companies to the same supplier, which the company that pays the invoice or creates the
company issues the 1099 form? settlement run.

Recommendations
• When you migrate to Workday midyear and load initial 1099 balances with 1099 adjustments:
• Create 1 adjustment in Workday for each legacy payment.
• Enter the legacy payment information in the memo field so you can refer to it later.
• Use 1099 adjustments only when you can't correct the original transaction in Workday.

Requirements
• To file electronically with the IRS, obtain a tax ID transmitter control code issued by the IRS for the
company that's filing.
• Set up transaction and withholding tax codes that contain tax rates for these tax authorities:
• The IRS.
• The states where you report 1099 income.
See Steps: Set Up Transaction Taxes on page 545 and Steps: Set Up Withholding Taxes on page
575.
• For Workday to include a payment in a 1099 report for a reporting year and a federal or state tax
authority, you must:
• Include the payment in 1 of these transactions:
• 1099 adjustments.
• Ad hoc payments.
• Miscellaneous payments.
• Supplier invoices.
• Set up the recipient of your payment as a 1099 payee.
• Select spend categories and amounts that you've mapped to IRS 1099 categories.
• Use a tax code that you've mapped to:
• A federal tax rate.
• A state tax rate, when you report to the state.
Workday uses the tax code on your payment to determine the tax authority to which you report the
payment. Example: You report payments with no withholding tax to California. You use a tax code
that contains the federal tax rate and a California state tax rate of zero percent.
• Pay or settle the transaction during the reporting year.
Workday uses the payment date for 1099 reporting, not the transaction date. Example: An
independent contingent worker submits a supplier invoice on December 25 and your company pays
it on January 2. The payment applies to 1099 reporting for the new year.
• Ensure that the payment has a status of Accepted when you use the payment acknowledgment
feature.

Limitations
Workday supports 1099 reporting only for companies with a base currency of USD.
Workday only supports these forms:
• 1099 MISC.
• 1099 NEC.
• 1096.

Tenant Setup
No impact.

Security

Domains Considerations
Reports: Supplier Accounts 1099 - USA and Set Users with access on both domains can select
Up: Payee Tax Authority Information in the Supplier 1099 and 1096 form layouts.
Accounts functional area.

Domains Considerations
Reports: Supplier Accounts 1099 - USA in the Users can:
Supplier Accounts functional area.
• Use the 1099 Work Area.
• Run the 1099 Report.
• Run the 1099 Audit Report.
• Create 1099 runs.
• Create corrected 1099 runs.
• Print 1099 and 1096 forms.

Reports: Supplier Accounts in the Supplier Users can run the Duplicate Supplier Taxpayer ID
Accounts functional area. Number Report.
Set Up: Payee Tax Authority Information in the Users can map:
Supplier Accounts functional area.
• 1099 categories to spend categories and
hierarchies.
• A tax authority to 1099 federal or state
withholding.

Set Up: Tax in the Common Financial Management Users can set up company tax details for 1099
functional area. reporting.

Business Processes

Business Process Considerations

1099 Adjustment Users can adjust 1099 spend categories and
opening balances.
1099 Electronic Filing Run Event Users can generate electronic 1099 forms.

Reporting

Reports Considerations
1099 Audit Report View 1099 payees with invoice or payment activity
who require additional tax information to display on
the 1099 forms, such as:
• A United States tax ID.
• A tax-reporting or primary address.

1099 Report View:

• Amounts to report when you create 1099 runs.
• Details by payee and 1099 category.

Duplicate Supplier Taxpayer ID Number Report Identify suppliers that might have duplicate
taxpayer ID numbers.
Find 1099 View 1099 form details for the selected company
and tax year.
Find 1099 Adjustments View 1099 form adjustments for 1 or more
companies, tax years, or payees.

Reports Considerations
Find 1099 Runs View the 1099 runs that you've already generated
for your selected companies and calendar years.
View 1099 Configuration View the mapping of spend categories or spend
category hierarchies and thresholds to 1099 MISC
or 1099 NEC boxes for the selected year.

Integrations

Web Services Considerations

Get 1099 MISCs Retrieve data from a 1099 MISC or 1099 NEC run,
optionally filtered by company.
Get Company 1099 MISC Data Retrieve all the data from an entire 1099 MISC or
1099 NEC run, including summary information by
payer.
Put 1042-S Income Code Add or update 1042-S income codes as well as
withholding spend categories or hierarchies.
Submit 1099 Adjustment When you migrate to Workday midyear, you can
use an EIB and create adjustments to load your
initial 1099 balances.

Connections and Touchpoints

Features Considerations
Cash Workday uses the data from your ad hoc payments
to suppliers, contingent workers, ad hoc payees,
and investors to calculate your 1099 amounts.
Settlements • Workday only includes the amounts from paid or
settled documents in your 1099 amounts.
• When you use the payment acknowledgment
feature, the payment acknowledgment must be
in Accepted status from the financial institution.
• Workday uses the data from miscellaneous
payments to miscellaneous payees to calculate
your 1099 amounts.

Supplier Accounts Workday uses the data from supplier invoices

and supplier invoice adjustments to suppliers and
contingent workers to calculate your 1099 amounts.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Reference
2022R2 What's New Post: 1099-MISC and 1099-NEC Combined Federal and State Filing (CF/SF)
Workday Community: 1099 Processing

Setup Considerations: Combined Federal/State Filing Program

You can use this topic to help make decisions when planning your configuration and use of the Combined
Federal/State Filing (CF/SF) Program in Workday. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
You can generate electronic 1099 returns that meet the IRS CF/SF Program requirements.

Business Benefits
The CF/SF Program eliminates the need to report your 1099 federal and state returns separately,
simplifying your annual 1099 processing.

Use Cases
You report 1099 payments to state tax authorities. You've already obtained IRS approval to participate in
the CF/SF Program. You opt in to the CF/SF Program in Workday and select the participating states to
which you report. You file:
• A combined return to the IRS, which includes the payments reportable to the participating states.
• A return to each of the nonparticipating states.

Questions to Consider

Questions Considerations
To which states do you submit your 1099 returns? When you opt in to the CF/SF Program in Workday,
you can select the states to include in your
combined returns.
For Workday to include payments in combined
returns, you must use state withholding tax rates.
When you don't withhold tax, you can set up a zero
percent tax rate. As a result, for states that you
include in your combined returns, you need to set
up:
• A tax authority.
• Withholding tax rates.
• Withholding tax codes that you use on the 1099
payments.
Then, map your state tax authorities to 1099 state
withholding.
Also add the state tax IDs in the tax details of your
companies that file combined returns.

How do you pay your 1099 payees? Workday supports withholding tax codes on
supplier invoices only. For Workday to include ad

Questions Considerations
hoc payments in combined returns, create 1099
adjustments.

Recommendations
When you opt in to the CF/SF Program midyear, you might have 1099 payments with tax rates that
you haven't mapped to the state tax authority. To include these amounts in your combined returns, we
recommend that you create 1099 adjustments with:
• Spend categories that you've mapped to IRS boxes.
• The state income and state tax withheld amounts.
We also recommend that you add default withholding tax codes to your 1099 suppliers. Default withholding
tax codes make data entry easier and help ensure that Workday includes all 1099 payments in your
combined returns.

Requirements
• Obtain IRS approval to participate in the CF/SF Program.
• Verify if your state has additional filing requirements.
• Set up 1099 Reporting for all the states that you include in your combined returns.
• For Workday to include a payment for a given state, the payment must contain tax rates that you've
mapped to the state tax authority.

Limitations
No impact.

Tenant Setup
No impact.

Security
Users with access on both of these domains can opt in to the CF/SF Program and select participating
states:
• Set Up: Tax in the Common Financial Management functional area.
• Reports: Supplier Accounts 1099 - USA in the Supplier Accounts functional area.

Business Processes
No impact.

Reporting
No impact.

Integrations

Web Services Considerations

Put Company Tax Details Enables you to:
• Opt in to participate in the CF/SF Program.
• Select the states to include in your combined
returns.

Web Services Considerations

• Add your state tax identifiers.

Put Tax Authority Uploads tax authorities for states that you include in
your combined returns.
Put Withholding Tax Code Uploads withholding tax codes for states that you
include in your combined returns.
Put Withholding Tax Rate Uploads withholding tax rates for states that you
include in your combined returns.
Submit 1099 Adjustment Enables you to update your 1099 federal and state
amounts by payee.

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Set Up Transaction Taxes on page 545
Steps: Set Up Withholding Taxes on page 575
Reference
2022R2 What's New Post: 1099-MISC and 1099-NEC Combined Federal and State Filing (CF/SF)

Steps: Set Up 1099 Reporting

Prerequisites
• Review setup considerations for 1099 Reporting.
• Obtain an IRS tax ID transmitter control code for companies that file 1099 returns.
• Set up transaction and withholding tax codes and tax rates for the IRS and all the states where
you report 1099 income. See Steps: Set Up Transaction Taxes on page 545 and Steps: Set Up
Withholding Taxes on page 575.

Context
You can set up and review your 1099 reporting configuration every year before you start processing your
1099 returns.

Steps
1. (Optional) Set Up Tax Authorities on page 546.
When you opt in to the Combined Federal/State Filing (CF/SF) program, create tax authorities for all the
states that you include in your combined return.
2. Map 1099 Categories to Spend Categories and Hierarchies on page 612.
Map 1 or more spend categories or spend category hierarchies to each category box on IRS forms
1099 MISC and 1099 NEC.
3. Map a Tax Authority to 1099 Federal or State Withholding on page 614.
Map:
• Your federal tax authority to federal withholding.
• Your state tax authorities to state withholding.
Workday supports the automatic withholding tax calculation only on supplier invoices.

4. Set Up Company Tax Details for 1099 Reporting on page 614.

Add the federal and state tax identification numbers for each company that files 1099 returns.
5. (Optional) Access the Edit 1099 and 1096 Print Form Layout task.
Change the print layouts for the reporting year.
Security: Reports: Supplier Accounts 1099 - USA domain in the Supplier Accounts functional area.
6. Set up an integration system to generate 1099 files.
See Steps: Set Up Electronic Filing 1099 Integration.
7. Set Up 1099 Payees on page 615.
8. Preview 1099 Reporting on page 617.
9. (Optional) Create 1099 Adjustments on page 618.
When you migrate to Workday midyear, adjust your 1099 spend categories and opening balances.

Result
Workday includes payments in your 1099 returns when they meet all these criteria:
• You issue these payments to 1099 payees.
• They include spend categories that you've mapped to IRS 1099 categories.
• They include a tax code that you've mapped to a federal tax rate.
• They include a tax code that you've mapped to a state tax rate, when you report to states. When you
don't withhold state tax, use a tax rate of zero percent.
• You pay or settle these payments during the reporting year.
• They have a status of Accepted, when you use the payment acknowledgment feature.

Next Steps
• Create 1099 runs.
• Print 1099 forms for your payees.
• Generate 1099 electronic files for the IRS.
Related Information
Concepts
Concept: Single Legal Entities

Map 1099 Categories to Spend Categories and Hierarchies

Prerequisites
• Review the IRS form 1099 MISC and 1099 NEC instructions for the current tax year to verify threshold
amounts for each category.
• Security: Set Up: Payee Tax Authority Information domain in the Supplier Accounts functional area.

Context
You can update your 1099 configuration when:
• You set up 1099 reporting.
• The IRS releases new versions of the 1099 forms with new or updated:
• Boxes.
• Threshold amounts.
• You change your spend categories and spend category hierarchies.

Steps
1. Access the Update 1099 Configuration task.
As you select a 1099 configuration, consider:
Option Description
Excluded Payment Types You can exclude the payment types on which you
report separately.
Workday excludes the payment types that you
select from all the 1099 form types and all the
effective periods.

Effective Period Workday adds effective periods as the IRS

updates their 1099 forms.
Category Mapping Click this option when you meet 1 of these
conditions:
• You don't need to set minimum threshold
amounts for any IRS box.
• Each threshold applies to 1 IRS category.

Aggregate Category Mapping Click this option when you need to set at least
1 threshold amount across several IRS boxes
combined.
2. As you complete the task, consider:
Option Description
IRS 1099 Category Select an IRS 1099 box on which you report for
your selected effective period.
Spend Category or Hierarchy You can map 1 or more spend categories or
spend category hierarchies to a single IRS 1099
category.
You can't select a spend category or spend
category hierarchy that you've already mapped in
either form type for your selected effective period.

Threshold Enter the amount that your yearly payments to a

1099 payee in your selected IRS 1099 category
must meet or exceed to be reportable.
IRS 1099 Aggregate Threshold Enter the amount that your yearly payments
to a 1099 payee across all your selected 1099
categories must meet or exceed to be reportable.

Result
Workday includes in your 1099 returns the amounts:
• That meet or exceed the thresholds that you've defined.
• For spend categories or spend category hierarchies that you've mapped to IRS boxes.
Note: The 1099 Report displays all the amounts that you've paid to 1099 payees, including the amounts:
• Below the thresholds you've defined.
• In spend categories and spend category hierarchies that you haven't mapped to any IRS box.

Example
In 2020, you pay a supplier invoice with a Legal and Auditing Fees spend category on the transaction line.
When you pay the invoice, Workday reports the line amount in Box 10: Gross proceeds paid to an attorney
on the IRS form 1099 MISC for that supplier.

Next Steps
Run the View 1099 Configuration report to review your mapping of spend categories and spend category
hierarchies to IRS boxes, including threshold amounts.

Map a Tax Authority to 1099 Federal or State Withholding

Prerequisites
Security: Set Up: Payee Tax Authority Information domain in the Supplier Accounts functional area.

Context
You can map your tax authorities as federal or state withholding to report withheld tax amounts in the
appropriate boxes of your 1099 returns.

Steps
1. Access the Maintain 1099/1042-S Withholding Configuration task.
2. As you complete the task, consider:
Option Description
Tax Authority Select a tax authority that you use in the tax rates
of your 1099 transactions.
Federal Withholding / State Withholding Click Federal Withholding or State Withholding to
report the withheld tax amount in the appropriate
box of your 1099 returns.
When you click State Withholding, select the state
to which you report the withheld amounts.

Next Steps
Run these reports to review your mapping of federal or state tax authorities to federal or state withholding:
• 1099 Report
• Find 1099 Adjustments

Set Up Company Tax Details for 1099 Reporting

Prerequisites
Security:
• Reports: Supplier Accounts 1099 - USA domain in the Supplier Accounts functional area.
• Set Up: Tax domain in the Common Financial Management functional area.

Context
You can enter the tax identification numbers that Workday includes on your 1099 forms for each company
that files 1099 returns.

Steps
1. Access the Edit Company Tax Details task.
2. On the Tax IDs tab, add or verify:
• The federal taxpayer identification number.
• The state income tax IDs.
3. Enter the IRS transmitter control code of the company:
Option Description
Country for Tax ID Type Select United States of America.
Tax ID Type Select Transmitter Control Code.
Identification # Enter the 5-character transmitter control code that
the IRS issues to your organization.
Primary Tax ID You can leave this check box clear. Workday only
uses transmitter control codes for 1099 electronic
files.
4. As you complete the 1099 Reporting tab, consider:
Option Description
Participate in Combined Federal/State (CF/SF) Select this check box when you participate in the
Filing? CF/SF Program.
Participating States Select the participating states to include in your
electronic return.

Set Up 1099 Payees

Prerequisites
• Configure the Supplier business process and security policy in the Suppliers functional area.
• Security:
• Process: Ad Hoc Payee domain in the Banking and Settlement functional area.
• Process: Miscellaneous Payee - Edit domain in the Miscellaneous Payments functional area.
• Self-Service: Miscellaneous Payee domain in the Miscellaneous Payments functional area.
• Set Up: Assign Contingent Worker domain in the Suppliers functional area.
• Set Up: Investor domain in the Financial Accounting functional area.

Context
You can configure these payee types to include in your 1099 returns:
• Ad hoc payees.
• Independent contingent workers.
• Investors.
• Miscellaneous payees.
• Suppliers.

Steps
1. Access 1 of these tasks:
• Assign Tax Authority Form Type to Contingent Worker.
• Edit Ad Hoc Payee.
• Edit Investor.
• Select Miscellaneous Payee > Edit from the related actions menu of the miscellaneous payee.
• Select Supplier > Create Supplier Change from the related actions menu of the supplier.
2. Select the 1099 (MISC/NEC) option from the Tax Authority Form Type prompt.
3. As you verify the tax information of your 1099 payee, consider:
Option Description
Report 1099 with Parent Select Supplier > Create Supplier Change from
the related actions menu of the child supplier. In
the Supplier Hierarchy section, select the check
box to consolidate 1099 reporting for parent and
child suppliers.
Default Withholding Tax Code Select Supplier > Create Supplier Change from
the related actions menu of the 1099 supplier.
When you opt in to the Combined Federal/State
Filing Program, default withholding tax codes:
• Make data entry easier.
• Help ensure that Workday includes all 1099
payments in your combined returns.

National ID Type or Tax ID Type or TIN Type Workday only displays tax identifiers on 1099
forms that have a United States:
• Tax ID Type for suppliers and miscellaneous
payees.
• National ID Type for contingent workers.
• TIN Type for ad hoc payees and investors.

Tax ID or Identification # Workday only displays the primary tax identifier of

the payee for suppliers or miscellaneous payees.
Leave blank when 1099 suppliers report with their
parent supplier.

FATCA You can report on your 1099 forms that suppliers

or miscellaneous payees are subject to the
Foreign Account Tax Compliance Act.
Alternate Name Usage You can enter an alternate name for all payee
types except contingent workers.
Select:
• 1099 Recipient to replace the legal name on
1099 forms.
• Doing Business As to add the alternate name
after the legal name on 1099 forms.

Address Enter an address to use for Tax Reporting. When

payees don't have a tax-reporting address,
Workday uses their primary address.

Option Description
For contingent workers, Workday displays the
primary home address on 1099 forms.

Next Steps
• Run the 1099 Audit Report to identify 1099 payees with missing tax information.
• Run the Duplicate Supplier Taxpayer ID Number Report to identify suppliers with duplicate taxpayer
ID numbers.

Preview 1099 Reporting

Prerequisites
• Set up 1099 reporting for the reporting year.
• Settle payment transactions for 1099 payees.
• Security: Reports: Supplier Accounts 1099 - USA domain in the Supplier Accounts functional area.

Context
You can run the 1099 Report to ensure that 1099 payees and their payment data are accurate and
complete before creating 1099 runs. The 1099 Report summarizes data by company, showing:
• The total reportable amount.
• The total number of payments made to 1099 payees; this number includes nonreportable amounts,
such as amounts with spend categories that you haven't mapped to 1099 boxes.
• The total number of 1099 payees.
You can run this report for:
• Companies with a base currency of USD.
• Company hierarchies where at least 1 company has a base currency of USD.

Steps
1. Access the 1099 Report.
2. To see detailed data, drill down on payees.
3. For the selected 1099 Form Type, Company, and Tax Year, review these columns:
Option Description
Tax Reportable Payee Lists 1099 payees with payment activity for the
specified tax year. The report excludes payees
with no payment activity.
Tax ID If the tax ID of a 1099 payee is missing or
incorrect, you can update the payee to enter or
correct the tax ID.
Categorized Payments The total amount for payments made to a payee
in the 1099 Category. It includes payments made
to 1099 payees for transactions with lines having
spend categories mapped to 1099 categories.
Meets Threshold Displays whether the payment total for a given
category meets or exceeds the minimum amount
for the 1099 Category. If so, Workday includes
the amount in the 1099 report. You control the

Option Description
thresholds set by the IRS in the Update 1099
Configuration task.
Reportable Amount Workday calculates the reportable amount for
payments made to 1099 payees based on the:
• Tax applicability.
• Spend category options.
Workday also includes:
• Freight Amount
• Other Charges
• Tax Amount

Uncategorized Payments The total amount for payments made to the payee
that doesn't display on the 1099 MISC or 1099
NEC form. These payments don't map to one of
the 1099 categories. Drill into the amount to see
details about these payments.
Total Payments Drill into the amount to see details about all
categorized and uncategorized payments.

Next Steps
Create 1099 runs.

Create 1099 Adjustments

Prerequisites
• Set up 1099 payees.
• Configure the 1099 Adjustment business process and security policy in the Supplier Accounts functional
area.

Context
When you can't update transactions directly in Workday, you can create 1099 adjustments with positive or
negative amounts to:
• Correct 1099 amounts:
• Federal and State.
• Income and tax withheld.
• Move amounts from an IRS category to another.
• Move amounts from a 1099 form to another 1099 form.
• Include balances in your 1099 forms for payments that you've made in third-party applications.
Note: 1099 adjustments don't impact accounting. You can make 1099 adjustments regardless of the
status of your ledger periods.

Steps
1. Access the Create 1099 Adjustment task.

2. As you complete the task, consider:

Option Description
Adjustment Date The Adjustment Date that you enter determines
in what calendar year Workday reports the 1099
adjustment.
Memo Include a memo that describes the adjustment,
such as:
• A reclassification of spend categories.
• A reclassification of spend category
hierarchies.
• An opening balance for a 1099 recipient that
you added to Workday midyear.

Federal Tax Withheld You can enter a positive or negative amount.

3. Complete the Federal Income, State Income, and Attachments tabs as applicable.

Example
• You realize that you've reported travel expenses in the Legal and Auditing Fees spend category on a
supplier invoice that you've already paid. You don't need to report travel expenses in 1099 forms, so
you create a 1099 adjustment with:
• A negative Federal Income amount.
• The Legal and Auditing Fees spend category.
• A memo that indicates why you created the adjustment.
• A copy of the receipt in the Attachments tab, for auditing purposes.
• You want to move amounts from the 1099 MISC form to the 1099 NEC form. You create:
• A negative adjustment on the 1099 MISC form.
• A positive adjustment on the 1099 NEC form.

Next Steps
• Run the 1099 Report to verify your 1099 amounts and categories after adjustment.
• Run the Find 1099 Adjustments report to locate adjustments that you need to change or cancel.
• When you're ready, create 1099 runs.

Create 1099 Runs

Prerequisites
• Set Up 1099 Reporting for the reporting year.
• Security: Reports: Supplier Accounts 1099 - USA in the Supplier Accounts functional area.

Context
You can create a 1099 run to save a snapshot of your 1099 data from which you can generate printable or
electronic 1099 forms.
If you need to generate corrected forms after you've already filed with the IRS, create a corrected 1099
run.

Steps
1. Access the Create 1099 Run task.

2. Select the 1099 form type, company or company hierarchy, and tax year.
You can select only companies with a base currency of USD or company hierarchies where at least 1
company has a base currency of USD.
3. (Optional) If you've already created a 1099 run for the form type, company or company hierarchy, and
tax year you selected, select the Modify Existing 1099 Data check box.
When you select the Modify Existing 1099 Data check box:
• Workday replaces the previous snapshot of your 1099 data.
• This 1099 run becomes the base from which Workday generates print and electronic 1099 forms.

Result
Workday saves this 1099 processing run and displays a report of the 1099 payees and amounts:
• When a payee has a reportable federal payment amount of zero, Workday doesn't include the payee in
the 1099 run. This safeguard also applies when the same payee has a state income payment amount
greater than zero.
• Drill down on a payee to view details of their 1099 run for the selected company. If there are multiple
payments to a single payee, Workday displays the details of each payment.

Next Steps
• Print 1099 forms for your payees and 1096 forms for your records.
• Generate 1099 electronic files for the IRS.

Print 1099 and 1096 Forms

Prerequisites
• Confirm form, printing, and mailing instructions with the IRS.
• Create a 1099 run or a 1099 corrected run.
• Ensure that the 1099 data reported in the 1099 run is complete and accurate.
• Security: Reports: Supplier Accounts 1099 - USA in the Supplier Accounts functional area.

Context
You can print 1096 and 1099 forms that you either keep for your records, or mail to your payees.

Steps
1. Access the Print 1099 and 1096 Forms task.
2. As you complete the task, consider:
Option Description
Filters To locate the run that you want to print more
easily, you can filter the options in the 1099 Run
prompt by:
• 1099 Form Type
• Tax Year
• Company

Print Layouts Workday delivers display-only layouts for each tax

year, enabling you to print your reporting details
onto blank paper for review and record keeping.

Option Description
For tax years 2022 and earlier, Workday delivers
preprinted layouts that you can print with a
specialized magnetic ink and mail to the IRS.
You can change how Workday populates these
layouts with the Edit 1099 and 1096 Print Form
Layout task.

Contact Workday uses the details of this contact to

populate the payer information on the 1096 and
1099 forms:
• Location.
• Phone number.
• Email address.

Correction You can change this option on or after the second

time you print a 1099 run. You can't change this
option when you print a corrected 1099 run.
When you select this check box, Workday
generates forms in the corrected format required
by the IRS.

Print One Payee per Page You can only change this option when you print
1099 forms for payees (Copy B display-only
layouts).
When you don't select this option, Workday
generates a file with:
• 2 forms per page for 1099 MISC forms.
• 3 forms per page for 1099 NEC forms.

Truncate Tax ID on Payee Statement You can only change this option when you print
1099 forms for payees (Copy B display-only
layouts).
Select for Workday to mask the tax ID of the
payee partially. When you select this option, only
the last 4 digits of the tax ID display on 1099
forms.

3. As you review the list of 1099 payees in the Print Run Summary, consider:

Column Description
Payee Lists 1099 payees with payment activity for the
specified tax year. The list excludes payees with
no payment activity.
Supplier Tax ID When the tax ID of a 1099 payee is missing or
incorrect, you can update the payee to enter or
correct the tax ID.
Address Exists Make sure that you have an address on file for
each 1099 payee.

Column Description
Total Amount for All Boxes Verify the total payment amount of all 1099
categories for each payee. To see payment
details, use the 1099 Report.

Result
Workday:
• Creates 1 PDF file per company.
• Saves a 1099 Printing Run Group from which you can reprint 1096 or 1099 forms.
The Workday-delivered layouts ensure that amounts print in the correct position on IRS preprinted stock.

Next Steps
Depending on the layout that you've selected, either:
• Print the IRS form layout and reporting details onto blank paper.
• Load preprinted IRS forms into your printer and print the reporting details onto the preprinted forms.
You can reprint 1099 and 1096 forms with the Print 1096 and 1099 from existing Print Run Group task,
saving you the effort to generate a new print run group. Workday enables you to reprint 1096 and 1099
forms:
• For all payees or a selection of payees.
• With or without truncating the tax ID on the payee statement.

Generate 1099 Electronic Files

Prerequisites
• Set up 1099 reporting and ensure that you've configured:
• A company tax ID with the 5-character transmitter control code the IRS has issued to your
organization.
• An electronic filing 1099 integration.
• Create a 1099 or a 1099 corrected run.
• Configure the 1099 Electronic Filing Run business process in the Supplier Accounts functional area.

Context
In Workday, you can produce an electronic 1099 MISC or 1099 NEC file that you can upload to the IRS
FIRE system. You can produce 4 file types:

ORIG An original 1099 return.

CORR A correction designation of a previously submitted
1099 return.
TEST A test file to submit during the IRS test period.
REPL To signify to the IRS to discard your preceding
filing.

The IRS file format permits you to upload a single file that includes multiple companies.

Steps
1. Access the Generate 1099 Electronic Filing task.
2. As you complete the task, consider:
Option Description
Filters To filter the options in the 1099 Run for Generate
Electronic Filing prompt, and locate your run
more easily, you can select:
• 1099 Form Type
• Tax Year
• Company

1099 Run for Generate Electronic Filing When you select a corrected 1099 run, Workday
automatically produces a CORR file.
Transmitter Company Select a company that has a transmitter control
code from the IRS.
3. (Optional) When you’ve opted to participate in the Combined Federal/State Filing (CF/SF) program,
review and update the list of participating states to include in your return.

Result
Workday creates a 1099 electronic filing run.

Next Steps
• To download your electronic 1099 file, access the electronic filing run on the 1099 Work Area.
• Upload the file to the IRS FIRE system.
Related Information
Reference
2022R2 What's New Post: 1099-MISC and 1099-NEC Combined Federal and State Filing (CF/SF)

Create Corrected 1099 Runs

Prerequisites
Security: Reports: Supplier Accounts in the Supplier Accounts functional area.

Context
In Workday, you can create corrected 1099 runs when you need to correct a 1099 return after you've
already filed your original return. You can create and file:
• 1-transaction corrections when your organization changes payment amounts.
• 2-transaction corrections when your organization changes payee information:
• Missing or incorrect payee taxpayer identification number.
• Incorrect payee name.

Steps
1. Access the Create Corrected 1099 Run task.

2. As you complete the task, consider:

Option Description
Filters To filter the options in the 1099 Run prompt, and
locate your run more easily, you can select:
• 1099 Form Type
• Tax Year
• Company

1099 Run You can select an original or a corrected 1099

run.

Result
Workday creates a corrected 1099 run for the payees that you selected, which you can access from the
1099 Work Area report. When you print or generate an electronic 1099 form from this run, Workday
automatically generates a corrected form in the format required by the IRS.

Next Steps
• Print and mail the corrected 1099 forms to 1099 payees for tax filing purposes.
• File the corrected 1099 form with the IRS.

Concept: 1099 Work Area

The 1099 Work Area report enables you to manage your 1099 MISC and 1099 NEC reporting across
companies and view where you are in your 1099 filing process.
You can view, for a reporting year and each company:
• The work you still have to complete.
• The number of 1099 MISC and 1099 NEC payees you did business with for the calendar year.
• The 1099 MISC and 1099 NEC runs with the payees and payment activities.
• The 1099 MISC and 1099 NEC runs that are correction runs.
• How many 1099 MISC and 1099 NEC files you’ve produced.
• A list of 1099 MISC and 1099 NEC printing runs from which you can access the PDF printable files.
From the 1099 Work Area report, you can:
• Change the calendar year from the prior year.
• Create a 1099 run.
• Create a corrected 1099 run.
• Print 1099 MISC, 1099 NEC, and 1096 forms.
• Generate a 1099 MISC or 1099 NEC electronic file.
Related Information
Concepts
Concept: Single Legal Entities

Example: Set Up a Contingent Worker as a 1099 Payee

This example illustrates how you can set up a contingent worker as a 1099 payee.

Context
You want to include a new contingent worker in your 1099 processing.

Prerequisites
• You've created a contingent worker named Abby Brennan.
• You've entered the information on Abby Brennan in Workday.
• The social security number of Abby Brennan is 318-33-2345.
• You've paid 1099-reportable amounts to Abby Brennan during the calendar year.
• Security:
• Person Data: ID Information domain in the Personal Data functional area.
• Set Up: Assign Contingent Worker domain in the Suppliers functional area.
• Configure the Home Contact Change business process and security policy in the Contact
Information functional area.
• Configure the Edit Government IDs business process and security policy in the Personal Data
functional area.

Steps
1. Access the Assign Tax Authority Form Type to Contingent Worker task.
2. Select the Abby Brennan option from the Contingent Worker prompt.
3. Click OK.
4. Select the 1099 (MISC/NEC) option from the Tax Authority Form Type prompt.
5. Click OK.
6. Click Done.
7. Access the Edit Government IDs task.
8. Select the Abby Brennan option from the Person prompt.
9. When you haven't already entered a Social Security Number or U.S. Individual Taxpayer Identification
Number for your contingent worker, add a new row to the National IDs grid with these values:

Country National ID Type Add/Edit ID

United States of America Social Security Number (SSN) 318-33-2345
10.Click Submit.
11.Access the Change Home Contact Information task.
12.Select the Abby Brennan option from the Contingent Worker prompt.
13.Click OK.
14.Verify that the contingent worker has a primary home address and that it's correct.

Result
• When you run the 1099 Report and drill down on Payees, you see:
• The payments that you've made to Abby Brennan.
• The tax Id that you entered for Abby Brennan in the Tax Id column.
• When you create a 1099 run and drill down on Federal Payees, you find the address that you entered
for Abby Brennan.

Troubleshooting: 1099 Reporting Problems

1099 Report doesn't include the expected payments.

Cause: Check to ensure that these required configuration items and payment statuses are correct.
Solution:

Steps
1. Access the 1099 Report.
Security: Reports: Supplier Accounts 1099 - USA domain in the Supplier Accounts functional area.
2. Ensure that:
• Your 1099 report includes the Spend Category > 1099 Category (Box) mapping.
• You're running the 1099 report for the correct year and that any excluded payment types are
appropriate.
• Your supplier invoices are paid.
• When you're using payment acknowledgments, they are in Accepted status from the financial
institution; this ensures that the payments are complete and reportable.
• You've marked your supplier tax IDs (EIN, SSN, and ITIN) as Primary.
• Your suppliers have a primary address.
• Your supplier has a 1099 (MISC/NEC) tax authority form type.
3. If you're missing payments from a legacy system, ensure that you create them in Workday using the
Create 1099 Adjustment task.

Data doesn't align properly in preprinted forms.

Cause: You didn't select the correct form for the reporting year.
Solution:

Steps
1. From the Edit 1099 and 1096 Print Form Layout task, ensure that you have the correct form for the
reporting year you select.
2. For alignment issues, ensure that you don't select scaling or Fit to page.

The IRS rejected a 1099 form.

Cause: The 1099 form contains an error.
Solution: Create a corrected 1099 run. This enables you to issue a corrected 1099 form to the payee and
to submit a corrected electronic file for the corrected payee to the IRS.

1042-S Reporting

Steps: Perform 1042-S Reporting

Prerequisites
• Create spend categories and spend category hierarchies for mapping to 1042-S income codes.
• Configure account posting rules for ledger accounts that map to spend categories and spend category
hierarchies for 1042-S spend and withholding.

Context
Define 1042-S tax income codes for the spend and withholding your organization reports to the IRS for
1042-S payees.

Steps
1. Create Spend Categories.
• 1042-S Spend
• 1042-S Fed Withholding
• 1042-S State Withholding
2. Create 1042-S Income Codes on page 627.
You can define 1042-S income codes and map them to spend categories or spend category
hierarchies.
3. Designate 1042-S payees for your organization.
For suppliers, investors, and ad hoc payees.
• Create Suppliers.
• Define Investors on page 356.
• Create Ad Hoc Payments on page 1710.
For contingent workers.
• Assign a Tax Authority Form Type to Contingent Workers on page 627.

Create 1042-S Income Codes

Context
Create income codes and map them to spend categories and spend category hierarchies for 1042-S
income and withholding reporting.

Steps
1. Access the Maintain 1042-S Income Codes task.
2. Select, modify, or create a 2-digit Income Code and Description.
3. Specify one or more spend categories or spend category hierarchies for each income code.
2-digit income codes must be unique and cannot be mapped to spend categories or spend category
hierarchies linked to other income codes.
4. Select the Federal Withholding and State Withholding spend categories or spend category
hierarchies to withhold amounts on 1042-S spend.

Result
You cannot delete 1042-S income codes once they are used in transactions, but you can edit the spend
categories and spend category hierarchies attached to them.

Assign a Tax Authority Form Type to Contingent Workers

Prerequisites
• Create and contract contingent workers.
• Access the Edit Government IDs task to assign the contingent worker's Federal ID:
• Social Security Number (SSN).
• U.S. Individual Taxpayer Identification Number (ITIN).
• Employer ID Number (EIN).
• Configure the Edit Government IDs business process and security policy in the Personal Data
functional area.

Context
You can assign a tax authority form type to contingent workers for reporting income and withholding
amounts to the IRS.

Steps
1. Access the Assign Tax Authority Form Type to Contingent Worker task.
2. Select a Tax Authority Form Type for the contingent worker:
Option Description
1042-S The worker is a non-resident alien and the U.S.
source of income is subject to withholding.
1099 (MISC/NEC) The worker is a 1099 payee and you report 1099
income to the IRS.
1099 payees are responsible for reporting Federal
and State withholding to the IRS.

Tax Deducted at Source (TDS) Your organization is liable to deduct withholding.

Next Steps
Report income and withholding amounts for independent contingent workers to the IRS based on their tax
authority form type.
Related Information
Tasks
Steps: Perform 1042-S Reporting on page 626
Contract Contingent Workers

Concept: Effective Dating for Transaction and Withholding Tax Rates

When you create new transaction or withholding tax rates, you must specify an effective date. You can
specify multiple effective dates on a transaction or withholding tax rate. Workday sets all tax rates created
before the effective dating feature release with the effective date of 1900-01-01.
When you configure multiple effective dates on a transaction or withholding tax rate, Workday doesn't
display the percentage (%) on the name of a:
• Transaction tax rate.
• Transaction tax code.
• Withholding tax rate.
For transaction tax rates, Workday determines which tax rate percentage to apply based on the transaction
date. Workday uses this date to determine the tax rate for the type of operational transaction.
For withholding tax rates with a Realization Point of:
• Invoice or Customer Invoice Self Withholding: Workday applies the tax rate percentage, threshold, and
progressive rate tiers based on the effective date and the invoice date.
• Payment: Workday uses the payment date to determine which effective dated tax rate percentage,
threshold, and progressive rate tiers to apply.

Example: Effective Dating a Transaction Tax Rate

Your local tax jurisdiction increases the transaction tax rate from 8% to 9% with the effective date
2019-01-01. You can use the Edit Transaction Tax Rate task to configure a new effective date on the

existing tax rate. Enter 2019-01-01 as the effective date with a tax rate percentage of 9%. Workday uses
9% to calculate the tax rate for transactions after 2018-12-31 and 8% for transactions before 2019-01-01.
Related Information
Tasks
Steps: Set Up Transaction Taxes on page 545
Set Up Tax Rates for Withholding Tax on page 576
Reference
Workday 32 What's New Post: Effective Date on Transaction and Withholding Tax Rates
Examples
Example: Calculate Withholding Tax Using Progressive Rates on page 581

Customer Accounts

Setup Considerations: Customer Accounts

You can use this topic to help make decisions when planning your configuration and use of Customer
Accounts. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Customer Accounts is Workday's customer account management, invoicing, and collections solution.

Business Benefits
You can:
• Assign workers to customers and give them roles.
• Create intercompany or other relationships with your customers.
• Create profiles and accounts for your customers.
• Invoice customers and conduct business with them through Workday.
• Manage customer contact and shipping information.
When used with Project Billing and Customer Contracts in Workday, you can manage receivable credit and
collection, maintain customer accounts, and automate your billing.

Use Cases
You can combine Customer Accounts with Workday's Billable Projects and Revenue solutions to:
• Bill your customers for project time and expense.
• Create customer contracts and use them to bill customers.
• Manage invoice settlement.
• Recognize your revenue.

Questions to Consider

Questions Considerations
Do you want to assign customer roles for your You can assign customer roles to your workers
workers on an individual basis, or by position? so you know who's responsible for what. You can
assign roles to individual workers, or to specific
positions, so workers can change positions without
the need to reassign roles. See Mass Assign
Worker Roles to Multiple Customers on page 645.
How do you want to search for your customers in You can assign your customers to categories and
Workday? groups, to help you streamline your searches. See
Create Customers on page 635.
Who do you want to be able to access customer You can create segmented security groups to
information? control access to customer information. See Steps:
Maintain Access to Customer Information on page
651.
Do you need to track customer information that You can create custom fields on customer
doesn't apply to a Workday-delivered field on the profiles. See Create Custom Fields for Customer
customer profile? Information on page 645.
How will you communicate with your customers You can identify a primary contact, as well as
about billing? separate contacts for separate document types.
See Set Up Bill-To Contacts on page 647.
How do you want Workday to number your You can configure Workday at the tenant level
invoices? to generate a unique invoice ID sequence for all
your companies, or optionally configure Workday
to generate separate sequences at the company
level. You can also configure Workday to generate
unique gapless invoice numbers. See Setup
Considerations: Gapless Sequencing on page
655.

Recommendations
None.

Requirements
Consider any integration requirements in and out of Workday.

Limitations
When a customer invoice has more than 1000 lines, you can't use the Change Customer Invoice or Edit
Customer Invoice tasks to update it. Use the Update Invoice Lines task instead.
When you access the Print Customer Invoicestask, you can:
• View only the 20,000 most recent customer invoices.
• Select up to 10,000 customer invoices to print at once.

Tenant Setup
You can use the Edit Tenant Setup - Financials task to apply a tenant-level setting to generate unique
IDs for:
• Cash sales

• Consolidated customer invoices

• Customer contracts
• Customer payments
• Customer invoices
• Customer invoice adjustments and rebills
• Customer refunds
• Netting transactions

Security
Note: You can further control security within these domains by granting access to their various
subdomains.
This list isn't complete. For a complete list of reporting domains and subdomains, access the Functional
Area and Domain Descriptions report, then filter by functional area.
Workday provides these domains in the Customer Accounts functional area:

Domains Considerations
Manage: Customer Invoice Manage customer invoices and view related
reporting. To create customer invoices, you'll need
access to the Process: Customer Invoice domain.
Process: Cash Sale Payment Process cash sale payments and view related
reporting.
Process: Customer Deposit Process customer payment deposits and view
related reporting.
Process: Customer Invoice Manage customer invoices if you have a company-
based or unconstrained role.
Process: Customer Invoice Payment Process customer invoice payments and view
related reporting.
Process: Customer Invoice Payment/Settlement Process customer direct debit payments and view
related reporting.
Process: Customer Overpayment Process customer overpayments.
Process: Customer Payment Process customer payments and view related
reporting.
Process: Customer Payment Auto-Application Manage customer payment automatic application.
Process: Customer Refund Escheatment Perform customer refund escheatment and view
related reporting.
Process: Customer Refund/Payment Process customer refunds and payment and view
related reporting.
Process: Customer Refund Settlement Perform customer refund settlement and view
related reporting.
Process: Customer Writeoff Process customer writeoffs.
Process: Direct Debit Mandate Process direct debit mandates.
Process: Electronic Customer Invoice View electronic customer invoices and access
related tasks.
Process: Electronic Invoices Generate electronic invoices.

Domains Considerations
Process: Opportunity Process opportunities and view related reporting.

Workday provides these domains in the Customers functional area:

Domains Considerations
Access Customer (Segmented) Control which users can access which customers.
Process: Customer Request Process customer requests and view related
reporting.
Set Up: Customer Set up and maintain customers and view related
reporting.
Set Up: Customer Contacts Set up and maintain customer contact information
and view related reporting.
Set Up: Customer Maintenance Set up and maintain customer information other
than contact information, and view related
reporting.
Set Up: Customer Notes Set up customer notes.
Set Up: Customer Settlement Set up customer bank routing and credit card
settlement information, and view related reporting.
View: Customer View a specific customer.
View: Prospect View a specific prospect.

You can create segmented security groups to control who can access your customer information. You can
further restrict access to include only workers from a chosen company or company hierarchy. See Steps:
Maintain Access to Customer Information on page 651.

Business Processes
In the Customer Accounts functional area:

Business Processes Considerations

Bad Debt Writeoff Event Create and approve bad debt writeoffs.
Cash Sale Event Create and approve cash sales.
Cash Sale Intercompany Event As the receiving company, process and approve
intercompany cash sales.
Consolidated Invoice Email Event Send consolidated customer invoices by email.
Customer Deposit Event Process and approve customer deposits.
Customer Invoice Email Event Send customer invoices by email.
Customer Invoice Event Create and approve customer invoices.
Customer Invoice Intercompany Event As the receiving company, process and approve
intercompany invoices.
Customer Invoice Maintenance Event Apply and approve adjustments to customer
invoices.
Customer Overpayment Event Record customer overpayments.

Business Processes Considerations

Customer Payment Application Event Record customer payments.
Customer Refund Document Event If you opted in to the Customer Refunds
Optimization feature: create and approve customer
refund documents. You'll need to settle the refund
later using the Settlement Run Event business
process in the Banking and Settlement functional
area.
Customer Refund Event If you didn't opt in to the Customer Refunds
Optimization feature: process and approve
customer refunds.
Customer Statement Event Send a customer statement by email.
Dunning Letter Email Event Send dunning letters by email.
Interest and Late Fee Event Calculate and approve interest and late fees for
customer invoices.
Netting Transaction Event Create and approve netting transactions.

In the Customers functional area:

Business Processes Considerations

Customer Banking Change Event Make and approve changes to customer banking
information.
Customer Credit Change Event Make and approve changes to customer credit
information.
Customer Event Create and approve customer profiles.
Customer Payment Change Event Make and approve changes to customer payment
information.
Customer Request Create a request to add a new customer profile.
Customer Summary Change Event Make and approve changes to customer summary
information.
Customer Tax Change Event Make and approve changes to customer tax
information.

Reporting
You can use standard reports and tasks to build your Customer Accounts dashboard.

Integrations

Web Services Considerations

Cancel Cash Sale Cancels cash sales.
Cancel Customer Invoice Cancels customer invoices.
Cancel Customer Invoice Adjustment Cancels customer invoice adjustments.
Get Bad Debt Writeoffs Retrieves all bad debt writeoffs.

Web Services Considerations

Get Cash Sales Retrieves all cash sales.
Get Customer Invoices Retrieves all customer invoices.
Get Customer Invoice Adjustments Retrieves all customer invoice adjustments.
Get Customer Payments Retrieves all customer payments.
Import Customer Invoices Adds or updates customer invoices. Ideal for
invoices with many lines.
Put Customer Payment Adds or updates customer payments.
Submit Bad Debt Writeoffs Adds or updates bad debt writeoffs
Submit Cash Sale Adds or updates cash sales.
Submit Customer Invoice Adds or updates customer invoices. Ideal for
invoices with fewer lines.
Submit Customer Invoice Adjustment Adds or updates customer invoice adjustments.

Connections and Touchpoints

Customer Accounts interacts with these other areas in Workday:

Features Considerations
Banking and Settlement Invoices paid by direct debit or credit card and
refunds flow to Banking and Settlement.
Customer Contracts Approved billing transactions flow from Customer
Contracts.
Financial Accounting Customer invoice and payment journals and
revenue recognition schedule information flow to
Financial Accounting.
Project Billing Approved project time and expenses for invoicing
flow from Project Billing.
Supplier Accounts Netting transactions flow to Supplier Accounts.
Direct intercompany supplier and customer invoices
flow from Supplier Accounts.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Customers

Steps: Set Up and Manage Customer Information

Prerequisites
• Define customer categories.
• Configure the Customer Event business process and security policy.

Context
A customer profile gives you a comprehensive and actionable view of information on your customer. You
can create customers directly in Workday or use a web service to upload the information from external
sources. Workday enables you to:
• Use the customer profile to create or edit customers in Workday.
• Create custom fields on a customer profile that supports your organizational requirements.
• Assign customer roles to positions rather than individual workers making it easier to support
organizational changes.
• Configure security on your customers to control worker access to your customer data through security
segments.
• Manage relationships between business entities and addresses through Connection Maps.
• Assign your customers to various groups or categories for easier search and management.

Steps
1. Create Customers on page 635
2. (Optional) For intercompany transactions, configure your companies to operate as customers and
suppliers.
See Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions on page 44.
A company isn't available for selection when specified as a Restricted to Companies on the customer
profile.
3. Steps: Configure Customers on page 637.
4. Create Custom Fields for Customer Information on page 645.
5. Mass Assign Worker Roles to Multiple Customers on page 645.
6. Configure security to restrict access to customer information.
See Steps: Maintain Access to Customer Information on page 651.
7. Set Up Bill-To Contacts on page 647.
8. Set Up Shipping Connection Map on page 649.
Related Information
Concepts
Concept: Customers on page 653

Create Customers

Prerequisites
• Define customer categories.
• Configure the Customer Event business process and security policy.
• Security: Set Up: Customer Maintenance and Set Up: Customer Notes domains in the Customers
functional area.

Context
You can create customers directly in Workday, create them from worktags, or use web services to upload
data from external sources. You can add most of the customer profile information during record creation.
You can also edit these profile attributes for a customer.

Steps
1. Access the Create Customer task.
As you complete the task, consider:
Option Description
Customer Name Workday uses this name for search purposes.
Specify a full legal name for integration, billing, or
remittance usage in the Alternate Name grid on
the Document Delivery report of the Addresses
and Contacts profile group.
Customer Phonetic Name Enter the correct pronunciation of the customer
name.
Displays when:
• You enable phonetic names on the Edit
Tenant Setup - Global task.
• Users select the relevant locale and display
language in their preferences.

Customer Category Workday uses both the customer category and

the receivables account posting rule to determine
the appropriate ledger account.
All customers must have only 1 customer
category. You can set up customer categories
with the Maintain Customer Categories task.

Customer Group Workday uses this value for reporting and

analysis, and to aid in selection. Example:
You can group customers by industry, region,
salesperson, or alphabetical segment, such as
Customers A through L.
• You can place the same customer in multiple
groups.
• For companies configured as customers,
use either an intercompany customer group
or category to identify all intercompany
customers.
• You can set up customer groups with the
Maintain Customer Groups task.

Default Tax Code Select if you want Workday to populate tax code
fields automatically on all transactions. You can
override the tax code on individual transactions.
Customer Security Segment Select or create a segmented security option if
you want to restrict customers based on their
security group.
Once you enable it, anyone who isn't part of
this security segment, won't be able to view the
customer data.

2. (Optional) You can enable Activity Stream for the Customer object, on the Edit Tenant Setup -
System task, to post a comment related to this customer.
To route a comment to a specific person, you can use the tag feature. Workday sends them a
notification.

Result
When you click OK, Workday initiates the Customer Event business process.
You can continue to enter further details for the customer you've created or click Submit to access the
customer in the future.

Next Steps
Access these tasks and reports to edit or view specific information for the customer:
• Edit Customer
• Change Customer Summary
• Change Customer Credit Details
• Change Customer Payment Details
• Change Customer Banking
• Edit Contact Information
• Edit Tax Information
• Edit Document Delivery options.
• Manage Attachments
• Navigate Customer Hierarchy
• Print Customer Statements
• Print Dunning Letter
• Update Logo
• View Contacts
Related Information
Tasks
Steps: Enable Activity Stream
Steps: Maintain Access to Customer Information on page 651
Reference
Workday 31 What’s New Post: Manage Duplicate Customers
Workday 32 What's New Post: Restrict Customers by Company

Steps: Configure Customers

Prerequisites
• Define customer categories and customer groups.
• Define payment terms and payment types.
• Configure the Customer Event business process and security policy.
• Security: Set Up: Customer Maintenance domains in the Customers functional area.

Context
After you create an account for your customers in Workday, you can configure default attributes for each
customer to conduct business with them.

Steps
1. Set Up Customer Overview on page 638

2. Set Up Customer Contacts and Addresses on page 642

3. (Optional) You can use the Contracts profile group of a customer to create, edit, and view a summary
of all projects, contracts, and related reports.
See Create Customer Contracts on page 839.
4. (Optional) You can view, edit, and pay invoices from the Invoices and Payments profile group. You
can also use this profile group to record and apply payments.
See Create Customer Invoices on page 664.
See Record Customer Payments on page 726.
5. (Optional) You can use the Assigned Roles profile group to view or assign workers to roles.
As you assign roles, note that:
• Assigned roles inherit down through customer hierarchies when applicable.
• You can restrict individual assignments to 1 worker per role by selecting Restricted to Single
Assignment check box in the Maintain Assignable Roles task.
6. (Optional) You can add custom reports relevant to a specific customer on the Custom Reports profile
group.
See Configure the Customer Profile on page 646.

Result
When you click Submit, Workday initiates the Customer Event business process.
You can view the changes made to the customer and associated approver on the Process History profile
group. The grid displays only the first 10 business processes. Click View All to see more entries.

Next Steps
After configuring your customer, you can start generating customer invoices.
Related Information
Concepts
Concept: Roles, Time Zones, and Snapshots
Reference
Reference: Role-Related Reports

Set Up Customer Overview

Prerequisites
• Define customer categories.
• Configure the Customer Event business process and security policy.
• Configure the Customer Banking Change Event business process and security policy.
• Configure the Customer Credit Change Event business process and security policy.
• Configure the Customer Payment Change Event business process and security policy.
• Configure the Customer Summary Change Event business process and security policy.
• Security: Set Up: Customer Maintenance and Set Up: Customer Notes domains in the Customers
functional area.

Context
After you create customers in Workday, you can edit the various customer attributes for convenient
transaction processing.

Steps
Access the customer you've created and click Overview profile group to enter additional details.
As you complete the information, consider:
Option Description
Summary • Related Worktags: The customer is an object in
Workday that you can also use as a worktag.
Set up related worktags for this object using
the related worktag types that you configure on
the Maintain Related Worktag Usage task.
Workday automatically populates transactions
with the values in the Default Worktag column
when you select the object on the transaction.
• Restricted to Companies: Select 1 or multiple
companies, or company hierarchies that you
want to associate with the customer.
Later, when you create a transaction and select
a company, the Bill-To Customer and Sold-
To Customer prompts display only those
customers that you've access to and are in your
selection.
Workday behavior:
• When you select multiple companies from
the Restricted to Companies prompt, you
can't remove a company from the customer
while a transaction is in progress.
• When you select only 1 company from
the prompt, you can remove it even when
a transaction is in progress between the
company and the customer.
• When the prompt field is blank, Workday
includes all companies for transactions with
that customer.
When you've companies configured as
customers, you can use the Initiate Only
field on the View Intercompany Profiles
report to determine the companies that can do
transactions.

Credit & Collections • DUNS Number: The Dun & Bradstreet number
is a unique 9-digit identification number for each
physical location of your business.
• Credit Limit Currency: Required if Credit Limit
or Hierarchy Credit Limit contain values above
zero.
• Hierarchy Credit Limit: The total amount of
credit for this customer, plus all associated child
customers in the hierarchy.
• D&B and Customer Satisfaction information:
Add credit, risk, and customer satisfaction
information manually or with the Put Customer
web service.

Option Description
• Dunning Options: Select the Exempt From
Dunning check box when you don't want the
customer to receive a dunning letter.

Payment Details • Default Reference Type: A country that you do

business in might require a reference type to
support additional invoice reference numbers.
If so, select a Reference Type to populate the
field on a customer invoice.
This field displays on the invoice when the
address of the Company matches the bill-to-
address of a customer.
• Always Separate Payments: Select the check
box to create 2 separate payments when
you settle through direct debit or credit card.
Workday creates 1 payment for an invoice and
other for an adjustment. If unchecked, Workday
settlement combines the customer invoices into
a single payment for that customer.
• However, Workday continues to:
• Group multiple refunds together into 1
payment.
• Net out the adjustment because Workday
doesn't generate negative payments.
• Remit-From-Customer: When you select a
customer, Workday:
• Enables you to use the value in configuring
document delivery for the customer.
• Retrieves invoices for both bill-to and
remit-from customers during the payment
application.
This value can be different from bill-to customer.
• Interest and Late Fees Rule Overrides: You
can select an active interest rule or a late fee
rule on the invoice. The selection you make here
will override any other specifications.
When you select the Exempt check box,
Workday excludes all past due customer
invoices from the calculation run. Only exception
is when you override the rules on the billing
schedule or customer invoice.

Banking Information Manage and view banking details for a customer.

• Settlement Bank Account: Specify details for
processing electronic payments. You can create
any combination of accepted payment types and
a settlement bank account of the company.
Intermediary Bank Accounts: Click to link
to settlement bank accounts when the local

Option Description
government requires intermediaries for their
banking.
Requires Prenote: Select the check box for a
given prenote payment type when you want the
settlement bank to have preauthorization.
• Credit Card Profile: Maintain information on
the customer credit card when you process
payments through Cybersource during
settlement. Once you use a credit card for a
payment, you can’t delete or inactivate that
credit card.
• Remit-To Lockbox: Configure to ensure that
the customers remit the payment to the correct
lockbox for a bank of a company.
Select the For Supplier Connections Only check
box to:
• Create multiple bank accounts with the same
payment types.
• Enable any combination of accepted payment
types and settlement bank accounts.
For intercompany transactions, ensure to enable
Intercompany Payment for bank account usage on
the specified bank account.
Tax Information Add Tax IDs and Tax Statuses for the countries in
which you do business with this customer.
Note: You can have multiple tax IDs per country,
but you can only have 1 tax ID for each unique
combination of country and tax ID type. Also, you
can only mark 1 tax ID as the Transaction Tax ID.

Notes Notes are useful for:

• Recording conversations with customers.
• Accounting research.
Workday records the name of the person adding
the note along with a time stamp. You can enable
the use of notes in the Set Up: Customer Notes
subdomain as part of the Set Up: Customer domain
in Customers functional area.
To track when you need additional contact with this
customer, you can use the Followup Date field.
Workday displays this date in the customer profile
header to remind workers to follow up. You can
also create a custom report filtered by Followup
Date, which enables you to track when you need to
follow up.
You can remove a Followup Date by creating a
new note and deleting the date.

Option Description
Additional Data You can provide additional customized information
on this report. Access the Configure Profile Group
task to display custom objects and field data.

Result
When you click Submit, Workday initiates the relevant business processes and updates the details you
edit.

Next Steps
After defining the default attributes for your customer, you can configure customer contacts, billing address,
shipping address, and set up a connection map.
Related Information
Concepts
Concept: Customer Credit Card Profiles on page 769
Concept: Settlement Processing on page 1908
Tasks
Display Additional Data in Profiles
Create and Edit Custom Object Definitions
Steps: Use Prenotes on page 1893
Reference
FAQ: Payment Settlement on page 1916
Reference: Settlement Run and Payment Statuses on page 1911
Workday 32 What’s New Post: Reference Types and Numbers on Customer Invoices

Set Up Customer Contacts and Addresses

Context
You can create customers contacts to use for emailing customer documents as well as define the
addresses for billing and shipping purposes.
After you set up bill-to contacts for your customers, you can:
• Use the default bill-to contacts in the billing schedule and customer documents.
• Identify a primary contact.
• Define different customer contacts for different documents like invoices, statements, and dunning
letters.

Steps
1. Access the customer profile

2. Enter contact and delivery details of the specific individuals on the Addresses and Contacts profile
group.
As you enter the contact and delivery details, consider:
Option Description
Contact Information • Enter customer information such as address,
email, instant messenger, phone, and web
address.
• Select the Usage type to specify the various
uses for the contact.
• If you don't set up the Document Delivery,
the email you specify on this tab becomes the
primary email address for the customer.
• When, you add a contact and set the Usage
to:
• Home, Workday automatically sets the
Visibility field to Private. However, if you
have access to the Customer domain, you
can see the contact information even if it's
private. Therefore, Workday recommends
that you don't rely on this field for custom
reporting.
• Work, Workday automatically sets the
Visibility field to Public making the contact
information public.
• Remit To, Workday automatically uses
addresses associated with this usage type
to populate the Remit-To Address report
field for outgoing customer payments. This
report field doesn't consider the Primary
flag specified for a given address.

Customer Contacts a. Click Add to enter a contact name for specific

individuals.
b. Use the Contact Information tab to enter
email and phone number of a specific contact
within a company. Select the Type to specify
if the contact information is for work or home.
Workday automatically sets it as a Primary
contact.
Note: You can only have 1 primary contact.
c. Click Set Up Bill-To Contacts to:
• Set the primary and default bill-to contacts.
The contact you select, populates the
customer invoices, statements, and
dunning letters.
• Select the documents from the Email
Documents field that you want to email
to each of the contacts. You can select
multiple documents for 1 contact.
• Add comments related to your contacts.
Example: You have different contacts for
different customer contracts. You can note

Option Description
the contract associated with each contact in
the Comment field.
You can override the default settings on the billing
schedule and invoice to suit your business needs.

Connection Map • Click Edit to add ship-to customers on the

Connection Map report. You can select a
shipping address of your customer as the
default Ship-To address on the invoice.
• The ship-to address determines the default tax
code based on country, region, and zip code
when you use tax defaulting rules.
• You can only select 1 address for the same
customer as the default value.

Document Delivery • Click Edit to access the Edit Document

Delivery Options task. The task enables you
to define the default delivery type and email
recipients for each of the customer documents.
• You have the option to override this default
setting when you send the email.
• You can also override this setting on a
billing schedule. To view the origin of the
document delivery configuration for emailing
the customer invoice, see the Delivery Type
value on the Create Customer Invoice task.
• To email electronic invoices, first configure the
document delivery type for delivery method of
Integrations.
• The document settings for customer invoices
also apply to consolidated customer invoices.
• Select a language from the Preferred Locale
field to translate the labels in the customer
documents.

3. (Optional) Access the Edit Tenant Setup - Notifications task to configure the Notification Delivery
Settings. The Notification Delivery Settings trigger email notifications if you have a related business
process step.
4. (Optional) To create or update large volume of contacts and addresses, you can these web services.
• The Submit Customer web service for any contact data related to the customer itself.
• The Put Business Entity Contact web service for contact data for each of the customer contacts.
• The Put Business Connection web service for the connection map data.

Result
When you generate customer invoices, Workday displays the default bill-to contacts in the Bill-To Contact
field on the invoice.
When you configure:
• Only a Primary email contact and don't set up Customer Contacts, then Workday sends the customer
invoice attachment to the primary email.

• Both, the specific Customer Contacts and the Primary contact, Workday doesn't send the customer
invoice attachment to the primary email.
Related Information
Tasks
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Steps: Set Up Email for Customer Invoice Documents on page 708
Reference
Reference: Edit Tenant Setup - Notifications

Create Custom Fields for Customer Information

Prerequisites
Security: Custom Object Management domain in the System functional area.

Context
You can create a custom field on the customer profile to store information that is specific to your
organization. Example: Create a numeric field to track risk scores of your customer collection.

Steps
1. Access the Create Custom Object task.
2. Select Customer in the Workday Object field.
3. As you complete the Field Definitions section, consider:
Option Description
Field Type The field type that you select determines the type
of information you can store in the field. Example:
Select Date if you want users to select from a
calendar for data entry, or select Text for less
restrictive data entry.
Validations Select the Required option to make the custom
field mandatory.
4. You can select 1 or more security domains to secure the new custom field to under the Permissions
section.

Result
The information you store in the custom field displays on the Overview > Additional Data tab on the
customer profile.
Related Information
Tasks
Create and Edit Custom Object Definitions

Mass Assign Worker Roles to Multiple Customers

Prerequisites
• Enable Customer for specific worker roles, such as Collector and Collections Manager, with the
Maintain Assignable Roles task.
• Security: Set Up: Customer Maintenance domain in Customers functional area.

Context
To save time with role assignments for your customers, you can assign positions to multiple customers
at once. You can then tie customer roles to positions rather than individual workers. In this way, when an
individual contributor leaves a position, the role stays with the customer assignment. When you refill the
position, Workday automatically places the new worker in the role assigned to the customer.

Steps
1. Access the Mass Assign Customer Roles task.
2. Select the customers that you want to assign worker roles.
You can select customers individually or by group, category, status, or worktag. When using worktag,
you can select customers by a category such as region, product area, or project.
3. Select the Role to Assign.
Your options are limited by the roles you enable on the Maintain Assignable Roles task. This field is
required, and you can only select 1 role to assign.
4. Select the Effective Date that you want the worker to become active in this role.
5. (Optional) Save your filter criteria by entering a name and clicking Save.
6. Select the actions you want to take.
As you complete the Action section, consider:
Option Description
Replace Any Existing Role Assignments Overwrites any workers already assigned to this
customer with the new assignment.
Add to Existing Role Assignments Adds new worker assignments to existing
assignments.
Assign To The prompt offers these options for finding
assignees:
• Search for Position - Search for a specific
position and then select a worker holding that
position.
• Job Profile Prompt - Drill down to workers by
job profile.
• By Organization - View workers by
organization assignment.

Before you submit the assignments, you can make edits to the Assigned To column for each customer
as needed.
7. (Optional) Enter comments relating to these assignments. Workday displays your comments on the
customer profiles.

Result
You can view the job roles and workers that you assigned to customers on the Assigned Roles tab of the
customer profile.

Configure the Customer Profile

Prerequisites
Security: Set Up: System domain in the System functional area.

Context
The customer profile gives you a comprehensive view of your customers. It displays these profile groups:
• Overview
• Addresses and Contacts
• Contracts
• Invoices and Payments
• Assigned Roles
• Custom Reports
• Change History
• Process History
Workday provides you the option to configure the profile for a given customer based on your business
requirements. You can hide or reorder the profile group tabs and add custom reports as needed.

Steps
1. Access the Configure Profile task to determine the profile groups that will display on the Customer
profile.
2. Select Customer Composite View Profile.
3. Clear the Display in Profile check box for any profile group tab you want to hide on the customer
profile.
Note: The Overview tab contains all of the customer data, and provides access to multiple Edit tasks.
If you hide this tab, users can only view and edit customer information from the related actions menu of
the customer.
4. Access the Configure Profile Group task and select one of the customer profile groups that you want
to configure.
5. You can add, remove, or reorder the reports that Workday delivers for the profile group.
Workday defines the selection list and includes all standard and custom reports that are available to
display on the customer profile. For best display, don't select more than 10 groups. Keep in mind that
security determines the tabs that display for each individual.
Repeat steps 4 and 5 for each of the profile groups you want to configure.

Next Steps
Set up security for your users to view the customer profile and the reports in each profile group.
Related Information
Tasks
Steps: Set Up Profiles and Profile Groups

Set Up Bill-To Contacts

Prerequisites
• Create a customer.
• Security: Set Up: Customer Contacts domain in the Customers functional area.

Context
Workday helps you manage the process of emailing customer documents to the correct contacts. Once
you set up bill-to contacts for your customers, you can:
• Email various documents to more than 1 contact at once.
• Use the default bill-to contacts in the billing schedule and customer documents.

• Identify a primary contact.

• Define different customer contacts for different documents like invoices, statements, and dunning
letters.

Steps
1. Access the customer profile.
2. Select the Addresses and Contacts profile group.
3. As you enter contact and delivery details in the reports, consider:
Option Description
Contact Information Enter customer information such as address,
email, instant messenger, phone, and web
address. Select the Usage type to specify the
reason contact will be used for.
If you haven't set up the Document Delivery, the
email you specify on this tab becomes the primary
email address for the customer.

Customer Contacts a. Click Add to enter a contact name for specific

individuals.
b. Use the Contact Information tab to enter
email and phone number of a specific contact
within a company. Select the Type to specify
if the contact information is for work or home.
Workday automatically sets it as a primary
contact.
Note: You can only have 1 primary contact.
c. Click Set Up Bill-To Contacts to:
• Set the primary and default bill-to contacts.
The contacts you select, populate the
customer invoices, statements, and
dunning letters.
• Select the documents from the Email
Documents field that you want to email
to each of the contacts. You can select
multiple documents for 1 contact.
• Add comments related to your contacts.
Example: You have different contacts for
different customer contracts. You can note
the contract associated with each contact in
the Comment field.
You can override the default settings on the billing
schedule and invoice to suit your business needs.

Connection Map Add ship-to customers on the Connection

Map report. You can select any of the shipping
addresses of your ship-to customer as the default
for the invoice.
The ship-to address determines the default tax
code based on country, region, and zip code
when you use tax defaulting rules.

Option Description
Document Delivery • Click Edit to access the Edit Document
Delivery Options task. The task enables you
to set up a default document delivery method
and email recipients for each of the customer
document. You have the option to override this
default setting when you run the email delivery
task.
• The document settings for customer invoices
also apply to consolidated customer invoices.
• Select a language from the Preferred Locale
field to translate the labels in the customer
documents.

4. (Optional) Access the Edit Tenant Setup - Notifications task and configure the Notification Delivery
Settings to trigger email notifications automatically if you have a related business process step.

Result
When you generate customer invoices, Workday displays the default bill-to contacts in the Bill-To Contact
field on the invoice.
Related Information
Tasks
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Steps: Set Up Email for Customer Invoice Documents on page 708
Reference
Reference: Edit Tenant Setup - Notifications

Set Up Shipping Connection Map

Prerequisites
• Security: Set Up: Customer Maintenance domain in Customers functional area.
• Add at least 1 shipping address on the customer profile.

Context
The Connection Map on the customer profile enables you to conveniently manage the relationships
between business entities and addresses. Here you can:
• Add or remove ship-to customers.
• Select a default ship-to customer for the customer invoice or contract.
• Select an optional default ship-to address for each combination of bill-to and ship-to customers.
• Send customer invoices to a single billing customer that includes multiple ship-to customers.

Steps
1. From the customer profile, navigate to Addresses and Contacts > Connection Map.
2. Add, edit, or remove business connections from the Ship-To Business Connections grid.
As you complete the task, consider:
Option Description
Ship-To Customer Select a customer to add to the Connection Map.

Option Description
• The customer you add is now available as a
Ship-To Customer on customer contracts,
customer contract lines, and customer invoice
lines.
• For each customer, you can add multiple
shipping addresses on the Contact
Information tab. Designate 1 address as
Shipping on the Contact Information tab.
Add it to the Connection Map to display in the
prompt on the customer contract or invoice.
• If you don't assign a shipping address,
Workday uses the shipping address with the
most recent effective date.
• You can assign multiple ship-to customers that
are different from the primary bill-to customer.
Note: If the ship-to customer is different from
the customer, a ship-to address defaults on the
customer contract and invoice. It happens only if
you add the address to the Connection Map.

Default Ship-To Customer Select the check box for the customer that you
want as the default shipping connection on the
customer contract or invoice.
The customer that you select as the default
displays in the Default Ship-To Customer field
on the contract and invoice headers. The address
associated with the default customer displays in
the Default Ship-To Address field.

Default Ship-To Address Select an address from the prompt to designate

as the default ship-to address for the customer.
The prompt displays only those addresses
that you identified as Shipping on the Contact
Information tab.
Address Reference ID Workday introduces IDs through integrations with
external applications. For new customers that you
enter manually, you can define the address ID in
the Address Reference ID field on the Contact
Information tab. The ID syncs customer data with
external applications.

Workday applies your existing segmented security to ship-to customer names and addresses to protect
customer privacy. It masks the names and addresses throughout Workday.

Result
The Ship-To Business Connections are now available for use in the Ship-To Customer and Ship-To
Address fields on the customer contract and invoice.

Next Steps
To verify that tax rules exist for the ship-to addresses you add, use the View Tax Rule for Country report.
Workday enables default tax code on the invoice line. The tax code is based on the tax rule for the country
or locale by:
• Country.
• Region.
• Zip code ranges.
Related Information
Tasks
Create Customer Invoices on page 664
Create Customer Contracts on page 839
Reference
Reference: Ship-To Connection in Customer Invoices on page 687

Steps: Maintain Access to Customer Information

Prerequisites
• Understand segment-based security groups and segmented security.
• Determine whether you need to restrict segments of data to groups of workers.

Context
You can control worker access to your customer data through configurable customer security segments.
Customer segmented security restricts access to designated customers and visibility to customer
information so that workers can't:
• Select customers that they don't have access to when creating, editing, or searching for transactions.
• See customer information in search results. Workday masks the customer name with asterisks and
doesn't display other important information.
• Print or view customer documents, such as invoices, statements, and refunds.
• See the printed versions of these documents.
• See the customer’s name in transaction reporting. Workday masks the customer name with asterisks
when you view customer transaction details in a report.

Steps
1. Access the Create Customer Security Segment task.
• To restrict access to the customers in this security segment to just the workers in specific
companies, select Company and Company Hierarchy values in the Company field.
Leave the Company field blank to enable workers in any company to access the customers you
select.
• Select the Customer or customers that are part of the segment.
Create enough segments to cover each unique security access requirement. Included values can span
across multiple segments, or be mutually exclusive. Workday recommends that you build from least to
most restrictive.
Security: Customer Segmented Setup domain in the System functional area.
2. Access the Create Security Group task.
Create the security groups to associate with the security segments, if existing groups don't meet
your business requirements. You can create groups based on criteria such as location, role, job, or
organization. Or, you can assign specific users to a user-based security group.

3. Create Segment-Based Security Groups.

• Select Segment-Based Security Group in the Type of Tenanted Security Group field.
• Select the customer security segment that you created in the Access to Segments field.
4. Edit Domain Security Policies.
• Select the Customers Functional Area.
• Select the Access Customer (Segmented) security policy. This policy controls the access to
customer information.
• Remove the All Users security group.
• Add the desired security groups. You can include your customer segment-based security groups to
restrict their members to the values included in their security segments.
5. Activate Pending Security Policy Changes.
6. Test the security policy changes.
Sign in as a different user for each segment and verify that you can access only the customers
associated with your segment-based security group. Example: View the customers in the Customer
field to validate which ones display.

Result
Workers can view or select from only the customers that they have access to based on their segment-
based security groups.

Example
• To access EMEA customers, enable only members of your EMEA sales team.
• To access only the customers that are their responsibility, enable your collectors.
Related Information
Concepts
Concept: Security Groups

Example: Create a Condition Rule to Prevent Creating Duplicate Customers

Context
You want to create a condition rule so that you can't accidentally create 2 customer profiles for the same
customer. You'll create and apply a condition rule to the Customer Event business process that checks
whether a customer profile with the same tax ID already exists.

Steps
1. Access the Customer Event business process definition.
2. From the related actions menu of the Initiation step, select Business Process > Maintain Step
Conditions.
3. On the Maintain Step Conditions task, add a new row, and in the Rule column, select Create
Condition Rule.
4. Enter these values:

Source External Field Relational Operator Comparison Type Comparison Value

or Condition Rule
Customer Primary Tax Not equal to Value specified in this Select the check box.
ID Exists filter

Result
Workday displays a critical validation if you try to create 2 customers with the same tax ID.

Concept: Customers
In most cases, your customers don't belong to a specific company, but can have multiple business
relationships with other companies. Workday enables you to set up and manage these relationships with
Ship-To Connections, Remit-From Customers, Customer Hierarchies, and Customer Groups. You can find
a comprehensive view of contact information, reports, and other common data in the customer profile.

Customer Profile
Access the customer profile by searching for a customer's name in the Revenue search category. With the
customer profile, you can view and maintain customer information in a central location, as well as access
customer-related tasks and reports.
You can configure the tabs and custom reports Workday displays on the customer profile with the
Configure Profile and Configure Profile Group tasks.
From the customer profile, you can:
• Access recent transactions and related reports.
• Add customer contact information.
• Assign individual workers to job roles for a customer.
• Create and manage customer contracts, invoices, and adjustments.
• Record and apply payments, create deposits, and write off bad debt.
• View and edit the Connection Map.
You can also configure the information displayed to match your company business requirements:
• Add custom reports that identify Customer as the Data Source.
• Reorder or remove the sub-tabs that display on each tab.

Roles for Customer

To help you track which workers support each of your customers, Workday provides role assignments.
Once you enable Customer for Assignable Roles with the Maintain Assignable Roles task, you can
assign the customer role to specific positions like Collector or Collections Manager. Workday enables you
to assign roles directly from the related actions menu of the customer. You can also make multiple role
assignments by position using the Mass Assign Customer Roles task, or individually on the Assigned
Roles tab on the customer profile.
Workday assigns roles to positions, not specific employees, making the new hire process convenient.
When you terminate an employee and hire a replacement, the new worker automatically inherits the
defined role. If a customer is part of a customer hierarchy, the worker inherits the role for their position from
the customer hierarchy.

Customer Hierarchies
Customer hierarchies allow you to create parent/child relationships between your customers, streamlining
some aspects of your workflow. Examples: you can apply payments made by a parent to the invoice of the
child, or report on all customers within a hierarchy.

Customer Groups
Optionally, you can assign your customers to groups, making the reporting and searching process more
convenient. 1 customer can be in multiple groups.

Customer Categories
Each customer must have 1 customer category. You can assign a customer to a customer category when
you create or edit the customer.
In addition to customer-specific account posting rules, you can use customer categories to apply
accounting for a given industry. When processing a transaction, Workday finds the customer category and
applies the accounting based on that category. You can't override this category for individual transactions.
Customer categories also make it more convenient to find customers when you use the dropdown menu in
certain fields.

Customer Portal
The Customer Portal provides your customers with access to information related to their accounts in
Workday. They can view and print invoices, recent payments, and statements. You can create multiple
account sign-ins by using the web service.

Concept: Create Basic Customers

Workday provides the flexibility to create new customers in a few different ways to suit your business
needs. You can add most of the customer profile information during record creation. You can also edit the
various profile attributes for a customer later.

Directly in Workday
Use this option when your AR team is solely responsible to create customer profiles in your organization
independent of other business departments. Access the Create Customer task to create the complete
profile. Then configure the Customer Event business process to complete this task.

Basic Customer
Use this option when you only want to create customers as worktags. It enables you to use the customer
with other operational transactions such as supplier invoices, expense reports, or projects. Access the
Maintain Basic Customers task to create a customer profile just with a name.
To convert the basic customer to a customer with complete profile, you can access the Customer >
Create Customer from Customer Worktag task.
To view the customers, make sure that you disable the Access Customer (Segmented) security for the
customer object.

Upload External Data

Use this option when you don’t want to give access to the Create Customer task to your other business
departments for security reasons. Access the Put Basic Customer web service to create a basic customer
profile. Also, configure the Customer Request business process to complete the required approval process
before creating the customer profiles.
Related Information
Tasks
Convert Basic Worktags to Full Definitions

Concept: Purge Customer Data

Create purge plans to delete personally identifiable information related to customers. Purge plans help you
comply with privacy regulations and General Data Protection Regulation (GDPR) requirements.
When you purge data, you permanently remove it from your tenant. Workday can't reverse a data purge
and can't retrieve purged data.

Security
Workday recommends that you only grant the ability to purge data to users who understand the purging
process and its consequences.
In order to purge customer data, you need access to the Purge Customer subdomain in the Purge Person
Data domain.
When you create a security policy for the Purge Customer subdomain, users with the HR Administrator or
Data Privacy Administrator roles automatically inherit access from the Purge Person Data domain. You can
remove them manually.

Considerations
Workday recommends that you test the purge in your Sandbox environment before you purge any data in
your tenant.
Workday purges certain personally identifiable information for inactive customers that you select using the
Purge Customers report data source with the Create Custom Report task. The report data source only
returns inactive customers without an in-progress summary change event.
Workday doesn't support scheduled purges for customer data.
Ensure you have contextual access to the secured items you wish to purge.
You need to purge child customers independently of their parents. Purging a parent customer doesn't
purge its children.
When you purge a customer name, Workday also purges the name from existing worktags that use it.
Example: The customer name is purged from the worktag on existing journals.
Related Information
Concepts
Setup Considerations: Data Purging
Reference
Reference: Purgeable Data Types

Customer Invoices

Invoicing
Setup Considerations: Gapless Sequencing
You can use this topic to help make decisions when planning your configuration and use of gapless
sequence numbers on invoices. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Gapless sequencing enables you to create and assign sequential gapless invoice numbers in 1 or more
ledger year or ledger period for a company. This number displays in place of the standard invoice number
on both customer and supplier invoices.You can sequence the numbers by:
• Approval date of a customer invoice.

• Posting date of a supplier invoice.

• Accounting date.
When you enable the functionality, Workday creates a sequence generator. You can configure the
sequence generator to:
• Reset every ledger period, ledger year, or calendar year to match with the posting period of a given
invoice type.
• Define the sequence pattern of the invoice numbers.

Business Benefits
Using gapless sequencing:
• Increases visibility of your transaction details and reduces auditing concerns.
• Helps you comply with local tax authority reporting requirements.
• Enables you to meet the statutory invoicing requirements.

Use Cases
• Your company bills in a country that requires a gapless sequence number on invoices.
• When there’s an audit of your company, auditors can select a random invoice number to test and not
find that number, causing concerns. They would then require additional evidence to prove that the
invoice really doesn't exist.

Questions to Consider

Questions Considerations
When do you want to start assigning gapless Workday creates gapless sequence generators
numbers to your invoices? after the start of a new period or a fiscal year when
no sequence generators exist for a company.
When can you change the rule configuration or the Changes only apply to:
sequence generator lifespan?
• New sequence generators in the next open
period.
• Unused generators in the existing open period.

Do you want to continue using auto-application You can continue to use the auto-application
rules with remittance advice type? rules. The remittance advice type has the option to
reference a Gapless Invoice Number, if it exists.
Do you need to enforce any date restrictions on Workday assigns the gapless invoice number to
customer invoices? customer invoices upon invoice approval. Invoices
can be out of order based on if you’re using invoice
dates or accounting dates in arrears. If you want
the gapless sequence to be chronological by either
of these dates, use custom validations to restrict
the dates to the current day.

Recommendations
• You can't change the sequence generators once they are in use. Verify the pattern in your sandbox first
to ensure that the sequence numbers are as per your expectations.
• When you want to sequence each invoice document type together, use the same sequence generator
rule. To have a separate sequence for each invoice document, create different rules.

• To avoid creating gaps, don't reopen a closed period when you want to apply the gapless document
number to newly approved supplier invoices and adjustments. When the accounting date is before the
accounting date of the last document, the sequence can have a gap.
• To avoid confusion, give your gapless invoice numbers a different format than the existing invoice
numbers. You can use your company and country-specific sequencing rules to determine the pattern of
gapless numbers.
• To meet local statutory reporting requirements for operational transactions, you can configure your
companies to allow accounting by the customer invoice approval date.

Requirements
• To create gapless sequence generators, enable the functionality for a desired company.
• Specify the gapless sequencing start period to determine when Workday will start creating generators.
• To have a gapless number, the customer invoices must be in approved status. However, for supplier
invoices, you must close the period.
• Configure or select a sequence generator rule for each invoice, credit adjustment, debit adjustment, and
credit-rebill. Workday assigns the gapless invoice number based on these rules.
• To include the gapless invoice number on an invoice, update your custom BIRT layout because it's a
separate attribute from the standard invoice number.

Limitations
• After Workday assigns a gapless sequence number to an invoice, you can't cancel or change that
invoice anymore. Instead, use invoice adjustments to make modifications.
• When you change an existing configuration rule, the updates apply to only new sequence generators.
• You can edit or replace the sequence generators only if they aren't in use.

Tenant Setup
No impact.

Security
Configure these security domains for gapless sequencing:

Domain Considerations
Set up: Company General domain in the Common Users secured to this domain can enable the
Financial Management functional area. gapless sequence functionality and configure
sequence generator rules.
Set Up: Tax domain in the Common Financial Users secured to this domain can configure gapless
Management functional area. sequence generator rules on approved customer or
supplier invoices by statutory invoice type.
Public Reporting Items domain. Users secured to this domain can create custom
reports to display the invoice number or gapless
document number.

Business Processes
To configure a chronological gapless sequence number on customer invoices when the invoice document
date isn’t the current date, you can add custom validations in your business process rule conditions.

Reporting
If the gapless number exists in a given period, you can use all the existing standard reports to track
invoices with a gapless document number for a company.

You can use the Invoice date is in Closed Period custom report field on the Customer Invoice Document
business object in your custom validations to configure chronological gapless sequence number on
customer invoices.

Integrations
You can use these web services for gapless sequencing:

Web Service Considerations

Get Company ID Definitions Retrieves the required IDs to let you enable gapless
sequencing for a company.
Put Company ID Definitions

Get Customer Invoices Update your EIB templates for these web services
to support gapless invoice numbers.
Get Customer Invoice Adjustments

Import Customer Invoice Enables you to add or update customer invoices

with gapless sequence number.
Submit Customer Invoice Enables you to create customer invoices and
adjustments with gapless sequence number.
Submit Customer Invoice Adjustment

When you enable this functionality, update your integration templates to use the gapless invoice number
instead of the standard invoice number.

Connections and Touchpoints

When you enable the gapless sequencing for a company, it extends to all invoices and adjustments
originating from awards, billing schedules, and billable projects.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Reference
Workday 32 What’s New Post: Gapless Document Sequence Numbers on Customer Invoices
Workday 33 What’s New Post: Gapless Document Sequence Numbers by Statutory Invoice Type

Steps: Set Up Gapless Invoice Number Sequencing

Prerequisites
• Set up the company you want to create gapless sequence generators for.
• Set up the ledger periods you want to assign the sequence to.
• Review setup considerations for gapless sequencing.

Context
You can assign unique gapless invoice numbers to approved invoices based on a ledger period. Gapless
invoice numbers help you comply with transaction tax reporting requirements in countries that require
chronological gapless sequencing by invoice type for operational transactions.
To maintain a continuous sequence, after Workday assigns gapless numbers to invoices you can't:
• Cancel or make changes to the invoices.
• Disable the gapless sequencing functionality.

Steps
1. Configure Invoice Sequence Generator Rules on page 659.
2. Access the Edit Company ID Definitions task.
On the Gapless Document Sequence Settings tab, select the check box for the type you want to
configure:
• Enable Gapless Sequencing for Customer Invoices
• Enable Gapless Sequencing for Supplier Invoices
Security: Set Up: Company General domain in the Common Financial Management functional area.
3. Select a sequence generator rule configuration for each invoice type.
• Select the same sequence generator rule configuration for each invoice type to sequence all invoice
types together. For multiple companies, Workday assigns separate sequences for their invoices
even if they have the same sequence generator rule configured.
• To sequence invoice types separately, select a different rule configuration for the sequence
generator.
4. For customer invoices, select a ledger period from the Customer Invoice Gapless Sequencing Start
Period prompt. Workday assigns the sequence number when you approve the invoices.
For supplier invoices, select a ledger period from the Supplier Invoice Gapless Sequencing Start
Period prompt. Workday assigns the sequence number when you close the period.
When you open a ledger period, Workday creates sequence generators for the customer or supplier
invoice types you select.
5. (Optional) To order gapless sequence numbers by accounting date for customer invoices and
adjustments, access the Edit Company Accounting Details task.
Set the Allow Accounting by Approval Date prompt to Customer Invoice.
Security: Set Up: Company Accounting domain in the Common Financial Management functional area.

Result
When you post invoices in a period with a gapless sequence generator, Workday automatically assigns a
Gapless Sequence Number and displays it instead of the Invoice Number field on the invoices.
After Workday creates the sequence generators, you can view the details in the Invoice Gapless
Sequence Generators grid on the same task.
Related Information
Reference
Workday 32 What's New Post: Gapless Document Sequence Numbers on Customer Invoices

Configure Invoice Sequence Generator Rules

Prerequisites
Security: Set up: Company General domain in Common Financial Management functional area.

Context
To comply with global auditing standards, you can:
• Define rules for the sequence generators so that Workday can assign gapless sequence numbers to
invoice documents in the desired format.
• Configure separate sequence rules for each invoice, invoice adjustment, and invoice rebill documents.
• Create separate rules for Statutory Invoices in the Sequence Generator Rule Conditions section.
These sequencing rules determine the:
• Order of the sequence.

• Lifespan of each sequence generator.

• Timeframe when Workday sequences your documents.
Workday creates gapless sequence generators for each invoice document type when you close and
reopen a period for the specified company. When the period already has an active generator, Workday
doesn't create a new generator.
After a sequence generator assigns a sequence number to an invoice, you can't:
• Disable gapless sequencing for the company.
• Change the lifespan.
Though, Workday enables you to edit the format string.

Steps
1. Access the Create Invoice Sequence Generator Rule Configuration task.
2. As you complete the task, consider:
Option Description
Sequence Generator Lifespan Select a value to specify the duration for the
sequence generator.
• The sequence generator only assigns gapless
sequence numbers to invoices posted in your
selected lifespan.
• The sequence number resets at the beginning
of each new period or year.
• Workday starts and stops a new sequence
based on the lifespan you select.

3. As you complete the Default Sequence Generator Rule and Sequence Generator Rule Conditions
sections, consider:
Option Description
Sequence Start Number Enter any number that you want to begin the
sequence with. You can also enter a number that
is in continuation of an existing sequence from
another ID generator.
Sequence Increment Workday automatically sets the value to 1 so that
the sequence numbers are in gapless order.
Sequence Length Enter a number to specify the length of the
gapless sequence number string. Workday sorts
invoice sequences based on this configuration
when you generate reports.
Example: When you enter a Sequence Length of
3, Workday displays the sequence number:
• 1 as 001.
• 321 as 321.

Sequence Format String Enter custom text and these variables rules to
ensure that Workday doesn't duplicate sequence
numbers across multiple generator lifespans:
• [aa]: Inserts only the last 2 digits of the
calendar year.
• [aaaa]: Inserts the 4-digit calendar year.

Option Description
• [A]: Inserts a 1- or 2-digit calendar month.
• [AA]: Inserts a 2-digit calendar month.
• [f]: Inserts the entire fiscal year number.
• [ff]: Inserts the fiscal year name.
• [pp]: Inserts the fiscal period name.
• [seq]: Inserts the next sequence number.
Include [seq] in the format string of any rule
configuration to populate the sequence number.
When you select Ledger Year as the sequence
generator lifespan, the format string can include:
• [f]
• [ff]
When you select Ledger Period as the sequence
generator lifespan, the format string can include:
• [f]
• [ff]
• [pp]

Statutory Invoice Type Select a country-specific statutory invoice

type when you use invoice types to categorize
your invoices in compliance with government
requirements.
Workday displays options in this field only when
you configure a statutory invoice for the company
in a specific country.

Result
Workday creates a gapless sequence generator for each invoice document type, for the specified period,
for a given company.

Example
You want to create a sequence generator for the May 2019 ledger period or ledger year and the November
2019 calendar month or calendar year:
Default Sequence Generator Rule Values

Field Value
Sequence Start Number 1
Sequence Length 3
Sequence Format String for a Ledger Period INV-[f]-[pp]-[seq]
Sequence Preview INV-2019-05-001
Sequence Format String for a Ledger Year INV-[f]-[seq]
Sequence Preview INV-2019-001

Field Value
Sequence Format String for a Two Digit INV-[aa]-[seq]
Calendar Year
Sequence Preview INV-19-001
Sequence Format String for a Four Digit INV-[aaaa]-[AA]-[seq]
Calendar year and a Two Digit Calendar Month
Sequence Preview INV-2019-11-001

Related Information
Reference
Workday 33 What’s New Post: Gapless Document Sequence Numbers by Statutory Invoice Type

Set Up Unique Invoice Numbering for a Company

Prerequisites
Security:
• Set Up: Company General domain in the Common Financial Management functional area.
• Set Up: Customer Accounts domain in the Customer Accounts functional area.

Context
Workday enables you to create unique IDs for invoices, credits, debits, and rebills to comply with global
accounting standards. You can configure unique invoice numbering for both the tenant and for individual
companies.
The tenant-level setting applies to all companies automatically. When you configure a company-level
setting, it overrides the tenant-level setting for that company.

Steps
1. Access the Edit Customer Account Options task.
2. As you complete the Enable Unique Invoice IDs for Credits, Debits, and Rebills prompt, consider:
• Inherit From Tenant: Use the tenant-level setting. Access the Edit Tenant Setup - Financials task
to configure tenant-level settings.
• No: Use standard invoice numbering, regardless of the tenant-level setting.
• Yes: Generate unique invoice numbers, regardless of the tenant-level setting.

Result
When you create a customer invoice adjustment, Workday processes the adjustment with a unique invoice
ID.

Next Steps
If you enabled unique invoice numbering, assign definitions for credit, debit, and rebill invoices on the Edit
Company ID Definitions task.
Related Information
Reference
Reference: Edit Tenant Setup - Financials

Steps: Set Up Customer Invoices

Prerequisites
• Configure the Customer Invoice Event business process and security policy in the Customer Accounts
functional area.

Context
You can streamline invoice creation by configuring customer invoices to populate payment details, review
invoice matching, apply budget check, route to an assigned approver, and more.

Steps
1. (Optional) Edit Domain Security Policies.
Configure the Process: Customer Invoice (NEW) security domain in the Customer Accounts functional
area. This domain grants access to users with company-based or unconstrained roles to manage
customer invoices. For more granular control on customer invoice actions, you can grant permissions
on various subdomains.
2. (Optional) Edit Business Processes.
Configure the Customer Invoice Event business process to ensure processing accuracy for invoicing,
printing, and emailing.
a) Edit Business Process Security Policies.
On the Customer Invoice Event business process security policy, add the Approvers security group
to the Approval and Review actions. This configuration enables you to route a customer invoice to a
designated approver in your organization.
Ensure that the initiator has access to these security domains:
• Access Customer (Segmented) domain
• Process: Customer Invoice - Core domain
• Roles - Company Security Group Types
• Roles - Customer Security Group Types
Also, grant the Integration Permissions for the Access Customer (segmented) domain along with Get
and Put access to these domains:
• Integration Event
• Process: Electronic Invoices
b) Edit the Customer Invoice Event business process and set up the Initiate Customer Invoice
Intercompany Event action step for intercompany transactions.
Workday applies the approval only to the company specified on the invoice header. When you deny
the approval, Workday terminates the process.
c) Set up the Print Customer Invoice Service step on the Customer Invoice Event business process for
printing customer invoices automatically.
To print the invoice with a print run type of Final, add the service step after the approval step and set
the approval step as final.
d) Set up the Electronic Invoicing via Document Delivery Rules service step on the Customer Invoice
Event business process for electronic invoicing.
e) Set up the Email Customer Invoice service step on the Customer Invoice Event business process for
emailing a customer invoice PDF file automatically as soon as you print the document.
f) Set up the Integration service step on the Customer Invoice Event business process for launching
the electronic invoice integration automatically.
Set up a condition rule on the Integration step to ensure that the electronic invoice integration
launches only when Workday generates an invoice PDF after the last printing run.

3. (Optional) Define Intercompany Profiles on page 34.

To settle intercompany transactions, establish the relationship between companies.
4. (Optional) Set Up Unique Invoice Numbering for a Company on page 662.
To create unique IDs for invoices, credits, debits, and rebills, configure unique invoice numbering either
at the tenant level or for individual companies. When you configure a company-level setting, it overrides
the tenant-level setting for that company.
5. (Optional) Steps: Set Up Gapless Invoice Number Sequencing on page 658.
When using gapless invoice number, configure sequence generator rules and enable the gapless
sequencing functionality.
6. (Optional) Access the Maintain Invoice Types by Country task to configure country-based statutory
invoice type with the Invoice Type Usage option of Customer Invoices.
Security: Set Up: Tax domain in the Common Financial Management functional area.
7. (Optional) Access the Edit Company Accounting Details task and select Customer Invoice option
for Allow Accounting by Approval Date prompt to use approval date as the accounting date on
your customer invoices and adjustments, or when you want to order document sequence numbers by
accounting date.
Security: Set Up: Company Accounting domain in the Common Financial Management functional area.
8. (Optional) Access the Edit Customer Account Options task and select Prevent Changes to Invoice
after Final Print Run check box for a desired company to prevent changes to an approved and printed
invoice.
Once you enable this feature, you can't disable it if you've generated invoices.
After an invoice has a Approved status and the print run type has a Final status, you can no longer
cancel, change the invoice, or update the invoice lines for the given company. Workday also sets a
Finalized Date field on the View Customer Invoice page.
Security: Set Up: Customer Accounts domain in Customer Accounts functional area and Set Up:
Company General in the Common Financial Management functional area.

Next Steps
After invoice setup, you can:
• Create single or consolidated invoices.
• Adjust, copy, change, or cancel invoices.
• Edit approved invoices.
• Use the create credit and rebill functionality to create 1 corrected invoice when you bill an invoice
incorrectly
• Manage invoices and place them in dispute, in collection, or hold from payment.
• Print and email invoices.
Related Information
Tasks
Steps: Set Up Netting on page 702

Create Customer Invoices

Prerequisites
• Configure the Customer Invoice Event business process and security policy in the Customer Accounts
functional area.
• To route the invoice to a designated approver, configure the Approvers security group on the Approval
and Review steps of the Customer Invoice Event business process.
• If using invoice types, configure statutory invoice types by country.

• If using gapless invoice number, configure sequence generator rules and enable the gapless
sequencing functionality.
• For intercompany transactions, configure intercompany profiles.
• Security: Process: Customer Invoice - Core and Reports: Customer Invoice Referenced Attachments –
Supplier Invoice domain in the Customer Accounts functional area.

Context
A customer invoice enables you to record a sales event and create receivables accounting. You can create
a customer invoice for:
• Shipment of goods.
• Delivery of a service.
• Billing schedule.
• Projects, subscriptions, or memberships.

Steps
1. Access the Create Customer Invoice task.
2. As you complete the Invoice Information, consider:
Option Description
Company The company is the invoice owner. You can use it
as a parameter to assign default withholding tax.
Customer Your customer selection populates other invoice
information based on the customer definition,
such as tax code, payment terms, and payment
type. For awards, you can select a sponsor in this
field instead of a customer.
Invoice Date Workday uses this date to post the invoice to the
first open ledger period. If Workday doesn't find
an open ledger period, it sets the invoice status to
Error.
Accounting Date The Accounting Date that you enter must be in
a current or previous open accounting period.
Example: You provide a service, but you don't
create the invoice until the next accounting period.
Then you can select the service date as the
accounting date.
Depending on how you configure the company
accounting, Accounting Date can be optional or
required.
This date is same as the Invoice Date by default.
You can also configure it to use:
• Approval Date by accessing the Edit
Company Accounting Details task.
• Accounting in Arrears by accessing the
Edit Company Accounting Details task
and setting theAllow Accounting in Arrears
prompt to Customer Invoice.

Option Description
Statutory Invoice Type Select a country-specific statutory invoice if you
use invoice types to categorize your invoices in
compliance with government requirements.
The field displays only if you've configured a
statutory invoice for the company in a specific
country.

Invoice Type If you’ve configured the Edit Customer Invoice

Layout Rule task to vary the layout by invoice
type, your selection can determine the invoice
layout. Example: You might want project invoices
to have a different layout than goods invoices.
Bill-To Address This field displays when you enter a customer.
Workday automatically populates the primary
business address from the tab Addresses and
Contacts > Contact Information of the customer
profile. If you don't define a primary business
address, this field remains blank.
Bill-To Contact This field populates from the Addresses and
Contacts > Customer Contacts tab on the
customer profile. If you don't define a default bill-
to contact here, this field remains blank.
These contacts are the email recipients for
customer invoices.
You can override the defaults with other options in
the prompt, if available.

Ship-To Customer These fields display only if the invoice customer

has Ship-to Business Connections set on the
Ship-To Address
Connection Map in the customer profile.
Once you select a ship-to customer, the Ship-To
Address prompt displays all shipping addresses
from the ship-to customer Contact Information
that:
• Have an effective date of on or before the
current date.
• You have access to.
Workday applies the Ship-To Address along
with the tax rule for the destination country for tax
default application. If no address has a shipping
usage, the prompt returns the primary business
address.
This feature doesn’t apply to sponsors.

Related Invoices The prompt displays all credited invoices that

don’t yet have a rebill for this company and
customer combination. You can only select 1
invoice at a time.

Option Description
Adjustments Displays if you select a Related Invoice. This
field contains the corresponding credit adjustment
to that related invoice.
3. As you enter Additional Information for the invoice, consider:
Option Description
Billable Project (Optional) Select a billable project related to the
company or customer. Workday automatically
populates the Worktags field in the header with
the worktags related to the project. Workday also
automatically populates the Billable Project field
on the invoice line.
If you leave this field blank, you can associate an
invoice with more than 1 project at the invoice line
level.

Reference Type Select a reference type based on the country

requirement of where you conduct business.
Workday displays this field dynamically when the
address of the company and the bill-to-address of
the customer are in the same country. Workday
currently supports only these reference types:
• Boleto Bancário (Brazil)
• ESR (Switzerland)
• FIK-nummer (Denmark)
• KID-nummer (Norway)
• OCR-nummer (Sweden)
• OGM-VCS (Belgium)
• Viitenumero (Finland)

Reference Number When you select an international reference type,

you must enter a supporting Reference Number.
Due Date Workday automatically calculates this date based
on the invoice date and payment terms. You can
manually override this date by entering a new one
in the Due Date Override field.
Document Link If you store supporting documents or images in
an external repository, then enter the URL to that
location. Once you save the transaction, Workday
displays the URL as a live hyperlink to the image.
Approvers can reference this document before
approving the transaction.
Workday validates the link to ensure that it has a
valid Uniform Resource Identifier (URI) pattern,
as defined by your security administrator. This
process provides additional security to help avoid
malicious content in external links.
To add a valid URI, set the Link Type to
Customer Invoice Document Link on the

Option Description
Maintain External Link Validation task. When
the location of the external content changes,
ensure to update the URL in Workday.

4. As you complete the Amount Information, consider:

Option Description
Currency If you've defined a specific currency on the
customer profile, Workday automatically
populates the field with the assigned currency.
You have the option to change it to any of the
accepted currencies.

Prepaid Amount Applied Lists the amount already applied to this invoice.
This amount is the prepaid amount offset against
the installment invoices created within the billing
schedule. Workday automatically offsets the
prepaid amount and creates a negative amount
on the invoice line.
Tax Service Name Displays the name of tax integration service you
define on the Third Party Tax Options tab of the
Edit Company Tax Details task for a company.
You have the option to add either a third-party
tax service integration, or enable it for an existing
third-party tax service under the nonreporting
section but not both.
When you select the integration option, you can't
change these fields at the invoice line level:
• Tax Applicability
• Tax Code
• Calculated Tax Amount

Tax Amount Displays the tax amount if you've configured a

third-party tax service.
Less Withholding Amount Calculates when the Withholding Tax Code has
a Realization Point of Invoice.
Default Tax Code Includes if the goods or services are taxable.
Workday automatically populates this code
on the invoice lines. When the invoice doesn’t
have a ship-to customer, Workday automatically
populates the tax code from the invoice customer.
When you select a ship-to customer and address,
Workday applies the tax code from the default
transaction tax rule for the destination country.
You can configure exception rules to override the
default selection for companies and customers on
customer invoices.

Update Tax Click to recalculate taxes. Clicking Submit also

calculates taxes.

Option Description
When you select a third-party tax service for your
integration option, Workday no longer displays
this button.

5. As you complete the Invoice Lines tab, consider:

Option Description
Company If you enable intercompany transactions, you’ve
more than 1 choice.
Sales Item When you enter a sales item, Workday
automatically populates some of the other fields
based on the sales item definition.
Revenue Category The revenue category links item to corresponding
accounting posting rules that drives the
accounting behavior. It also provides additional
details for reporting.
When you select a sales item, Workday populates
this field automatically.

Unit Price Populates from the sales item. If the currencies

for the sales item and invoice differ, Workday
automatically converts this value to the
currency of the invoice.
Workday uses the current currency conversion
rate as defined in your tenant.

Extended Amount The quantity multiplied by the unit price. For

sales items with bulk pricing, Workday uses this
calculation: (Unit Price x Quantity)/ UOM Priced at
Quantities of = Extended Amount.
For prepaid invoices, when you enter an amount
that's greater than the advanced payments
received, Workday prevents you from creating the
invoice.

Contract Line If you generate the invoice from a contract or a

project, Workday provides various options for the
contract line type. It drives the billing and revenue
cycle.
Deferred Revenue For invoices associated with a contract, Workday
automatically selects the check box if there’s
deferred revenue on the associated Contract
Line.
Workday also automatically selects the check box
when the Sales Item has deferred revenue.

Revenue Recognition Schedule Template This field displays if you select the Deferred
Revenue check box on the invoice line. Select
an option to associate the line with an existing
Revenue Recognition Schedule Template for
generating installments.

Option Description
Ship-To Customer and For each invoice line, you can change the
shipping customer and the associated address
Ship-To Address
to any connection you define in the Connection
Map for a given customer.
Ship-to addresses that display in the prompt come
from the ship-to customer.
If you apply segmented security, the ship-to
customers and addresses display only to users
with access to the customers.
If you reference a Contract Line on the invoice
line, Workday clears the ship-to customer and
address from that line.
This feature doesn’t apply to sponsors.

Tax Applicability Indicates whether the invoice line is taxable

or not. When you configure tax applicability
as part of a tax rule for a sales item, Workday
automatically populates this field. When there’s
no applicability associated with the item, Workday
applies the tax rule for the destination country. If
you haven't configured the tax rules for sales item
and country, Workday automatically populates the
tax applicability from the sales item or revenue
category.
Tax Code Workday populates the tax code value from
the invoice header. You can override this value
manually, or by selecting:
• A Sales Item that has a tax code.
• A Ship-To Customer and Ship-To Address
on the invoice line. These fields display only if
the invoice customer has a Ship-to Business
Connections configured on the Connection
Map for the customer.
If you haven't configured the Connection Map
or transaction tax rules for a country, Workday
automatically populates the tax code from the
Bill-To Customer.

Calculated Tax Amount Displays the tax amount calculated by a third-

party tax integration service.
It only applies of you've enabled third-party tax
on the Edit Company Tax Details task for the
invoice company.

Withholding Tax Code You can select from tax codes with realization
points of Invoice or Customer Invoice Self
Withholding. Workday automatically populates
this field when you configure withholding tax
codes on these rules:
• Withholding Tax Rule for Country

Option Description
• Withholding Tax Rule for Item

Tax Point Date Type Select the type of tax point date for the invoice
line. The tax point date type is required when you
specify a Transaction Tax Code on an invoice
line.
• To display this field, select Enable Tax
Point Date Configuration for Transaction
Taxes check box on the Edit Tenant Setup -
Financials task.
• Workday automatically populates tax point
date type with Invoice/Adjustment Date and
uses regular transaction tax.
• When you select the VAT on Payment check
box on the Edit Company Tax Details task,
Workday automatically:
• Sets the tax point date type to Payment
Date
• Uses transaction tax on payments.

Tax Point Date Enter a tax point date to determine the tax period
of the transaction.
This field displays when you select Goods/
Service Delivery Date as the tax point date type.

Worktags Add worktags to the invoice line to:

• Make it easier to find.
• Make its business purpose clear.
• Enable multidimensional reporting.
Related worktags default from data selected on
the invoice. When related worktags of the same
type exists on both sales items and revenue
categories, the one from the sales item takes
precedence because it’s more specific. The latest
default for a worktag type overrides any preceding
value.
For intercompany transactions, Workday
automatically adds the Intercompany Affiliate
worktag to help you track revenue and expenses
between intercompanies.

Billable Project Must match the billable project in the header if

you selected one. Otherwise, you can associate
different billable projects with different invoice
lines.
You can also select the specific Phase and Task
for the project to attribute the transaction to. When
you associate an invoice line with a contract line,
any phase and task must match with phases and
tasks on the contract line.

6. (Optional) Use the Tax tab to review a summary of all the tax codes and their applicability as specified
on the invoice lines.
If several lines share the same tax code, this tab consolidates them and provides a total taxable
amount.
Note: To update this tab, click Update Tax in the Amount Information section of the invoice header
to populate with tax information from the invoice lines.
7. (Optional) Enter currency rate overrides on the Currency Rate tab.
For foreign currency invoices, you can adjust the conversion rate to suit your business needs. Workday
displays the changes on the Effective Currency Rate field. The value in this field is the historic
rate used by revenue recognition accounting to convert installment amounts to ledger currency. Any
overrides that you enter trigger the selection of the Rate Override check box.
Option Description
Currency Rate Type Override Override the rate type used to look up the
exchange rate.
Currency Rate Date Override Override the date used to look up the exchange
rate.
Currency Rate Manual Override To override the exchange rate or provide a
rate when a default rate isn’t available, enter a
currency rate.
Defaults This section displays the default currency rate for
your tenant based on the invoice date.
8. (Optional) Access the Attachments tab to add the supporting documents to the customer invoice.
Select the Provide To Customer check box if you want to share the attachment with your customers.
If you also want to include the attachment in the PDF file, select the Print With Invoice check box as
well.
To add referenced attachments from your expense reports or supplier invoice charges on the customer
invoice, select the Include Attachments on Invoice prompt on the Create Billing Schedule for
Customer Contract task. The prompt displays when you select Transaction as the billing type.
Workday supports the file types for attachments listed in the Edit Tenant Setup - System task.
After you submit the invoice, you can view these details on the attachments tab:

Option Description
Sum of Print With Invoice Attachments Size Displays the total size of all attachments that you
print with the invoice.
You can use this field on the Customer Invoice
Email Event business process for configuring
email notifications.

Attachment Reference Displays the related expense report or expense

report line for the source of the attachment.
In order to drill into this link, you need to be able
to access the expense report.

Result
• When you submit the invoice:
• Workday initiates the Customer Invoice Event business process for review and approval. If the
business process definition includes an approval step, reviewers can modify the customer invoice
before they approve it.
• Workday tags the invoice as a direct intercompany invoice when the Bill-To Customer is a
company operating as a customer.
• For intercompany transaction, Workday also launches the Initiate Customer Invoice Intercompany
Event business process when it's configured as step on the Customer Invoice Event business process.
Workday applies the approval only to the company specified on the invoice header. When you deny the
approval, Workday terminates the process.
• To print the customer invoice automatically after you generate a customer invoice in Workday, edit the
Customer Invoice Event business process and add a new step.
• Set the Type to Service and Specify to Print Customer Invoice Service.
• To print the invoice with a print run type of Final, add the service step after the approval step and set
the approval step as final.
• For electronic invoicing, set Specify to Electronic Invoicing via Document Delivery Rules as the
service step to trigger the desired electronic invoice integration.
• You can also launch the electronic invoice integration automatically by adding the Integration service
step to the Customer Invoice Event business process. This option requires you set up a condition rule
on the Integration step to ensure that the electronic invoice integration launches only when Workday
generates an invoice PDF after the last printing run.
• To email a customer invoice PDF file automatically as soon as you print the document, add a new step
and set the Type to Service and Specify to Email Customer Invoice service.
• Use of the deferred revenue flag triggers the deferred revenue account posting rule.
• Workday automatically creates operational journals in the company currency for approved transactions.
If the transaction and company currencies differ, Workday converts the amounts to the company
currency.
• Workday processes accounting after the business process completes and uses the Receivables
account posting rule to record customer payments due.
• When you print the invoice, Workday includes the attachment information on the print run that you can
drill-down on to view the details.

Next Steps
After invoice approval:
• Use the Find Customer Invoices report to access and update existing invoices that you save or
submit.
• If the invoice isn’t associated with a contract and has deferred revenue, create a revenue recognition
schedule.
• You can modify the customer invoice by using the Create Adjustment, Change, Cancel, Edit Approved
Invoice, Print, or Write Off Bad Debt tasks from the related action menu.
• Consolidate customer invoices.
• Record customer payment.
• Email invoices.
• To view the list of Workday-provided reports and their descriptions, access Workday Standard
Reports, and select the Customer Accounts option.
• Settle customer invoices. The settlement process creates and settles the invoiced payments. When the
process completes, Workday updates the accounting entries for each payment.

Related Information
Concepts
Concept: Transaction Currency on page 27
Tasks
Record Customer Payments on page 726
Steps: Use Settlement on page 1892
Set Up Tax Applicability for Financial Transactions on page 551
Steps: Configure Withholding Tax Rules on page 578
Steps: Set Up Taxes for Revenue Transactions on page 823
Steps: Write Off Receivables on page 804
Reference
Workday 32 What's New Post: Print Attachments with Customer Invoice
Workday 33 What’s New Post: Tax Framework for Third-Party Tax Service Integration
The Next Level: Customer Invoice Maintenance
The Next Level: Direct Intercompany Invoicing
2021R2 What's New Post: Automatic Invoice Printing and E-Invoice Integration Initiation
Examples
Example: Set Up Third-Party Tax for Customer Invoices on page 560

Create Customer Invoice Adjustments

Prerequisites
• You must have a customer invoice that is active.
• Configure the Customer Invoice Event business process and security policy in the Customer Accounts
functional area.
• Security: Process: Customer Invoice - Core domain in the Customer Accounts functional area.
• (Optional) Set Up Unique Invoice Numbering for a Company on page 662. Unique invoice ID enables
you to comply with global accounting requirements. If you enable unique invoice IDs for credits, debits,
and rebills in your tenant, Workday creates the adjustment with a unique invoice ID.

Context
You can create a customer invoice adjustment to decrease or increase the amount due from a customer.
An adjustment is a new transaction with its own document number that is separate from, but linked to, the
original invoice.
You can create 1 adjustment and apply it to multiple invoices using the Perform Customer Invoice
maintenance task, so long as you don't select Apply Adjustment Immediately.
You can also copy an existing invoice adjustment as long as:
• It's not associated with an award.
• The customer is active.
You can continue to make changes to the new invoice adjustment until you apply it. You can copy the
fields to a new adjustment except:
• Adjustment Date
• Apply Adjustment Immediately (When you leave it blank on the original adjustment.)
• Attachments
• Billing Installment
• Billing Schedule
• Currency Overrides
• Notes

• Related Invoices
Note: If you're adjusting a billable transaction invoice, you can only create a full credit. You can't create a
debit adjustment or a partial credit.

Steps
1. Access the Create Customer Invoice Adjustment task.
• If the desired adjustment reason isn’t available in the prompt, create invoice adjustment reasons with
the Maintain Invoice Adjustment Reasons task.
• You can also access the Copy Customer Invoice Adjustment task from the related actions menu
of an existing customer invoice adjustment.
2. As you complete the Invoice Adjustment Information section, consider:
Option Description
Bill-To Customer and Sold-To Customer Your selection populates other adjustment
information based on the customer definition,
such as tax code, payment terms, and payment
type.
Adjustment Date Workday uses this date to post the adjustment to
the first open ledger period. If Workday doesn't
find an open ledger period, we set the adjustment
status to Error.
Statutory Invoice Type Select a country-specific statutory invoice if you
use invoice types to categorize your invoices in
compliance with local government requirements.
The field displays only if you've configured a
statutory invoice for the company in a specific
country.

Bill-To Address Displays when you enter a customer. It

automatically populates to the primary business
address defined on the tab Addresses and
Contacts > Contact Information of the
customer profile. If you don't define a primary
business address, this field remains blank. You
can override the default with other options in the
prompt, if available.
Bill-To Contact Populates from the default contacts defined
on Addresses and Contacts > Customer
Contacts tab of the customer profile. If you don't
define a default bill-to contact, this field remains
blank. These contacts are the email recipients for
customer invoices. You can override the defaults
with other options in the prompt, if available.
Ship-To Customer Displays only if the invoice customer has Ship-to
Business Connections set on the Connection
Ship-To Address
Map in the customer profile.
After you select a ship-to customer, the Ship-To
Address prompt displays all shipping addresses
defined on the Contact Information report with
an effective date that's on or before the current
date.

Option Description
Workday applies the Ship-To Address with
the tax rule for the destination country for tax
automatically populating. If no address has a
shipping usage, the prompt displays the primary
business address.
This feature doesn't apply to sponsors.

Related Invoices Select the customer invoice related to this

adjustment. For credit or rebill invoice, Workday
displays both the original and rebill invoice. Use
the invoice preview to access the originating and
rebill invoice.
Apply Adjustment Immediately Note: To apply your adjustment to multiple
invoices in bulk, leave this option blank.
Select if:
• The adjustment decreases liability.
• The originating invoice uses the same
currency as the adjustment.
• You use worktag balancing.
• The adjustment references the original
customer invoice.
Workday applies credit amounts from the invoice
adjustment to the matching lines on the original
invoice. The credit amount applies only up to
the open receivable amount for each line, by
matching worktag balancing values within the 2
documents.

3. As you complete the Additional Information section, consider:

Option Description
Billable Project (Optional) Select a billable project related
to the company or customer. Workday also
automatically populates the Billable Project field
on the invoice line.
If you leave this field blank, you can associate an
invoice with more than 1 project at the invoice line
level.

Reference Type Select a reference type based on the country

Option Description
• OCR-nummer (Sweden)
• OGM-VCS (Belgium)
• Viitenumero (Finland)

Reference Number When you select an international reference type,

you must enter a supporting Reference Number.
Due Date Workday automatically calculates this date based
on the invoice date and payment terms. You can
override the date by entering a new one in the
Due Date Override field.
Document Link If you store supporting documents or images in
an external repository, then enter the URL to that
location. Once you save the transaction, Workday
displays the URL as a live hyperlink to the image.
Approvers can reference this document before
approving the transaction.
Workday validates the link to ensure that it has a
valid Uniform Resource Identifier (URI) pattern,
as defined by your security administrator. This
process provides additional security to help avoid
malicious content in external links.
You can add valid uniform resource identifier
(URI) by selecting Customer Invoice Document
Link Type on the Maintain External Link
Validation task. If the location of the external
content changes, you must update the URL in
Workday.

4. As you complete Amount Information section, consider:

Option Description
Currency Currency in which the adjustment bills and the
payment is due.
If you've specified one, the default comes from
the currency of the customer; otherwise, it's the
company currency. You can change the currency
to any of the accepted currencies defined for the
customer.

Default Tax Code Select a tax code, if the goods or services are
taxable. Workday automatically populates this
code on the invoice lines. When the invoice
doesn't have a ship-to customer, Workday
automatically populates the tax code from the
invoice customer.
When you select a ship-to customer and address,
Workday applies the tax code from the default
transaction tax rule for the destination country.
When you select an integration option for the
third-party tax service, this prompt doesn't display.

Option Description
Tax Amount Displays the tax amount when you configure a
third-party tax service for a company.
The tax integration service calculates this amount
instead of the Workday tax engine.

Tax Service Name Displays the name of the tax service you define
in the Customer Invoice Non-Reporting Option
section on the Third Party Tax Options tab
of the Edit Company Tax Details task for a
company.
When you use the third-party tax service, the Tax
Service Name field and the Update Tax button
doesn't display.
You can configure either the existing nonreporting
option or the tax service integration option but not
both.

Less Withholding Amount Calculates when the Withholding Tax Code has
a Realization Point of Invoice.
5. As you complete the Adjustment Lines grid, consider:
Option Description
Company If you enable intercompany transactions, you can
select more than 1 option.
Sales Item Your selection populates other line details from
the sales item definition, such as, unit price, and
tax applicability.
Unit Price If the currency for the sales item and adjustment
differs, Workday automatically converts this value
to the currency of the adjustment.
Workday uses the current currency conversion
rate as defined for the default currency rate type,
which is part of the tenant setup.

Extended Amount Enter a positive number.

For sales items that enable bulk pricing, Workday
calculates the extended amount as: (Unit Price x
Quantity)/UOM Priced at Quantities.

Ship-To Customer You can change the shipping customer and

shipping address to any ship-to connection that
Ship-To Address
you configure for this customer profile in the
Connection Map. If you configure segmented
security, only users that have access to the
customer domain can view the ship-to customers
and addresses.
If you reference a Contract Line on the invoice
line, Workday clears the ship-to customer and
address from that line.

Option Description
This feature doesn't apply to sponsors.

Tax Applicability Indicates whether the invoice line is taxable

or not. When you configure tax applicability
as part of a tax rule for a sales item, Workday
automatically populates this field. When there's
no applicability associated with the item, Workday
applies the tax rule for the destination country.
If you haven't configured the tax rules for a
sales item and country, Workday automatically
populates the tax applicability from the sales item
or revenue category.
Tax Code Workday populates the tax code value from
an invoice header. You can override a value
manually, or by selecting:
• Sales Item that has a tax code.
• Ship-To Customer and Ship-To Address
on the invoice line. These fields display only if
the invoice customer has Ship-to Business
Connections configured on the Connection
Map in the customer profile.
If you don't have the Connection Map or
transaction tax rules for country configured,
Workday automatically populates the tax code
from the Bill-To Customer.

Withholding Tax Code You can select from tax codes that have
realization points of Invoice or Customer
Invoice Self Withholding. Workday automatically
populates this field when you configure
withholding tax codes on these rules:
• Withholding Tax Rule for Country
• Withholding Tax Rule for Item

Tax Point Date Type Select the type of tax point date for the invoice
line. The tax point date type is required when you
specify a Transaction Tax Code on an invoice
line.
• This field displays only if you’ve selected
Enable Tax Point Date Configuration for
Transaction Taxes check box on the Edit
Tenant Setup - Financials task in your tenant.
• Workday automatically populates tax point
date type with Invoice/Adjustment Date and
uses regular transaction tax.

Option Description
• When you select the VAT on Payment check
box on the Edit Company Tax Details task,
Workday automatically:
• Sets the tax point date type to Payment
Date.
• Uses transaction tax on payments.

Tax Point Date Enter a tax point date to determine the tax period
of the transaction.
This field displays when you select Goods/
Service Delivery Date as the tax point date type.

Worktags Add worktags to the invoice line to:

• Make it easier to find.
• Make its business purpose clear.
• Assist multidimensional reporting.
Related worktags automatically populate from
data selected on the invoice. When related
worktags of the same type exist on both sales
items and revenue categories, the 1 from the
sales item takes precedence because it's more
specific. The latest default for a worktag type
overrides any preceding value.

6. (Optional) Verify the information on the Tax tab.

The tab displays a transaction tax grid that contains information about tax codes along with associated
tax rates. You'll also see a withholding tax grid if you entered a withholding tax code in the adjustment
line. A Company Tax ID and Customer Tax ID also displays on this tab, if configured during customer
setup.
7. (Optional) Access the Currency Rate tab. As you complete it, consider:
For foreign currency invoices, you can make adjustments to achieve the desired conversion rate. Any
changes you make to the settings on the Currency Rate tab are reflected in the Effective Currency
Rate field. The value in this field is the historic rate used by revenue recognition accounting to convert
installment amounts to ledger currency. Any overrides trigger the selection of the Rate Override check
box.
Option Description
Currency Rate Type Override Override the rate type used to look up the
exchange rate.
Currency Rate Date Override Override the date used to look up the exchange
rate.
Currency Rate Manual Override Enter a currency rate to override the exchange
rate, or provide a rate when a default rate isn't
available.
Defaults This section displays the default currency rate
defined in your tenant. It's based on the invoice
date.

Result
Workday launches the Customer Invoice Event business process.
If this customer invoice adjustment is an On Behalf of intercompany transaction, Workday also launches
the Customer Invoice Intercompany Event business process.
If you created a credit memo, you can apply the amount across multiple invoices, including other
customers' invoices, in the Perform Customer Invoice Maintenance task. Don't select the Auto-Apply
Adjustment to Invoice check box. Workday prevents overapplication of credit memos.

Next Steps
After invoice adjustment completes:
• Workday creates operational journals in the company currency for approved transactions. When the
transaction and company currencies differ, Workday converts the amounts.
• You can cancel a customer invoice adjustment when:
• You haven't applied the payment.
• You've canceled the applied payment.
• You don't have the adjustment included in a customer refund in Draft status.
• You can't access the Cancel Customer Invoice Adjustment task from the related actions menu when
a customer invoice adjustment has a revenue recognition schedule attached. To do so, you'll first need
to cancel the revenue recognition schedule and the schedule must be in a Draft status.
• You can settle the unpaid credit card and direct debit invoice adjustments. The settlement process
creates and settles the invoiced adjustments. When the process completes, Workday updates the
accounting entries for each payment.
• You can access the Edit Customer Invoice Layout Rule task and select the Remove Adjustment
Prefix check box to remove hard coded prefix from the filename of the printed invoice adjustment.
Related Information
Concepts
Concept: Multicurrency on page 24
Tasks
Maintain Currency Conversion Rates
Steps: Use Settlement on page 1892
Steps: Write Off Receivables on page 804
Reference
2023 R1 What's New Post: Apply Multiple Adjustments to a Single Invoice

Steps: Consolidated Customer Invoices

Prerequisites
Enable generation of unique IDs for consolidated customer invoices:
• At the tenant level with the Edit Tenant Setup - Financials task.
• At the company level with the Edit Company ID Definitions task.

Context
You can consolidate up to 1,000 individual invoices into 1 invoice, simplifying presentation and payment.
When a customer makes a payment, they can reference the consolidated invoice. You can then apply the
payment to the individual invoices that make up the consolidated invoice. You can consolidate invoices that
are:
• For the same customer.
• In the same currency.

• For a parent customer and any of its child customers.

• From different billing schedules.
• In approved, unpaid status.
• Not already consolidated.
• Not part of another consolidated invoice.
This task doesn't support:
• Consolidating customer invoices that use retention.
• Direct intercompany invoices.
You can also include invoice adjustments and negative invoices to display an accurate balance. After you
include an invoice adjustment in an approved consolidated invoice, you can't cancel, change, or update
adjustment lines.

Steps
1. Access the Create Consolidated Customer Invoice task.
• Specify the customer, sponsor, invoice, and payment criteria. When you use more than 1 prompt,
Workday creates consolidated invoices only for the customers that match all selected prompts.
• You can't consolidate more than 1000 invoices at once.
Security: Process: Customer Invoice - Core domains in the Customer Accounts functional area.
2. (Optional) Access the Schedule Create Consolidated Customer Invoice task to schedule the
creation of consolidated customer invoices.
• This task enables you to consolidate more than 1000 invoices.
• To view the details of consolidated invoices for a given customer, select the Preview Invoices flag.
You can also exclude specific customers before submitting.
• To set a run date that's before the customer invoice date, specify an Invoice Date under the
Number of Days the Run Date is Before section.
• You can find and edit scheduled jobs using the Scheduled Future Processes report.
Security: Process: Customer Invoice - Core domains in the Customer Accounts functional area.
3. Configure email settings, notifications, and attachments to email the consolidated customer invoice
automatically.
See Steps: Set Up Email for Customer Invoice Documents on page 708.
4. (Optional) Access the Create Consolidated Customer Invoice Print Layout task.
Select the business form layout. You can also specify a company logo.
Security: Set Up: Customer Accounts domains in the Customer Accounts functional area.
5. Access the Print Consolidated Customer Invoice task to print and email the consolidated customer
invoice, with or without its individual customer invoices.
When you select the Include Individual Customer Invoices option, Workday generates a single PDF
with the individual customer invoices, in addition to the consolidated customer invoice PDF.
After Workday generates the PDF files, click Email Consolidated Invoices to send them to customers.
Security: Reports: Customer Documents domain in the Customer Accounts functional area.
6. (Optional) Access the Schedule Print Consolidated Customer Invoices task.
Set up a schedule to print consolidated invoices automatically.
Security: Reports: Customer Documents domain in the Customer Accounts functional area.

Result
• You can use the Find Consolidated Invoice Printing Run Groups reports to:
• View a summary and status of your print runs.
• View the invoices in a print run.
• Reprint and email PDF files of invoices.
• To view all print and email activity for a consolidated invoice, you can access the Printing Runs tab on
the View Consolidated Invoice report.

Next Steps
You can apply customer payments to the consolidated customer invoice and any of its individual invoices.

Manage Multiple Customer Invoices at Once

Prerequisites
Security: Manage: Customer Invoice domain in the Customer Accounts functional area.

Context
As a collector, you might want to perform operations on several customer invoices at once to save time.
This task enables you to take these actions for multiple company and customers:
• Add a follow-up date and note. You can later use this field as a filter in any of the delivered collections
report. You can also use follow-up date to create a custom report for internal notification purposes.
• Add or remove holds from payment application.
• Exclude all or specific invoices from dunning.
• Put all or specific invoices in collection. You can also specify the collection date, collection code, and
payment amount promised.
• Put all or specific invoices in dispute. You can also specify the partial or full dispute amount, dispute
date, and dispute reason.

Steps
1. Access the Manage Customer Invoices task.
You can search for all invoices in your tenant, or specify any criteria to filter them for 1 or multiple
customers. You can also save your filters for future use.
2. Select the action that you want to perform on the retrieved invoices.
When you use the Hold from Payment option, it applies to invoices with electronic payment types
and invoices that aren’t processed by settlements.
3. Enter details for your action choice in the Updates to Apply section as needed.
4. Select all or specific invoices that you want to apply the changes to.
You can edit fields directly in the grid after selection to override the default values inherited by the
Updates to Apply section.

Result
Workday displays a confirmation page with the details of the invoices impacted by your action.

Next Steps
You can access these reports to view overdue invoice details:
• Customer Invoices Requiring Action
• View Customer Invoices in Collection

• View Customer Invoices in Dispute

Perform Customer Invoice Maintenance

Prerequisites
• Configure the Customer Invoice Maintenance Event business process in the Customer Accounts
functional area, to manage approvals.
• Security: Process: Customer Invoice - Core domain in the Customer Accounts functional area.
• Create Customer Invoice Adjustments on page 674.

Context
This task enables you to process both related and unrelated customer invoices in bulk for a given company
and customer. You can:
• Apply partial or full adjustments.
• Write off small amounts simultaneously.
Workday excludes negative invoices from these transactions. To perform customer invoice maintenance
across multiple customers:
• Ensure that the customer invoice currency and the invoice adjustment currency is the same.
• Have security access to the customers that you want to process.
You can also use any of the receivables aging report to determine invoices that need attention.

Steps
1. Access the Perform Customer Invoice Maintenance task.
2. As you complete the first page of the task, consider:
• If your filtered results contain invoices for which you've created related adjustments, Workday
automatically populates them on the next page. You'll still have the option not to apply the
adjustments.
• Select the Include Invoice Adjustments from Other Customers check box to apply adjustments
you created for other customers.
3. Select the button in the Invoice Adjustments column for the invoices that you want to apply the
adjustment to.
4. Use the grid to add the adjustments that you want to apply to each invoice. Select Done to return to the
main grid.
5. When you return to the main grid, Workday displays the total adjustment amount and the number of
unique adjustments on the button in the Invoice Adjustments column.
6. Continue applying adjustments to your invoices, until you're ready to Submit.

Result
Workday routes the adjustment to the account you specify on the Receivables account posting rule.

Next Steps
Access the Find Customer Invoice Maintenance Transactions report to view transaction details.
Related Information
Reference
2022R2 What's New Post: Apply Customer Invoice Adjustment to Multiple Customers
2023R1 What's New Post: Apply Multiple Adjustments to a Single Invoice

Place a Customer Invoice in Dispute

Prerequisites
• Create a customer invoice.
• Security: Process: Customer Invoice - Collections domain in the Customer Accounts functional area.

Context
After creating and issuing a customer invoice, customers might dispute collection on the invoice for various
reasons. In Workday, you can track and manage disputes in the customer profile.

Steps
1. Access the Maintain Customer Invoice Dispute task.
From the Invoice List on the customer profile, select Customer Invoice > Maintain Dispute from the
related actions menu of the invoice you want to place in dispute.
Note: You can place multiple invoices in dispute at once using the Manage Customer Invoices task.
2. (Optional) Select On Hold to place a hold on payment of the invoice.
Workday displays a warning message if you try to change an invoice that is on hold. You can control
whether payments are applied to the invoice with the Do Not Apply Payment to Invoices on Hold
option on the Apply Customer Payment and Record Customer Payment tasks.
3. Select the In Dispute check box.
As you complete the task, consider:
Option Description
Followup Date Enter a date as a reminder if followup is required.
For visibility, this date displays as the first column
of the Invoice List on the Customer profile.
Dispute Date Workday populates the current date by default,
but you can change this date.
Dispute Amount Enter the amount that is in dispute. This can be all
or a portion of the invoice.
Dispute Reason You can enter multiple reasons for disputing the
invoice. Manage the reasons for disputes on the
Maintain Dispute Reasons task.
4. (Optional) Enter Note Content.

Result
Workday displays the invoice as being in dispute for easy identification by collections specialists in these
places:
• On the invoice header with the dispute date.
• On the Invoices and Payments > Invoice List tab, which displays an Invoice Followup Date, if you
entered one, as the first column in the grid.
• On the Customer Invoice Dispute/Collection tab, which includes all dispute details including any
change history on the dispute. This tab displays only for invoices that are in dispute.
Related Information
Reference
The Next Level: Customer Invoice Maintenance

Set Up Security for Credit and Rebill Invoices

Context
To credit and rebill your unpaid customer invoices, you first need to define security groups for creating
invoices and invoice adjustments.

Steps
1. Access the Edit Business Process Security Policy task from the related actions menu of the
Customer Invoice Event business process.
2. In the Who Can Start the Business Process section, select or create security groups for the Create
Credit and Rebill Initiating Action.
3. Access the Activate Pending Security Policy Changes task.
4. As you complete the task, consider:
Option Description
Comment Enter a description for the security policy changes
that you want to apply.
Confirm Select this check box on the next page.

Result
You can access the Create Credit and Rebill task from the related actions menu of your customer invoice.
Related Information
Tasks
Edit Business Process Security Policies

Steps: Credit and Rebill Customer Invoices

Prerequisites
• Create Customer Invoices.
• Configure the Customer Invoice Event business process and security policy in the Customer Accounts
functional area.

Context
When you bill a customer invoice amount incorrectly and you want to create 1 corrected invoice, you can
use the Create Credit and Rebill task to credit the original invoice and create a new rebill invoice.
Note: To correct direct intercompany invoices, either create an invoice adjustment or a new invoice.

2. Select Customer Invoice > Create Credit and Rebill from the related actions menu of a customer
invoice.
The task is only available for invoices with an unpaid payment status. The task isn't available if Workday
created the invoices from billing installments or billable transactions.
As you complete the task, consider:
Option Description
Invoice Lines To Copy When you select to copy all the invoice lines, you
can delete any unneeded invoice lines when you
create the rebill.
Bill-To Customer To prevent users from changing the Bill-To
Customer, create a custom validation.

For all other fields, the considerations remain the same as when you create customer invoices.

Result
Workday creates and applies a credit adjustment to the original invoice and creates a rebill invoice. The
new rebill invoice goes through the same business process approval as new invoices.
If you enabled unique invoice IDs, Workday creates and processes the adjustment with a unique invoice ID
to comply with global accounting requirements.
If not, Workday uses this naming convention so that you can easily track credited and rebilled invoices:
• The credit adjustment appends CR to the original invoice number. If there are multiple credit
adjustments, Workday numbers them sequentially. Example: 9531CR, 9531CR2, 9531CR3.
• The rebill invoice appends RB to the original invoice number. Example: 9531RB. Multiple rebill invoices
follow the same naming convention as multiple credit adjustments.
Related Information
Reference
The Next Level: Customer Invoicing

Concept: Electronic Invoicing

To support global requirements for sending invoices electronically, you can store electronic invoicing
details on the customer profile on Addresses and Contacts > Document Delivery tab.
Once you uptake the functionality, you can use your custom integration to send invoices electronically to
third-party providers or tax authorities.
You can also track when you decide to start electronic invoicing by entering an Electronic Invoicing
Agreement Date for a company.

Electronic Invoicing Acknowledgements

You can receive acknowledgments sent back by third-party provider or tax authorities. The
acknowledgments provide full visibility to the invoice status, processing date, and related messages.
You can use these web services to process the acknowledgments:
• Get Electronic Invoicing Acknowledgments
• Put Electronic Invoicing Acknowledgment

Reference: Ship-To Connection in Customer Invoices

Workday takes the most relevant information first and then moves down the hierarchy of address entries.
It applies those values to ship-to customer and ship-to address fields as applicable. You can override the

default values at any point. These tables detail the behavior for shipping connections on the customer
invoice header and invoice lines.
On the customer invoice header:

Customer Invoice Header Fields Applied Order of Values

Default Ship-To Customer 1. The Ship-To Customer identified as the default
on the Connection Map.

Default Ship-To Address 1. The Default Ship-To Address for the Business
Connection.
2. The most current Ship-To Customer address
with a shipping usage. When there’s more
than 1 address with the same date, Workday
randomly selects one.
3. Finally, Workday uses the primary business
address for the Ship-To Customer on the
Connection Map.

Default Tax Code 1. The Tax Code from Tax Rule for Country if
a rule exists, based on the Default Ship-To
Address you select.
2. The Tax Code specified on the Invoice
Customer, if specified.

On the customer invoice line:

Customer Invoice Line Fields Applied Order of Values

Ship-To Customer 1. Default Ship-To Customer in the customer
invoice header.
2. Ship-To Customer from the Connection Map
defined as default.

Ship-To Address 1. Workday uses Default Ship-To Address from

the customer invoice header for new invoice
lines if the ship-to customers are the same.
2. If the Ship-To Customer on the invoice line
is different from the customer invoice header,
Workday uses the default address on the
Connection Map.
3. Workday uses the primary address for the
invoice line's Ship-To Customer on the
Connection Map that has a shipping usage.
4. Workday uses the highest effective-dated
Ship-To Customer address specified on the
Connection Map that has a shipping usage.
When there are multiples with the same date,
Workday randomly selects one.
5. Finally, Workday uses the primary business
address for the invoice line's Ship-To Customer
on the Connection Map.

Customer Invoice Line Fields Applied Order of Values

Tax Code 1. If there's a Ship-To Customer on the invoice
line, Workday applies the tax code for the Ship-
To Address. It's applicable only when a tax rule
exists.
2. If there's a Ship-To Customer on the invoice
line, and no match on the tax rule, the field
remains blank.
3. Workday pulls the tax code from the billing
customer when you:
• Haven't configured a business connection.
• Don't have a Ship-To Customer specified on
the invoice line.

Reference: Invoice Fields Restricted for Edits

When you enable Restrict Invoice Field Editing functionality in your tenant, Workday prevents you from
editing these fields on customer invoices or adjustments that inherit values from awards or contracts:

Customer Document Report Data Source Fields

Customer Invoice or Invoice Contracts • Bill-To Customer
Adjustment Header • Billable Project
• Company
• Currency
• Ship-To Address
• Ship-To Customer
• Sold-To Customer

Customer Invoice or Invoice Contracts • Analytical Amount

Adjustment Line • Company
• Contract Line
• Deferred Revenue
• Extended Amount
• Quantity
• Quantity 2
• Sales Item
• Ship-To Customer
• Ship-To Address
• Transaction Date
• Unit Price

Customer Invoice or Invoice Awards or Prepaid Schedule • Billable Project

Adjustment Line • Contract Line
• Deferred Revenue
• Phase
• Task
• Unit of Measure
• Unit of Measure 2

When you select the check box, we also prevent you from deleting invoices or invoice adjustment lines on
these transactions:
• Award billable transactions.
• Billing installments.
• Grants.
• Prepaid schedules.
• Revenue.

Reference: Invoicing and Receivables Reports

This table lists a number of useful customer-related reports.

Report Description
Customer Activity View the transactions for this customer or hierarchy that fall within the
Details specified time range. Details include the transaction, date, type, number, due
date, state, increase or decrease, and balance.
Customer Activity View the total transaction amounts for the specified customers that fall within
Summary the specified time range.
Details include:
• Adjustments total
• Beginning balance
• Currency
• Ending balance
• Invoices total
• Payments total
• Refunds total
• Write off total

Customer Balance View the open balance for each customer.

Details
Details include currency, reporting transaction, type, number, and date, due
date, aging days, original amount, payments applied, discounts, write off, and
open balance.

Customer Balance View the currency, invoices total, adjustments, unapplied payments, and
Summary balance for each customer.
Customer Invoices View invoices that might require action. Only returns invoices that are late, on
Requiring Action hold, in collection, or in dispute. Use this report as the basis for custom reports
that meet your specific criteria for invoices that require attention.
Customer Payment View all customer payment activity for your company or company hierarchy.
Detail Enables you to check the status and details of your customer payments. You
can narrow your report results to specific customers, a payment date range,
and other criteria. Example: Payment date, status, type, and amount.
You can also see payment application details including customer invoices
and adjustments paid, write off, and payment amount on account. As related
actions you can cancel, return, or unapply payments as necessary.

Report Description
Customer Statements View customer statements for the specified customer or hierarchy that apply to
the specified company.
Details on the Transactions tab include each transaction date, type, number,
due date, state, increase or decrease, and balance. These transactions are
sorted by currency.
Details on the Aging Report tab include, for each customer, the current
amount and amounts for different ages, depending on the selected aging
group.

Find Customer View all deposits in the specified period.

Deposits
Details on both the Deposits tab and the Payments Included in Deposit
tab include the status, customer, date, bank account, deposit amount, and
currency.

Find Customer View the number, company, status, customer, date, memo, discount date,
Invoices due date, invoice amount, amount due, currency, adjustment, and adjustment
reason for each invoice.
Find Customer
Invoices for Billable For the Billable Projects and Company standard reports, you can save and
Projects refine your searches after Workday displays your results.
Find Customer
Invoices for Company

Find Customer Write- View the status, customer, writeoff date, and amount for each bad debt
Offs writeoff.
View the status, customer, payment date, and amount for each bad debt
writeoff included in a payment.

Report Description
Receivables Aging Note: We plan to retire these 2 receivables aging reports in September 2023.
Receivables Aging Workday recommends that you use the Receivables Aging Detail Standard
Detail Report and Receivables Aging Summary Standard Report.
You can select to run these reports as operational aging based on the invoice
date, or financial aging based on the accounting date by accounting period.
For each customer, view the current amount and invoice amounts for different
ages, depending on the selected aging group. For operational aging, the
reports display outstanding customer receivable amounts in user-defined
aging buckets. Supports up to 6 aging buckets. Workday displays a warning if
an aging group has more than 6 aging buckets.
If you run the aging report as financial aging by accounting period, you can
filter by Ledger Period for Receivables Aging. Select either the current period
or a specific ledger period by ledger year.
Note:
Both the operational and financial aging are cumulative in capturing total
invoice amounts. Operational aging is useful for tracking your receivables from
a collections perspective. Financial aging is helpful for closing your accounting
period.
Example: A customer invoice with an invoice date of 1/31/15, but an
accounting date of 2/1/15, won’t display in a financial aging report for January
of 2015. It displays in February 2015. An operational aging report displays that
invoice in January 2015.
Includes only transactions with an invoice date that is before the selected
report date. The most common aging report displays: Current, 1-30, 31-60,
61-90 and >90.
The Detail report breaks down aging by specific invoice transaction.

Receivables Aging View aggregated past due amounts by company for a given period. When you
Detail Standard Report run the report for Financial Aging, you can specify any reporting date, instead
of defaulting to the last day of a month. You can also report in a different
Receivables Aging
currency than the company currency. Copy these reports to create custom
Summary Standard
reports for using calculated fields to:
Report
• Specify the desired aging periods.
• Report on other invoice attributes such as invoice types, or billable projects.
You can also use the Customer Payment for Invoices report data source
to create custom reports for viewing your receivables aging data based on
payment balances in reporting currency, transaction currency, or company
currency.

Report Description
Sub-Receivables Aging View past due amounts based on on-account and unapplied payments
Customer Invoice balances by company for a given period. It includes information about original
transaction amount, transaction balances in transaction currency, company
Sub-Receivables Aging
currency, and reporting currency, on-account balance in reporting currency,
Customer Payment
and unapplied balance in reporting currency.
On-Account And
Unapplied These matrix reports have required prompts to filter the data by:
Sub-Receivables Aging • Aging Report Mode
Summary Customer • Aging Basis Date
Invoice • Reporting Date
Sub-Receivables Aging • Reporting Currency
Summary Customer • Currency Rate Type
Payment On-Account
Sub-Receivables Aging
Summary Customer
Payment Unapplied

Related Information
Reference
2021R1 What's New Post: Custom Reporting for Receivables Aging
2021R1 What's New Post: Reporting For Receivables Aging
The Next Level: Customize the Receivables Aging Standard Reports

Concept: Taxes in Customer Invoice and Cash Sale Web Services

In Workday, you can retrieve and store tax amounts calculated from billing systems outside of
Workday. When you create customer invoices, invoice adjustments, and cash sale through web services,
Workday enables you to:
• Override Workday tax calculations.
• Import third-party tax details to Workday.

Override Tax Amounts

Note: The functionality described in this section applies to web service versions 41 and above.
You can edit fields in the Taxable Code Application Data element on these web services:
• Import Customer Invoices
• Submit Cash Sale
• Submit Customer Invoice
• Submit Customer Invoice Adjustment
When you don't have Third Party Tax Options enabled on the Edit Company Tax Details task, you
can use the Tax Amount field on the Tax Rate Application Data subelement to override Workday tax
calculations. If you:
• Leave all fields in the Taxable Code Application Data element blank, Workday doesn't override the tax
amount.
• Specify values for the other fields, but leave the Tax Amount field blank, Workday overrides the tax
amount as zero.
Workday always calculates the withholding tax, and you can't override it.
Note: If you edit an invoice, adjustment, or cash sale, or if any of these transactions pass through a
business process review step, Workday recalculates your tax amount. This applies even if you don't make

any changes. Workday recommends that you reconfigure your business process to remove the review step
when populating tax amounts using web services.
Before you call our web services, group the lines on the Tax Code Application Data element, by Tax
Applicability, Tax Code, and Tax Point Date Type.

Third-Party Tax Details

Note: The functionality described in this section applies to web service versions 41.1 and above.
When you enable the Third Party Tax Options functionality from the Company > Edit Company Tax
Details related actions menu on the company profile, Workday populates third-party tax details in the
Customer Invoice Line Third Party Tax Rate Data field on these web services:
• Bulk Import Customer Invoice
• Get Customer Invoices
• Get Customer Invoice Adjustments
• Import Customer Invoice
• Submit Customer Invoice
• Submit Customer Invoice Adjustment
Related Information
Concepts
Concept: Third-Party Tax Service Integrations on page 560

FAQ: Customer Invoices

How do I cancel an unpaid customer invoice? From the related actions menu of an invoice, select
Customer Invoice > Cancel.
You can't cancel a customer invoice if:
• You've applied a customer payment to it. Cancel
any customer payment applied to the invoice
first.
• You've partially written off the invoice.
• The invoice has a credit adjustment against it.
• The invoice is prepaying other invoices.

How do I edit an unsubmitted customer invoice From the related actions menu of an invoice
or adjustment? that you haven't submitted yet, select Customer
Invoice > Edit.
The fields you can change are the same as when
you created the invoice.

How do I change a submitted customer invoice? From the related actions menu of an invoice, select
Customer Invoice > Change. For customer invoice
adjustments, select Customer Invoice Adjustment
> Change from the related actions menu of an
adjustment.
You can also select Customer Invoice > Update
Invoice Lines from the related actions menu of an
invoice. This task makes it easier for you to manage
invoices with large numbers of lines.
You can't change a submitted customer invoice or
adjustment if:

• You've applied a customer payment to it. Cancel

any customer payment applied to the invoice
first.
• You've partially written off the invoice or
adjustment.
• The invoice has a credit adjustment against it.
After you change the invoice, the business process
starts over as if you submitted the invoice for the
first time.
The fields you can change are the same as when
you created the invoice.
Note: There’s an accounting impact if you change
an invoice from a prior period. For the current
period, Workday creates journal entries that reverse
the previous entries and create a new set.

How do I cancel a customer invoice Select Customer Invoice Maintenance > Cancel
adjustment? from the related actions menu of a maintenance
transaction for a customer invoice. Workday then
reverses the operational journal entries and updates
the amount due on the invoice.
This option is available for invoice adjustments that
you created using these tasks:
• Perform Customer Invoice Maintenance.
• Create Customer Invoice using the Auto-
Apply Adjustment to Invoice check box.
You can't cancel a submitted customer invoice
adjustment if:
• You've applied a partial customer payment to
it. Cancel any customer payment applied to the
adjustment first.
• You've partially written off the adjustment.

How do I prevent changes to customer invoices Access the Edit Customer Account Options task,
after the final print run? then select the Prevent Changes to Invoice after
Final Print Run check box.

How do I change an existing customer invoice 1. From the related actions menu of an invoice
that didn't have the third-party tax enabled that's unpaid, select Customer Invoice >
initially, but I later opt in the functionality? Cancel.
2. If you haven’t changed the tax setting, access
the Third Party Tax Options tab on the Edit
Company Tax Details task. You can configure
the setting under:
• Third Party Tax Options section: This
option extends to both customer and supplier
invoices. You must have an integration with
the third-party tax service to import all tax
calculations.
• Customer Invoice Non-Reporting Option
section: This option applies to only customer

invoices. Select the Use 3rd Party Tax

Service check box.
Enter the third-party tax service name in either of
the selection you make.
3. Depending on the use case, copy or create a
new customer invoice.
You can't enable the third-party tax services for an
existing invoice. Such a change would alter the tax
calculations and impact invoice totals. Workday
wants to ensure that the tax calculations are the
same throughout the life of the invoice.

How do I create a customer refund when a When you fully apply a payment but later unapply it,
payment has been fully applied and then Workday enables you to put only a partial payment
unapplied? amount on-account. To create a refund, you must
first create a debit memo to clear the on-account
amount, then create a credit memo to offset the
debit memo. You can now refund the entire amount
through the credit memo.
Example: You want to refund the USD $100.00
that you first applied to a payment and then later
unapplied the entire amount.
1. From the related actions menu of an invoice,
select Customer Invoice > Create Adjustment.
2. Select Debit (Increase Amount Due) option in
the invoice header section.
3. Add an adjustment line with a Revenue
Category, Tax Applicability, and enter USD
$0.01 for the Extended Amount.
4. From the related actions menu of an invoice,
select Customer Invoice > Create Adjustment.
5. Select Credit (Decrease Amount Due)
option in the invoice header section and add
an adjustment line with a USD $0.01 for the
Extended Amount.
6. Access the payment you've unapplied and from
the related actions menu of the payment, select
Apply.
7. On the Apply Customer Payment page:
• Enter USD $99.99 in the Amount to Place
On-Account field.
• Select the debit invoice adjustment for USD
$0.01 from the invoice line.
8. Access the Create Customer Refund task.
Select the customer payment for USD $99.99
under the On-Account Payments section and
the credit invoice adjustment for USD $0.01
under the Invoice Adjustments section.
9. Click Submit to process the refund.

Invoice Netting
Setup Considerations: Invoice Netting
You can use this topic to help make decisions when planning your configuration and use of invoice netting.
It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
When you have external or direct intercompany customers that are also your suppliers, you can net
their invoices and settle the balance as a single payable or receivable amount. Example: A food service
organization sells goods to its customers and also buys certain goods from them, making them suppliers
too.
To use netting functionality, you need to configure the netting rules to establish relationships between the
customers, sponsors, and suppliers for a given company. Workday enables you create invoice eligibility
criteria to determine which customer and supplier invoices can net. This functionality doesn't extend to
multicompany netting.
You can:
• Schedule the netting transactions for automatic processing.
• Print a netting statement that you can add as an attachment to the supplier payment email.
• Customize netting statement layout using the netting Business Intelligence and Reporting Tools (BIRT)
form in Workday Studio Report Designer.

Business Benefits
When you uptake netting functionality, Workday enables you to:
• Eliminate the workaround of calculating the differences between supplier invoice and customer invoice
amounts, records the payment in the journals automatically, and offsets the appropriate transactions.
• Simplify your settlement process by eliminating the need to process supplier and customer invoices
separately, improving efficiency.
• Reduce your operational costs by eliminating multiple bank settlements.
• Improve your financial cash forecasting because you can now appropriately fund relevant accounts.
• Improve your collections risk because you can now offset overall receivables with payables at once.

Use Cases
• Suppliers and customers are the same business entity, but have different profiles who have an
agreement to net the consolidated payables and receivables amount. They can record the invoices and
generate a netting transaction at the end of each period that nets everything.
• Suppliers and customers are the same business entity who have an agreement to net the transactions.
The customer sends an invoice for each sale. The supplier contacts the customer to offset the amount
of the purchase order at the end of the payment term. When the customer agrees, the supplier makes
payment for the offset amount by bank transfer.
• Suppliers and Customer are different business entities and you can net the transaction as per your
agreement.

Questions to Consider

Question Considerations
Do you have contracts or external agreements with Ensure you finalize the netting agreements first
your business entities? as they determine how you configure your netting
rules. For a single company, you can configure
netting rules to establish relationships between
specific:
• Customers and suppliers.
• Award sponsors and suppliers.
• Customers plus sponsors and suppliers.

Do you need to net specific invoices when older You can manage which invoices to net by:
invoices are still open?
• Defining the netting priority of invoices when you
configure invoice eligibility rules.
• Selecting specific invoices and adjustments
when you run the netting process manually.

Can you net any customer and supplier invoice? You can only include those invoices in a netting
transaction that have open balances, even if only
the partial amount is eligible for netting.
Do you have past due invoices that are part of Even when an invoice is part of a netting
dunning? transaction, Workday includes that invoice in the
dunning as long as the netting transaction is in a
draft status. To exclude that invoice from dunning,
first complete the netting transaction.
Does the netting process also include invoices that Netting functionality uses the invoice date to
aren't yet due? determine if an invoice is eligible for netting
transaction. Therefore, it can include invoices that
aren't yet due.
Once the netting transaction is complete, Workday
settles the net payable on the due date of that
invoice as per the payment terms.

Do you have payment discounts as part of your When you net supplier and customer invoices,
payment terms? Workday calculates the payment discount only on
the balance remaining after the netting transaction
is complete.
Do you need to cancel a netting transaction and When you cancel a netting transaction, Workday:
what is the impact?
• Reverts the payment status on the supplier and
customer invoices.
• Reverses the accounting entries for the
transaction amount on the same ledger period
as long as the period is open. Otherwise,
Workday reverses the accounting entries in the
next open period.
• Releases the supplier invoices and customer
invoices. You can then include those invoices in
another netting transaction or a settlement run.

Can you edit a netting transaction? You can edit a netting transaction but can't change
the header information. You can, however, add or

Question Considerations
remove invoices, change invoice amounts, and add
attachments.
Can you net invoices in different transaction You can net in a different transaction currency but
currency? both the supplier invoices and customer invoices
must be in the same currency.
When the netting transaction currency is different
from the invoice currency, the difference between
the 2 exchange rates creates a realized exchange
gain or loss journal entry.

Do you have worktag balancing enabled in your When you define netting rules, Workday enables
tenant? you to specify the worktags, including optional
worktag balancing.
Workday uses the worktag you specify to calculate
interworktag balancing entries when netting
customer and supplier invoices.

Do you need to net invoices originating from When you run netting, Workday enables you to bill
awards? both indirect and direct award costs to the sponsor.
Do you use scheduled settlement runs for Workday recommends that you process your
remittance? netting transactions before the scheduled
settlement runs. Once you start the netting run, the
included invoices aren’t available for settlement
or payment until after the netting transaction is
complete.
Do you need to void a check after the settlement is When you void a check after the settlement is
complete? complete, then the associated invoices become
eligible again for netting.
Can you send netting statements to your suppliers? Workday enables you to print a netting statement
from the related actions menu of the netting
transaction that you can later add as an attachment
to the remittance email.
You can only include those netting statements that
have a print run type of Final.

Do you have a large number of customers that are Workday provides web services to mass load the
also your suppliers? netting rules instead of manually creating 1 rule at a
time .

Recommendations
• Configure your business policy to include a review step. It enables you to correct netting errors, add or
remove invoices before the netting transaction is complete because you can't change the transaction
once it's approved.
• When there are errors in the netting transaction, cancel the transaction and create a new transaction, or
create an adjustment.
• Use detailed descriptive netting rule names to identify the company, customer, and supplier relationship
that you want to net for. It helps you easily identify the rule to use when you create a netting transaction.
• When configuring netting rules, select company hierarchy, or multiple customers and suppliers to
include invoices from several entities within the same 1 company.

• To determine which invoices to net first, specify a netting priority when configuring the invoice eligibility
rules.
• When you create invoice eligibility rules, you can make the rules more restrictive by specifying invoice
type or dates to exclude certain invoices from netting, such as sponsor.

Requirements
• Enable generation of unique IDs for netting transactions at tenant or company level.
• Configure at least 1 netting rule to define the netting relationship between the desired customers and
suppliers for a given company.
• Configure invoice eligibility rules to define which customer invoices can be part of the netting
transaction.
• To attach a netting statement to the supplier remittance email, first settle the netted invoice and
generate a final netting statement.
• To enable direct intercompany invoice netting, access the Maintain Companies as Customers
or Supplierstask, and select Enable Netting for every business entity that you want to be able to
net direct intercompany transactions for.

Limitations
• Netting doesn't include 1099 suppliers.
• You can only net 1 company at a time.
• Netting doesn't include discount calculations. Workday applies the discount to the final balance during
the settlement process.
• You can't net supplier invoices with customer invoices when they have different transaction currencies.
Though, the netting transaction currency can be different than the company currency.
• You can't select the invoices that are part of a settlement run. You can settle the remaining balance on
the invoices after approving the netting transaction.
• Workday doesn't include invoices that have pending activity, are on hold, or in dispute.
• You can't change a netting transaction once it's approved. However, you can create an additional
supplier or customer invoice adjustment when the netting transaction is incorrect.

Tenant Setup
Use the Edit Tenant Setup - Financials task to enable the netting transaction ID sequence generator in
your tenant.

Security

Domains Considerations
Setup: Netting Rule in the Common Financial Enables you to create netting rules.
Management functional area.
Process: Netting Transaction in the Customer Enables you to create netting transactions.
Accounts and Supplier Accounts functional area. Workday uses netting rules and invoice eligibility
rules to retrieve invoices for netting. In Workday, all
netting transactions occur by netting relationships.
You can only view customers and suppliers that
you have access to.

Subdomains for Process: Netting Transaction in Enables you to secures access to a specific
the Customer Accounts and Supplier Accounts netting feature, giving you more control over users
functional area: activities.
• Process: Netting Transaction – Add Attachment

Domains Considerations
• Process: Netting Transaction – Cancel
• Process: Netting Transaction – Change
• Process: Netting Transaction – Reporting
• Process: Netting Transaction – View

Business Processes
Configure the Netting Transaction Event business process to review, edit, and approve netting
transactions.

Reporting
• Use the Find Netting Transactions report to view the:
• Netting transactions completed in a given period.
• Netting rule used for each transaction.
• Number of supplier and customer invoices netted.
You can drill down on all the parameters to access the details.
• Workday provides these report data sources for creating custom reports:
• Netting Customer Invoice Application
• Netting Rules
• Netting Supplier Application Activity
• Netting Transactions
• Netting Transaction for Netting Transaction Printing Run
Workday also includes netting activity in these existing customer and supplier reports:
• Customer Activity Details and Summary
• Customer Balance Details and Summary
• Customer Open Items
• Customer Statements
• Invoice Aging - Composite View
• Receivables Aging Detail and Summary
• Sponsor Statements
• View Customer Invoices
• Payables Aging
• Payables Aging Detail
• Payables to Supplier Balance Reconciliation and Exception Summary
• Retention Payables to Supplier Balance Reconciliation
• Supplier Activity Details and Summary

Integrations

Web Service Considerations

• Get Invoice Eligibility Rules for Netting Use to create, update, or retrieve invoice eligibility
Transaction rules for netting transactions.
• Put Invoice Eligibility Rule for Netting
Transaction

• Get Netting Rules Use to create new netting rules, update or delete
existing rules, and retrieve rules.

Web Service Considerations

• Put Netting Rule

• Cancel Netting Transaction Use to cancel, retrieve, or mass load netting

• Get Netting Transactions transactions in Workday.
• Submit Netting Transaction When you submit the web service, we create an in
progress netting transaction.

The SAF-T Core and SAF-T Norway integration templates support invoice netting and account for netting
in arrears.

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Other Impacts
• The netting transaction period close activity group enables you to categorize operational transactions
and accounting activity. You can close the group independently from procurement or customer
accounts groups.
• When the netting transaction currency is different from the invoice currency, the difference between the
2 exchange rate creates a realized exchange gain or loss journal entry.
Related Information
Concepts
The Next Level: An Introduction to the Netting of Invoices between Suppliers and Customers
2021R1 What's New Post: Invoice Netting for Supplier and Customer Transactions

Steps: Set Up Netting

Prerequisites
• Enable generation of unique IDs for netting transactions:
• At the tenant level with the Edit Tenant Setup - Financials task.
• At the company level with the Edit Company ID Definitions task.
• Configure the Netting Transaction Event business process and security policy in the Customer
Accounts and Supplier Accounts functional areas.
• Review setup considerations for invoice netting.

Context
You can configure invoice netting to calculate a single net balance payable or receivable for third-party
companies that are both a customer and a supplier. This process eliminates the workaround of calculating
the differences between supplier invoice and customer invoice amounts, simplifies settlement, reduces
operation costs, and improves collections risk.
To set up invoice netting, you need to:
• Configure netting rules to establish relationships between customers, sponsors, and suppliers for a
company or company hierarchy.
• Define invoice eligibility rules to identify which customer invoices can net against which supplier
invoices.
When you create a netting transaction, Workday:
• Automatically calculates Value Added Tax (VAT) on a payment when applicable.

• Excludes on hold or in dispute invoices.

• Doesn't net invoices across different companies or direct intercompany invoices.

Steps
1. Access the Create Invoice Eligibility Rule for Netting Transaction task.
• Specify a value for # of Days Invoices are Open before Netting to determine the period from when
to retrieve the open invoices. When you schedule a netting transaction, calculate the days open from
the scheduled date.
• When you have an uneven amount of customer and supplier invoices, Workday uses the Invoice
Netting Priority to determine which invoices will net first.
Security: Setup: Netting Rules domain in the Common Financial Management functional area.
2. Access the Maintain Netting Rules task.
Define which customers or sponsors can net against which suppliers for a given company and select
an invoice eligibility rule. Select a company hierarchy to be able to net across all companies in that
hierarchy.
Once a netting rule is In Use, you can deactivate the rule but can't delete it.
Security: Setup: Netting Rules domain in the Common Financial Management functional area.
3. Create Netting Transactions on page 703.
4. (Optional) Access the Schedule Netting Transaction task.
Select a schedule based on your netting recurrence requirements. Workday populates the Transaction
Date and the Invoice Date on or Before fields on the netting transaction based on the option you
select:
• Daily Recurrence
• Weekly Recurrence
• Monthly Recurrence
Security: Process: Netting Transaction domain in the Customer Accounts and Supplier Accounts
functional areas.
5. Access the Create Netting Statement Print Layout task.
Security: Setup: Netting Rules domain in the Common Financial Management functional area.
6. Access the Print Netting Statement task from the related actions menu of a netting transaction to print
the netting statement.
• You can print only 1 Final statement for each netting transaction. The print run type becomes final
after you approve the netting transaction.
Security: Process: Netting Transaction and Process: Netting Transaction – Reporting domains in the
Customer Accounts and Supplier Accounts functional area.
7. (Optional) Set Up Remittance Release Event for Suppliers on page 1474
To attach netting statements to your supplier emails, add the Netting Statements report field to the
Attachment(s) section of the Remittance Release Event business process.
Related Information
Concepts
Concept: Accounting and Netting Transactions on page 707

Create Netting Transactions

Prerequisites
• Configure the Netting Transaction Event business process and security policy in the Supplier Accounts
and Customer Accounts functional areas.

• Create Invoice Eligibility Rules for netting transactions.

• Configure Netting Rules.
• Configure these domain security policies on 1 or both functional areas according to your business
needs:
• Security: Process: Netting Transaction domain in the Supplier Accounts and Customer Accounts
functional areas.
• Security: Set Up: Netting Rules domain in the Common Financial Management functional area.

Context
You can't use this feature to net direct intercompany transactions, instead see Create Direct Intercompany
Netting Transactions on page 705.
You can use netting transactions to net the amount payable and amount receivable on these documents:
• Customer invoice
• Customer invoice adjustment
• Supplier invoice
• Supplier invoice adjustment
Invoices and adjustments are eligible to net based on the netting rules and invoice eligibility rules
configured. Both rules apply to customers and suppliers on a company or company hierarchy. Workday
displays invoices:
• With negative and positive balances.
• Based on the days you configure on the # of Days Invoices are Open Before Netting field on the
invoice eligibility rule. From the field, we populate and lock down the Invoice Date On or Before field
on the transaction.
We don't display invoices:
• With a balance of zero.
• From suppliers marked for 1099 MISC reporting.

Steps
1. Access the Create Netting Transaction task.
2. Select the Currency. We populate the field from the Company, but you can change it to view and net
invoices in a different currency.
We support multicurrency on netting transactions, where the currency on the invoices is different from
the ledger currency. For a valid netting transaction, both supplier invoices and customer invoices
selected must be on the same currency.
3. Select the Netting Rule that you want to apply to the transaction.
4. Enter a Transaction Date.
Enter a date on or after the invoice date.
5. (Optional) For tenants with Balancing Worktag configured:
• Select the Balancing Worktag on the netting rule to calculate interworktag balancing entries when
you net customer and supplier invoices that have different balancing worktags.
• Select the Optional Balancing Worktag on the netting rule to calculate interworktag balancing
entries.
6. From the Supplier Invoices and Customer Invoices tabs, select the invoices or adjustments that you
want to net. Consider that selecting an invoice doesn't guarantee netting.
You're able to net invoices based on:
• The available total supplier invoice amount and customer invoice amount.
• The invoice eligibility rules. The oldest invoice nets first, based on invoice date.

Result
After you approve a netting transaction, we generate accounting that reverses the accounts payable and
accounts receivable balances of the individual supplier invoices and customer invoices.

Next Steps
• Settle any balance due left on the invoices after you netted.
• Print a netting statement.
• Send a netting statement along with the payment remittance information to the supplier.

Create Direct Intercompany Netting Transactions

Prerequisites
• Access the Maintain Companies as Customers or Suppliers task and select Enable Netting for
all companies that you want to include. You can't net direct intercompany transactions for a company
unless you select Enable Netting.
• Create intercompany transactions.

Context
When you have companies that issue direct intercompany customer and supplier invoices, you can net the
total amount and settle all their transactions at once.
Workday can't net negative amounts, so you must settle as the company that has a net payable amount.
You can check which company owes more using the Intercompany Work Area report.
If you're using Auto Record Intercompany receipt, Workday automatically generates a receipt for the
intercompany payment. Otherwise, you can create one manually.

Steps
1. Access the Create Settlement Run Task.
2. Select the company you want to net for that owes a net payable amount.
3. Leave the Intercompany Payable/Receivable Transactions field blank, to include all transactions
needed for netting.
4. Set the Intercompany Invoice Type to Direct.
5. Select the transactions you want to net.
Workday displays amounts due to the company you're settling for as positive amounts, and amounts
due from the company as negative amounts.
6. Process the settlement run.
From the Background Process in Progress View, you can use the Payment Groups and
Intercompany Items tabs to review the transactions included in the settlement run.
7. (Optional) To record an intercompany receipt for the settlement run: access the Record Intercompany
Receipt task, and:
a) In the Company Receiving Payment field, enter the company that was owed a net receivable
amount in the settlement run.
b) In the Companies making Payments field, enter the company that owed a net payable amount in
the settlement run.
c) Set the Intercompany Invoice Type to Direct.
d) Select the intercompany payment from the settlement run.
Related Information
Reference
2023R2 What's New Post: Direct Intercompany Invoice Netting

Create Custom Business Form Layout for Netting Statements

Prerequisites
• Security: Custom Report Creation in the System functional area.
• Security: Setup: Netting Rules domain in the Common Financial Management functional area.

Context
Workday delivers a standard business form layout for netting called Netting Transaction Printing Form.
If the delivered business form layout doesn't meet your needs, you can create your own custom business
form layouts. You can associate them with netting statement print layouts and in some cases, replace a
delivered layout using Report Designer in Workday Studio.

Steps
1. Create your own XSL stylesheet or design a business form layout using Report Designer in Workday
Studio.
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 netting statements before they expire in Resulting
Document Expiration Offset (in days). The maximum value allowed is 25,000.
Note: Ensure that the expiration offset you specify here complies with your organization's document
retention policy. Workday automatically deletes documents after the offset number of days. You
can't recover these documents.
d) Select a business form layout from one of these prompts:
• XSL Attachment
• Report Design
Use Workday Community to download the netting statement rptdesign file at https://
community.workday.com/node/721452.
e) Select a Custom Report.
f) Add the Token Name for the company logo and signature as follows:
company_logo
po_signature
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 netting statement print layout.
a) Access the Create Netting Statement Print Layout task.
b) Select the custom form you created for the Custom Business Form Layout for Netting
Statement.
c) Check the applicable Include Company Logo and Include Signature options.
5. (Optional) Include financial messages for Netting Statement business documents.

Result
When you print netting statements, Workday uses the custom business form layout.

Concept: Accounting and Netting Transactions

Netting transactions enable you to net the amount payable and amount receivable on supplier and
customer invoices and adjustments. Workday generates accounting for the transaction amount and creates
reversals of accounts payables and accounts receivables.
We display a simultaneous summary at the header while you create the transaction:

Field Description
Net Payable and Net Receivable The difference between the Total Payable and Total
Receivable amounts.
Total Payable The total amount to net from supplier invoices.
Total Receivable The total amount to net on customer invoices.
Transaction Amount The netting transaction amount, that displays as
total debits/credits in the journal entry.

When a netting transaction is in progress or in draft status:

• We record the netting rule and invoice eligibility rule applicable when you submit or save for later.
• You can't select the invoices on a settlement run. You can settle the remaining balance on the invoices
after approving the netting transaction.
When you submit or save for later a netting transaction, we lock down the selected invoices to prevent
them from being available:
• For another netting transaction.
• For a settlement run.
• To cancel or change.
When you approve a netting transaction:
• We mark the supplier or customer invoice or invoice adjustment as paid or partially paid accordingly.
• We generate accounting for the transaction amount and create reversals of accounts payables and
receivables ledgers of the supplier and customer invoices respectively.
• Where the exchange rate differs from the exchange rate for the invoice (at creation), the difference
creates a realized exchange gain or loss journal entry.
• We populate and display the Accounting Date on the View Accounting for Netting Transaction
report.
• In tenants with balancing worktags configured, we generate the corresponding accounting entries. You
can specify the balancing worktag in the netting rule. Workday creates due to and due from entries for
the balancing worktags in the netting transaction journal.
• We don’t display the Adjust Accounting related action on supplier invoice documents included in a
netting transaction that is fully or partially paid.
When you cancel a netting transaction, we:
• Revert the payment status on the supplier and customer invoice documents.
• Reverse the accounting entries on the same ledger period as long as the period is open. If the ledger
period closed, we reverse the accounting entries in the next open period.
• Populate and display the Cancel Accounting Date on the View Netting Transaction report.
• Release the supplier or customer invoices and invoice adjustments selected. You can then include the
invoices in another netting transaction or settlement run.
We hide suppliers with Segmented Security configured. However, you can select the netting rule related to
the supplier or search for the invoices, and create a netting transaction.

Related Information
Concepts
Setup Considerations: Invoice Netting on page 697

Reference: Netting Rules

You can configure Netting Rules to define which customer invoices and supplier invoices can net against
each other. You can maintain rules between customers and suppliers for 1 or more companies or company
hierarchy. Workday identifies the invoices to net using the criteria in the Netting Rule and Invoice Eligibility
Rule.

Option Description
Rule Name Enter a unique name for each netting rule.
Company Any company or company within the hierarchy that
you specify on the netting rule can initiate a netting
transaction using that rule.
Customer You can't select companies that operate as
customers or suppliers on netting rules.
You can select customers and sponsors.

Supplier You can't select supplier invoices from suppliers

with 1099 MISC reporting.
Balancing Fund This field displays for tenants with worktag
balancing enabled. Select the worktag used to
calculate interworktag balancing entries when
netting customer invoices and supplier invoices that
have different balancing worktags.
Optional Balancing Worktags This field displays for tenants with optional worktag
balancing enabled. Select the Optional Balancing
Worktag to generate due to and due from entries to
balance the netting transaction.
In Use Once a netting rule is In Use, you can mark it
inactive, but can't delete it.
Inactive Select to block the netting rule for future netting
transaction.

Related Information
Tasks
Steps: Set Up Netting on page 702

Print and Email Invoices

Steps: Set Up Email for Customer Invoice Documents

Context
After printing customer invoice documents, you can email the customer invoice document on its own, or
with its associated attachments. To make emailing a seamless process, you need to:
• Enable emailing in your tenant.
• Enable attachments for email in your tenant.
• Enable automatic emailing of invoices.

Workday automatically sends emails to the primary contact of a customer. When you want to email
documents to specific billing contacts, and use document delivery types other than the default, complete
these steps to configure your environment.
• Configure document delivery types for a given delivery method.
• Create document delivery rules to map the delivery type to desired integration system if you’ve one.
• Assign customer documents to billing contacts of that customer.
• Assign document delivery type to customer documents on the customer profile.

Steps
1. (Optional) Set Up Mail Servers for Email Notifications.
2. Access the Edit Tenant Setup - Notifications task.
For the Custom Business Process Notifications row of the Business Processes parent notification
type, select Immediate Email in the Default Notification Channels field.
Security: Set Up: Tenant Setup - BP and Notifications in the System functional area.
3. Access the Edit Tenant Setup - System task.
In the System Setup section, select the Allow Attachments within Emails check box.
Security: Set Up: Tenant Setup - System in the System functional area.
4. Steps: Configure Workflow Notifications to Email Customer Invoices and Attachments on page 710.
5. (Optional) Access the Maintain Document Delivery Types task.
Create document delivery types and associate them to the desired Workday delivered document
delivery methods.
When your Delivery Type is associated with the Delivery Method of Integration, set the Document
Types to only Customer Invoice.
Workday automatically associates the Delivery Method of Mail and Email to Delivery Types of Mail
and Email respectively. You can't change these default settings or set them to inactive.
Security:
• Set Up: Customer Accounts domain in the Customer Accounts functional area.
• Set Up: Sponsor Accounts domain in the Grants Management functional area.
6. (Optional) Access the Maintain Document Delivery Rules task.
For electronic invoices, create document delivery rules and map the Document Delivery Type to the
desired Integration System.
To apply the external tax codes to electronic invoices, specify the External Tax Code List for the
integration system.
Workday displays the document delivery details on the View Integration Document Delivery Rule
report.
Security: Set Up: Customer Accounts domain in the Customer Accounts functional area.
7. (Optional) When electronic invoices have a third-party tax code impact, create external tax code lists,
and map them to internal tax codes in Workday.
See Steps: Create External Tax Codes and Map to Internal Tax Codes on page 713.
8. (Optional) Set Up Bill-To Contacts on page 647.
Configure billing contacts and then the document delivery for a given customer so that they can receive
the customer invoice documents.
When you don't configure billing contacts, Workday sends the email to the primary contact.

Next Steps
Print customer invoices and email them.

Related Information
Tasks
Steps: Print and Email Customer Invoices on page 713
Reference
The Next Level: Customer Invoicing
Reference: Email Recipients for Document Delivery on page 718

Steps: Configure Workflow Notifications to Email Customer Invoices and Attachments

Prerequisites
Configure these business processes and security policies in the Customer Accounts functional area:
• Customer Invoice Email Event
• Consolidated Invoice Email Event

Context
To review, approve, and email invoices to customers, you can configure the workflow notifications of the
business process.
Workflow notifications enable you to define:
• Email template.
• When to trigger the email event.
• Conditions and rules for emailing to suit your business needs.
• Security groups that can access this task.
• Email options and recipients.
• Email or SMS message.
• Attachments behavior.

Steps
1. Access the Customer Invoice Email Event business process definition for your company.
2. On the Notifications tab, under the Custom Notifications section, select Business Process > Edit
Notification from the related actions menu of a custom notification.
3. As you complete the task, consider:

Override Email Template Specify your custom invoice email template that
defines the appearance and content of your email.
You can also create segment-based security
groups so that only authorized users are able to
create or edit templates.
Trigger section Specify the status of the business process and
when you would like to launch the event.
Conditions and Rules You can configure rules to determine whether
Workday should send the notification or not and
when.
Repeat On Specify the appropriate instance from the
Customer or Customer Invoice options. By default
Workday sets this prompt to Customer Invoices to
Be Emailed .
When you leave this field blank, Workday sends
all invoices to everyone.

Recipients By default, Workday sets the prompt to Customer

Contacts for Invoice. You can also specify
additional emails under the Email Addresses
section. Workday sends emails to the bill-to
contacts you define on the customer profile, as
well as any additional email addresses you enter
here.
Groups Specify a security group that can execute this
task.
Email Option Specify an option for emailing:
• Default: Sends an email to both home and
work email address for a billing contact.
• First Work, Then Home: Workday first sends
a notification to the email address that you've
set to Work. If you don't set any email address
to Work but have at least 1 email address set
to Home, then Workday sends the notification
to the home email address instead.
• Home Only: Workday sends 1 notification
only to the email address that you've set to
Home. If you haven't defined an email address
for home, then Workday doesn't send the
notification. When you've more than 1 email
set to Home, Workday sends the email to the
one defined as Primary home email address.
• Work Only: Workday sends 1 notification only
to the email address that you've set to Work. If
you haven't defined an email address for work,
then Workday doesn't send the notification.
When you've more than 1 email set to Work,
Workday sends the email to the one defined as
Primary work email address.

4. To provide an invoice attachment along with the printed PDF file, specify an option under the
Attachments section.

Attachment Options Attachment Flag Specified on Result

an Invoice
Attachments Linked to Invoice NA When you select this option,
Workday ignores the attachment
flag you specify on the
invoice. Instead, it includes all
attachments associated with the
customer invoice in the email.
Select this option if you generate
your invoices using third-party
software.

Attachments Not Provided To NA Workday doesn't provide any

Customers direct or referenced attachments
to customers.

Attachment Options Attachment Flag Specified on Result

an Invoice
PDF for Printing Run Business Flags specified on customer Includes all attachments in the
Process Notifications invoices: PDF file when you print the
invoice.
• Provide to Customer is True
• Print with Invoice is True

Attachments provided To Flags specified on customer Prints all the invoices in 1

Customers But Not Included In invoices: PDF file and includes all
Printing Run attachments separately in
• Provide to Customer is True
the email notification for each
and • Print with Invoice is False invoice.
PDF for Printing Run Business
Process Notifications

Attachments Not Provided To • Provide to Customer is True Prints an invoice and includes
Customers • Print with Invoice is True only those attachments in the
resulting pdf that have the Print
and • Print with Invoice is False
with Invoice flag on.
PDF for Printing Run Business
Workday sends those
Process Notifications
attachments separately in the
email notification that don't have
the flag on.

Attachments Not Provided To Flags specified on customer Prints all invoices in 1 PDF
Customers invoices: file and includes attachments
flagged for internal purposes
and • Provide to Customer is
separately in the email
False
PDF for Printing Run Business notification.
Process Notifications • Print with Invoice is False

The attachment output is dependent on the flag that you specify while adding an attachment to a given
invoice.
5. (Optional) For consolidated invoices, access the Consolidated Invoice Email Event business process
definition for your company and edit the notifications.
Specify an option under the Attachments section:
• Attachments Linked to Customer Invoices: Workday emails attachments associated with the
individual customer invoices as separate files in the email.
• PDFs for Individual Customer Invoices: In addition to the consolidated invoice PDF file, Workday
emails the individual customer invoices in 1 PDF as a separate file.
• PDF for Printing Run Business Process Notifications: Sends the Workday invoice as a PDF file.
Related Information
Concepts
Concept: Business Processes
Concept: Email Templates
Tasks
Configure the Customer Profile on page 646
Steps: Configure Business Process Definitions
Create Custom Notifications
Reference
FAQ: Business Processes

Workday 32 What’s New Post: Print Attachments with Customer Invoice

Reference: Edit Tenant Setup - Notifications
2023R1 What's New Post: Send Emails From Multiple From Addresses
The Next Level: Delivering Customer Invoices with Confidence

Steps: Create External Tax Codes and Map to Internal Tax Codes

Context
Various countries prescribe standard tax codes and tax exempt reason codes in electronic invoices to
bypass different national tax code standards. Workday enables you to:
• Create a tax code list of external codes for a given country.
• Add subclasses for reason codes and exemption codes associated with each tax code.
• Map the external codes to internal tax code values.
• Configure document delivery rules so that you can map the document delivery types to desired
integration system and external tax codes.
With this configuration, you can easily adjust the codes when tax rules change and send electronic
customer invoices with external tax data to different third parties in European countries.

Steps
1. Access the Create External Tax Code List task.
Create a list of external tax codes and tax code subclassifications for a given country. The
subclassifications map to tax applicability in Workday. Ensure to validate that all external tax codes are
correct.
Security: Set Up: Tax domain in the Common Financial Management functional area.
2. Access the Maintain External Tax Code List Mappings task.
• Specify the external tax code list you configured along with associated subclasses and map it to
internal tax values.
• To use this external tax code list in an integration system, ensure to enable the tax-mapping attribute
on that integration. After you enable the attribute in your integration system, Workday no longer uses
the internal transaction tax codes for electronic customer invoices.
Security: Set Up: Tax domain in the Common Financial Management functional area.

Next Steps
Workday displays the details of your tax code configurations on these reports:
• View External Tax Code List
• View External Tax Code List Mappings
Related Information
Reference
2022R1 What's New Post: Dynamic Electronic Invoice Connector
2022R1 What's New Post: Tax Mapping for Electronic Invoices

Steps: Print and Email Customer Invoices

Prerequisites
• Enable email notifications and attachments at the tenant level. See Steps: Set Up Customer Invoices on
page 663.
• Configure the Customer Invoice Email Event business process and security policy in the Customer
Accounts functional area.

• Configure recipients primary mailing address and email addresses on the customer profile.
• Configure document delivery options for the customer.

Context
Workday enables you to print customer invoices as PDF files and then email them to the customers or use
standard mail for paper invoices. You can also create a schedule to automate the print and email process
as a recurring job. Workday only print invoices that 's part of a given customer security segment.
Before printing a customer invoice, ensure that you have the desired print layout configured. Workday
provides various BIRT layouts for invoice documents. You can also create a custom layout.

Steps
1. (Optional) Create a custom form for the print layout with customized printing report, company logo, or
messages before printing the customer invoice document.
See Steps: Create Custom Invoice Print Layouts on page 715.
2. Access the Edit Customer Invoice Layout Rule task.
Specify the printed filename options, and create rules to map the business form layouts to invoice types
for the desired company.
To exclude the automatic prefix in the printed filename, select the Remove Adjustment Prefix check
box.
Security:
• Set Up: Customer Accounts domain in the Customer Accounts functional area.
• Set Up: Sponsor Accounts domain in the Grants Management functional area.
3. Access the Print Customer Invoices task.
• To limit the size of invoices list, select a company, invoice status, and additional print criteria. You
can only view the 20,000 most recent invoices.
• Select the Group Invoices check box to group invoices into a single grouped PDF file. Workday
only includes invoices with a regular mail delivery method or with undefined delivery type.
• Select the Include Attachments for Grouped Invoices check box to include invoice attachments
in the single grouped PDF file. Workday only includes invoices defined for standard delivery. When
the grouped invoice PDF file exceeds the 500 MB limit, Workday splits it into multiple PDF files.
When a single customer invoice includes attachments exceeding 500 MB limit, Workday doesn't
include that invoice in the printed PDF.
• Select the invoices that you want to print on the Customer Invoices Eligible for Email tab. After
Workday generates the PDF files, click Email Customer Invoice to send selected invoices to
customers. You can print or email up to 10,000 customer invoices at one time.
Security: Reports: Customer Documents domain in the Customer Accounts functional area
4. (Optional) Access the Schedule Print Customer Invoices task .
Set up a schedule to automate the print process and email. Select Auto Start Email Process check
box to email the invoices after the print run completes.
Run the Scheduled Future Processes report to edit, delete, or suspend the print schedule.
Security: Reports: Customer Documents domain in the Customer Accounts functional area.
5. (Optional) To print and email the customer invoice automatically after you generate a customer invoice
in Workday, access the Customer Invoice Event business process.
This business process inherits the security of the initiator enabling automation of print and email
process. Example: When an AR Specialist creates the invoice and sends it for approval to a Project

Manager or a Cost Center Manager, the business process uses the security of the AR Specialist to
launch the print and email services. Ensure to grant the appropriate permissions.
a. Add a new step, set the Type to Service, and Specify to Print Customer Invoice Service.
To print the invoice with a print run type of Final, add this service step after the approval step and set
the approval step as final. When you have another step instead of the approval step, make sure to
set it as Completion.
b. For electronic invoicing, Set the Type to Service and Specify to Electronic Invoicing via Document
Delivery Rules. When you have an Email service step after this step, ensure to grant the Integration
Permissions for the Access Customer (segmented) domain. Also, grant Get and Put access to these
domains:
• Integration Event
• Process: Electronic Invoices
c. To email a customer invoice PDF file automatically as soon as you print the document, add a new
step and set the Type to Service and Specify to Email Customer Invoice service.

Result
Workday prints the invoices and emails them to the selected customers.

Next Steps
• You can view the print details on these reports:
• Find Customer Invoice Print Runs
• Customer Invoice Printing Report
• View Customer Invoice Printing Run Group
• You can also print and email dunning letters and customer statements.
Related Information
Concepts
Concept: Security Groups
Tasks
Steps: Set Up Email for Customer Invoice Documents on page 708
Edit Business Process Security Policies
Reference
Reference: Security Group Types
2023R1 What's New Post: Send Emails From Multiple From Addresses
2022R2 What's New Post: Customer Invoice Email and Print Process
2022R2 What's New Post: Include Invoice Attachments in Printed PDF

Steps: Create Custom Invoice Print Layouts

Prerequisites
• Download and install Workday Studio and Report Designer.
• Become familiar with Workday Studio, review Workday Studio documentation, and complete Report
Designer tutorials from the Workday Community.
• Include .rptdesign file type in Edit Tenant Setup - System task.

Context
Workday delivers a customer invoice BIRT layout and a standard printing report with the necessary fields
for printing a customer invoice. If the Workday delivered layout and the report don't meet your business

needs, you can customize the layout. You can also copy the standard report and add additional fields that
you want to include in the printed customer invoice.
Before you create a custom business form, you must first customize the layout and the report in Workday
Studio, then download and save it.

Steps
1. Download the report design attachments from Workday Community and upload it in Workday Studio
to make a custom copy.
2. (Optional) To create a copy of the standard delivered print report for adding additional fields, access the
Copy Standard Report to Custom Report task.
a) Select the Customer Invoice Printing Report - Report Design report from the Standard Report
Name prompt and rename the report.
Workday automatically sets the Data Source prompt to Customer Invoices for Print Run.
b) Add additional fields to the report. You can also specify output and advanced options for the report.
Workday automatically adds the Print Run prompt. If you add other prompts or filters, the report
might not provide desired results.
c) On the Share tab, click the appropriate share option and save the copy of the report.
Security: The Custom/Standard Report Copy domain in the Tenant Non-Configurable functional area.
3. To import the data from the custom print report into Workday Studio, access the custom report.
a) From the related action off your Customer Invoice Printing Report - Report Design report, scroll
down and select Web Service > View URLs.
If prompted, enter your sign-in credentials.
b) Select Workday XML > REST > Workday XML.
When the XML source code displays, use the Save Page As browser option to save the file with an
.XML extension to your local drive. This option saves the schema for invoice documents that you'll
generate from your custom report. Don't copy and paste the text from the browser.
c) Select Workday XML > XSD > XSD.
When the XSD source code displays, use the Save Page As browser option to save it as an XSD
file to your local drive.

4. To customize the print layout, access the Create Business Form Layout task.
Associate your custom report with all the desired fields to the copy of the report layout that you
downloaded from Workday Studio.
a) Select the Active check box to make this form available for use.
b) In the Resulting Document Expiration Offset (in days) field, specify the number of days to retain
the reports before they expire. The maximum value allowed is 25,000 days.
Note: Ensure that the expiration offset you specify here complies with your organization's document
retention policy. Workday automatically deletes documents after the offset number of days. You
can't recover these documents.
c) In the Report Design prompt, select Create > Create Custom Business Form Report Design
Attachment.
Select the report design layout that you downloaded from Workday Community or the custom design
you created in Report Designer.
d) In the Custom Report field, select the delivered Customer Invoice Printing Report - Report Design
or your custom report.
e) Add company_logo for the Token Name.
When you've multiple companies and you want to use different logos, create a separate layout for
each company.
Use the View Business Form Layout report to view the tokens used in a specific customized
business form layout.
Tokens enable you to store images easily for use on BIRT report designs compared to embedding
an image into the BIRT report design.
You can find this token in your XSL stylesheet or Report Designer business form layout.
Security: The Custom Report Creation domain in the System functional area.
5. (Optional) Add a Logo to Customer Documents on page 717.
6. (Optional) Include Messages in Customer Invoice Documents on page 718.

Next Steps
Create rules to map your customized invoice print layouts to invoice types for the desired company.
Related Information
Reference
BIRT US Customer Invoice
Customer Invoice

Add a Logo to Customer Documents

Prerequisites
• Create a business form layout for customer invoice document.
• Security: Custom Report Creation domain in the System functional area.

Context
When you want to use a custom logo on the printed invoice documents, Workday enables you to add the
desired company logo to a given business form layout.

Steps
1. Access the Configure Business Form Layout task.
2. Select the delivered Customer Invoice Printing Form layout or a custom layout form.

3. Upload an image of the company logo.

Workday uses this logo only for the selected business form layout since you can apply only 1 logo for
each layout. When you want to configure a different logo for multiple companies, create a layout for
each company, and then add the logo to each layout.

Result
When you print and email customer invoices, statements, or dunning letters, Workday includes the
company logo and signature images in the PDF file.

Include Messages in Customer Invoice Documents

Prerequisites
Security: Set Up: Financial Messages domain in the Common Financial Management functional area.

Context
You can create, edit, or delete messages, alerts, and include them in the customer invoice document you
print in PDF format.

Steps
1. Access the Maintain Financial Message task.
If you don't select an option from the Restrict Type to list, Workday selects the message for all
documents that support messages. Examples:
• Customer statements.
• Purchase orders.
• Supplier contracts.
2. Specify the Financial Message Name.
3. Enter the Financial Message.
Example: Please submit your payment by the end of the month.

Result
You can use messages on the printed customer invoice documents.

Reference: Email Recipients for Document Delivery

You can configure document delivery of various document types on the Addresses and Contact >
Document Delivery tab of the customer profile. Workday emails the customer invoice documents to the
customer contacts based on:
• The option you select from the Email Recipients prompt for each document type.
• The document type that you specify for each contact when you configure the bill-to contacts.
• When you don't specify a document type or the email recipient, Workday sends the email to the
primary contact.
• You can only set customer invoice as document type for your bill-to contact.
To email:
• Specify an email address on the Addresses and Contact > Contact Information tab of the customer.
• The document type must have the document delivery method of Email.

Email Recipients Description

All Customer Contact Emails Sends email to all email addresses of the contacts
defined on the Addresses and Contact >
Customer Contacts tab of the customer profile.
All Parent Customer Contact Emails Sends email to all contacts defined for the parent
customer that you specify on the Overview >
Summary tab of the customer profile.
When you select this option but don't specify a
parent on the customer profile, Workday doesn't
send an email.

All Remit-from Customer Contact Emails Sends email to all contacts defined for the remit-
from customer that you specify on the Overview >
Payment Details tab of the customer profile.
When you select this option but don't specify
a remit-from customer on the payment details,
Workday doesn't send an email.

Customer Primary Email Sends email only to the primary email address
set on the Addresses and Contact > Contact
Information tab of the customer profile.
Parent Customer Primary Email Sends email only to the primary email address
set on the parent customer that you specify on
Overview > Summary tab.
Remit-from Customer Primary Email Sends email only to the primary email address
defined for the remit-from customer that you specify
on the Overview > Payment Details tab.
Statement Contact Emails Sends email to all the customer contacts that
have the Email Document option set to Customer
Statement when you configure your Bill-To
Contacts.
Bill-To Contact Emails on Invoice Sends email to the Bill-To Contact you specify on
the invoice header when you create a customer
invoice.
Invoice Contact Emails Sends email to all the customer contacts that
have the Email Document option set to Customer
Invoice when you configure your Bill-To Contacts.
Dunning Letter Contact Emails Sends email to all the customer contacts that have
Email Document option set to Dunning Letter
when you configure your Bill-To Contacts.

Related Information
Tasks
Set Up Customer Overview on page 638
Set Up Customer Contacts and Addresses on page 642

Example: Configure Customer Contacts for Email

This example illustrates how to set up customer contacts so that you can email the invoice documents to
them easily.

Context
As a Setup Administrator, you’ve created a customer profile in Workday. You now want to set up bill-to
contacts so that you can automatically email various documents after you print them. When you don't
configure billing contacts, Workday sends the email to the primary contact.

Prerequisites
• Configure your tenant for email and attachments.
• Configure the Customer Invoice Email Event business process to define conditions and rules for
emailing and attachments.
• Ensure that your tenant has the default email and mail document delivery types along with the delivery
method.
• For electronic invoices, create document delivery rules to map the integration document delivery type to
the desired integration system and an external tax code list if applicable.
• Security: Set Up: Customer Contacts domain in the Customers functional area.

Steps
1. From the related actions menu of a customer, access Addresses and Contacts > Customer
Contacts.
Add new bill-to contacts or edit the existing ones.
2. Click Add
3. Select Country of the contact and specify the First Name and Last Name.
4. Click Contact Information.
5. Click Email > Add and select or enter these values:

Field Value
Email Address [email protected]
Type Work
6. Click OK and Done.
7. Click Set Up Bill-To Contacts and enter or select these values:

Field Value
Primary Bill-To Contact Select the check box to set this contact as your
primary contact.
You can have only 1 primary contact. When you
select this check box, Workday automatically:
• Adds Customer Invoice to the Email
Documents option.
• Selects the Default Bill-To Contact check
box.

Default Bill-To Contact • Select this check box to set your contact as
default bill-to contact.
• The default contact doesn't have to be a
primary contact.

Email Address Workday automatically populates this field based

on the data entered during the customer creation
process.

Field Value
Email Documents • Customer Statement
• Dunning Letter
Workday sends the customer statement and
dunning letters to this contact. You can select
single document type for a specific contact.

8. Click OK and Done.

9. Click Addresses and Contacts > Document Delivery.
10.Click Edit.
11.Enter or select these values:

Document Delivery Type Email Recipients

Customer Statement Email Statement Contact Emails
Customer Invoice Email Bill-To Contact Emails on
Invoice
Dunning Letter • Email Dunning Letter Contact Emails
• Mail

You can select 1 or both options for delivery type.

The document settings for customer invoices also apply to consolidated customer invoices.
12.Click OK and Done.

Result
When you print and email customer statements, Workday emails the PDF files to those contacts that you
defined for receiving customer statements.

Next Steps
Print and email customer documents.

Customer Payments

Setup Considerations: Overpayments

You can use this topic to help make decisions when planning your configuration and use of overpayment
functionality. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Overpayment functionality enables you to write off small balances when:

• When you apply a payment.

• After you apply a payment that has on-account balance.
When you record an overpayment Workday creates a new journal entry to credit the ledger account
defined in the account posting rule with the on-account amount.
This feature doesn't track overpayment by invoices.

Business Benefits
The overpayment functionality:
• Eliminates the manual steps to record and apply invoice debit adjustment.
• Improves global tax compliance and auditing capabilities.
• Enables you to identify customer overpayments easily.

Use Cases
When you receive a payment that is greater than the invoice amount, the overpayment functionality
enables you to:
• Record, apply, and put the additional amount on account in 1 single step during the payment
application.
• Record an overpayment by accessing the Record Overpayment task from the related actions menu of
the payment.
You can also:
• Cancel an overpayment.
• Add an approval step to the overpayment event business process to limit the overpayment amount.
When you record only a portion of the on-account amount as overpayment, after the overpayment event
completes, the on-account amount reduces.
• When an on-account amount reaches zero:
• Payment status changes to Complete.
• Application status changes to Fully Applied.

Questions to Consider

Question Considerations
Do you want to write off an overpayment at the When you have an existing payment with an on-
payment level? account amount, then you can use the Record
Overpayment task to write off the amount.
How do you calculate an overpayment on a Workday uses the transaction currency to calculate
transaction where the payment currency and the overpayment amount. When the company
company currency are different? and customer payment currencies are different,
Workday populates the Overpayment Currency
Rate for the overpayment date on the Record
Customer Overpayment task.
You can override the rate but doing so can cause a
foreign exchange gain or loss.

What happens if you cancel or unapply a customer Workday cancels all associated overpayments.
payment?

Recommendations
• Add attachments or notes when you're recording an overpayment because you can't change or edit
overpayment information afterward.
• Click Submit to record an overpayment on the Apply Customer Payment task.
• Configure condition rules on the overpayment business process to set approvals based on the
overpayment amount.

Requirements
• Create at least 1 overpayment reason.
• Configure the Receivables Overpayment account posting rule (APR) to set up the ledger account to
record overpayments. You can configure the APR using these dimensions:
• Company
• Company Hierarchy
• Receivables Overpayment Reason
• Specify a worktag while recording an overpayment on the Apply Customer Payment task if you've
worktag balancing.
In addition, ensure:
• The total overpayment amount is less than the on-account amount.
• The Payment status is In Progress and application status is Applied with On-Account for you to record
an overpayment.
• Overpayment date is on or after the customer payment date.

Limitations
You can't process overpayments for:
• Credit adjustments.
• Write-offs at invoice level.
• In flight refunds with full on-account amount.
• Canceled payments.
• Payments with journal in error.
When an approver denies a payment application, any associated overpayment event terminates and you
have to create a new overpayment.
When you cancel or unapply a customer payment, all associated overpayments also cancel.
You can't cancel an overpayment if:
• The approver denies the overpayment.
• The associated payment is returned or unapplied.

Tenant Setup
No impact.

Security
Users with access to these domains can set up, manage, and record overpayments:

Domains Considerations
Set Up: Receivable Overpayment in the Common These domains enable you to use the:
Financial Management functional area.
• Maintain Receivables Overpayment Reasons
task.

Domains Considerations
• View Receivables Overpayment Reason
report.
• Get Receivables Overpayment Reasons web
service.
• Put Receivables Overpayment Reason web
service.

Process: Customer Overpayment (Parent Domain) These domains enable you to access these tasks
in Customer Accounts functional area. and reports:
Process: Customer Overpayment - Cancel in • Cancel Customer Overpayment
Customer Accounts functional area. • Edit Customer Overpayment
Process: Customer Overpayment - Core in • View Accounting for Customer
Customer Accounts functional area. Overpayments
• View Customer Payment Overpayment
Process: Customer Overpayment - View in
Customer Accounts functional area.

Reports: Customer Overpayment in Customer Enables you to access the:

Accounts functional area.
Customer Overpayment report data source.
Customer Overpayment for Company Filter data
source filter.

Business Processes

Business Process Considerations

Customer Overpayment Event To enable approvals for specific overpayment
amounts, you can add the Customer Overpayment
Event business process step to the existing
Customer Payment Event business process.
If the approver denies the overpayment event, the
overpayment status updates to Rejected. Restart
the process and create a new overpayment.

Customer Payment Application Event Workday cancels all associated overpayments

when you:
• Cancel a customer payment.
• Unapply a customer payment.

Consider these as you configure the Customer Overpayment Event business process:
• When an approver denies the Customer Payment Application Event business process, and you've
recorded overpayments, the Customer Overpayment Event business process also terminates.
• When both the business processes have the same approver, Workday approves the overpayment and
the customer payment application in 1 single step.

Reporting
You can use these Workday delivered reports to view the overpayment data:

Reports Considerations
View Customer Payment for Invoices Enables you to view the overpayment information
on the Customer Overpayment Activity and the
Payment History tabs.
Customer Activity Details Enables you to view a Customer Overpayment
transaction at the line level.
Customer Activity Summary Includes a Customer Overpayment Total column
that you can click to drill down for overpayment
details.
Customer Balance Details Includes a Total Approved Overpayment
column that enables you to view the sum of all
overpayment amounts.
Customer Balance Summary Includes an On-Account Payments column that
includes overpayments in the calculated amount.
You can drill down on the column to view the total
overpayment amount.

Find Customer Payments Includes an Overpayment Amount column.

Receivables Financial Aging Detail Report Enables you to view:
• Balance in the transaction currency.
• Balance in the company currency.
• Customer overpayment.
• On-account amount.
• Original payment amount in the transaction
currency.
When the customer payment status is Complete
and the application status is Fully Applied, the
payment doesn't display on the report.

Receivables Aging Summary by Financial Aging Enables you to view the overpayment amount
for Accounting Period when you drill down on the On-account Payments
column.
Receivables to Customer Balances Includes customer overpayment amount in the On-
Reconciliation Account Payments drill down column.
Receivables to Customer Balances Includes a Difference in Company Currency
Reconciliation Exception Summary column that automatically calculates customer
overpayments.

You can use the Customer Overpayment report data source in custom reports to view attachments for
customer overpayments and determine:
• An Overpayment currency conversion rate.
• Remaining amount on account when you record an overpayment.
• Total amount of the approved customer overpayments.
• Whether an overpayment exists for a customer payment.

Integrations
Use these web services to upload, retrieve, or edit overpayment reasons data and view customer activity:

• Get Overpayment Reasons

• Put Overpayment Reason
• Get Customer Activity
Use these web services to retrieve, record, or cancel multiple overpayments at once:
• Cancel Overpayment
• Get Customer Overpayments
• Submit Customer Overpayment

Connections and Touchpoints

Record Customer Payments

Prerequisites
Configure the Customer Payment Application Event business process and security in the Customer
Accounts functional area.

Context
Record the receipt of customer payments, and apply them to invoices and invoice adjustments. You can
also record deposits at the same time.
If a customer overpays the amount of an invoice, you can apply the overpayment to another open invoice
or place it on account. If you place it on account, you can apply it to another invoice later, or refund it.

Steps
1. Access the Record Customer Payment task.
As you enter the Payment Information, consider:
Option Description
Remit-From Customer Required if you want to apply a payment or if you
select Ready to Auto-Apply.
Currency Workday automatically populates the currency
when you specify a Default Currency on the
customer profile.
Payment Reference A reference you can use to identify this payment
during bank reconciliation. Example: For payment
by check, enter the check number.
Create Deposit Select this check box to automatically create a
deposit for the recorded payment. Specify the
Bank Account and Deposit Reference values.
When you create a deposit for a single payment,
Workday creates the payment application and
deposit as 1 receivables transaction.

Option Description
When the company on the deposit differs from the
company on the customer invoice for on behalf
of customer payments, Workday doesn’t create a
deposit at the time of recording the payment. You
need to record the deposit separately.

Document Link If you store supporting documents or images in

an external repository, then enter the URL to that
location. Once you save the transaction, Workday
displays the URL as a live hyperlink to the image.
Approvers can reference this document before
approving the transaction.
Workday validates the link to ensure that it has a
valid Uniform Resource Identifier (URI) pattern,
as defined by your security administrator. This
process provides additional security to help avoid
malicious content in external links.
To add a valid URI, set the Link Type to
Customer Invoice Document Link on the
Maintain External Link Validation task. When
the location of the external content changes,
ensure to update the URL in Workday.

2. (Optional) As you select Payment Options, consider:

Option Description
Ready to Auto-Apply Select this check box for payments that you
want to apply against invoices using the Auto-
Apply Customer Payments task. You can record
multiple payments one after another, and then run
the auto-apply task to apply them all at once.
Do Not Apply Payment to Invoices on Hold When you select this check box, Workday won't
display invoices that are on hold in the Apply
Customer Payments grid.
Show Only Matched Invoices When Applying Select this check box to filter the grid on the
Apply Customer Payments task to display only
those invoices that match the references in the
Remittance Advice.
3. (Optional) As you enter Remittance Advice, consider:
Option Description
Invoice Search for a specific invoice for this customer.
Amount to Pay Pay a partial amount on the invoice, or apply the
full payment against the amount due.
Other Remittance Information You can reference an invoice to pay using the
Remittance Advice Type field to identify an
invoice by:
• Consolidated Invoice
• Customer ID
• Customer Name

Option Description
• Invoice Number
• Other
• PO Number
Also enter the corresponding text value in the
Details field.
4. (Optional) Create critical validations and warning messages by accessing the Maintain Custom
Validations task to prevent processing errors when you record or edit a payment.

Result
You're able to record, apply, and deposit the payment based on the options you select.
When you configure:
• ID Generator for Customer Payments on the Edit Tenant Setup - Financials task, Workday
generates a unique ID number that displays as the Payment Number when you view the payment.
• Critical custom validations, Workday saves a payment in Draft status and prevents you from applying it
or linking it to a deposit.

Next Steps
• Edit a customer payment by accessing the Update Remittance Advice task from the related actions
menu of the customer payment. After your edits, access the Auto-Apply Customer Payment task to
match the payment to the correct invoices.
• You can also cancel, return, unapply a payment, or record an overpayment except when the payment
has an associated customer refund in Draft status.
• Settle unpaid credit card and direct debit customer payments. The settlement process creates and
settles the invoiced payments. When the process completes, Workday updates the accounting entries
for each payment.
Related Information
Tasks
Record and Apply Student Sponsor Payments
Steps: Use Settlement on page 1892
Reference
Reference: Edit Tenant Setup - Financials
2020R1 What's New Post: Custom Validations for Customer Payments

Steps: Set Up Machine Learning Recommendations for Customer Overpayments

Prerequisites
Note: You must subscribe to Innovation Services to use this feature. Contact your Customer Success
Manager to request the Innovation Services Addendum (ISA), or see Workday Innovation Services in the
Workday Community for more information.
• To train the overpayment reason and worktag recommendation model, you need a minimum of 3,000
historical customer overpayments.
• Configure the Innovation Services functional area and security policy permissions for these domains:
• Manage: Innovation Services
• View: Innovation Services

Context
You can enable customer overpayment recommendations for an overpayment reason, as well as cost
center and location worktags. This innovation service improves data accuracy and expedites the recording
of overpayments.

Steps
1. Access the Innovation Services And Data Selection Opt-In report.
On the Innovation Services Opt-In task, select the Financial Management Machine Learning GA
Features service on the Available Services tab in the Financials category.
On the Maintain Innovation Services Data Selection Opt-In task, select the check boxes in the
Accounts Receivable Data category to contribute data for machine learning.
Security: Manage: Innovation Services domain in the Innovation Services functional area.
2. (Optional) Access the Edit Tenant Setup - Machine Learning task.
Select the region in which Workday hosts data contributed to the Machine Learning Development
Environment (MLDE). The default region for data processing is the U.S.
Security: Set Up: Tenant Setup - Machine Learning in the System functional area.
3. Access the Maintain Machine Learning Prompt Recommendations task.
Select the Accounts Receivable product area.
In the Customer Overpayments grid, select the Enable Machine Learning Recommendations check
boxes for the overpayment reason and the worktag types you want to receive recommendations for.
(Optional) Select the Enable Machine Learning Defaulting check box to automatically populate an
overpayment reason.
Security: Manage: Innovation Services domain in the System functional area.
4. Access the Maintain Worktag Usage report.
Select Customer Invoice Writeoff and Overpayment.
From the Edit Usage Worktag button, add the Cost Center and Location worktag types in the Primary
Worktag Types grid.
Note: You can only add a worktag type under either Primary Worktag Types or Additional Worktag
Types. To add a worktag type in the Primary Worktag Types grid, you must first remove this worktag
type from the Additional Worktag Types grid.
Security: Set Up: Enable Worktags in these functional areas:
• Common Financial Management
• Worktags

Result
Workday displays a Recommended prompt with up to 5 recommendations for the overpayment reason, as
well as the cost center and location worktags, when you enter an overpayment amount on these tasks:
• Apply Customer Payment.
• Record Customer Overpayment, when you access the Record Overpayment related actions menu
of a customer payment applied with on account.
When you select the Enable Machine Learning Defaulting check box, Workday automatically
populates an overpayment reason whenever the machine learning model is confident in the top
recommendation.
Related Information
Reference
2023R2 What's New Post: Intelligent Prompt Recommendations for Customer Overpayments

Steps: Record Customer Overpayments

Prerequisites
• Record a customer payment that is greater than the invoice amount.
• Configure an account posting rule that includes overpayment reasons when you credit the ledger
account.
• Security: Process: Customer Overpayment domain in the Customer Accounts functional area.

Context
Overpayment is a transaction type that enables you to write off small balances either at:
• The time of payment application.
• Or after you apply a payment that has on-account balance.
You no longer need to create an invoice debit adjustment to write off the overpayment amount.
Overpayments create a new journal entry to reverse the amount placed on-account and to credit the ledger
account defined in the account posting rule. This feature doesn't track overpayment by invoices.

Steps
1. Access the Maintain Receivables Overpayment Reasons task to create a unique overpayment
reason.
Create at least 1 overpayment reason to be able to record an overpayment.
You can't delete an overpayment reason if it's in use.
Security: Set Up: Receivable Overpayment domain in the Customer Accounts functional area.
2. (Optional) Edit Business Processes.
Configure the Customer Overpayment Event business process if you want to add a step for approving
or rejecting an overpayment.
3. Steps: Apply Customer Payments
• Enter an Amount to Place On-Account that's greater than zero.
• Select the Record Overpayments check box and access the grid on the Overpayments tab to enter
the overpayment details.
• When you enter an overpayment amount, Workday uses machine learning to display a
Recommended prompt with up to 5 recommendations for the overpayment reason, as well as the
cost center and location worktags. Workday also automatically populates an overpayment reason
when the machine learning model is confident in the top recommendation.
Note: To use this functionality, you must opt in to the Accounts Receivable Data innovation
service and enable machine learning recommendations for the overpayment reason and worktags.
• To process large number of overpayments, you can use the Submit Customer Overpayment web
service secured to the Customer Overpayment Event business process domain.

Result
Workday can route the overpayment for approvals.
Workday also adds a Customer Overpayment Activity tab on the customer payment page to help you
track the overpayment details. You can also cancel the customer overpayment by accessing it from the
related actions menu.

Next Steps
• Edit a customer overpayment. You can do so only when it's in a draft status.

• Cancel an approved customer overpayment. When you cancel a customer payment, Workday
automatically cancels all associated overpayments.
• When you cancel an overpayment, Workday reverses the journal entry and recalculates the on-account
amount associated with the payment.
Related Information
Concepts
Concept: Rule-Based Business Process Definitions
Tasks
Set Up Account Posting Rules on page 71
Configure Rule-Based Business Processes
Reference
Workday 31 What's New Post: Customer Overpayments

Steps: Apply Customer Payments

Prerequisites
• Record customer payment.
• Configure the Customer Payment Application business process and security policy in the Customer
Accounts functional area.

Context
Once you record a customer payment, you can apply the payment to the appropriate customer invoices.
Workday also enables you to:
• Apply write-offs during the payment application process.
• Search for additional invoices before you apply the payment.
You can also cancel, return, unapply a payment, or record an overpayment except when the payment has
an associated customer refund in Draft status. To unapply large volumes of customer payments that are in
error, you can use the Unapply Customer Payment web service.

Steps
1. (Optional) Access the Edit Customer Payment Application Configuration task.
To search through large volume of open invoices, select the Do Not Preselect Invoices option from the
Configure Preselected Invoices prompt under the Manual Application Settings section.
• Do Not Preselect Invoices: Workday doesn't selects invoices that were previously selected.
• Preselect Remittance Advice Invoices and Previously Unapplied Invoices: Workday preselect
all invoices that were previously selected, including those that were manually selected.
• Preselect Remittance Advice Invoices Only: Workday preselects only invoices identified on the
remittance grid of the payment.
Security: Set Up: Company General in the Common Financial Management functional area.

2. (Optional) From the related actions menu of the customer payment, select Apply Update Remittance
Advice.
• When you receive a customer payment without any remittance advice, you can first add the
Remittance Advice Type and associated details in the Remittance Advice grid for multiple
invoices.
• Ensure to add a separate row for each remittance advice type.
• Workday prevents you from updating the remittance advice type when the customer payment is
already applied, placed on-account, canceled, or returned.
• You can also use the Put Customer Payment web service for large volume of updates. Ensure to
specify the Remittance Advice Type with identical instance ID as the invoice. Set the Ready to
Auto-Apply flag to true and ensure that Amount to Pay isn't greater than the payment.
Security: Process: Customer Invoice Payment in the Customer Accounts functional area.
3. Access the Apply Customer Payment task.
Select the Customer Payment that you want to apply.
Security: Process: Customer Invoice - View and Process: Customer Writeoff - View in the Customer
Accounts functional area.
4. As you complete the task, consider:
Option Description
Remittance Advice Lines Click to view the remittance advice lines from the
recording of the customer payment. Workday
automatically selects the invoices from the
remittance advice and populates their payment
amount to assist payment application.
Apply to Oldest First When you select this check box, Workday sorts
the Invoices grid by Due Date, listing the oldest
invoices first. Workday then selects invoices with
amounts that can be paid in full with the Payment
Amount to Apply. When the next invoice amount
is greater than the amount remaining to apply,
Workday assigns only the remaining amount to
pay for that invoice.
Example: There's a recorded payment of 1000.00
EUR. The oldest invoice for the customer is
600.00 EUR and the next is for 1500.00 EUR.
Workday selects both invoices, applies the
payment to first invoice in full and remainder to
the next invoice. The outstanding 1100.00 EUR
on the second invoice remains in the queue of
unpaid invoices.

Recall Last Payment Application When you select this check box, Workday
automatically selects the applicable invoices in
the results.
Amount to Place On-Account When your payment amount is greater than the
total amount applied to 1 or more invoices, you
can place the overpayment amount on account.
To balance and submit the payment, enter an
amount that is equal to the Remaining Amount
to Apply value. Workday then updates the
Remaining Amount to Apply to zero, which

Option Description
means your payment is balanced and ready to
submit.
5. Select the invoices for payment application.
• For consolidated invoices, apply the payment towards invoices for the parent or for the child
customers.
• Workday doesn't support on-behalf-of payments and write-offs that include invoices with term
discount.
6. To search through large volume of open invoices, click Search for Invoices.
You can continue to search and add invoices multiple times. Each time you search, Workday saves the
previous changes including payment amounts, discount amounts, and write-offs.
7. As you enter the payment information for each invoice line, consider:
Option Description
Payment Amount Apply a full or partial amount of the recorded
payment towards the selected invoice. For partial
amounts, put the remaining balance on-account.
Discount Amount When you apply the payment within the discount
date from the customer invoice, Workday applies
the discount based on the payment amount
applied, not the invoice balance. You set the
discount terms on the customer invoice in the
Payment Terms field.
Workday applies discount amounts as part of the
payment application process. Discount amounts
aren't part of the payment amount itself, and
display in a separate field on reports.

Write-Off Lines Click the write-off value and specify the amount.
You can also:
• Add a memo and attachments to the write-off.
• Select a default write-off reason.
• Split the write-off amount by write-off reason
and balancing worktag if your tenant has
worktag balancing enabled.
Workday updates the journal line accounting to
reflect the debit and credit amounts to the correct
ledger accounts.

Amount Due Remaining Workday updates this value dynamically when

any of these amounts change:
• Amount Due
• Discount Amount
• Payment Amount
• Write-Off Amount

Result
Workday initiates the Customer Payment Application Event business process to route the payment for
approvals, and then creates the operational journal lines. If you save for later, Workday saves the payment
in Draft status, and doesn't generate any operational journal lines.
For intercompany transactions:
• Workday automatically populates the intercompany affiliate between the 2 companies for the generated
journal lines. You can view the intercompany accounting details under the Payment Application >
View Accounting > Intercompany tab of the customer transaction.
• Create a settlement run to transfer the payment and to clear the intercompany payable and receivable
entries.
Related Information
Concepts
Concept: Customer Payments on page 738
Reference
The Next Level: Customer Collections Overview

Reapply an Unapplied Customer Payment

Prerequisites
Security: Process: Customer Invoice domain in the Customer Accounts functional area.

Context
When applying payments to multiple invoices, you might accidentally select invoices that you didn't mean
to include in the payment. To rectify, you can unapply the payment and then reapply. When you reapply
the payment, Workday automatically recalls the last payment application. It enables you to correct the
invoices selected in error without having to reselect all the invoices.

Steps
1. Access the Find Customer Payments report.
2. From the related actions menu of the customer payment you want to unapply, select Customer
Payment > Unapply.
3. From the related actions menu of the customer payment, select Customer Payment > Apply.
Workday displays the last payment application, with the same invoices selected automatically.
Note: If you don't want Workday to select invoices automatically, you can clear the Recall Last
Payment Application check box.
4. Make any necessary corrections to the selected invoices, and select any new invoices that you want to
include in your payment application.

Result
Workday applies the customer payment to the invoices you selected in your most recent payment
application.

Cancel Customer Payments

Prerequisites
• Verify that you haven't deposited the payment you want to cancel.
• Security: Process: Customer Payment domain in the Customer Accounts functional area.

Steps
1. Access the Find Payments report.
2. From the related actions menu of the customer payment, select Customer Payment > Cancel.

Steps: Return Customer Payments

Prerequisites
• Configure the Payment Return Event business process and security policy in the Banking and
Settlement functional area.
• Security:
• Process: Ad Hoc Payment Reporting domain in the Banking and Settlement functional area.
• Process: Bank Account Transfer for Settlement - Reporting domain in the Banking and Settlement
functional area.
• Process: Customer Invoice Payment domain in the Customer Accounts functional area.
• Process: Customer Refund/Payment domain in the Customer Accounts functional area.
• Process: Settlement domain in the Banking and Settlement functional area.

Context
You can return a customer payment that a bank rejects or returns due to various errors such as insufficient
funds. Payment returns differ from refunds. You can create a refund only when there’s a credit adjustment
or on-account balance for a customer payment.
When you return a payment, Workday automatically unapplies it, and then creates 2 journals entries that
reverse the original payments. One entry is for the return and a separate entry to unapply the payment.
You can return:
• Both unreconciled and reconciled payments.
• Unreconciled checks and reconciled checks.
• A payment even when it has a Stopped status.
When the payment return is unreconciled and you haven't paid the original payment, you can also cancel
the return.

Steps
1. Access the Find Payments report.
2. Select Return from the related actions menu of the settled payment that you want to return.
Enter the return date and code.
3. (Optional) Access the Create Payment Return Statement task to return multiple customer payments
at once.
You can only access this task when your payment type is Direct Debit. The process also requires you to
match each payment individually for the return.
4. (Optional) Access the Record Voided Checks task to void a related check when the payment isn't
reconciled.

Result
When you return a customer payment, Workday sets the Payment Status to Returned and Application
Status to Unapplied.
The payment returns generate journal entries that reverse the original payments. Once you resolve the
issues, you can settle the expense reports and supplier invoices with the payments. For returned ad hoc
payments and bank account transfer payments, you must create new payments.

Next Steps
• To view payment return details, access the Find Payment Returns report.
• When you haven't paid the original payments, from the related actions menu of the unreconciled
payment return, select Cancel or Unmatch. Workday cancels any related accounting entries and the
payment status of the original payment changes to Complete.
• To view payment reversals as separate line item, access these reports:
• Cash Receipts
• Customer Activity Details

Steps: Create Direct Debit Mandates for Direct Debit Customer Payments

Prerequisites
• Enable the ID Generator for Direct Debit Mandates on the Edit Tenant Setup - Financials task.
• Add business form layouts and creditor identification information on the Edit Company Creditor
Identifiers task.

Context
Direct debit mandates enable you to request approval from customers to collect debit payments. With
direct debit mandates, a payee can collect both recurring and one-off payments from customers who
provide a signed mandate to the payee.
With Workday, you can create and store direct debit mandates, and then associate them with customer
invoices. You can also send prenotifications to inform customers of future settlements.

Steps
1. Access the Create Direct Debit Mandate task.
(Optional) Select the Pre-notification Required check box. Workday then displays the Minimum Days
for Pre-notification field. For invoices associated with the mandate to be available for settlement, you
must prenotify them for at least the number of days that you specify.
Security: Process: Direct Debit Mandate domain in the Customer Accounts functional area.
2. Select Direct Debit Mandate > Print Direct Debit Mandate from the related actions menu of the direct
debit mandate.
Send the direct debit mandate draft to your customer for completion of debtor information, payment
information, and signature.
Security: Reports: Direct Debit Mandate domain in the Customer Accounts functional area.
3. Access the Overview profile group of the customer profile.
a) To display the direct debit mandate reference number on customer invoices, select the Mandate
Required check box on the Payment Details report.
b) Add settlement bank account details from the completed direct debit mandate draft to the Banking
report.
4. Access the Edit Direct Debit Mandate task.
Verify that all fields are complete, and change the Mandate Status to Active.
(Optional) Upload a copy of the completed direct debit mandate to the Attachments tab.
Security: Process: Direct Debit Mandate domain in the Customer Accounts functional area.
5. Create Customer Invoices on page 664.
When you select a Payment Type that matches the payment type on the direct debit mandate,
Workday populates these fields:
• Direct Debit Mandate
• Pre-notification Date

6. (Optional) Access the Print Direct Debit Mandate Pre-notifications task.

Workday generates PDF files that you can send to your customers.
Security: Reports: Direct Debit Mandate domain in the Customer Accounts functional area.
7. Create a settlement run for your customer invoices.
Workday groups customer invoices with the same direct debit mandate into a single payment.
See Create Manual Settlement Runs on page 1897.

Result
Workday updates these direct debit mandate fields after the settlement run completes:
• Mandate Status
• Last Settlement Date
• Sequence
Related Information
Reference
The Next Level: Direct Debit Payment Application

Steps: Set Up VAT on Customer Payments

Prerequisites
• Create a VAT tax category and VAT code for tax applicability.
• Define the VAT ledger account on the Transaction Tax account posting rule for customer payments to
process correctly.

Context
You can configure Workday to calculate and automatically post the accounting for recognizing the Value
Added Tax (VAT) when you apply the payments. On-Account payments use the default tax rate of the
company for VAT. You can also record unrecognized VAT when you approve an invoice and book VAT
receivables.
Workday displays VAT as Tax Amount on invoice header and as Transaction Tax at line level. Workday
also supports VAT on:
• Cash sales.
• Customer invoice and customer invoice adjustments with different rates per invoice line.
• Prorated tax amounts for partial payments.
When you don't configure VAT, the payments you apply use general accounting.

Steps
1. Steps: Set Up a Single Legal Entity.
2. To enable VAT, access the Edit Company Tax Details task from the related actions menu of your
company.
Select the VAT on Payment check box, and select VAT options from these prompts:
• Default Tax Applicability
• Default Tax Code
Security:
• Set Up: Company General domain in the Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in the Core Payroll functional area.
• Set Up: Tax domain in the Common Financial Management functional area.

3. To configure VAT Payable as the default ledger account for automatically posting the accounting,
access the View Account Posting Rule Set report.
Select these account posting rules:
• Transaction Tax
• Transaction Tax on Payment
Click Edit Posting Rule and select the VAT option from the Default Ledger Account prompt.
Security:
• Set Up: Account Rules domain in the Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in the Core Payroll functional area.
Related Information
Tasks
Set Up Account Posting Rules on page 71
Set Up Company Tax ID
Steps: Configure Transaction Tax Rules on page 565
Steps: Set Up Transaction Taxes on page 545
Set Up Tax Applicability for Financial Transactions on page 551

Concept: Customer Payments

When you receive a customer payment, you can:
• Record the payment and deposit it.
• Apply it to customer invoices or invoice adjustments. You can apply the full amount or partial payment
and place the balance on account. During payment application, you can also write off full or partial
invoice amounts.
• Record overpayment and place it on account.
After submitting the payment, you can:
• Unapply the full payment and edit it to make corrections.
• Cancel the payment if it's in error before you settle it.
• Return the payment that's already deposited in the bank.
When you cancel payments:
• Pending payments are no longer available for settlement.
• Workday no longer includes those payments when you print checks or generate the bank file for
completed settlement runs.
• If you already printed the check or sent the bank file, canceling stops those payments. Ensure to void
the check using the Record Voided Checks task.
When you cancel or return payments, Workday generates journal entries to reverse the original payments,
unapplies them, and makes the invoice available again for payment application.
You can configure cash balance checking to prevent outbound payments from processing when you have
insufficient funds. See Steps: Configure Advanced Cash Balance Checking on page 1869.
You can use these tasks to perform the various actions:
• Record Customer Payments
• Mass Record Customer Payments
• Apply Customer Payment
• Auto-Apply Customer Payments
• Create Customer Deposit
• Create Customer Refund

When you have payments with large volumes of remittance lines, you can use the web services to upload
them, and then process using the Auto-Apply Customer Payments task.

Mass Record Customer Payments

When you need to record large amounts of payments coming in at once, you can process them with the
Mass Record Customer Payment task. Use this task when the payments reference only 1 or a few
invoices each. You can record payments for different customers as well.
Keep in mind that the task only records payments, and doesn’t apply them. Therefore, Workday doesn't
create operational journals. If you want Workday to create operational journals to record the cash, you can
create a deposit as part of the task. Workday then creates the journals from the deposit.

Intercompany Payments
Workday enables you to centralize the receipt of customer payments so that a single company can pay
invoices for its related companies. A company can receive payments from a customer on behalf of other
related companies, and pay their invoices. This functionality makes it faster and easier for you to recognize
the receipt of payments and accelerates the cash remittance to banks. However, Workday doesn't support
payment application for on-behalf-of payments and write-off transactions that include invoices with term
discount.
Setup for intercompany payments:
• Use the Process: Customer Invoice domain security policy to enable your accounts receivable specialist
to see more details of another company invoice.
• For companies to have intercompany relationships, select Initiate Allowed in the Edit Company
Intercompany Profile task.
Other areas of Workday that support intercompany payments include:
• The View Accounting for Customer Transaction report contains an Intercompany tab that displays
intercompany accounting lines, including payables and receivables.
• Customer statements give a description of payments to or from another company, if applicable.
• To process intercompany payments when worktag balancing is active for either company, ensure that
the company paying on your behalf uses the same currency as your company, invoice, and payment
currency.
• To find invoices in other companies, use Same Bill-To or Remit-From - By Company prompt categories
on these tasks:
• Record Customer Payment
• Apply Customer Payment

Payment Transfers
Payment transfers are separate transactions. These transactions don’t generate accounting. Transfers
happen when the payment application is for invoices where the company or the remit from customer is
different than the customer on the invoice. Workday stores these transactions as either Payment transfer in
or Payment transfer out depending on the customer that you run the report for.

Student Sponsor Contract Payments

Student sponsor contracts enable educational institutions, corporations, and governmental bodies to pay
educational expenses for 1 or more students. Access the Record Student Sponsor Payment task to
record student sponsor payments and apply them specifically to invoices for student sponsor contracts.

VAT on Payments
In certain countries, companies can elect to pay Value Added Taxes (VAT) on payments instead of on
invoices. Upon configuration, you can record VAT pending upon invoice and VAT payable upon collection

of payment. Workday calculates and posts VAT on payment automatically. When you configure VAT on
payments for a company:
• Customer invoices that you haven't paid will still use the original accounting. Workday doesn't apply the
tax accounting to the payment.
• Customer invoices you create after configuring VAT, will use the VAT on payment accounting.
VAT considerations in Workday include:
• Customer invoice and customer invoice adjustments support different rates per invoice line.
• Support for prorated tax amounts for partial payments.
• On-Account payments use the default tax rate of a company.
• On-Account payments apply to a customer invoice.

Payment Terms
You can configure payment terms in Workday to define:
• Due dates for a customer invoice.
• Discounts based on when your customer pays the invoice.
• Customer-specific payment terms.

Payment Methods
Payment methods determine the account that Workday uses for various transactions. Workday provides
several payment methods that you can use to configure payment types in your environment using the
Maintain Payment Types task. Some of the payment methods are electronic, which have additional
processing considerations. You can use payment method of direct debit for electronic payment types.
When you use a third-party vendor to process payments outside of Workday, we recommend mapping
your payment type to Payment Method of Manual.

Payment Types
A payment type is a valid form of payment that you use to make payments. Workday enables you to
configure each Payment Type and map it to a valid Workday delivered Payment Method. Electronic
payment types, such as direct debit or credit card, process through settlement runs. Workday automatically
creates a combined deposit and payment. Once the settlement engine completes the payments, it
generates the accounting entries associated with each payment.
For other payment types, record the payments with the Record Customer Payment task and apply them
to the associated invoices. Example: You can map a Credit Card Payment Method to the Visa Payment
Type.

Payment Reporting
Workday provides several reports to give you a clear view of the payment process, including:
• Customer Accounts Requiring Action
• Customer Activity Detail
• Customer Activity Summary
• Customer Balance Detail
• Customer Balance Summary
• Customer Deposits Requiring Action
• Customer Open Items
• Customer Payments Requiring Action

Related Information
Concepts
Concept: Customer Payment Lockbox Integration
Tasks
Record and Apply Student Sponsor Payments
Steps: Manage Student Sponsor Contracts
Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions on page 44
Steps: Use Settlement on page 1892
Reference
Workday 32 - Customer Payment Automatic Application
The Next Level: Customer Payments Overview

Concept: Foreign Currency Customer Payments

In Workday, you can create customer invoices and payments in currencies other than the base currency
of your company. You can also process invoices in a base currency but receive payments in a different
currency.
Example: Your Canadian company creates an invoice for a customer in France who wants their billing in
EUR. Their default currency of EUR overrides your default currency of CAD. Workday displays the billing
amounts on accounting journals in EUR and converts the amounts into CAD.

Customer Invoices and Invoice Adjustments

When you create a customer invoice, Workday posts the invoice amount to a ledger account and converts
the currency at that time. Workday still displays the invoice in the currency of the customer, but displays
the accounting in the base currency of the company.
When you create a customer invoice adjustment, the currency for the adjustment must match the currency
on the related invoice. For credit and rebill, the company and customer must be the same on the original
invoice and the rebill.

Customer Payments
You can pay a customer invoice in a different currency except when you:
• Automatically apply payments.
• Enable worktag balancing functionality in your tenant.

Foreign Currency Scenarios for Customer Payments

Workday supports these foreign currency scenarios for payment processing:

Currency Description Example Apply Automatically Automatically

Customer Apply Apply
Payments Customer Customer
Manually Payments Payments
(Workday- (Advanced
delivered custom rules)
rules)
Single Your company Company Yes Yes Yes
Currency currency, currency is =
invoice USD, Invoice
currency, currency is =
and payment USD, Payment

Currency Description Example Apply Automatically Automatically

Customer Apply Apply
Payments Customer Customer
Manually Payments Payments
(Workday- (Advanced
delivered custom rules)
rules)
currency are currency is =
the same. USD
Single The company Company currencyYes Yes Yes
Currency with currency, is = USD,
WTB (Worktag invoice Invoice currency
Balancing) currency, is = USD,
Enabled and payment Payment currency
currency are is = USD
the same
and you
have worktag
balancing
enabled.
Multicurrency The invoice Company currencyYes Yes Yes
and payment is = USD,
currency are Invoice currency
the same but is = EUR,
the company Payment currency
currency differs. is = EUR.
Multicurrency The invoice Company currencyYes Yes Yes
with WTB and payment is = USD,
Enabled currency are Invoice currency
the same but is = EUR,
the company Payment currency
currency differs. is = EUR.
Cross- The company Company currencyYes No No
Currency currency is is =
the same as USD, Payment currency
the payment is =
currency but USD, Invoice currency
the invoice is = EUR
currency differs.
Cross- The company Company currencyYes No No
Currency On- currency is is =
Behalf-Of same as the USD, Payment currency
currency of is =
the company USD, Invoice currency
receiving the is = EUR
payment on
your behalf
but the invoice
currency differs.
Single The Company currencyYes Yes Yes
Currency On- company receivingis =
Behalf-Of the payment on USD, Receiving Company currency

Currency Description Example Apply Automatically Automatically

Customer Apply Apply
Payments Customer Customer
Manually Payments Payments
(Workday- (Advanced
delivered custom rules)
rules)
your behalf is =
uses the same USD, Invoice currency
currency as is =
your company USD, Payment currency
currency, is = USD.
invoice
currency,
and payment
currency.
Single The Company Yes Yes Yes
Currency On- company receivingcurrency is =
Behalf-Of with the payment on USD, Receiving Company
WTB Enabled your behalf currency is =
uses the same USD, Invoice
currency as currency is =
your company USD, Payment
currency, currency is =
invoice USD.
currency,
and payment
currency.
Multicurrency The base Invoicing Yes Yes Yes
On-Behalf-Of currencies Company
for both the currency is =
companies GBP, Invoice
are different currency is =
but the invoice USD, Receiving Company
currency is currency is =
same as the EUR, Payment
payment currency is =
currency. USD

Multicurrency The Invoicing Yes No No

On-Behalf- company receivingCompany
Of with Cross the payment on currency is =
Currency your behalf GBP, Receiving
Payment uses the same Company
currency as currency is =
your company USD, Invoice
currency, but currency is =
the invoice USD, Payment
currency is currency is =
different from EUR
the payment
currency.
Multicurrency The company Company Yes Yes Yes
On-Behalf- receiving the currency is =

Currency Description Example Apply Automatically Automatically

Customer Apply Apply
Payments Customer Customer
Manually Payments Payments
(Workday- (Advanced
delivered custom rules)
rules)
Of with WTB payment on USD, Receiving
Enabled your behalf Company
uses the same currency is =
currency as USD, Invoice
your company currency is =
currency, but EUR, Payment
it differs from currency is =
the invoice EUR.
currency and
the payment
currency.

Related Information
Reference
Workday 32 - Multicurrency Customer Payments

Reference: Customer Payment Process Flows and Account Posting Rules

In Workday, you can record payments, apply payments, and deposit them either in a single step or
individually. The scenarios in this table demonstrate the ways to approach customer payments along with
the corresponding account posting rules.

Scenario Step Debit Credit

Process each of these Record Payment. N/A N/A
transactions separately
in the specified order:
Record Payment >
Apply Payment >
Create Deposit
Apply Payment. Undeposited Receipts Receivables
Create Deposit. Cash Undeposited Receipts
Process each of these Record Payment. N/A N/A
transactions separately
in the specified order:
Record Payment >
Create Deposit > Apply
Payment
Create Deposit. Cash Unapplied Recorded
Payments
Apply Payment. Unapplied Recorded Receivables
Payments
Record and apply the Record and Apply Undeposited Receipts Receivables
payment in the same Payment.

Scenario Step Debit Credit

step. Then create
deposit later.
Create Deposit. Cash Undeposited Receipts
Record the payment, Record, Deposit, and Cash Receivables
create a deposit, and Apply.
apply the payment in
same single step.

Troubleshooting: Unable to Edit Customer Payment After Searching for Invoices

Cause: Sometimes you can't edit a customer payment when you search for invoices during the payment
application process.
Solution: You can cancel the customer payment and apply it again.

Steps
Security: Process: Customer Invoice Payment domain in the Customer Accounts functional area.
1. From the related actions menu of the payment application in-progress, click Cancel.
2. From the related actions menu of the customer payment, click Apply.
Security: Process: Cash Sale Payment: View, Process: Customer Invoice: View, and Process:
Customer Writeoff: View domains in the Customer Accounts functional area.
Solution: You can edit the payment application to remove the payments in draft status.

Steps
Security: Process: Customer Invoice Payment domain in the Customer Accounts functional area.
1. From the related actions menu of the payment application in-progress, click Edit Application.
2. Unselect any invoices that are part of the draft payment application and click Search for Invoices.
3. Click Cancel.
Workday removes the payment applications in Draft status.
4. From the related actions menu of the payment application in-progress, click Edit Application.
You can now edit the payment to update a given field, such as Remit-From Customer.

FAQ: Customer Payments

• What happens when I use auto apply rules but Workday can't apply those payments? on page 746
• Is there an option to change the fields in the Auto Apply Customer Payment task? on page 746
• When the payment amount is greater than the invoice amount, is it possible to create a rule that can put
the remaining amount on account? on page 746
• Does the Auto Apply Customer Payment functionality consider payments with discount terms? on page
746
• Can you automatically apply a customer payment to a customer invoice that has a status of Canceled
or Paid? on page 746
• Does Mass Record Customer Payment task also apply the payments? on page 746
• How does Workday sort and apply payments when there are multiple payments in the same day for the
same customer and invoice? on page 746
• Does the Auto Apply Customer Payment functionality consider partially paid customer invoices? on
page 747
• Why can't I use the Last Customer Statement Balance (Workday) rule to create an advanced rule? on
page 747

What happens when I use auto apply rules but When you run the auto application rules, Workday
Workday can't apply those payments? applies payments to the corresponding customer
invoice depending on the criteria you've set up.
When there's no match, Workday sets the payment
to an Unapplied status. When the payment only
covers a portion of the invoice, Workday sets the
invoice status to Partially Paid.

Is there an option to change the fields in the You can't edit or customize the Auto Apply
Auto Apply Customer Payment task? Customer Payment task.

When the payment amount is greater than the You can edit your Customer Payment Application
invoice amount, is it possible to create a rule Rule and select one of these 2 options:
that can put the remaining amount on account?
• Put Remaining Balance on Account
• Put Unapplied Payments Fully On Account
However, you can't define a threshold for the
remaining amount. For more information, see
Create Customer Payment Application Rule on
page 753.

Does the Auto Apply Customer Payment You can use the rule Referenced Invoices without
functionality consider payments with discount Amount to Pay (Workday) to process payments with
terms? these discount term scenarios:
• The customer is eligible for the discount and
applies it.
• The customer is ineligible for the discount but
applies it.
When the customer is eligible for the discount but
doesn't apply it, Workday rules will process those
payments and set:
• The payment to Unapplied and in Draft status.
• The invoice to Unpaid.

Can you automatically apply a customer The Auto Apply Customer Payment task only
payment to a customer invoice that has a status checks for invoice that has an outstanding balance
of Canceled or Paid? with a status of Approved and Unpaid, or Approved
and Partially Paid. When you need to record
another payment that's linked to the same invoice,
first unapply the initial payment.

Does Mass Record Customer Payment task also Mass Record Customer Payment task only creates
apply the payments? payments and sets them In Progress. It doesn't
impact the operational journal until you create
a deposit. To apply these payments, find the
customer payments in progress and apply each
payment individually. You can also run the Auto
Apply Customer Payment task to process these
payments.

How does Workday sort and apply payments Workday delivered rules match a payment to
when there are multiple payments in the same the oldest invoices first. When there are several
day for the same customer and invoice? invoices with the same date, we sort them by the
index or the ID number generated by the sequence

generator. When there are multiple payments for

the same date, and same customer:
• The automatic application processes the
payment application in a random fashion.
• After the rule identifies an invoice match, that
invoice becomes ineligible for any further
payment matches.
• When the rules don't find an invoice match,
Workday ignores the payments and skips the
invoice for further rematch.
For advanced rules, you can define your own order
and conditions.

Does the Auto Apply Customer Payment Workday applies the payments to invoices based on
functionality consider partially paid customer the amount due. When there's no match, Workday
invoices? leaves the invoice as Partially Paid.

Why can't I use the Last Customer Statement The Last Customer Statement Balance (Workday)
Balance (Workday) rule to create an advanced rule requires additional custom report fields. These
rule? fields aren't available to all.

Related Information
Reference
Reference: Customer Payments Advanced Automatic Application Rules Criteria on page 758
Reference: Customer Payment Automatic Application Rules on page 757
Reference: Customer Payment Process Flows and Account Posting Rules on page 744

Auto Apply Customer Payments

Steps: Apply Customer Payments Automatically

Context
Workday enables you to apply a large volume of payments automatically against multiple invoices. You
have 2 options:
• Use the Workday delivered customer payment application rules.
• Define your own set of rules and conditions that you can use in a custom rule set.
Note: To use your custom rules and conditions, enable the Advanced option on the Edit Customer
Payment Application Configuration task.
This functionality includes 3 types of processes:
• Apply payments against invoices.
• Write off invoices.
• Apply invoice adjustments.
You can run the automatic payment application process through these 2 tasks:
• Auto-Apply Customer Payments: Enables you to execute a single run instantaneously. You can also
schedule a one-time run in the future.
• Schedule Auto-Apply Customer Payments: Enables you to schedule the process to run at regular
intervals.
For on-behalf-of transactions:
• Workday uses the payment application rules associated with the company receiving the payment.

• You can apply payments from 1 company to invoices in another company when the invoice currency is
different than the payment currency or the company currency, even with worktag balancing enabled for
the invoice company.
Workday doesn't support the auto-application process for:
• Consolidated invoices.
• Invoices with cross-currency payments.
• Negative invoices.
• On-behalf-of payments and write-offs that include invoices with term discount.
• Overpayments.

Steps
1. Apply payments automatically using the Workday delivered rule set.
See Auto-Apply Customer Payments on page 748.
2. Apply payments automatically using the custom rule set you define.
See Steps: Configure Advanced Automatic Application Rules for Customer Payments on page 750.

Result
When invoices match the rules that you've configured, Workday automatically:
• Applies payment to those customer invoices.
• Processes credit adjustment against the customer invoices.
• Creates a write-off against the customer invoices.

Auto-Apply Customer Payments

Prerequisites
• Record customer payments and mark them as Ready to Auto-Apply. Workday automatically selects
this option when you select Remit-From Customer.
• (Optional) To use Workday-delivered rules, clear the Advanced check box on the Edit Customer
Payment Application Configuration task.
• Security: Process: Customer Payment Auto-Application domain in Customer Accounts functional area.

Context
Workday delivers 8 predefined rules that find and match invoices based on each criteria. You can then run
the Auto-Apply Customer Payments task to:
• Apply adjustments to the matched invoices.
• Apply either on-account payments, or unapplied payments.
Workday extends this functionality to global transactions as well where the invoices are in the same
currency but the company currency is different.
Workday processes:
• All payments in the numeric sequence from zero to 7, rule by rule rather than payment by payment.
• Older payments first.
You can see these rules by running the Workday Delivered Customer Payment Application Rules
report.

Steps
1. Access the Auto-Apply Customer Payments task.

2. As you complete the task, consider:

Option Description
Customer Payment Auto-Application Criteria On the Company prompt, select the company or
company hierarchy to which you want to apply
payments.
Advanced Customer Payment Application • Workday automatically populates the
Rule Set Configured field when you configure the
advanced customer payment application
rule set on the Edit Customer Payment
Application Configuration task. Workday
uses this rule set as a default rule set if you
don’t define any other rule sets to override it
for the company.
• Workday uses Workday-delivered customer
payment application rules when the
Configured field is empty.
• You can select or create a different rule set to
override the default rule set on the Override
prompt.
Note: Workday doesn’t display the Configured
field when you select a company hierarchy on the
Company prompt.

Customer Selection On the Remit-from Customers prompt, select

the customers that you want to apply the
payments to.
Other Criteria > Transaction Date to Use • For payments:
• When you leave this field blank, Workday
uses the payment date value on a payment
as the transaction date.
• When you specify a transaction date
that's on or after the payment date,
Workday overrides the payment date of the
payments that are part of the auto apply
run.
• When you specify a transaction date that's
before the payment date, then Workday
uses the payment date.
• For write-offs:
• When you leave this field blank, Workday
uses the system date as the transaction
date.
• When you process a write-off combined
with the payment, auto application rules
don't pick up those payments.

Run Once in the Future You can have Workday run auto-apply payments
once more in the future by setting a future Start
Date and Start Time. Enter the applicable Time
Zone.

Result
Workday opens the View Background Process page displaying the Customer Payment Auto-
Application Results including processed payments, invoice write-offs, and adjustments.
To view the associated transactions, click any of the numbers in these columns:
• Payments Processed
• Transactions Created
You can drill into the Overall Results for more details about the payments and invoices.

Next Steps
• You can unapply a payment, or reapply it, cancel the payment, or return it.
• You can use these reports to find the payments that are still in process:
• Customer Accounts Requiring Action
• Customer Deposits Requiring Action
• Customer Payments Requiring Action
• When the automatic application process doesn't apply certain payments, you can use these reports to
identify the unapplied payments:
• Customer Activity Detail
• Customer Activity Summary
• Customer Balance Detail
• Customer Balance Summary
• Customer Open Items
• You can also copy the Find Customer Payments report and make changes to suit your business
needs.
Related Information
Reference
Reference: Customer Payment Automatic Application Rules on page 757
The Next Level: An Introduction to Auto-Application Rules for Customer Payments
2023R2 What's New Post: Override Auto Apply Customer Payment Application Rule Set

Steps: Configure Advanced Automatic Application Rules for Customer Payments

Context
The advanced rules offer additional functionality that the Workday delivered rules don’t, enabling you to
create custom rules and rule sets. You can also create conditions that specify exactly how to perform a
match to:
• Apply credit adjustments against invoices.
• Apply unapplied payments.
• Apply on-account payments.
• Process write-offs against invoices.
Example: You can create a condition rule to write off invoices where the Invoice Amount Due is less
than 1 USD and over 30 days past due. When you set the Application Type to Write-Off and select this
condition rule, Workday finds the matching invoices and writes off the amount due.
Ensure to configure advanced rules in the specified order.

Steps
1. Create or edit the reasons for applying adjustments, payments, or write-offs by accessing the Maintain
Customer Payment Application Reasons task.
• Security: Set Up: Customer Accounts in the Customer Accounts functional area.
• Security: Set Up: Sponsor Accounts in the Grants Management functional area.
2. Define a condition rule.
See Create Customer Payment Application Condition Rule on page 752.
3. Create payment application rules using the reasons and the condition rules that you set up.
See Create Customer Payment Application Rule on page 753.
4. Create a rule set for a company by accessing the Create Customer Payment Application Rule Set
task.
• Security: Set Up: Customer Accounts in the Customer Accounts functional area.
• Security: Set Up: Sponsor Accounts in the Grants Management functional area

5. As you complete the task, consider:

Option Description
Rule Set Note: You can create many rule sets, but you
can use only 1 default rule set.

Match Referenced Invoice Credits First Select this check box to first process credit
adjustments that you didn't apply immediately.
Make sure that you don't select the Auto-
Apply Adjustment to Invoice check box on the
customer invoice adjustment for Workday to pick
up these invoices.
Default Advanced Rule Set Used by Workday automatically populates this field
Companies with 1 or more companies when you define it
as a default rule set on the Company > Edit
Customer Payment Application Configuration
task.
Allowed Override Rule Set Used by Select 1 or more companies that can use the
Companies customer payment application rule set as an
override rule set.
6. Configure Workday to use the advanced rule set you've created by accessing the Company > Edit
Customer Payment Application Configuration task.
Security: Set Up: Company General domain in the Common Financial Management functional are
• Select the Advanced check box and a rule set from the Customer Payment Application Rule Set
option.
Note: To add an applicable option for Customer Payment Application Rule Set, you
must remove the company from Allowed Override Rule Set Used by Companies first.

Result
When you run the Auto-Apply Customer Payment task, Workday uses the advanced payment
application rules you configured to process payments and opens the View Background Process page.
The resulting page displays:
• The status of the payment application and the information about the associated invoices for each rule.
• Any transactions generated by the rule.

Related Information
Reference
Workday 32 - Customer Payment Automatic Application
Reference: Customer Payments Advanced Automatic Application Rules Criteria on page 758
The Next Level: An Introduction to Auto-Application Rules for Customer Payments

Create Customer Payment Application Condition Rule

Prerequisites
• Create reasons for applying invoice adjustments, on-account payments, unapplied payments, and
writing off invoices.
• Security: Set Up: Customer Accounts in the Customer Accounts functional area.
• Security: Set Up: Sponsor Accounts in the Grants Management functional area.

Context
You can create:
• Invoice condition rules to retrieve invoices for credit application, or for processing write-offs.
• Payment condition rules to retrieve invoices for payment application.
Workday uses a combination of the condition rules and Application Type to match invoices that are
eligible for automatic payment application.

Steps
1. Access the Create Customer Payment Application Condition Rule task.
2. As you complete the task, consider:
Option Description
Description Enter a meaningful description for identifying the
rule. This description displays in prompts when
you select from available rules.
Source External Field or Condition Rule The source data for which you’re defining a rule
condition. You can select from delivered Workday
sources, or condition rules and custom worktags
that you've already defined.
Relational Operator Select how you want to compare the source data
to the next value in your condition. The options
depend on the data type of the source.
Comparison Type Specify whether Workday will compare the source
to another field or to a value that you enter in the
Comparison Value column.
() Use parentheses to group one or more conditions
together.
Example: (A and B) or C.

Example
You can create a condition rule where the on-account payment amount matches the invoice amount due.
When you set Application Type to On-Account Payments, Workday retrieves all invoices where:
• The amount to pay is the same as the on-account payment amount.
• The invoices have a status of Unpaid or Partially Paid.

And/Or ( Source Relational Comparison Comparison )

External Operator Type Value
Field or
Condition
Rule
And Invoice is equal to Value Select the
Unpaid specified in check box
this filter
And On-Account equal to Value from Amount Due
Remaining another field with Sign
Amount

Next Steps
To find relevant rules, you can run the All Condition Rules report, and specify Customer Payment
Application Rule for the View Condition Rules used as field.

Create Customer Payment Application Rule

Prerequisites
• Security: Set Up: Customer Accounts in the Customer Accounts functional area.
• Security: Set Up: Sponsor Accounts in the Grants Management functional area.
• Create payment application reasons.
• Create condition rules to set the criteria for identifying invoices eligible for automatic application.

Context
You can create custom rules by configuring the payment application reason, the condition rules, and other
parameters to retrieve specific invoices.

Steps
1. Access the Create Customer Payment Application Rule task.
2. As you complete this task, consider:
Option Description
Payment Application Reason Select a reason that you've configured to identify
the rule Workday uses for payment application.
You can use the Customer Payment Auto
Application By Reasons report to view your
payment applications by the payment application
reason.
When you share the same application reason
across different payment application rules,
Workday groups the various applications under
that 1 reason.

Application Type Select a type of application with this rule.

• Invoice Credit: Applies credit adjustments to
invoices.
• On-account Payment: Applies payments to
invoices with a payment application status of
Applied with On Account.

Option Description
• Unapplied Payment: Applies payments to
invoices with a payment application status of
Unapplied.
• Write-Off: Creates bad debt write off.
Workday determines the transactions to process
by using a combination of Application Type and
Condition Rule.

Allow Application for Different Customers Select this check box to enable Workday to apply
a payment where the Remit-From Customer
doesn't match the Bill-To Customer on the
invoice.
Allow Application for Different Company Select this check box to process on-behalf-of
Invoices payments that have different companies on the
customer payment header and the customer
invoice header.
You can use this check box only when you've
enabled one of these options:
• Limit to Referenced Invoices.
• Remittance Advice Type.
• A Condition Rule that contains a report field
used on the customer payment remittance.

Leave Application as Draft Select this check box if you want to review the
payment applications performed by the payment
rule before submitting them manually.
Limit to Referenced Invoices Select this check box if you want auto-application
to match only against the referenced invoices on
the remittance advice.
• When you don't select the check box, auto
application process tries to match the payment
against all open invoices.
• This option is available only when the
application rule type is either On-Account
Payment or Unapplied Payment.
• When this flag is set, Condition Rule
becomes optional, and the Remittance Detail
Match Conditions section becomes disabled.

Put Remaining Balance On Account Select this check box when the payment amount
that you apply is less than the payment total
and you want to place the remaining amount on
account.
Put Unapplied Payments Fully On Account Select this check box to place the entire recorded
payment amount on account.
Condition Rule Select a rule that you've created to retrieve
specific invoices for automatic payment
processing.

Option Description
Workday determines the transactions to process
by using a combination of Condition Rule and
Application Type.

Remittance Detail Match Conditions section This option is available only when the
Application Type is either On-Account Payment
or Unapplied Payment.
• Remittance Advice Type: Use this option to
match payments to invoices by a PO Number,
Invoice Number, or a Reference Number.
When there’s no remittance advice, Workday
ignores this rule.
• Match by Amount to Pay for Remittance
Detail Matching Rule: Use this option to
match the amount on the Other Remittance
Information against the Amount to Pay on
the Record Customer Payment task. You can
use this option along with Remittance Advice
Type, or by itself.

Result
Workday finds invoices that match the rules you've created.

Next Steps
You can now create a rule set for a company by adding these rules in the desired order.
Related Information
Tasks
Create Business Process Condition Rules
Reference
Workday 33 What's New Post: Fully On-Account Automatic Payment Application

Reference: Customer Payment Automatic Application Options

Workday provides 2 options for automatic application of customer payments. This table provides an
overview of both the options to help you determine the one that best suits your business needs.

Criteria WD Delivered Automatic Advanced Automatic Payment

Payment Application Rules Application Rules
Are the rules predefined? Yes No
Configure your own rules to suit
your business needs.

Configuration level Tenant Company

Is setup required? None Yes
Use the Auto-Apply Customer You need to enable the
Payments task to initiate the Advanced option on the Edit
automatic application rules. Customer Payment Application
Configuration task.

Can you edit the rules? No Yes

Criteria WD Delivered Automatic Advanced Automatic Payment

Payment Application Rules Application Rules
Rule order logic Workday processes all 8 rules in NA
the numeric sequence from zero
to 7, rule by rule until it finds a
match rather than payment by
payment.
Can you use this functionality for Yes Yes
payments imported from external
Ensure to enable the Ready to
source?
Auto-Apply Flag on the Put
Customer Payment web service
before importing the external
payments in Workday. You
can then run the Auto-Apply
Customer Payments task to
apply the payments.
When you use the Customer
Payment Lockbox integration,
Workday automatically enables
the flag if the Remit-From
Customer value exists.

Can you schedule the auto Yes. Yes.

application job?
Use the Schedule Auto-Apply Before using the Schedule Auto-
Customer Payments task. Apply Customer Payments
task, first access the Edit
Customer Payment Application
Configuration task for a
Company and configure:
• The advanced rule set you've
created.
• Enable the Advanced check
box option.

Workday delivered report to view Workday Delivered Customer None

the automatic application rules. Payment Application Rules
Workday delivered report to view Yes Yes
the customer payments applied
Customer Payment Auto- Customer Payment Auto-
automatically.
Application by Reason Application by Reason

Application Types & Remittance Types supported for each rule set
Application Type Unapplied only Unapplied and On-account
Amount to Pay Yes Yes
Referenced Invoices Yes Yes
Remittance Advice Types None Invoice Number
PO Number
Reference Number

Condition Rule None Yes

Reference: Customer Payment Automatic Application Rules

You can use the Auto-Apply Customer Payments task to initiate the automatic application rules.
Workday processes each rule in the numeric order from zero to 7.

Rule Number Rule Name Description Considerations

Zero Referenced Invoice Matches customer Excludes adjustments
Credits (Workday) invoice adjustments with that have the
those customer invoices Apply Adjustment
that are specifically Immediately check box
referenced by the selected.
invoice adjustment.
1 Referenced Invoices Matches those customer Workday retrieves
with Amount to Pay payments that have a the payments based
(Workday) Remittance Advice on these parameters
referencing specific you specify in the auto
customer invoices with application task:
an Amount to Pay
• Company
value.
• Remit-from
Customers
• Transaction Date to
Use

2 Non-Invoice Remittance Matches those customer Excludes customer

Advice with Amount to payments that have payments that reference
Pay (Workday) Bill-To Customer and specific invoices.
Amount to Pay values
in the remittance line
information.
3 Referenced Invoices Matches those customer Excludes customer
without Amount to Pay payments that have the payments that have an
(Workday) Remittance Advice Amount to Pay value.
referencing specific
invoices with bill-to
customer, and no
Amount to Pay value.
4 Non-Invoice Remittance Matches those customer When recording a
Advice without Amount payments that have customer payment, you
to Pay (Workday) a remittance advice only enter the other
other than referenced remittance information
customer invoices, and such as PO Number in
no Amount to Pay the remittance advice
value. type.

5 Invoice Amount Due Matches the Total There’s no remittance

(Workday) Payment Amount on information on the
the Record Customer invoice.
Payment task to the
Amount Due on a
customer invoice.
6 Last Customer Matches theTotal Matches the total
Statement Balance Payment Amount to the payment amount on
(Workday) last statement balance the Record Customer

Rule Number Rule Name Description Considerations

for a customer that Payment task to the
has the Remit-From Total Balance on the
Customer provided on last customer statement.
the payment.
There’s no remittance
information on the
invoice.

7 Current Customer Matches the Total Matches the payment

Balance (Workday) Payment Amount to amount on the Record
the current balance Customer Payment
for a customer that task to the Balance in
has the Remit-From Reporting Currency
Customer provided on amount on the current
the payment. Customer Balance
Summary.
There’s no remittance
information on the
invoice.

Reference: Customer Payments Advanced Automatic Application Rules Criteria

When you configure a rule, consider the options on the Create Customer Payment Application Rule task
and associated Workday behavior.
Rule Criteria and Options

Fields Considerations
Payment Application Reason Select a reason that you've configured to identify
the rule Workday uses for payment application.
You can use the Customer Payment Auto
Application By Reasons report to view your
payment applications by the payment application
reason.

Writeoff Reason This option is available and required when your

Application Type is Write-Off.
Application Type Select a type of payment transaction to process
with this rule. There are 4 options:
• Invoice Credits: Applies payments to invoice
adjustments.
• On-account Payment: Applies payments to
invoices with a payment application status of On
Account.
• Unapplied Payment: Applies payments to
invoices with a payment application status of
Unapplied.
• Write-Off: Creates bad debt write off.
Workday determines the transactions to process
by using a combination of Application Type and
Condition Rule.

Fields Considerations
Allow Application for Different Customers Select this check box to apply a payment where
the Remit-To customer doesn’t match the invoice's
Bill-To customer.
Allow Application for Different Company Select this check box to process on-behalf-of
Invoices payments that have different companies on the
customer payment header and the customer
invoice header.
You can use this check box only when you've
enabled one of these options:
• Limit to Referenced Invoices.
• Remittance Advice Type.
• A Condition Rule that contains a report field
used on the customer payment remittance.

Leave Application as Draft Select this check box to leave payments in Draft
status. It enables you to review your payment
application before submitting them.
Limit to Referenced Invoices Select this check box to match only the referenced
invoices on the remittance advice line.
When you don't select the check box, auto
application process tries to match the payment
against all open invoices.
This option is available when the application type is
either On-Account Payment or Unapplied Payment.

Put Remaining Balance On Account Select this check box to place those payments on
account that have a remaining balance after you've
applied a certain amount to an invoice.
Put Unapplied Payments Fully On Account Select this check box to place the entire recorded
payment on account.
Condition Rule Select a rule that you've created to retrieve specific
invoices for payment processing.
Example: You can configure a condition rule to
write off bad debt for all invoices that are less than
a dollar and over 30 days past due.
Workday determines the transactions to process
by using a combination of Condition Rule and
Application Type.

Remittance Detail Match Conditions section Use this option to match a payment by either
invoice number, PO number, or reference number
instead of associating a condition rule.
Workday applies the rule that you've created and
performs a match only if there's a remittance advice
with the payment. When there’s no remittance
advice, Workday ignores this rule.

Fields Considerations
When 2 payments for the same customer and the
same remittance advice exist, Workday processes
the older payment first.
This option is available only when the Application
Type is either On-Account Payment or Unapplied
Payment.

As you configure a rule, consider Workday behavior for each available option based on the payment
Application Type you select under the Application Rule Details section.

Application Type/ Invoice Credit On-Account Unapplied Write-Off

Other Fields Payment Amount
Allow Application No Yes Yes No
for Different
Customers
Leave Application Yes Yes Yes No
as Draft
Limit to No Yes Yes No
Referenced
Invoices
Put Remaining No Yes Yes No
Balance On
Account
Put Unapplied No No Yes No
Payments Fully
On Account
Only Applies No Yes Yes No
to Payments
with Remittance
Advice
Remittance No Yes Yes No
Advice Type

Related Information
Reference
The Next Level: An Introduction to Auto-Application Rules for Customer Payments

Customer Payment Matching

Steps: Set Up Machine Learning for Customer Payment Matching

Prerequisites
Note: You must subscribe to Innovation Services to use this feature. Contact your Customer Success
Manager to request the Innovation Services Addendum (ISA), or see Workday Innovation Services in the
Workday Community for more information.
• Record customer payments. You must have at least 1 customer payment recorded in the last 30 days
to complete the opt-in process for this feature and have a model trained for your tenant.

• Configure the Innovation Services functional area and configure security policy permissions for these
domains:
• Manage: Innovation Services
• View: Innovation Services

Context
You can enable machine learning to get recommendations for matching payments to customer invoices
and adjustments that have little or no remittance advice associated with the payment. The machine
learning model uses insights from historical payment application data and also learns from current payment
applications to determine invoice recommendations for a given payment. The model ignores:
• Payments missing the remit-from customer on the payment header.
• Consolidated invoices.
• Invoices with term discounts.
• Invoices that don’t add up to the payment amount when making recommendations.
This innovation service feature provides beneficial recommendations only when you’re processing
customer payments in Workday. The recommendations:
• Address how to apply prepayments.
• Address how to apply on-account payments.
• Identify mis-applied payments.
• Prevent write-off of a payment or invoice that should be a payment application.
Workday doesn't include cross-currency payments in the recommendations.

Steps
1. Access the Innovation Services And Data Selection Opt-In report.
The report lists all the innovation services available. Click the link to view additional information for each
innovation service, security exhibit, and the data processing exhibit.
a) In the Innovation Services Opt In tab, under Available Services > Financials, select the
Financial Management Machine Learning GA Features service check box.
b) In the Maintain Innovation Services Data Selection Opt-In tab, under Financial Management
Machine Learning GA Features, select the Opt In check box for the Customer Payment Data
category to contribute data for Machine Learning. If you’ve previously opted in to Customer
Payment Data, select the Opt In to Additional Data check box.
c) In the Summary tab, you can verify the innovation services available and opted into. You can also
view the data contribution opt-in for various categories.
Security: Manage: Innovation Services domain in the Innovation Services functional area.
2. (Optional) Access the Run On-Demand Machine Learning Activation for Implementation Tenant
task to set up testing on Implementation Tenants.
After setting up the task, it can take up to 2 weeks to view the machine learning feature functionality in
your tenant. Then, you have 2 weeks to complete testing.
Note: Workday recommends using a Preview tenant to test this functionality because compared to
Implementation tenant, you have unlimited time to test. Also, you can more easily enable Financials
machine learning.
3. (Optional) Access the Edit Tenant Setup - Machine Learning task.
Select the region in which Workday hosts data contributed to the Machine Learning Development
Environment (MLDE). The default region for the MLDE is the U.S.
Security: Set Up: Tenant Setup - Machine Learning in the System functional area.

Result
When you enable the feature for the first time, it takes up to 2 weeks to train the machine learning model
using your data.
When you opt out of the data contribution, Workday purges your data within 30 days.

Next Steps
Run the Schedule Cash Application Insights task to schedule cash application recommendations.
Related Information
Reference
The Next Level: Intelligent Customer Payment Matching Powered by Machine Learning
Workday Community: Available Innovation Services – Service Descriptions and Exhibits
Reference: Financial Management Machine Learning GA Features Innovation Service on page 1960

Schedule Cash Application Insights

Prerequisites
• Set up Customer Payment Matching.
• Security: Process: Customer Invoice Payment domain in the Customer Accounts functional area.

Context
The Schedule Cash Application Insights task enables you to request cash application recommendations
for payment application exceptions. You can schedule the task to run:
• Daily after your normal payment application process.
• Automatically after your last customer payment auto-application job completes.
You can also use the Process Monitor to view the process status of the job.
You can create a schedule for multiple entities and multiple currencies when you have more than 1
company or currency, to run with the specified frequency.

Steps
1. Access the Schedule Cash Application Insights task.
• To schedule this task to run after the automatic payment application job completes for a given
company, select Dependent from the Run Frequency prompt. For dependency configuration,
specify the job and set Trigger on Status to Completed.
• To schedule this task to run after the daily manual payment application job, select Daily Recurrence
from the Run Frequency prompt.
2. As you select the prompts under Criteria, consider:
Option Description
Company To get on-behalf-of customer payment
recommendations, set up intercompany profiles to
establish the relationships between organizations
on the Edit Company Intercompany Profile
task.

Payment Date Workday provides recommendations for

payments created as of the specified date. To get
recommendations for older payments, select Days
Before Schedule from the prompt.

Option Description
Example: To get recommendations for payments
created in the last 30 days, set the Days Before
Schedule to 30.
Workday automatically populates the payment
date with the current date.

3. As you select the prompts under Customer Selection, consider:

• Workday provides payment recommendations for all customers if you leave the prompts under
Customer Selection empty.
• For payments applied to multiple customers, set up customer relationships on a customer profile
under the Payment Details tab. Workday automatically populates the Remits for Customer field
when you select a customer in the Remit-From Customer field.

Next Steps
To view recommended invoices for payment applications, run the View Cash Application Insights report.
Related Information
Reference
2023R1 What's New Post: Recommendations for Cross Customers and On-Behalf-Of Payments for
Customer Payment Matching

Review and Dismiss Payment Application Recommendations

Prerequisites
• Set up Customer Payment Matching.
• Schedule the cash application insights job.
• Configure the Customer Payment Application Event business process for applying payment
recommendations.
• Security: Process: Customer Invoice Payment domain in the Customer Accounts functional area.

Context
The View Cash Application Insights report provides recommendations for payments that couldn't be fully
applied during the auto-apply process. The actionable report helps you make a more informed decision.
You can:
• Use the prompt filters to identify payments missing remittance advice by multiple companies, multiple
currencies, or by payment status.
• View recommendations for regular payments, payments on-behalf-of different customers, payments on-
behalf-of different companies.
• Provide feedback on Cash Application Insights by dismissing invalid recommendations or reviewing and
applying valid recommendations for a payment.
To make payment recommendation, the customer payment data model evaluates these criteria:
• Invoice Age
• Invoice Amount Due
• Invoice Number
• Memo
• Payment Age
• Payment Amount
• Payment Reference

• Payment Remittance Advice

• Ratio of Invoice Amount to Payment Amount

Steps
1. Access the View Cash Application Insights report.
2. As you select the prompts, consider:
Option Description
Company Specify 1 or more companies. You can also
specify company hierarchies to view the payment
recommendations. You can view partially applied
payments on-behalf-of different companies.
When you apply a payment for a company that's
different from the invoice company, Workday
routes the transaction as an intercompany
payment application. Ensure that you have
intercompany profiles configured.

Payment Date Specify a date that you want to view the

recommendations for. Workday finds eligible
payments created as of the specified date and
requests recommendations for those payments.
Example: You specify 2023-01-01 for the payment
date. The schedule job looks for eligible payments
created on or after 2023-01-01.
The schedule job automatically uses the current
date and processes payments created as of that
date value.

Remit-from Customers Specify a remit-from customer to receive

recommendations for cross-customer payments.
3. After you run the report, to act upon recommendations, consider:
Option Description
Recommended Invoices Displays open and approved invoices for the
payment recorded with or without remittance for a
given company.
You can view the details of each recommended
invoice from the related actions menu of the
invoice.
Workday doesn't include canceled invoices, or
invoices that 's part of another payment in process
in its recommendations.
Workday doesn't provide a recommendation when
there’s no exact match for the payment.

Dismiss Click to dismiss 1 or all recommendations. Once

you dismiss a recommended invoice, Workday
doesn't recommend it again for that payment.
However, it can recommend the same invoice
for another payment as long as the invoice is still
open.

Option Description
Review Click to review the recommended invoice.
Workday automatically accesses the Apply
Customer Payment task, preselects the
recommended invoices, and populates the
Payment Amount with the recommended
amount.
When you select Save for Later on the Apply
Customer Payment task and review the payment
recommendations again in the View Cash
Application Insights report, Workday will route
you to the Edit Customer Payment Application
task where you can apply the recommended
payment amount or edit it.

• The report might list recommendations from past Schedule Cash Application Insights jobs when:
• You didn't take action on the recommendation.
• The model didn't generate new recommendations for previously recommended payments.
• Workday doesn't display any customer payment that's:
• Fully applied, or applied then unapplied.
• Canceled or has a payment application in progress.
• Has a customer refund, overpayment, or payment return in progress.

Result
We collect the feedback that you provide to Workday by dismissing, reviewing, or accepting the
recommendations to train and improve the Customer Payment Matching machine learning model for future
recommendations.

Next Steps
Run the Customer Payment Recommendation Activity report to view:
• All payment applications.
• Dismissed recommendations activity for multiple customers, payment types, payment statuses, and
application statuses.
• Accepted recommendations and count of recommended invoices per payment.
• Manual and automatic payment applications using the recommendations.

Reference: Customer Payment Recommendation Activity

Workday provides a Customer Payment Recommendation Activity report that enables you to view payment
application and recommendation activity. It returns 1 row per payment. You can also remove these fields
from the report and use them in custom reports. The report uses the Customer Payment for Invoices
report data source.
We also provide additional report fields to track the count of approved payment applications for both
automatic and manual applications, with and without recommendations, along with the count of
recommended invoices you accept or dismiss. Workday tracks the count value cumulatively.

Option Description
Count of Remittance Advice Invoices The total number of customer invoices referenced
in the remittance advice of a customer payment.

Option Description
Count of Remittance Advice Invoices with The total number of customer invoices referenced
Recommendation in the remittance advice of a customer payment
with an intelligent recommendation.
Count of Other Remittance Information Entries The total number of entries added to the Other
Remittance Information section of the customer
payment's remittance advice.
Count of Approved Manual Payment The total number of approved manual payment
Applications applications in the customer payment.
Example: Count of 1 in this column and count of
zero in the Count of Approved Manual Payment
Applications with Recommendation column
indicates that you applied 1 payment manually for
an invoice and Workday didn’t recommend that
invoice.

Count of Approved Manual Payment The total number of approved manual payment
Applications with Recommendation applications with an intelligent recommendation in
the customer payment.
Example: Count of 2 in this column and count of
2 in the Count of Approved Manual Payment
Applications column indicates that you applied 2
payments manually and Workday recommended
both of those invoices.

Count of Approved Automatic Payment The total number of approved automatic payment
Applications applications in the customer payment.
Count of Approved Automatic Payment The total number of automatic payment applications
Applications with Recommendation processed from the provided recommendation you
approved.
Count of Recommended Invoices The total number of recommended customer
invoices for the customer payment since the
last Schedule Cash Application Insight run. It
includes latest recommendations and any accepted
plus dismissed recommendations from the prior
runs.
Count of Recommended Invoices Accepted The total number of recommended customer
invoices accepted in a customer payment.
Count of Recommended Invoices Dismissed The total number of recommended customer
invoices that you dismiss for customer payment
application.

Credit Card Payments

Steps: Set Up Cybersource Credit Card Payment Processing

Prerequisites
To process credit card payments in Workday through Cybersource, you must contract with Cybersource to
be your payment partner.

Context
Through a packaged integration with Cybersource, Workday enables you to authorize and bill credit cards
for customer invoice payments. The Cybersource PCI-certified data centers securely store the credit card
data of the customers. Data flows between Workday and Cybersource through integrations. Workday
triggers the integrations when you:
• Add or update the credit card information of your customers.
• Record and settle customer payments.
You can use Cybersource to process payments in more than 190 countries and in multiple currencies.

Steps
1. Steps: Set Up Credit Card Payment Integrations.
Build 2 Cybersource integrations for:
• Creating and maintaining customer profiles in Cybersource.
• Transferring data for credit card payments to Cybersource.
2. Set Up Bank Account for Credit Card Payments on page 767.
Associate the bank account that you use to process credit card transactions with the Cybersource
payment integration. Enable this bank account to receive payment acknowledgment messages so that
you can verify payment status.
3. Establish a Merchant Account on page 768.
Create a merchant account for credit card processing with Cybersource. Then associate it with the bank
account that receives payment deposits. The merchant account has a production mode setting that you
select when you’re ready to go into production.
4. Concept: Customer Credit Card Profiles on page 769.
• Create multiple profiles in Cybersource with the Upload Customer Credit Card Profiles task.
• You can also click Add Credit Card Information in an individual customer record to create a
single profile. Workday then sends the customer data to Cybersource and provides a link for you to
complete the profile with the credit card number. However, once you use a credit card for a payment,
you can’t delete or inactivate that credit card.
• Workday maintains the customer information and synchronizes with Cybersource whenever you add
or update customers who pay by credit card.

Set Up Bank Account for Credit Card Payments

Prerequisites
• Configure the credit card payment type in the Maintain Payment Types task.
• Create a standard bank account.
• Create a payment integration with Cybersource. See Steps: Set Up Cybersource Credit Card Payment
Processing.

Context
If you want to settle a customer invoice in Workday through a credit card, you must use a payment
integration. To receive credit card payments, you need to first configure your bank account with the
integration, and then map the bank account to the Merchant Account.
Example: You use Chase bank for your transactions and you have a payment integration
with Cybersource. To receive credit card payments from your customer, configure your bank account with
Cybersource and map Chase bank to the Merchant Account.
You can also enable the bank account to receive payment acknowledgment messages. This helps you
check payment status and handle rejected payments.

Steps
1. Access the Edit Bank Account task.
2. As you complete the task, consider:
Option Description
Bank Account Select the bank account to receive credit card
payments.
Allowed Payment Type Select Credit Card.
3. Add a row to the Settlement Setup grid.
4. As you complete the grid, consider:
Option Description
Payment Type Select Credit Card.
Payment Category Select 1 or more values to restrict credit card
payments to specific payment categories.
Country Select 1 or more values to restrict credit card
payments to specific countries.
Integration System Select the integration to Cybersource that you
created for payment processing.
Technical Settings (Optional) Specify Maximum Payments per
Group and Cut Off Time.
The Cut Off Time field is informational only.
Workday doesn’t use this field value.
.
Receives Acknowledgement Select this check box to indicate that the bank
account can receive payment status messages for
credit card payments.

Next Steps
Establish a merchant account and assign this bank account to the merchant account for payment deposits.

Establish a Merchant Account

Prerequisites
Set up a bank account to accept credit card payments.

Context
Create a merchant account to establish CyberSource as your payment service provider and specify the
bank accounts that receive payment deposits.
If you use separate bank accounts for different payment types, you can create more than 1 merchant
account with CyberSource. Assign the same CyberSource payment integration to each bank account that
receives payment deposits.

Steps
1. Access the Maintain Merchant Accounts task.
2. At the Payment Service Provider prompt, keep the default value of CyberSource and click OK.
3. Add a row to the Merchant Accounts grid.
4. If you are in test mode with CyberSource, leave the Production Mode check box cleared. Select the
check box only when you’re ready to put the account into production.
This check box determines whether the links from Workday to CyberSource take you to the
CyberSource test or production URL. This setting doesn’t affect the integration endpoints.
5. Enter your Merchant Account ID as provided by CyberSource.
6. At the Financial Account prompt, select the bank account that receives credit card payments.

Next Steps
• When you’re ready to put this merchant account into production, select the Production Mode check
box. Workday then provides links to the CyberSource production URL.
• Create multiple profiles in CyberSource with the Upload Customer Credit Card Profiles task. You can
also click Add Credit Card Information in an individual customer record to create a single profile.

Concept: Customer Credit Card Profiles

Workday provides 2 methods to create customer credit card profiles for your CyberSource merchant
account:
• A bulk upload for initial profiles.
• An individual upload for new or updated customers.
After you send customer data to CyberSource, access your CyberSource account to complete the
customer profiles by entering the full credit card information. Workday stores only the credit card type, the
expiration date, and the last 4 digits of the card number.

Before You Begin

Before creating merchant customer profiles, configure a customer profile integration with CyberSource.
Note: The integration must subscribe to the Customer Change - Event Lite Type transaction to trigger an
upload of individual customer profiles. You can configure this subscription after you load initial customer
profiles into CyberSource.

Upload Customer Credit Card Profiles

To load customer profiles into CyberSource, complete the Upload Customer Credit Card Profiles task.
The customer records must already include credit card information.

Add Credit Card Information

Workday launches an integration when you create or edit the credit card information of a customer. The
integration uploads the profile information in CyberSource. The customer record must include a billing
address, billing phone number, and primary email address. A customer can have multiple credit cards, but

you must designate 1 card as the primary credit card. After you save the customer record, the Credit Card
Information page displays the pending customer profile transaction.

Complete Customer Profiles

After the initial upload of customer information, Workday provides a link for you to access CyberSource to
complete the credit card information for that customer. The Customer Profile ID in Workday corresponds
to the Subscription ID in CyberSource. You can specify the full credit card number to save the customer
profile for future authorization and payment processing.

Concept: Credit Card Payments

You can authorize credit card payments when you record them, but final credit authorization and payment
capture take place during a settlement run. Workday offers a packaged integration with Cybersource for
credit card processing.

Credit Card Authorization

Credit card authorization is an optional step in the Record Customer Payment task. After you save and
apply a payment where the payment type is credit card, you can:
• Authorize the credit card by selecting the credit card profile for that customer and clicking Authorize
Credit Card. This process sends the payment data to your Cybersource for approval.
• Continue without authorization until the settlement run completes.
If the payment authorization fails, you can:
• Record the customer payment and reauthorize during the payment capture process.
• Authorize outside of Workday and add the authorization ID manually.
To enter an authorization manually, click the magnifying glass in the Credit Card Authorization field.
Select Manually Enter Credit Card Authorization ID from the related action menu of Credit Card
Authorization.
• Create a new payment with a different credit card or payment method.
After you apply a customer payment with the Record Customer Payment task, the payment is available
for settlement.

Payment Settlement
Credit card payments are part of the Workday settlement run process, which accommodates 2 types of
electronic payments:
• Recorded customer payments, with or without authorization.
• Customer invoices.
Once you complete a settlement run, Workday triggers the Payment Release Event business process that
sends the credit card payment data to Cybersource for authorization and capture. Payments go to the bank
account associated with your Cybersource merchant account.
Separate payment deposits are made for each credit card type unless you select the Batch Customer
Payments in Deposits check box for bank account reconciliation.

Payment Acknowledgment
Cybersource automatically sends payment acknowledgments after a settlement run.
Related Information
Concepts
Concept: Settlement Processing on page 1908

Tasks
Steps: Use Settlement on page 1892

Customer Refunds

Steps: Create a Customer Refund

Prerequisites
Configure the Customer Refund Event business process and security in the Customer Accounts functional
area.

Context
Customers can overpay their invoices for various reasons, such as an error or a change in transaction.
Workday enables you to refund that amount.
Example: A customer pays for an invoice with no remittance advice. You put the payment on account.
Later, when the customer cancels the order, you can use the on-account payment to process a refund.
To create refund for a payment, make sure that:
• The payment either has a credit adjustment or has an amount on account.
• A deposit exists for the on account payment.

Steps
1. Determine whether you want to create the customer refund from On-Account Payments or Invoice
Adjustments.
Option Description
On-Account Payments • Access the customer payment on the Invoices
and Payments tab on the Customer profile.
• Select Customer Payment > Apply from the
related actions menu of the payment and put
it on-account by entering the amount in the
Amount to Place On-Account field.

Invoice Adjustments • Access the customer invoice on the Invoices

and Payments tab on the customer profile.
• Select Customer Invoice > Create
Adjustment from the related actions menu of
the invoice.

2. Access the Create Customer Refund task and select the customer you’re creating the refund for,
including the currency, date, and payment type of the refund.
3. Select the invoice adjustment or on-account payment for the refund.
• To issue partial refunds, you can specify a Refund Amount that's greater than zero or less than the
amount available to refund.
• You can continue to create refunds from an on-account payment as long as there’s sufficient on-
account balance.
• Workday prevents you from selecting any on account payment when it's already part of a refund.
4. Access the Create Settlement Run task to issue the refund.
When you issue the outgoing payment check for the customer refund, the Remit-To Address report
field uses the most recent effective-dated address of the customer contact where the Usage is Remit

To. This report field doesn't consider the Primary Address flag when determining the address for the
check.

Result
The bank issues funds back to the customer.
Related Information
Reference
The Next Level: Customer Invoice Maintenance

Steps: Create Customer Refund Payments in Settlement Runs

Prerequisites
• Settle all customer refunds in progress.
• Set up custom validations for customer refund documents.
• Set up the Customer Refund Document Event business process for customer refund documents.

Context
Workday can generate customer refund payments in the settlement run to reflect your refund settlement
date. Example: You create a customer refund with a specified refund date and then select a different date
to settle the refund. Workday then generates a refund payment with the payment date set to the settlement
date.
This enables you to:
• Separate the refund payments from the refund documents.
• Use the existing refund document when you cancel the refund payment.
• Create more accurate journal entries.
• Group the refund payments into 1 when you settle multiple customer refunds with the same company,
payee, payment type, currency, and bank account.

Steps
1. Access the Maintain Feature Opt-Ins report.
Opt in to the Customer Refunds Optimization feature.
Note: After you opt in, you can no longer opt out of the customer refunds optimization to use the
previous feature. We suggest you test this functionality before you opt in.
Security: Set Up: System domain in the System functional area.
2. (Optional) To create and retrieve customer refund documents, update your integrations to use the Get
Customer Refund Documents and Submit Customer Refund Document web services.
Security:
• Process: Customer Refund/Payment domain in the Customer Accounts functional area.
• Process: Settlement domain in the Banking and Settlement functional area.
• Process: Customer Refund Settlement domain in the Customer Accounts functional area.
• Customer Refund Document business process in the Customer Accounts functional area.
3. Create a customer refund.
• See Steps: Create a Customer Refund on page 771.

4. Access the Create Settlement Run task to issue the refund payment.
• When you select the settlement run date, Workday automatically sets this date as the payment date.
• When you cancel the customer refund payment from the related actions menu, you don't have to
cancel and recreate the customer refund document.
• Select the Include Payments on Behalf of Other Companies check box to settle customer
refunds on behalf of your affiliate companies. You can select companies to return customer refund
documents for from the Company(s) prompt in the Search Criteria section on the Select Customer
Refunds page of your settlement run.

Result
You can view and link customer refund payments to the original refund documents in the View Customer
Refund Payment report.

Next Steps
• View the refund status and details in the Find Customer Refunds and Find Customer Refund
Payments reports.
• Create custom reports from the Customer Refunds and Customer Refund Payments data sources.
Related Information
Reference
2023R2 What's New Post: On-Behalf-Of Customer Refund Payments

Concept: Customer Refunds

Workday provides the ability to create a customer refund for a credit on a customer account. You can
create a customer refund only if:
• The payment received is on-account and there's a deposit.
• The payment has a credit adjustment.

Refund from Payment on Account

When you receive a payment for an already paid invoice, you can place it fully on-account. When you
receive a refund request from the customer, you can access the Create Customer Refund task to process
the refund. The payment that the customer has on account displays as an option for sourcing the refund.

Refund as Credit Adjustment

You might have a customer who paid in full for an order, but then requires a refund because of an issue
with an order.
Example: The customer receives and pays for 1000 chairs. Upon inspecting the entire order, the customer
discovers damage to some of the chairs and submits a refund request. You can then access the Create
Adjustment task from the related actions menu of the customer invoice to begin the refund process.

Payment of Refunds
Once you create a refund, you can process it with the Create Settlement Run task. The Workday
settlement engine creates the accounting for the refund, and enables you to print and send out a refund
check. When you refund a direct debit payment, the settlement engine creates both the deposit and
the payment. For credit card refunds, the settlement engine creates the deposit and payment through
Cybersource.
When you settle intercompany transactions originating from customer refund payments processed by the
settlement company on behalf of its affiliate company, you can view these details on the Intercompany tab
of the customer refunds journal:

• The cash account of the settlement company to record the impact of the refund payment on cash.
• The intercompany receivables account of the settlement company to record the amounts due from its
affiliate.
• The intercompany payables of the affiliate company to record the amounts due to the settlement
company.
Related Information
Tasks
Create Manual Settlement Runs on page 1897
Steps: Use Settlement on page 1892

Cash Sales

Record Cash Sales

Prerequisites
• Configure the Cash Sale Event business process and security policy in the Customer Accounts
functional area.
• Security: Process: Cash Sale Payment - Core domain in the Customer Accounts functional area.

Context
You can record a sale in Workday even if you don't have a customer invoice. Cash sales aren't restricted to
cash; you can select any payment type available.

Steps
1. Access the Record Cash Sale task.
2. As you complete the Cash Sale Information section, consider:
Option Description
Currency Workday automatically populates the currency
from the customer when you specify a Default
Currency on the customer profile.
Cash Sale Date Workday automatically populates this field with
the current date. You can change this date to any
date in an open ledger period.
Memo Workday displays the Memo on the invoice
header.
3. As you complete the Payment Information section, consider:
Option Description
Reference Enter a value to identify the payment during bank
reconciliation. Example: For payment by check,
enter the check number.
Control Total Amount Use this field to compare your estimated total to
the total of the invoice lines in the Total Payment
Amount field.
Create Deposit Select this check box to add a bank account and
complete a deposit.

4. As you complete the Invoice Lines tab, consider:

Option Description
Company You can change the company if you've
configured the header company for intercompany
transactions with the line level company.
Tax Applicability Workday requires this field when you have a
value in the Tax Code field.
5. (Optional) Review the information on the Tax tab. This tab provides a summary of all tax codes and
applicability from the Invoice Lines tab. If several lines share the same tax, Workday consolidates and
summarizes the information.

Result
If you've set up the ID Generator for Cash Sales on the Edit Tenant Setup - Financials task, Workday
generates a unique ID number that displays as the Cash Sale Number when you view the sale.
Related Information
Reference
Reference: Edit Tenant Setup - Financials
The Next Level: Customer Invoicing

Manage Cash Sales

Prerequisites
These security domains in the Customer Accounts functional area:
• Process: Cash Sale Payment - Cancel
• Process: Cash Sale Payment - Change
• Process: Cash Sale Payment - Core

Context
Use the Find Customer Payments report to review your cash sales and manage them using the related
actions menu. You can maintain separate security groups that can change or cancel cash sales after
you've approved them.

Steps
1. Access the Find Customer Payments report.
2. Select the Include Cash Sales checkbox.
3. (Optional) Specify any of the other filter options to limit the payments list.
4. From the related actions menu of the cash sale, select Cash Sale, then 1 of these:
Option Considerations
Cancel If the cash sale is part of a separate deposit, you
must cancel the deposit before you can cancel
the cash sale. You can only access this option
when you have access to the Process: Cash Sale
Payment - Cancel domain.
Change You can change a cash sale after you've
approved it. You can't change cash sales if they're
part of a separate deposit. You can only access

Option Considerations
this option when you have access to the Process:
Cash Sale Payment - Change domain.
Copy You can copy cash sales to avoid manual work
and automatically populate values, such as
customer information, to a new cash sale.
Edit You can edit a cash sale while it's in draft status.

Deposits

Deposit Customer Payments

Prerequisites
• Record Customer Payments.
• Configure the Customer Deposit Event business process and security policy in the Customer Accounts
functional area.

Context
After recording a customer payment, you can deposit it into a financial account. To provide additional
details, you can also add attachments to a customer deposit.

Steps
1. Access the Create Customer Deposit task.
• Specify the Company controlling the account in which you want to deposit the payment. Workday
automatically uses the company currency for the deposit, but you can change the value to any
currency.
• (Optional) Select other criteria to limit the size of the payments list.
2. Select the payments that you want to deposit.
The list represents payments that you recorded using the Record Customer Payment task.
As you complete the task, consider:

Option Description
Bank Account The account for depositing the payment. Ensure
that this account accepts the payment currency.
When the payment currency isn’t the same as
the bank account currency, Workday uses the
Currency Rate Type and Currency Rate to
convert the deposited foreign-currency payments
into the bank account currency.
You can change the:
• Default rate type on the Maintain Currency
Rate Types task.
• Default rate between the deposit and bank
account currency on the Maintain Currency
Conversion Rates task.

Option Description
Deposit Reference Helps you identify this deposit during
reconciliation.
Control Total Amount Compare the Total Deposit Amount of the
selected payments to the desired control amount
that you specify.
3. (Optional) To add attachments when you’re creating or editing a deposit, select a payment and click
Select Files on the Deposit Attachments tab.
• To add attachments after a customer deposit has been already created, access the Add/Change
Attachment task from the related actions menu of a customer deposit.
• To prevent invoking an approval business process, ensure to include the security groups that should
have access to the Add/Change Attachment task in the security domain.
• To view attachments associated with the customer deposits, use the Attachments for Customer
Deposit report field in a custom report.
Security: Process: Customer Deposit – Add/Change Attachment domain in the Customer Accounts
functional area.

Result
• Workday creates accounting for this transaction.
• When you submit the deposit, Workday initiates the Customer Deposit Event business process for
review and approval. You can:
• Review the deposit for details and edit as needed.
• Add or delete attachments.
• Send it back for revision.
• Approve the deposit for adding the deposit to the defined bank account.

Next Steps
• View the deposits with the Find Customer Deposits report.
• Cancel and refund the deposit.
Related Information
Concepts
Concept: Rates, Rate Types, and Conversion on page 26
Tasks
Steps: Create a Customer Refund on page 771
Reference
2022R2 What's New Post: Enable Revise for Customer Deposits

Cancel Customer Deposits

Prerequisites
• Deposit Customer Payments.
• Security: Process: Customer Deposit domain in the Customer Accounts functional area.

Context
Occasionally, you might need to cancel a customer deposit. Example: You need to cancel a deposit that
was made to the wrong bank account.
You can only cancel customer deposits that you haven't reconciled.

Steps
1. Access the Find Customer Deposits report.
2. Select the Unreconciled option from the Reconciliation Status prompt.
You can refine your search by selecting other criteria.
3. Select Customer Deposit > Cancel from the related actions menu of the deposit you want to cancel.

Result
• Once you cancel the deposit, Workday returns customer payments to the list of recorded payments
available for deposit.
• When you cancel a deposit created together with a customer payment, Workday cancels the customer
payment too.

Customer Collections

Collections Dashboard
Setup Considerations: Customer Collections Dashboard
You can use this topic to help make decisions when planning your configuration and use of the Customer
Collections dashboard. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
You can configure your Customer Collections dashboard to include worklets for operational reports,
charts, and tasks to manage payment collection from your customers.

Business Benefits
The Customer Collections dashboard helps you convert accounts receivable to cash as quickly
as possible. The dashboard worklets enable collectors to prioritize their collection activities and take
appropriate actions for customer collections in 1 dashboard.

Use Cases
Customer Collections dashboard uses vary, depending on roles. Review these example roles and use
cases:

Role Use Case

Collector Manage and act upon your collections tasks like:
• Aging invoices
• Collection letters
• Disputes
• Writeoffs

Collection Manager or Controller Forecast and budget your cash and bad debt.

Role Use Case

Evaluate your customers and accounts receivable.

Questions to Consider
Before creating a Customer Collections dashboard, identify the worklets to include:

Questions Considerations
What operational information do your collection With Collections Dashboard you can:
team members need to do their job?
• Identify invoices that are missing purchase order
numbers.
• Manage which invoices they follow up on in the
next 2 weeks.
• Track their writeoff amounts by current and prior
periods.

Recommendations
A sample collector dashboard could include operational worklets like:
• Invoice Follow-up Dates
• Invoices Missing Purchase Orders
• My Writeoff Amount
• Payments Applied

Requirements
No impact.

Limitations
Workday doesn't provide any delivered risk scores for the Dashboard. You need to create your own scores
using calculated fields.

Tenant Setup
No impact.

Security
To ensure proper access, review these team member roles and their included operational collections
reports and task authorizations:

Domain Security Roles Considerations

Collectors (Accounts Receivable Specialist) • View and modify operations of the Customer
Accounts functional area.
• Approval authority for business processes for
customer accounts.

Controllers • View all financial configuration and operational

data for their organizations.
• Approval authority for financial business
processes.

Business Processes
The Customer Collections dashboard doesn't require business processes. However you should review
role-based business processes associated with the worklets that you include in your dashboard.

Reporting
No impact.

Integrations
No impact.

Connections and Touchpoints

Steps: Set Up the Customer Collections Dashboard

Prerequisites
Review setup considerations for customer collections dashboard.

Context
You can set up the Customer Collections dashboard to manage payment collection from your customers
and efficiently convert accounts receivable to cash. On the Customer Collections dashboard, you can also
view reports on payments applied, write-offs, and invoices with missing purchase order information.

Steps
1. Enable the domain security policy for the domain in the Customer Accounts functional area that secures
the dashboard or landing page you want to make available.
See Steps: Enable Functional Areas and Security Policies.
2. Edit Domain Security Policies.
Grant your unconstrained security groups permission to the Management Dashboard: Customer
Collections domain in the Worklet: Dashboard folder in the System functional area.
3. Activate Pending Security Policy Changes.
4. Access the Schedule Customer Collections Metrics Update task.
Ensure to run this task to update the Workday delivered Average Days Late and Days Sales
Outstanding collections metrics. You can also find these metrics on the Customer report data source.
Security: These domains in the Customer Accounts functional area:
• Manage: Customer Invoice
• Process: Customer Invoice - Collections

5. Create Calculated Fields.

Create calculated fields to define low-risk, medium-risk, and high-risk bands based on the aging days.
• Specify a name for the calculated field. Select the second Customer from the Business Object
prompt and True/False Condition Function.
• Define the comparison value for the Aging Days Field for a given risk band.
Create calculated fields to define a risk value for each band you created.
•Specify a name for the risk assessment. Select the second Customer from the Business Object
prompt and the Evaluate Expression Band Function.
• Define a value for Return Value If Condition is True associated with each risk band Condition you
created.
6. Access the Create Custom Report task.
Add the calculated fields that you created to the custom report.
Security: Manage: All Custom Reports domain in the System functional area.
7. Create Analytic Indicators.
Add analytic indicators for risk scores that you created to your custom report.
8. Access the Maintain Dashboards report.
Edit the Customer Collections dashboard and enable custom reports as worklets.
Security: Set Up: Tenant Setup - Worklets in the System functional area.
9. Set Up Worklets
Configure additional custom reports as worklets.
10.(Optional) Add Dashboard Menus.
11.(Optional) Add Home and Dashboard Announcements.
Related Information
Reference
Setup Considerations: Customer Collections Dashboard on page 778
The Next Level: Customer Risk Assessment

Concept: Customer Collections Dashboard

The Customer Collections dashboard offers insight into your outstanding receivables, billing, and payment
transactions. It helps you to:
• Assess the aging distribution of current and past-due transactions.
• Determine the risk level of each customer.
• Evaluate the risk associated with each customer invoice.
• Get a more accurate forecast of cash and bad debt.
• Identify customers and invoices that are most at risk for late payment.
• Prioritize customer accounts for intervention by a collector to manage payment collection.

Building the Collections Dashboard

To build the dashboard, you need to:
1. Identify the collection metrics to use.
2. Configure your own high, medium, or low customer risk scores using calculated fields.
3. Create a custom report using these metrics.
4. Add the custom reports to the dashboard as worklets. You can use any report on the Customer
business object. For a complete list of reports to include on the dashboard, access the Workday
Standard Reports and filter on the Customer Accounts report category.
5. Enable security for the dashboard.

The default menu for the dashboard includes tasks related to customers, invoices, payments, writeoffs, and
adjustments. You can also configure the dashboard to include worklets for operational reports, charts, and
tasks.

Workday Delivered Collections Metrics

Workday delivers these metrics that you can use to create your own risk scores:
• Average Days Late
• Weighted Average Days Late
• Days Sales Outstanding (30 Days)
• Days Sales Outstanding (60 Days)
• Days Sales Outstanding (90 Days)
Workday calculates the metrics across all invoices and all companies for a given customer. To update
the metrics, run the Schedule Customer Collections Metrics Update report. You can set a schedule to
update the metrics daily, weekly, or monthly.

Risk Scores for Expression Bands

After you update the collection metrics, use any 1 of the metrics to develop calculated fields for customer
risk scores. Then, create additional fields to define high-risk, medium-risk, or low-risk bands. You can also
create calculated fields from the D&B Commercial and composite scores provided on the customer profile.
You can create risk scores based on a combination of:
• Customer category.
• Invoice and payment history.
• Location.
• Revenue category.
• Sales item.
• Weighted average days late.
The risk score that you create for each customer invoice indicates the likelihood of a customer paying the
invoice after the due date. You can use these scores in custom reports and add the reports as a worklet to
the Customer Collections dashboard.
Related Information
Reference
The Next Level: Customer Collections Overview

Reference: Collections Dashboard Metrics Calculations

Workday delivers several collections metrics. Workday performs all calculations only for open invoices as
of the schedule run date.
• Average Days Late Metrics on page 782
• Days Sales Outstanding (DSO) Metrics on page 783

Average Days Late Metrics

To understand how Workday calculates the average days late, consider this scenario for 4 past due
customer invoices:

Invoice Number Past Due Invoice Days Late Weighted Invoice

Amount Amount
#1 $350 30 350 × 30 = $10,500
#2 $5,000 25 5000 × 25 =
$125,000

Invoice Number Past Due Invoice Days Late Weighted Invoice

Amount Amount
#3 $200 15 200 × 15 = $3,000
#4 $600 10 600 × 10 = $6,000
Sum 4 invoices $6,150 80 days late $144,500

Workday includes only those invoices paid in full and when the paid date isn't null. Workday determines
average days late using these calculations:

Metrics Formula Description Scenario

Average Days Late Sum (days late) ÷ Days late are the 80 ÷ 4 = 20 ADL
(ADL) number of invoices paid number of days between
Your customers are
late the invoice due date and
paying you 20 days late
the invoice paid date.
on an average.
This value is an
important indicator
of your collections
performance and can
help you identify the
customers that are
taking longer to make
payments.

Weighted Average Sum (Each invoice It's the average number $144,500 ÷ $6,150 = 23
Days Late (WADL) amount × Days late) ÷ of days for invoices paid WADL
Sum (Past due invoice late, weighted by the
Customers are paying
amount) total amount due.
you 23 days late on an
Use this value when average.
you want to assess
delinquent customers
with large invoice
amounts.

Days Sales Outstanding (DSO) Metrics

DSO helps you determine the number of days that it takes on average to collect payments from credit
sales during a specific time period. Use this measure to assess your cash flow for that period and identify
collection issues. In these examples, you have an AR balance of $75,000 and credit sales revenue of
$100,000.
Workday uses these calculations for DSO metrics:

Metrics Formula Description Example

Days Sales (Sum of open Account Workday considers (75,000 ÷ 100,000) × 30
Outstanding (30 Days) Receivables (AR) invoices that have an = 22.5
amount) ÷ (Credit sales invoice date in the last
Your AR balance is 75
revenue in last 30 days) 30 days from your last
percent of the revenue.
× 30 run date.
In the last 30 days, you
take on average 23 days
to collect payment after
making a sale.

Metrics Formula Description Example

Days Sales (Sum of open Account Workday considers (75,000 ÷ 100,000) × 60
Outstanding (60 Days) Receivables (AR) invoices that have an = 45
amount) ÷ (Credit sales invoice date in the last
In the last 60 days, you
revenue in last 60 days) 60 days from the last run
take on average 45 days
× 60 date.
to collect payment after
making a sale.

Days Sales (Sum of open Account Workday considers (75,000 ÷ 100,000) × 90

Outstanding (90 Days) Receivables (AR) invoices that have an = 68
amount) ÷ (Credit sales invoice date in the last
In the last 90 days, you
revenue in last 90 days) 90 days from the last run
take on average 68 days
× 90 date.
to collect payment after
making a sale.

Related Information
Tasks
Steps: Set Up the Customer Collections Dashboard on page 780
Reference
The Next Level: Customer Risk Assessment

Reference: Collections Dashboard Worklets

You can add the listed worklets to the Customer Collections dashboard (secured to the Manage
Dashboard: Customer Collections domain in the System functional area).

Worklet Use Case Security

Invoice Follow-up Dates Displays invoices that you need Reports: Customer Accounts
to follow up on. Or to see when domain in the Customer Accounts
you last contacted the customer functional area.
and any notes you took.
Invoices Missing Purchase Identifies invoices that are Reports: Customer Accounts
Orders missing purchase order numbers, domain in the Customer Accounts
which could delay receiving the functional area.
customer payment.
My Writeoff Amount Keeps track of your write off Reports: Customer Accounts
amounts for the current and domain in the Customer Accounts
previous period, ensuring that you functional area.
are within the assigned limits.
Payments Applied Identifies the top collections Reports: Customer Accounts
by comparing all the applied domain in the Customer Accounts
payments against the total functional area.
number of invoices due in a
period.

Related Information
Tasks
Steps: Set Up the Customer Collections Dashboard on page 780

Dunning and Customer Statements

Print Dunning Letters

Prerequisites
• Set up customer contacts, email addresses, and document delivery preferences.
• Security: Reports: Customer Documents domain in the Customers Accounts functional area.

Context
You can create dunning letters to remind customers about the status of past-due invoices, improving the
collections process. Example: Sending your customer a dunning letter that includes all overdue invoices.
You can:
• Select from 3 dunning letter templates of increasing severity, or create your own dunning letters from
these templates.
• Include invoice adjustments, invoices with negative amount, invoices in dispute, or on hold when you
print the dunning letters.
• Include latest interest and late fee calculations for past-due invoices in the dunning PDF when you
haven't yet generated finance charges.
• Configure specific customer profiles to exclude them from receiving dunning letters.
• Email letters to customers that have Email configured as a preferred delivery method.
• Print letters for customers who prefer to receive them by mail.
Workday doesn't include consolidated invoices in dunning letters.

Steps
1. (Optional) To enable emailing of dunning letters, select the Email channel on your routing rule for
custom business process notifications.
When you edit Custom Notifications on the Dunning Letter Email Event business process, ensure that
the Repeat On prompt is set to Dunning Letters to be Emailed. If you leave this field blank, Workday
sends all the dunning letters to everyone.
2. Access the Print Dunning Letters task.
3. As you complete the task, consider:
Option Description
Dunning Level Group Access the Create Dunning Level Group task
from this prompt to configure dunning levels.
Customers to Exclude You can specify 1 or more customers to exclude
from this print run.
Generate Associated Invoice PDFs When invoices use different business form
layouts, Workday generates 1 file for each
business form layout.
To include associated invoices when you email
dunning letters, configure the Dunning Letter
Email Event business process.

Group Dunning Letters for Mailing In addition to creating individual dunning letters,
Workday groups letters by dunning level and
customer locale for customers with:
• Mail configured as a delivery method.

Option Description
• No configured delivery method.

Override Dunning Level Setting To override the dunning level selection, you can
include:
• All Open Invoices
• All Overdue Invoices
Workday will ignore the aging days you specified
in the Dunning Levels option, but will continue to
use the Business Form Layout associated with
the selected dunning level.

Next Steps
• Access the Schedule Print Dunning Letters task to configure a recurring print job.
• Exclude specific invoices from dunning letters with the Manage Customer Invoices task.
• View dunning letters on the Find Dunning Letter Print Runs report.
Related Information
Tasks
Set Up Customer Contacts and Addresses on page 642
Steps: Configure Workflow Notifications to Email Customer Invoices and Attachments on page 710
Reference
Reference: Edit Tenant Setup - Notifications
Workday 32 What's New Post: Include Associated Invoices with Dunning Letters
Workday 33 What's New Post: Group Dunning Letters for Mailing
The Next Level: Customer Collections Overview
2020R2 What's New Post: Invoices and Invoice Adjustments in Dunning Letters

Steps: Set Up Customer Statements

Context
You can print customer statements for regular mail delivery, or email them as PDF attachments to
customers. To do so, first configure the document delivery method, delivery type, and define the print
layout.
Workday also enables you to:
• Exclude empty statements from Open Item statement type.
• Exclude statements with zero balance and no activity from Balance Forward statement type.
• Schedule the print job.

Steps
1. Access the Edit Tenant Setup - Notifications task and enable automatic email notifications.
In the Notification Delivery Settings section, select Email for the Custom Business Process
Notifications row of the Business Processes parent notification type.
Security: Set Up: Tenant Setup - BP and Notifications domain in the System functional area.
2. Configure the Customer Statement Event business process and security policy in the Customer
Accounts functional area. Make sure to include the custom notification on the business process
definition.

3. Steps: Configure Workflow Notifications to Email Customer Invoices and Attachments on page 710
Configure recipients primary mailing address, email addresses of the customer contact, bill-to contacts,
and document delivery options for the customer statement.
4. Create Customer Statement Print Layout on page 787.
5. Access the Print Customer Statements task to print and email customer statements.
Security: Reports: Customer Documents domain in the Customer Accounts functional area.
Workday excludes invoices which aren’t part of the customer security segment.
6. Specify a Balance Forward Start Date to summarize balances from that start date.
• This field only displays when you select Balance Forward on the Create Statement Print Layout
task.
• When you don't want to use Balance Forward statement type, first select the Open Item option from
the Override Statement Type prompt.
7. Select the Group non Email Delivery Statements check box to group statements without a bill-to
contact email address in their profile.
Specify the Preferred Delivery Type under the customer selection criteria section.
8. (Optional) Access the Schedule Print Customer Statements task to schedule the printing of customer
statements automatically.

Result
You can print customer statements for regular mail or email delivery. When you email the customer
statement, Workday first routes the statement to the Customer Invoice Email Event business process for
review and approval.

Next Steps
To view the print and email request status, access the Find Customer Statement Print Runs report.

Create Customer Statement Print Layout

Prerequisites
• Upload the business form layout for customer statements.
• Security: These domains in the Customer Accounts functional area:
• Set Up: Customer Accounts.
• Reports: Customer to use the delivered Customer Statement business form layout.

Context
You can create layouts for a company to use when printing and emailing customer statements. You can:
• Create a custom layout for your report design to meet your business needs. You can have more than 1
layout for your company.
• Customize the Workday delivered standard statement layout with your company logo and financial
messages.
• Specify a statement type, aging group, and remittance option for the company.

Steps
1. Access the Create Customer Statement Print Layout task.
2. As you complete the task, consider:
Option Description
Statement Type Select:

Option Description
• Balance Forward to include a consolidated
balance on the customer statement. This
balance carries over to each subsequent billing
period.
• Open Item to include individual customer
invoices on the statement that aren't yet paid
in full.

Business Form Layout Select:

• Workday delivered Customer Statement
layout.
• A custom layout if you require more flexibility
than the delivered print layout.

Include Company Logo Select to display your company logo on the

standard business form layout.
Aging Group Specify the number of days for each aging group.
Workday aggregates the invoice amounts by the
aging group in your output file.
Customer Statement Remittance Option Select:
• Credit Card
• Standard

Financial Message Enter a message to display on each sponsor

statement that you generate with this layout.
You can include up to 3 financial messages per
company.

Result
Workday uses this print layout when you generate the statement PDF.

Next Steps
• Configure delivery method to email or regular mail.
• Print and email customer statements. Workday routes the customer statements to the Customer Invoice
Email Event business process for review and approval before you email them.
Related Information
Tasks
Create a Business Form Layout in Workday Studio
Upload a Business Form Layout and Attach It to a Custom Report

Concept: Customer Statements

Customer statements remind your customers about their outstanding invoices and provide details of their
account activity, including information about:
• Outstanding Balance
• Open Amount
• On Account Amount
• Unapplied Payments

You can also define aging groups on the business form layout to display the total amount due by aging
days. There’s no accounting impact from generating statements.
Workday provides 2 Statement Types:
• Balance Forward to summarize the balance due from the start date you enter.
• Open Item to include invoices that aren't yet paid in full. It displays only open invoices and adjustments
regardless of the date.
You can print a single or multiple statements at once for a company and download the PDF. You can also
schedule the print job to deliver the statements automatically to the customers.

Reports
Workday provides these reports for viewing statements and the associated PDF:
• Find Customer Statement Print Runs
• Find Customer Statement Printing Run Groups
• View Customer Statements
To report by aging days, you must specify the aging groups on the business form layout.
You can also access these reports and tasks to edit or view the print configurations of your customer
statements:
• Edit Customer Statement Print layout
• View Customer Statement Print layout
Related Information
Reference
The Next Level: Customer Collections Overview

Interest and Late Fees

Setup Considerations: Interest and Late Fees
You can use this topic to help make decisions when planning your configuration and use of interest and
late fees. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Workday enables you to calculate interest charges and late fees on past-due invoices and then apply them
to the original invoice. To generate finance charges automatically, you can schedule the process after
you configure the rules. We also enable you to report on the finance charges and print the finance charge
invoices.

Business Benefits
The interest and late fee functionality:
• Streamlines how you set up, calculate, and process finance charges on past due invoices.
• Eliminates the need to calculate interest and late fees manually on invoices for each customer.
• Enables you to recover costs incurred by carrying unpaid bills on your books.

Use Cases
You can configure interest and late fee rules to:
• Calculate one-time or recurring finance charges on past-due invoices.
• Print separate finance charge invoices to send to your customers.
• Generate a report only without processing the finance charge calculations.
• Apply the on-account amounts to finance charge invoices.

Questions to Consider

Questions Considerations
What invoice types do you need to assess finance When you want to generate finance charges for
charges on? different invoice types, configure the default rules or
the overrides at the individual customer level.
How do you want to configure your finance charges When you have direct intercompany transactions,
for direct intercompany transactions? Workday processes the finance charge as usual.
When you want to exclude these charges, set the
customer to Exempt on their profile.
Do you need to post interest charges and late fees To post finance charges to 2 different ledger
to separate accounts? accounts, specify revenue categories by company
or customer.
How do you want to generate your finance charge After you calculate the interest and late fees, you
documents? can create:
• A new invoice document for finance charges.
• A new invoice adjustment document for finance
charges.
• Two separate invoice adjustment documents:
One for interest charges and another for late fee
charges.
• A report, without generating any documents or
accounting.

How do you want to configure your worktags for When you set up calculation options, Workday
finance charges? enables you to:
• Copy the worktags from the header of a past-
due invoice.
• Copy customer worktags from the customer
profile to the header of the finance charge
invoice or invoice adjustment document.
• Copy header worktags from a past-due
invoice to the new finance charge adjustment
document.
• When you've worktag balancing enabled, you
must specify a worktag for processing finance
charges.

Recommendations
• Run the Maintain Interest and Late Fees report to set up interest and late fees in the correct order.
• When you want to apply the finance charge for a full month even if 30 days aren't complete, set the
calculation option to monthly.
• To make any changes to the original invoice, first cancel the associated finance charge invoices.

• To view invoice adjustments from the customer invoice, access the Late Fees tab on the View
Customer Invoice report and drill into the calculation runs.

Requirements
• Configure at least 1 interest rule and late fee rule.
• Specify a rule to define the default behavior for interest and late fee calculations. Determine if you want
to override the default calculations for a customer.
• Set up calculation options for generating finance charges.
• To print the finance charge document, set the Customer Invoice Layout Rule to Finance Charges.
Also, set the Business Form Layout to Customer Finance Charge Invoice Printing Form.
• When you enable worktag balancing, you must define the primary worktag in case the original invoice
or the customer profile is missing the primary worktag.
• Configure the Interest and Late Fee Event business process and approve the charges so that Workday
can display the finance charges.

Limitations
• Workday doesn't support these calculations:
• Compound interest.
• Interest charges for late payments.
• Tiered interest rates and charges.
• This feature doesn't support invoices originating from Grants or Student sponsors.
• Once you generate a finance charge document, you can't change the company customer or currency
fields.
• When you process the finance charge for the same customer and company multiple times in the same
period, the on-account amount doesn't change for the subsequent calculation runs.
• You can apply only 1 interest rule and 1 late fee rule to the same invoice.
• You can't use the auto-application process to distribute the customer payment between the original
invoice and the related finance charge invoice.
• The late fee can only be a flat amount. You can't specify the late-fee value as a percentage of the past
due amount.
• You can't collect tax on finance charges automatically.

Tenant Setup
To enable interest and late fees, select the Enable Interest and Late Fees check box in the Customer
Accounts section on the Edit Tenant Setup – Financials task.

Security
Configure the Set Up: Interest Rate and Late Fee Rule domain in the Common Financial Management
functional area for workers who need to:
• Configure finance charge rules, calculations, output options, and overrides for individual companies or
customers.
• View individual company or customer reports.

Business Processes
Configure the Interest and Late Fee Event business process to define who can initiate, approve, and view
the finance charges. When you revise the calculations or deny the business process event, Workday also
cancels the calculation event.

Reporting
To review the details of the finance charges, access the Find Interest and Late Fee Calculation Runs
report.
You can also create a custom report using the Interest and Late Fee Calculation Run report data source.
When your reports are on Customer Invoices report data source, include the Generated Customer
Invoice report field to view interest invoice adjustments.

Integrations
You can use these web services to upload or retrieve data through an EIB:

Web Services Considerations

Get Finance Charge Rules Adds, retrieves, or updates a finance charge rule.
When a rule doesn't exist, Workday creates it. If the
Put Finance Charge Rule
rule is already in use, you can't update it.
Get Interest and Late Fee Calculation Options Retrieves or updates the interest and late fee
calculation rules at tenant and company level.
Put Interest and Late Fee Calculation Option
When a calculation rule doesn't exist for the tenant,
Workday creates a new one. The Days in Year field
value must be greater than zero. When Minimum
Days for Partial Month has a value, set the Include
Partial Month flag to true.
There's only 1 interest and late fee calculation rule
for the tenant, but you can create any number of
rules for a company, with the lowest order value
taking precedence.

Get Interest and Late Fee Defaults and Overrides Retrieves or updates the interest and late fee
rule default and override configurations. Default
Put Interest and Late Fee Defaults and Overrides
application rules are applicable to all customers.
Workday applies override rules based on the
company and customer category combination.
Get Interest and Late Fee Output Options Adds, retrieves, or updates the rules for generating
interest and late fees invoice document for a
Put Interest and Late Fee Output Option
company. These rules set the output options when
you process the finance charges. Customer-level
rules override the tenant rule for the company.

Connections and Touchpoints

Steps: Set Up Interest and Late Fees Charges

Prerequisites
Review setup considerations for interest and late fees.

Context
You can automatically calculate interest or late fees on past-due invoices and apply them to the original
invoice.
To provide flexibility in how you set up your finance charges, Workday enables you to configure these
options:
• Charge a one-time or recurring late fees.
• Charge daily or monthly interest.
• Apply a grace period.
• Set the default calculation rules for a company, customer, billing schedule, or customer invoice.
• Override a rule for a customer.
• Define when to generate the finance charge document.
• Verify your configuration by running the process without generating a document.

Steps
1. Access the Edit Tenant Setup – Financials task.
Select the Enable Interest and Late Fees check box in the Customer Accounts section.
Security: Set Up: Tenant Setup - System domain in the System functional area.
2. Set Up Finance Charge Rules on page 794.
3. Access the Maintain Interest and Late Fee Defaults and Overrides task.
Specify rules as defaults for all customer. When you select both Interest Rule and Late Fee Rule as
defaults, ensure that both the rules have the same Calculation Option of Daily or Monthly.
You can also specify 1 interest rule and 1 late fee rule as an override for a given company, customer
category, and customer group. You can't combine 2 interest rates rules or 2 late fees rules for a
company by adding them in different rows.
• Workday processes rules in the order they display in the grid. Once a field meets the conditions for a
rule, Workday ignores any remaining rules in the grid.
• To retrieve past due invoices for certain customers in a company, define specific rules first.
• When none of the rules in the Override grid meet the specified conditions, Workday uses the
default rules for all customers. If you haven't set default rules, Workday doesn't process any finance
charges.
• You can also create a separate customer group just for interest and late fee functionality. Later,
when you define the override rules, you can easily assign them to the customers in this group.
Security: Set Up: Interest Rate and Late Fee Rule domain in the Common Financial Management
functional area.
4. Set Up Calculation Options for Interest and Late Fees on page 797.

Next Steps
• Configure customer invoice layout for finance charges so that you can print interest and late fees
documents.
• Process interest and late fees to generate finance charges.
Related Information
Reference
2020R1 What's New Post: Interest and Late Fees
The Next Level: Interest and Late Fees Guide

Set Up Finance Charge Rules

Prerequisites
Security: Set Up: Interest Rate and Late Fee Rule domain in the Common Financial Management
functional area.

Context
You can configure interest or late fee rules to calculate finance charges automatically for overdue invoices.
When you set the rules to run on a recurring basis, Workday continues to calculate the finance charge until
the customer pays the invoice.

Steps
1. Access the Maintain Finance Charge Rules task.
2. As you complete the task, consider:
Option Description
Rule Type When you configure an Interest Rate rule type,
Workday doesn't process compound interest.
Calculation Options Workday displays this field only when the
Frequency is Recurring.
• Daily: (APR/365 * # of Days Past Due *
Amount Due)
• Monthly: (APR/12 * # of Months Past Due *
Amount Due)

Currency Workday converts the late fee currency to the

invoice currency when they differ.
Inactive When you select this check box and set a rule
to inactive, Workday prevents you from saving
changes to the payment or invoice that are part of
finance charge calculations.

Days to Generate Interest Document Enter the number of days by which you want to
delay generating a finance charge invoice.
Workday applies this value to only the first
calculation run.

Example
You want to charge interest for invoices that are past due as of October 24.

Configuration Value
Rule Type Interest Rate
Annual Percentage Rate 12%

Calculation Option Assume that the past due amount is $10,000,

Workday uses these calculations for the interest
• Daily charge amount:
• Monthly
• $100.19 for daily option: (.12/365)*31*10,000

Configuration Value
• $100 for monthly option: (.12/12)*1 *10,000

Grace Period Days 5

When you process interest charges by:
• Daily calculation rules: Workday doesn't include
invoices with a due date of October 24 until after
the October 29 processing date.
• Monthly calculation rules: Workday processes
the finance charge on October 31 and includes
all invoices with a due date of October 24 in the
calculations.

Days to Generate Interest Document 6

When you process interest charges by:
• Daily calculation rules: Workday doesn't
generate a finance charge invoice until after the
October 30 processing date.
• Monthly calculation rules: Workday processes
the finance charge on October 31, and
generates a new finance charge document.

Next Steps
You can set interest rate and late fee rules as defaults. You can also define rule overrides for a company,
or customer group and category.

Set Up Interest and Late Fee Defaults and Overrides

Prerequisites
• Configure interest and late fee rules.
• Security: Set Up: Interest Rate and Late Fee Rule domain in the Common Financial Management
functional area.

Context
After you create finance charge rules, assign them to companies and customers so that you can
automatically apply the interest or late fees to overdue invoices. You can also override these configurations
by specifying the rules on a customer profile or on an invoice.

Steps
1. Access the Maintain Interest and Late Fee Defaults and Overrides task.
2. As you complete the task, consider these sections:
Option Description
Apply To All Customers When you specify both interest and late fee rules
as default for all customers, ensure that both the
rules have the same Calculation Option of Daily
or Monthly. You can't combine a monthly rule with
a daily rule.

Option Description
Interest and Late Fee Overrides Configure an interest rule or late fee rule for a
given company, customer category, and customer
group. You can't combine 2 interest rates rules or
2 late fees rules for a company by adding them in
different rows.
• Workday processes rules in the order they
display in the grid. Once a field meets the
conditions for a rule, Workday ignores any
remaining rules in the grid.
• To retrieve past due invoices for certain
customers in a company, define specific rules
first.
• When none of the rules in the Override grid
meet the specified conditions, Workday uses
the default rules for all customers. If you
haven't set default rules, Workday doesn't
process any finance charges.
• You can also create a separate customer
group just for interest and late fee functionality.
Later, when you define the override rules, you
can easily assign them to the customers in this
group.

Result
When you process finance charges, Workday applies these rules as defined.

Example
You configure default interest and late fee rule for all your customers. You also set override rules for
Company A. For Customer X, you define a different interest rule on the customer profile.

Apply To All Customers section Interest Rule: 2% monthly

Late Fee Rule: $25 monthly

Interest and Late Fee Overrides section For company A, Interest Rule: 1% monthly
Late Fee Rule: $5 monthly.

On Customer X profile:Customer > Overview > Interest Rule: 3% monthly

Payment Details

When you process finance charges for Company A, Workday uses the:
• Override late fee rule of $5 for all customers in Company A.
• Interest rule of 3% for Customer X, and a rule of 1% for the rest of the customers in Company A.

Next Steps
Set up calculation options to specify how you want to calculate finance charges.

Set Up Calculation Options for Interest and Late Fees

Prerequisites
• Configure interest and late fee rules.
• Define default behavior and set the overrides for interest and late fee calculations.
• Security: Set Up: Interest Rate and Late Fee Rule domain in the Common Financial Management
functional area.

Context
To define when and how Workday calculates the finance charges, configure additional parameters as
defaults, or add rules for specific companies to override the defaults.
You can also specify the type of finance charge document you want to generate. To view the finance
charge calculations before you process them, specify the reporting only option.

Steps
1. Access the Maintain Interest and Late Fee Calculation Options task.
2. As you complete the Calculation Options section, consider:
Option Description
Use On-Account Amount Select the check box to use the on-account
amount to pay for finance charges. Workday
applies this amount to the oldest invoice first.
When you process finance charges again in
the same period, for a company or customer,
Workday doesn't use the on-account amount for
subsequent payments.
You can configure it at the tenant level or for
specific companies as an override.

Include Partial Month Select the check box to charge a full month of
interest on invoices that are only partially past due
in a 30-day period.
This option is valid when the finance charge rules
use a monthly calculation option.

Minimum Days Enter a value to add buffer days to the partial

month. Workday calculates finance charges for
full month after the specified minimum days.
Workday displays this field only when you select
the Include Partial Month check box.
Example: Your payment terms are net 30, and the
invoice period is from September 30 to October
30. You enable including partial month and
specify 10 minimum days as your buffer. When
you run the process on:
• October 5, Workday doesn't charge interest or
late fees on past due invoices.
• October 11, Workday charges full month of
interest or late fee on all customer invoices
past due from this date onwards.

Option Description
When you don't include partial month option, and
process finance charges on any of these dates,
Workday excludes the invoice from incurring an
interest fee until after October 31.

# of Days In a Year Workday automatically sets it to 365. Enter

another value that you want to use for calculating
daily finance charge rates.
3. As you complete the Output Options section, consider:
Option Description
Document Output Options Specify the type of finance charge invoice
document that you want to generate.
• Create New Invoice Adjustment for Finance
Charges: Workday creates 1 finance charge
invoice adjustment document for each past
due customer invoice.
• Create New Invoice for Finance Charges:
Workday creates 1 finance charge invoice
per customer for all past due invoices. Each
line on the invoice corresponds to 1 past due
customer invoice.
• Create Separate Invoice Adjustment for
Finance Charges: Workday creates 2 separate
invoice adjustment documents, 1 for interest
charges and 1 for late fee charges.
• Reporting Only: Workday updates report fields
only and doesn't generate any accounting,
enabling you to review your configuration
before you process finance charges.

Invoice Adjustment Reason Select an option for Workday to add the reason
to your finance charge invoice adjustment
document.

Revenue Category Select a category so that Workday can populate

this value automatically on the finance charge
invoice or adjustment line.
To post finance charges to a different ledger
account, use this revenue category as a condition
in the revenue account posting rule.

Copy Header Worktags from Original Invoice When you select this check box Workday copies
the worktags from the original past due invoice to
the new finance charge invoice.
Copy Customer Worktags Select this check box to copy worktags from the
customer profile to the finance charge invoice
adjustment when the original invoice doesn't
include worktags.
Worktags Select worktags for the finance charge invoice.
Workday uses these values only when the

Option Description
invoice header or the customer profile don't have
worktags.
When you've worktag balancing enabled,
ensure to define a primary worktag. It prevents
processing errors when the original invoice or the
customer profile don't have worktags configured.

Target Company Specify the company from which you want to

generate the finance charge invoices.
4. As you complete the Company Overrides section, consider:
Option Description
For Customer Category When you define a category, Workday disables
the Company option and you must specify a
Target Company.
Revenue Category You can define this category as a condition in
your revenue account posting rule to post finance
charges to a different ledger account.

Result
When you process finance charges, Workday calculates them according to the specified options.

Next Steps
Run the Process Interest and Late Fees task to generate a report or create a finance charge document.

Steps: Process Interest and Late Fees Charges

Prerequisites
• Create interest and late fee rules.
• Assign the rules as defaults or configure rule overrides for companies and customers to suit your
business needs.
• Set up finance charge calculation options and specify the document output options.

Context
To generate the finance charges, you can schedule the process job or run it manually.

Steps
1. Access the Edit Customer Invoice Layout Rule task.
To create a finance charge document when you print the invoice, set:
• Customer Invoice Layout Rule to Finance Charges.
• Business Form Layout to Customer Finance Charge Invoice Printing Form.
Security:
• Set Up: Customer Accounts domain in the Customer Accounts functional area.
• Set Up: Sponsor Accounts domain in the Grants Management functional area.
2. Specify the criteria for processing finance charges and run the calculations.
See Generate Finance Charges on page 800.

3. (Optional) Access the Schedule Process Interest and Late Fees task.
You can create multiple schedules for the same processing configuration.
To run the process after another action completes, select Frequency of Dependent and specify
dependency, trigger status, trigger delay configurations.
To schedule the process at a specific time, in a certain time zone select Frequency of Custom
Recurrence.
When you select the Only Include Invoices Eligible As Of Run Date check box, Workday includes
the grace period while determining invoice eligibility.
Security: Process: Customer Invoice - Collections subdomain in the Customer Accounts functional area.

Next Steps
• Email the printed finance charge documents.
• View finance charge details for a given calculation run on the Find Interest and Late Fee Calculation
Runs report. You can also view the rules used for processing the charges on a customer profile, billing
schedule, and a given customer invoice.
Related Information
Tasks
Steps: Set Up Interest and Late Fees Charges on page 792

Generate Finance Charges

Prerequisites
• Configure the Interest and Late Fee Event business process and security policies in the Common
Financial Management functional area.
• Configure interest and late fee rules.
• Define defaults and overrides for interest and late fee rules.
• Set up calculation options for generating interest and late fees.
• Security: Set Up: Interest Rate and Late Fee Rule domain in the Common Financial Management
functional area.

Context
After you configure finance charge rules and calculations, you can process interest and late fees to
generate finance charges on past due invoices. You can specify the:
• Processing date and output options.
• Invoice company, currency, date, or due date.
• Customer parameters.
Workday retrieves invoices that meet the criteria. You can select specific invoices to include in the
calculation run. When you process the invoices, Workday:
• Generates a new interest customer invoice document, or generates only a report so that you can view
the calculations before you process the finance charges.
• Displays the finance charges only after you approve the Interest and Late Fee Event business process.
When you configure conditional approvals in your business process, and the approver denies the
transaction, Workday doesn't create the finance charge document.
Once you generate a finance charge document, you can't change the company, the customer, or the
currency fields. Workday also prevents these actions on the original invoice:
• Cancel.
• Change.
• Credit and rebill.

• Edit
• Update lines.
To take these actions, you must cancel all prior finance charge invoices related to the original invoice.
However, when you use a future Process Date, Workday includes past due invoices until that period and
charges interest and late fees on them. Once, you generate a finance charge, you cancel the finance
charge invoice but can't process further charges again until after that period.
To generate finance charges automatically, you can access the Schedule Process Interest and Late
Fees task instead. It enables you to process large volumes of customer invoices easily. To generate a full
month finance charge, set the schedule to run daily.
Note: When you process fees manually, Workday retrieves a maximum of 1,000 invoices per run.

Steps
1. Access the Process Interest and Late Fees task.
2. As you complete the task, consider:
Option Description
Process By Select:
• Daily Calculation Rules to process fees for the
current month.
• Monthly Calculation Rules to process fees for
the previous month.
Workday only includes rules that have the
Calculation Option of Monthly regardless of the
processing frequency. Based on the processing
rule you select, Workday displays additional fields
for further defining the process dates.
Process Month Workday displays this option only when the
Process By prompt is Monthly Calculation Rules.
Workday automatically sets it to the current
month.
You can modify the month but Workday sets the
Process Date to the last date of the specified
month. The last date generates a new finance
charge invoice each month, given you set the
Days to Generate Interest Document to 0 in the
associated late fee rule.
When you use the Schedule Process Interest
and Late Fees task, Workday displays Process
Month Option prompt instead. You can specify
current month, month before or after the schedule
date options to define when the scheduler is run.
Example: You set the Process Month to Month
Before Schedule. When you schedule the process
to run on July 2, Workday calculates finance
charges on June 30th, as it's the last date of the
prior month.

Process Date Workday displays this option only when the

Process By prompt is Daily Calculation Rules
and automatically sets it to the current date.

Option Description
When you use the Schedule Process Interest
and Late Fees task, Workday displays Process
Date Option prompt instead and enables you
to specify current date, first day of current or
previous month, last day of current or previous
month, or number of days before or after the
schedule date.
When you process finance charges, the interest
and late fee calculation run looks at all open
invoices and determines invoice eligibility based
on the process date specified. Workday also
verifies if eligible invoices have prior interest and
late fee charges. If they do, Workday retrieves
only invoices that have a calculation run before
the process date specified.

Next Process Date When you process interest and late fees on a
schedule, Workday automatically populates this
field to let you know when we next process the
finance charges.

Only Include Eligible Invoice as of Run Date Workday displays this option only when the
Process By prompt is Monthly Calculation Rules.
Select this check box when you want to run
the finance charge process daily but have the
Process By prompt set to Monthly Calculation
Rules option. If you process interest and late
fee in the middle of the month, then Workday
includes only those invoices that are eligible on
the run date, including the grace period. Workday
excludes any invoice that has a due date after the
run date even if the date is within this month.
When you process interest and late fee again
on another day within the same month, Workday
ignores invoices that already have a finance
charge.

Output Options Select 1 option:

• Reporting Only: Generates only a calculation
that you can use in custom reports, enabling
you to view the finance charges before you
process them.
• Create a Finance Charge Invoice: Processes
finance charge on customer invoices with the
same company, customer, and currency and
groups them in lines to generate 1 invoice.
Generates only 1 finance charge invoice for
a given month. Once you generate a second
finance charge invoice, you can't modify the
first invoice.

Option Description
• Create a Finance Charge Invoice Adjustment:
Creates an adjustment with 2 lines, one each
for both interest and late fees.
• Create a Separate Finance Charge Invoice
Adjustment: Creates 2 adjustments, one each
for only interest charge and another for late fee
charge.
You can pay the finance charge or write it off.
Once Workday generates the finance charge
invoice or an adjustment, you can't modify the
original invoice.
Workday excludes sponsor invoices, student
invoices, and invoices that are part of in-progress
payments, write-offs, adjustments, or credit-
rebills.

Finance Charge Invoice Date Workday displays this field only when you set
the output option to generate a finance charge
document. By default, Workday sets the date on
the finance charge invoice to the Process Date
and generates a document when you run the
process.
When your finance rules use a monthly
calculation option, Workday sets this invoice
date to the last day of the process month. You
can enter a different date to meet your business
needs.
When you schedule the process, you can also
specify days before or after the schedule date to
generate the finance charge invoice document.
You can view the exact date that displays on the
invoice document in the Next Finance Charge
Invoice Date field.

Invoice Date Criteria You can further filter the calculation output by
specifying invoice date and invoice due date
ranges that are on, after, or before the process
run date.

Result
Workday generates a report, a finance charge invoice, or an invoice adjustment document based on the
specified output option. Every time you run this process, Workday provides a snapshot of the rule and the
calculation configurations.

Next Steps
View finance charge details for an invoice on the Find Interest and Late Fee Calculation Runs report.
When you charge both interest rate and late fee, Workday displays a separate line for each charge.
Related Information
Reference
2020R2 What's New Post: Schedule Interest and Late Fees Processing

The Next Level: Introduction to Automatically Calculating and Applying Late Fees and Interest Charges to
Past Due Invoices

Troubleshooting: Unable to Edit Original Customer Invoice After Creating a Finance Charge Invoice

Cause: Workday prevents you from making any changes to the original invoice after you've already
generated a finance charge invoice.
Solution: Cancel the finance charge invoice, edit the original invoice, and then generate a new finance
charge invoice.
Steps
1. Access the finance charge invoice that you're trying to change.
2. From the related actions menu of the finance charge invoice, click Cancel.
3. From the related actions menu of the original customer invoice, click Change to change the desired
fields.
Security: Process: Customer Invoice - Change in the Customer Accounts functional area.
4. Access the Process Interest and Late Fees task to generate a new finance charge invoice.
Security: Interest and Late Fee Event in the Customer Accounts functional area.
Cause: You need to edit large number of original customer invoices after generating a finance charge
invoice.
Solution: You can first generate a finance charge report only to view the impacted customer invoices. You
can also share the report with the customers to edit the original customer invoice before generating the
finance charge invoice.

Steps
1. Access the Process Interest and Late Fees task.
Under the Calculation Process Options section, set the Output Options prompt to Reporting Only.
Security: Interest and Late Fee Event business process in the Customer Accounts functional area.
2. Access the Find Interest and Late Fee Calculation Runs report to find customer invoices with finance
charges.
3. (Optional) To share the finance charge information with your customers, create a custom report using
the Customer Invoices report data source (RDS). Ensure to include the Generated By Interest And
Late Fee Calculation Run field to identify finance charge invoices.
4. From the related actions menu of the original customer invoice, click Change to change the desired
fields.
5. Access the Process Interest and Late Fees task to generate a finance charge invoice.
Under the Calculation Process Options section, set the Output Options prompt to Create New
Invoice for Finance Charges.

Steps: Write Off Receivables

Context
Workday enables you to write off customer invoices and customer invoice adjustments so that you can
account for unpaid amounts. To post them to the appropriate ledger, create account posting rules to
identify write-offs by the specified reason. You can:
• Write off all or part of a customer invoice.
• Apply multiple write-off reasons with different amounts for the same invoice.
• Inactivate write-off reason that's not in use.
• Write off small amounts during payment application but you can't add worktags.

• Use the Submit Bad Debt Writeoff web service for bulk write-offs.
• Create write-off rules to clear remaining balances after the automatic payment application process
completes.
You can't write off invoices and adjustments:
• During on-behalf-of payment applications.
• When the VAT is in pending status due to the tax declaration run in progress.

Steps
1. Access the Maintain Receivable Writeoff Reasons task.
• Specify the reason and the usage of Customer Accounts or Student Financials to control the
availability of the reason in the appropriate area.
• When you change the name of a write-off reason that's in use, adjust account posting rule that refers
to the old reason name.
• To prevent selecting a write-off reason that's no longer valid for your organization, select the
Inactive check box.
Security: Set Up: Receivable Write-Off Categories domain in the Common Financial Management
functional area.
2. Access the Edit Customer Account Options task.
• In the Copy Invoice Header Worktags to Write-off Lines prompt, select the invoice header
worktags that you want to copy to the write-off lines.
• To populate the balancing worktags in the write-off lines, select the Autofill Write-Off Lines and
Balancing Worktags check box when you've enabled balancing worktags.
3. Access the Write Off task from the related actions menu of an invoice.
As you complete the task, consider:
Note: Some of the listed fields and functionality won't be applicable when you access write-offs through
other tasks.

Option Description
Currency Workday automatically populates the invoice
currency for a customer. When you don't specify
one, it uses the company currency.
You can change the currency to any of the
accepted currencies defined for the specified
customer. You can only select invoices and
adjustments that are in the same currency as the
write-off.

Total Write-Off Amount You can enter multiple write-off amounts per
invoice by different write-off reasons.
To write off a portion of the invoice amount,
change the value in Write-Off Amount to a value
less than the Amount Due.

Remaining Amount Due When you change the Write-Off Amount,

Workday updates the remaining amount due.
Write-Off Date Select a transaction date that's on or after the
invoice date.

Option Description
Memo Specify any relevant information that you want
to share with an approver during the review and
revise process. This memo will also display in the
journal line of the associated write-off.
Write-Off Lines • (Optional) With the customer invoice write-off
data entry check enabled on the Edit Tenant
Setup - Financials task, Workday displays an
alert to review the value entered in the Write-
Off Amount field when the machine learning
model determines that the value is outside
historical data.
Note: Workday needs at least 100 write-offs
with these matching dimensions applied in the
past 12 months for the machine learning model
to analyze the values entered in the Write-Off
Amount field:
• Company.
• Cost center.
• Currency.
• Current user.
• Write-off reason.
• Workday displays the balancing worktags and
the worktags that you've selected to copy from
the invoice header. You can edit the worktags
as necessary.

Security: Process: Customer Writeoff - Core and Process: Customer Writeoff - Single Invoice domains
in the Customer Accounts functional area.
4. (Optional) Access the Bad Debt Writeoff Event business process.
Configure the review and revise steps to route write-offs to the appropriate managers for approval.
Security: Customer Accounts functional area.
5. (Optional) Access the Find Customer Writeoffs report and specify the Company to which the write-off
accrued.
From the related actions menu of the write-off transaction:
• Select Cancel Bad Debt Writeoff to cancel the write-off.
Note: You can't cancel write-offs that are part of customer invoice maintenance transactions or
customer payment applications.
• Select Add/Change Attachment to add or replace an attachment.
Security: Process: Customer Writeoff - Cancel, Process: Customer Writeoff - View, and Process:
Customer Write-Off – Add/Change Attachment domains in the Customer Accounts functional area.
6. (Optional) Access the Perform Customer Invoice Maintenance task.
Specify a Transaction Date that's before any of the selected invoice adjustment dates. Workday
automatically sets it to the current date.
When you apply adjustments to invoices, you can also write off the small uncollectible amounts. But,
you can't write off across more than 1 reason and can't include worktags.
Security: Process: Customer Invoice - View and Process: Customer Writeoff - View and Process: Cash
Sale Payment - View domains in the Customer Accounts functional area.

Related Information
Reference
Reference: Edit Tenant Setup - Financials
2023R1 What's New Post: Customer Invoice Write-off

Customer Portal

Steps: Set Up the Customer Portal

Prerequisites
Security: Self-Service: Customer Contact Tasks domain in the Customer functional area.

Context
After you create customers for your company in Workday, you can provide them access to the Customer
Portal for self-service. The portal enables you to manage customer information and your customer contacts
can view and download their business documents. You can configure the customer portal by adding or
removing worklets from the dashboard, adding announcements, or customizing the menu.

Steps
1. Create Customers on page 635.
Create a customer contact.
2. Create Workday Accounts for Customer Contacts on page 807.
3. Access the Maintain Dashboards task and edit the My Invoices and Payments dashboard to give
your customer contacts access to information on their accounts in Workday.
Security: Set Up: Tenant Setup - Worklets domain in the System functional area.
4. Set Up Worklets.
Use the Worklets section on the Content tab of the dashboard to add any worklets that you want to
display with graphics.
5. Add Dashboard Menus.
Use the Menu section on the Content tab of the dashboard to display a customized menu.
6. Add Home and Dashboard Announcements.
Use the Announcement tab to add customized announcements to the dashboard.

Result
Your customers contacts can:
• Sign in to the Customer Portal and view the Invoices and Payments worklet on the landing page.
• They can view and download invoices, statements, and recent payments.
Related Information
Tasks
Steps: Set Up Custom Dashboards

Create Workday Accounts for Customer Contacts

Prerequisites
• The customer is in Workday and has a contact person.
• Enable the My Invoices and Payments dashboard.

• Security: Self-Service: Customer Contact Tasks domain in the Customers functional area.

Context
You can create Workday accounts for your customer contacts, so they can access the Customer Portal
and view their invoices, statements, and payments. This capability helps reduce the time you spend
making collection calls and addressing customer inquiries.

Steps
1. Access the Create Workday Account for Customer Contact task.
2. As you complete the task, consider:
Option Description
Generate Random Password When checked, Workday automatically generates
a random account password and requires a new
password the next time your contact signs in to
Workday. The Require Password Reset at Next
Sign In check box becomes display only.
Session Timeout Minutes Regulates when unused sessions expire. The
zero default represents 20 minutes.
3. (Optional) To create multiple customer contact accounts at once, access the Add Workday Account
web service.
Security: Workday Accounts domain in the System functional area.

Result
• Workday secures the customer contact to the Customer Contact as Self security group.
• Workday emails the username, a temporary password, and the Customer Portal URL to the customer
contact.
• The customer contact can sign in to Workday and view the standard reports.
Related Information
Reference
Workday 31 What’s New Post: Customer Portal

Concept: Customer Portal Dashboard

The Customer Portal gives your customer contacts access to the Workday-delivered My Invoices and
Payments dashboard. The portal enables them to retrieve information from their accounts in Workday,
reducing the time you spend addressing inquiries.
From the Customer Portal, your customer contacts can:
• View and download PDFs for invoices and statements.
• View recent payments.
• Filter any delivered reports by currency, start date, or end date.
• Search and select customer invoices to pay through a credit card.
Considerations:
• To view the PDF file output, you must first print the invoices.
• To process payments in the customer portal through a credit card, you must:
• Create and host a web application.
• Create an external URL to establish a secure connection between the third-party payment service
provider and Workday tenant.

• When the payment session is successful, Workday uploads a payment record back into the tenant. You
can then apply the payment and create a manual deposit.
Workday also delivers the Pay Customer Invoices task to the Customer Portal that enables your
customers to pay their invoices directly through a credit card. Your customers can select the invoices to
pay based on the credit limit of the credit card for a given session. However, they can't change the amount
to pay to make partial payment for a specific invoice.
Workday delivers these reports to the Customer Portal:
• View Customer Statements
• View Open Invoices
• View Customer Invoices in Dispute
• View Customer Invoices in Collection
• View Recent Payments
The Customer Portal is a configurable workspace that contains visualization and multidimensional reports.
You can customize:
• Announcements.
• Menu
• Worklets
Related Information
Concepts
Concept: Dashboards
Tasks
Add Dashboard Menus
Add Home and Dashboard Announcements
Reference
Workday 31 What’s New Post: Customer Portal
Examples
Example: Configure Customer Portal Dashboard on page 809

Example: Configure Customer Portal Dashboard

This example demonstrates how you can configure the Customer Portal so that your customer contacts
can view their information on the My Invoices and Payments dashboard.

Context
You’re a Setup Administrator for Global Modern Services (USA). Your customer Atlas International has
large volumes of invoices and payments. Bob Smith who is an AP specialist at Atlas International, sends
you many inquiries regarding invoices, payments, or invoices in dispute. To reduce the time you spend
on addressing these inquiries, you want to provide direct access to Bob Smith to the relevant reports and
tasks.
You first create a Workday sign-in account for Bob Smith. You now want to:
• Enable Bob to view the invoices, statements, and recent payments directly.
• Provide a quick visualization of the reports.
• Communicate important information and updates to Bob.
Workday provides several options to customize the portal. You can add:
• Reports as Worklets when you want to provide data visualization.
• Reports and tasks to the Menu section enabling your customer contacts to view the specific details or
download the report. They can filter these reports by date, and currency.
• To communicate with your customers, add Announcements, videos, links, or graphics.

Prerequisites
• Create Workday account for your customer contacts.
• Secure the contacts to Self-Service: Customer Contact Tasks domain in the Customers functional area.
• Security: Set Up Tenant Setup - Worklets domain in the System functional area.

Steps
• Customize My Invoices and Payments Dashboard by adding Worklets, Menu, and Announcements.
a) Access the Maintain Dashboards task.
b) Click Dashboard, and enter My Invoices and Payments.
c) Click Filter.
d) Click Edit.
e) Click Worklets on the Content tab.
f) Click + sign and enter these values:

Worklet Required Required Worklet Workday Worklet Invalid

for Groups Size Worklet Title Landing
Title Page
Admin
Configuration
Welcome! Customer Select the 1x
Contact check box.
as Self
Implementers
Invoice Customer Select the 2x
Aging Contact check box.
as Self
Implementers
g) Click Menu on the Content tab.
h) Click + sign for each new section that you want to add and enter these values:

Section Label + Item

Enter Reports Click + From the Task prompt select:
• Customer Statements
• Invoices in Collection
• Invoices in Dispute
• Open Invoices
• Recent Payments

Section Label + Item

Enter Tasks Click + From the Task prompt, select
Pay Customer Invoices.
i) On the Announcements tab, click + and enter these values:

Rule Expiration Message Show Message Video Action /

Date From/ Current Custom
Message Photo/ Report /
Title Upload External
Custom Link
Image
Message None of the You can None of the
Title: above now above
Download download a
PDF Files copy of your
invoices,
statements,
and
payments
as PDF
files.
j) Click Done.
• Include Adjustments in Invoice Aging Report.
a) Access the Configure Receivables Aging Worklet task.
b) Select the Include Adjustments in Aging Report for Customer Portal check box.
c) Click OK.
• Add Worklets to the Home Dashboard.
a) Access the Maintain Dashboards task.
b) Click Dashboard, and enter Home.
c) Click Filter.
d) Click Edit.
e) Click Worklets on the Content tab.
f) Click + and enter these values:

Worklet Required Required Worklet Workday Worklet Invalid

for Groups Size Worklet Title Landing
Title Page
Admin
Configuration
My Customer
Invoices Contact
and as Self
Payments Implementers
View Open Customer
Invoices Contact
as Self
Implementers
View Customer
Customer Contact
Statements

Worklet Required Required Worklet Workday Worklet Invalid

for Groups Size Worklet Title Landing
Title Page
Admin
Configuration
as Self
Implementers
View Customer
Recent Contact
Payments as Self
Implementers

Result
When the customer portal user accesses the Customer Portal, Workday now displays your customized My
Invoices and Payments dashboard along with the new worklets.

Customer Portal Payments

Steps: Pay Invoices Through Customer Portal

Prerequisites
• Create and host a web application to integrate the customer portal with an external payment provider.
• Set up the security configuration for the web application.
• To integrate Workday with the web application, define the web application URL by accessing the
Create External URL task.

Context
Workday enables your customers to pay their invoices directly using a credit card, providing you
convenience and time savings.
To use this functionality, set up:
• Payment type for customer portal transactions and enable it for your tenant.
• Bank account.
• Payment provider and merchant account to process the credit card payments.
• Invoices eligibility rules.
• Pay Customer Invoices worklet on the customer portal.
When your end customers sign in to the customer portal, they can:
• Access the Pay Customer Invoices task and search for invoices by various criteria including invoice
date, due date, total invoice amount for a given company and currency.
• Select the invoices to pay based on the credit limit of the credit card for a given session. However, you
can't change the amount to pay for a specific invoice.
If the credit card payment is successful, Workday displays a confirmation page for your customers.
Workday also records the customer payment automatically and you can:
• Apply the payment manually or use the auto apply functionality.
• Enter a discount amount when you apply the payment manually.
• Create a deposit.

Steps
1. Steps: Set Up Payment Type on page 813.
2. Add Payment Service Provider on page 815.
3. Create Merchant Account for Payment Service Provider on page 815.
4. Create Invoice Eligibility Rules for Customer Portal Payments on page 817.
5. Access the Maintain Dashboards task.
Select Home or My Invoices and Payments dashboard. Click Edit to add the Pay Customer Invoices
worklet to the dashboard for your customer contacts.
Security: Set Up: Tenant Setup - Worklets domain in the System functional area.
6. Click Menu on the Content tab to add the Pay Customer Invoices worklet as a task option on the My
Invoices and Payments dashboard.

Result
When your customers access the Pay Customer Invoices worklet in the customer portal, they can:
• View the invoices eligible for credit card payment.
• Search for invoices by using the Invoice Search Filters.
• Workday returns the oldest 500 approved and open invoices.
• The invoices that your customers select must match the minimum and maximum limits set by the
payment provider.
• For each portal payment session, your customers must select invoices that are in the same
currency.
• The credit card payment is in the same currency as the invoice currency.

Next Steps
You can access the Find Customer Portal Payment Sessions report to view:
• Payment session details.
• Customer payment information along with the associated invoice.
Related Information
Tasks
Register API Clients
Edit Domain Security Policies
Reference
2020R1 What's New Post: Credit Card Payments in Customer Portal

Steps: Set Up Payment Type

Prerequisites
• Create and host a web application to integrate Workday with the payment service provider.
• Create an external URL.
• Update the domain security policy.
• Register API client.

Context
Create a payment type for processing credit card payments in the customer portal. Use the Payment
Method of Manual to process payments outside of Workday environment. You can't use the method of
Credit Card payment because it's linked to the Cybersource integration.
Then, enable the payment type in your tenant and configure your bank accounts to use this payment type.

Steps
1. Access the Maintain Payment Types task and create a payment type for customer portal transactions.
The payment type must have a payment method of Manual.
Security: Set Up: Settlement domain in the Banking and Settlement functional area.
2. Access the Edit Tenant Setup – Financials task option to enable the functionality.
In the Customer Portal Options section, set the Customer Portal Payment Type to Manual.
Workday uses this payment type to record customer payments generating from the customer portal.
Once you enable it, you can't leave the value blank.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
3. Update the bank accounts you want to use for receiving the credit card payments.
See Configure Bank Accounts for Customer Portal Payment on page 814.

Result
To avoid conflict with other payment types, Workday uses the customer portal payment type for
transactions in the portal.

Next Steps
Set up the third-party payment service provider to process credit card payments.

Configure Bank Accounts for Customer Portal Payment

Prerequisites
• Define bank accounts and payment types.
• Security: Set Up: Bank Entity domain in the Banking and Settlement functional area.

Context
Your bank account must support the Payment Type you’ve defined for the customer portal. The merchant
account uses this bank account to receive credit card payments from the payment service provider. You
can configure multiple bank accounts for 1 merchant account.
You can't delete a bank account if the company it's associated with has an invoice eligibility rule. You can
only change it to those bank accounts that are valid for the company.

Steps
1. Access the Edit Bank Account task and select the bank you want to configure for customer portal
payment.
2. Under the general Account Information section, add Customer Portal Payment Type to the Allowed
Payment Types.
This configuration enables the bank to accept the payments originating from customer portal.
3. Under the Bank Account Usage section, set Customer Payment as a Primary Account Usage, or
select the Allow Additional Usage check box.
This setup enables the bank account to receive customer payments.

Result
• You can use the bank account to configure merchant accounts for receiving payments from payment
service providers.
• Access the View Bank Account report to determine if the bank account is linked to a merchant account
for customer portal.

Next Steps
Set up a merchant account.

Add Payment Service Provider

Prerequisites
• Create and host a web application to integrate Workday with the payment service provider.
• Create an external URL.
• Update the domain security policy.
• Set up the payment type for the customer portal.
• Add payment type to the bank accounts.
• Security: Set Up: Credit Card domain in the Common Financial Management functional area.

Context
Set up the payment provider for the credit card to process customer payments in the customer portal by
integrating it with the web application. You can set up more than 1 payment provider.

Steps
1. Access the Create Payment Service Provider for Customer Portal task.
2. As you complete the task, consider:
Option Description
Payment Service Application URL Enter the web application URL address that
integrates with the payment provider. Workday
redirects the customer portal to this URL for
processing credit card payments.

Result
Workday will route your end customers to the payment service provider to submit payments through a
credit card for the selected invoices.

Next Steps
• Configure merchant accounts for the payment service provider.
• You can use these tasks to edit, view, or delete the payment service providers:
• Edit Payment Service Provider for Customer Portal
• View Payment Service Provider for Customer Portal
• View Payment Service Providers for Customer Portal
• Delete Payment Service Providers for Customer Portal

Create Merchant Account for Payment Service Provider

Prerequisites
• Create and host a web application to integrate Workday with the payment service provider.
• Set up the payment type for the customer portal transactions.
• Add payment type to the bank accounts.
• Set up a credit card payment provider.
• Security: Set Up: Credit Card domain in the Common Financial Management functional area.

Context
To establish a connection with the payment service provider and the bank accounts, create merchant
accounts for a company. Make sure that the bank accounts are:
• Open.
• Support the payment type you've defined for the customer portal.
• Support receiving customer payments.
Workday enables you to identify the bank accounts that are:
• Setup as merchant accounts for customer portal payments
• Set to receive credit card payments from the payment provider.
If you use separate bank accounts, you can create multiple merchant accounts for a single payment
provider.

Steps
1. Access the Maintain Merchant Accounts for Customer Portal task.
Select the URL of the payment service provider you've configured.
2. As you complete the task, consider:
Option Description
Merchant Account ID You define this merchant account in your web
application and the payment service provider.
In Use Workday sets the Merchant Account to In Use
when the company it's associated with has an
invoice eligibility rule.
To delete a merchant account, you must delete
all invoice eligibility rules for the associated
company. You can do so by accessing the Delete
Invoice Eligibility Rules for Customer Portal
Payment task.

Bank Account Select at least 1 bank account of a company.

Workday displays only those bank accounts
that are open, and have Customer Payment
configured for account usage.
You can't delete a bank account if the company
it's associated with has an invoice eligibility rule.
You can only change it to those bank accounts
that are valid for the company in the invoice
eligibility rules.

Merchant Account Currency Workday displays only those currencies that are
on the associated bank account.
Make sure to select a currency when you define
payment amount limits.

Minimum Payment Amount If you don't define a minimum payment limit,

Workday applies the limit set by the payment
service provider, given it has one.
Maximum Payment Amount If you don't define a maximum payment limit,
Workday applies the limit set by the payment
service provider, given it has one.

Next Steps
Create invoice eligibility rules to identify the invoices that your customers can pay through a credit card in
the customer portal.

Create Invoice Eligibility Rules for Customer Portal Payments

Prerequisites
• Create and host a web application to integrate Workday with the payment service provider.
• Set up the payment type for the customer portal.
• Add payment type to the bank accounts.
• Set up a credit card payment provider.
• Create merchant accounts for each payment service provider.
• Security: Set Up: Customer domain in the Customers functional area.

Context
You can create rules to determine which invoices are eligible for credit card payments in the customer
portal. You can define them for companies that have a bank account associated with a customer portal
merchant account.
When you create each rule, specify at least 1 customer or invoice attribute for a given merchant account.
Example: You've set up Company A with the merchant account associated with the payment service
provider. When you select this company for creating the rule, Workday automatically populates the
Merchant Account value. You must then either specify a criteria from Customer Selection option, or
select 1 criteria from Invoice Type, Payment Type, Invoice Currency, or Invoice Total Amount Limit.
• Example: You select Customer 1 as the only attribute for your rule, Workday will retrieve all open
invoices for Customer 1 regardless of the invoice type, payment type, currency, or amount.
• If you select only the Customer Category of Business Services, Workday will retrieve all open invoices
for any customer that is part of the Business Services category.
• If you select only the Invoice Total Amount Limit of $50,000, Workday will retrieve all open invoices
with an amount of $50,000 or less. When you submit the rule, Workday also validates this amount
against the Maximum Payment Amount limit you've set on the merchant configuration.
Workday evaluates rules in the specified order from top to bottom, and uses the first matched rule to
retrieve invoices for payments. Make sure to list more specific rules first.

Steps
1. Access the Create Invoice Eligibility Rules for Customer Portal Payment.
2. As you complete the task, consider:
Option Description
Merchant Account Select the account that you've setup with the
third-party payment service provider.
When you've only 1 merchant account, Workday
uses that account as the default value.

Customer Selection When you select 1 customer, Workday

automatically populates the:
• Customer Category and Customer Group
values and you can't edit them.
• Payment Type value you set on the customer.

Option Description
Invoice Currency Select a currency associated with the customer.
When you don't select a currency, payments are
eligible in all currencies.
Create separate rules for specific customer and
currency combination.

Invoice Total Amount Enter the maximum total amount of all invoices
that Workday retrieves.

Result
Select at least 1 invoice to pay.
Once a rule is in use by the merchant account, you can't delete the merchant account until you delete that
rule.

Next Steps
• You can test the rules by customer, customer invoice, and other criteria for a company.
• The test result displays the invoices that match the rules and the search criteria.
• You can edit, view, and delete the invoice eligibility rules by accessing these tasks and reports:
• Delete Invoice Eligibility Rules for Customer Portal Payment
• Edit Invoice Eligibility Rules for Customer Portal Payment
• View Invoice Eligibility Rules for Customer Portal Payment

Reference: Invoicing and Receivables Reports

This table lists a number of useful customer-related reports.

Customer Balance View the open balance for each customer.

Details
Details include currency, reporting transaction, type, number, and date, due
date, aging days, original amount, payments applied, discounts, write off, and
open balance.

Report Description
Customer Balance View the currency, invoices total, adjustments, unapplied payments, and
Summary balance for each customer.
Customer Invoices View invoices that might require action. Only returns invoices that are late, on
Requiring Action hold, in collection, or in dispute. Use this report as the basis for custom reports
that meet your specific criteria for invoices that require attention.
Customer Payment View all customer payment activity for your company or company hierarchy.
Detail Enables you to check the status and details of your customer payments. You
can narrow your report results to specific customers, a payment date range,
and other criteria. Example: Payment date, status, type, and amount.
You can also see payment application details including customer invoices
and adjustments paid, write off, and payment amount on account. As related
actions you can cancel, return, or unapply payments as necessary.

Customer Statements View customer statements for the specified customer or hierarchy that apply to
the specified company.
Details on the Transactions tab include each transaction date, type, number,
due date, state, increase or decrease, and balance. These transactions are
sorted by currency.
Details on the Aging Report tab include, for each customer, the current
amount and amounts for different ages, depending on the selected aging
group.

Find Customer View all deposits in the specified period.

Deposits
Details on both the Deposits tab and the Payments Included in Deposit
tab include the status, customer, date, bank account, deposit amount, and
currency.

Revenue

Sales Items

Steps: Manage Revenue Categories

Prerequisites
Security:
• Set Up: Basic Revenue Category Worktag domain in the Common Financial Management and
Worktags functional areas.
• Set Up: Revenue Categories domain in the Common Financial Management functional area.

Context
Create revenue categories to classify the types of goods and services available to sell to customers. You
can group similar categories into hierarchies as needed. You can then use the categories to:
• Create reports.
• Simplify searches.
• Route transactions to ledger accounts when the posting rule conditions use categories.
• Function as worktags.
Example: When you create a journal, you can tag it with a spend category or a revenue category.

Steps
1. Access the Create Revenue Category task.
As you complete the task, consider:
Option Description
Default Tax Applicability Select a tax applicable code that you configure
on the Maintain Tax Applicability task. The
tax applicable code displays as the designated
value when you create customer invoices using
the revenue category. Workday applies the tax
applicable code on customer invoices to calculate
related taxes based on the tax rates for the
customer.
Spend Category Mapping Select to map a revenue category to a spend
category for direct intercompany transactions.
You can only select a revenue category on direct
intercompany customer invoices when you map a
revenue category to a spend category.

Classification Select Goods or Services to classify revenue

categories as either goods or services. Use this
for tax reporting and tax defaulting rules.
Inactive When you select this check box, Workday
disables this entry from search results, prompt
lists, and worktag lists for new transactions.
Related Worktags A revenue category is an object in Workday that
you can use as a worktag.
Set up related worktags for this object using the
related worktag types that you configure on the
Maintain Related Worktag Usage task. Workday
automatically populates transactions with the
values in the Default Worktag column when you
select the object on the transaction.

2. Access the Create Revenue Category Hierarchy task.

Group similar revenue categories into hierarchical groups for reporting purposes and account
determination in posting rules.

Result
You can use revenue categories to:
• Assign as characteristics to accounting objects. Workday requires that you assign a category to every
customer, supplier, item, business asset, and writeoff.
• Write transactions against a category without having to specify items. Example: When you create an
invoice, you can write a line and its amount to a general category.
Related Information
Concepts
Concept: Intercompany Transactions on page 48
Concept: Sales Items on page 826
Tasks
Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions on page 44

Create Customer Contracts on page 839

Steps: Set Up Taxes for Revenue Transactions

Context
You can configure default tax applicability and tax codes for customer sales transactions. Tax applicability
and tax codes populate on customer contracts, customer invoices, customer invoice adjustments, and cash
sales.

Steps
1. Configure a default tax applicability for each revenue category.
See Steps: Manage Revenue Categories on page 821.
2. (Optional) Create Sales Items on page 823.
Select a default tax applicability for individual sales items. The default tax applicability for the sales item
overrides the tax applicability that you define for the revenue category.
3. Create Customers on page 635.
On the Tax Information report on the Overview profile group:
• Select the default tax code for each customer.
• Enter tax identification numbers by country.
• Specify the Transaction Tax ID used to report transaction tax for each country.
• Enter transaction and withholding tax status by country.
Related Information
Tasks
Steps: Set Up Transaction Taxes on page 545

Create Sales Items

Prerequisites
• Create revenue categories.
• Security: Set Up: Sale Item domain in the Customer Accounts and Learning Core functional areas.

Context
You can create sales items to define the types of goods and services that you sell. You can then
categorize sales items by revenue category for billing and revenue accounting purposes.

Steps
1. Access the Create Sales Item task.
2. As you complete the task, consider:
Option Description
Revenue Category Select a revenue category to associate with the
sales item. When you add the sales item to a
customer contract or an invoice line, Workday
automatically populates the revenue category.
Enable Bulk Quantity Pricing Select to price the sales item in bulk quantities
and reflect the extended amount on items sold in
bulk.

Option Description
UOM Priced at Quantities of Enter the unit of measure for the price of the sales
item.
Displays when you select the Enable Bulk
Quantity Pricing check box.

Currency When you add a sales item to a customer invoice

or invoice adjustment line, Workday converts the
price to the transaction currency based on your
defined rate type.
Sales Item is a Bundle Select to create a sales item bundle. When you
add the bundle to a customer contract line, you
can bill for the entire line and recognize revenue
for each individual sales item in the bundle.
Fulfillment Required Select to track orders fulfilled against a customer
contract line. You can recognize revenue and
generate billing for both partially and completely
filled orders.
Contract Line Type Select to identify the type of sales item pricing
used on customer contracts.
Purchase Item Mapping Select to map a sales item to a purchase item for
direct intercompany transactions.
You can only select a sales item on direct
intercompany customer invoices when you map a
sales item to a purchase item.

Billable Project Template Select a template for sales items that are project
driven to help you quickly generate a project.
Billing Template Select a template for consolidated billing
schedules when using the sales item.
Classification Select Goods or Services to classify sales items
as either goods or services. Use this for tax
reporting and tax defaulting rules.
Revenue Treatment The revenue treatment that you select determines
the account posting rule and ledger account when
you create invoices and recognize revenue.
Deferred Revenue Select to create accounting entries for deferred
revenue on this sales item.
Workday automatically populates the deferred
revenue selection on the customer contract line
when you select the sales item. Your selection
on the customer contract line also displays on
the customer invoice line. The accounting uses
the account posting rule for deferred revenue
instead of revenue when you complete both of
these steps:
• Select deferred revenue for the customer
invoice line.

Option Description
• Recognize revenue for customer contract
lines using revenue recognition schedules or
installments.

Related Worktags A sales item is an object in Workday that you can

use as a worktag.
Set up related worktags for this object using the
related worktag types that you configure on the
Maintain Related Worktag Usage task. Workday
automatically populates transactions with the
values in the Default Worktag column when you
select the object on the transaction.
When the sales item and revenue category
worktags are the same type, the value from the
sales item takes precedence because it's more
granular.

Next Steps
• Add an image to the sales item.
• Add sales items on your customer contracts.
Related Information
Concepts
Concept: Intercompany Transactions on page 48
Concept: Sales Items on page 826
Tasks
Steps: Set Up Customers and Suppliers for Direct Intercompany Transactions on page 44
Create Customer Contracts on page 839

Create Sales Item Price Lists

Prerequisites
Security:
• Set Up: Customer Contracts - Price Lists domain in the Customer Contracts and Project Billing
functional areas.
• Set Up: Sale Item domain in the Customer Accounts and Learning Core functional areas.

Context
You can create dynamic price lists and apply effective dates to manage sales items. You can create price
lists based on company size, region, and other dimensions such as sales channel.

Steps
1. Access the Maintain Sales Item Price List report.
2. Click Add to create a new price list.
As you complete the task, consider:
Option Description
Worktag Type Defines the available price rule worktags.

Option Description
Tiered Price Select this option to create different pricing based
on quantities sold.
3. (Optional) Access the Set Up Sales Item Pricing Configuration task.
Define a price list at the tenant level. You can also override the tenant option by adding a price list at
the company level.

Next Steps
Use the Sales Item Price List report data source and Sales Item Price Rule report field to create a
custom report.

Concept: Sales Items

Sales items are goods and services that you sell to customers. You can configure goods and services for
use in customer contracts, billing, customer invoices, and revenue accounting.

Sales Items
You can manage your sales items using the Create Sales Item and Edit Sales Item tasks. To drive
accounting and analysis, you can organize sales items into revenue categories, sales item groups, and
sales item bundles. You can also maintain pricing for Vendor Specific Objective Evidence (VSOE), Third
Party Evidence, and Estimated Selling Price for use in custom reporting. Sales items can have 2 units of
measure, such as the number of users and time (day, hours, month, week, or year). Workday uses the
units of measure to determine how to package and sell sales items to customers. When you select sales
items on customer contract lines, Workday populates the lines with the sales item information you specify.
You can also review sales metrics through the related actions, including:
• Year-to-date sales amounts.
• Sales amounts for the last 12 months.
• Top 5 customers for a sales item.

Revenue Categories
You can categorize sales items by revenue category and automatically assign them during accounting
using the Create Revenue Category task. You must associate each sales item with 1 revenue category.
You can also group your revenue categories for reporting purposes using the Create Revenue Category
Hierarchy task. You then can use revenue categories to create account posting rules for revenue and
drive the accounting related to the sales item to particular ledger accounts.

Revenue Allocation Rules

You can:
• Create sales item relationships using the Maintain Fair Value Price List report and then calculate your
fair value pricing based on the relationship.
• Configure revenue allocation rules to handle exceptions at the sales item level using the Set Up
Revenue Allocation Configuration task.

Sales Item Groups

Sales item groups enable you to search for sales items more easily. A sales item can belong to more than
1 group. Example: A laptop can belong to both the Office Supplies and Laptops and Desktops sales item
groups.
You can use these tasks to configure sales item groups:
• Maintain Sales Item Groups

• Assign Sales Items to Item Group

You can associate sales item groups with 1 of these group types:
• General
• FV Pricing (Use with fair value price lists.)
• Sales Item Pricing (Use with price lists for multidimensional pricing.)

Sales Item Bundles

You can create sales item bundles by selecting the Sales Item is a Bundle check box on the Create
Sales Item task. When you include a sales item bundle on customer contract lines, you can:
• Bill for the entire contract line.
• Recognize revenue for individual sales items in the bundle.
When you invoice customers, Workday:
• Displays the sales item bundle as 1 line item on the invoice with a single grouped price.
• Uses the individual sales items within the bundle for revenue allocation.
You can change which sales items are in a bundle using these tasks:
• Create Customer Contract
• Create Customer Contract Amendment
• Create Customer Contract Change

Sales Item Price Lists

You can configure separate sales item price lists based on dimensions, such as company size, location, or
channel using the Maintain Sales Item Price List report.

Fair Value Price Lists

You can associate sales items and sales item groups with a fair value price list using the Maintain
Fair Value Price List report. For each sales item, you can configure the fair value price list based on a
percentage or amount value. When you add a sales item on the customer contract line, Workday populates
information from the fair value price list on the contract line. You can also associate a fair value price list
with your customer contracts by selecting the Multiple-Element Revenue Allocation check box on the
contract.

Direct Intercompany Transactions

You can map sales items to purchase items and revenue categories to spend categories for use on direct
intercompany transactions. When you map sales items to purchase items and revenue categories to spend
categories, there must be a 1-to-1 relationship.
When you need to map multiple spend categories to a single revenue category, you must create:
• Additional revenue categories so that you can maintain a 1-to-1 relationship.
• Multiple sales items that map to a single intercompany revenue category and map each sales item to a
purchase item in a 1-to-1 relationship. You can then map each purchase item to the appropriate spend
category.
Workday creates direct intercompany supplier invoices at the lowest level of detail. Example: If a revenue
category maps to spend category X, but the sales item on the invoice maps to a purchase item that maps
to spend category Y, Workday uses the spend category associated with purchase item Y on the supplier
transaction.
Related Information
Tasks
Steps: Manage Revenue Categories on page 821

Create Sales Items on page 823

Reference
Workday 31 What's New Post: Ad Hoc Sales Item Bundles

Concept: Sales Item Currencies

The sales items that you add to Workday have their own defined currencies.
If the item and transaction currencies differ, Workday automatically converts the item currency into the
transaction currency for both customer invoices and invoice adjustments.
The value of item currencies can change between invoice and payment, leading to realized gains and
losses.
Example: You sell an item with a price of $5 US to a UK customer and agree to invoice in British pounds.
When you create the customer invoice, Workday converts the item value to the current transaction value
of £2.5. Exchange rates change over time and can result in a foreign currency exchange difference. When
the customer pays the £2.5, the amount could convert to $4.50 or $5.15.
You can use these tasks to set item currencies:
• Create Sales Item
• Maintain Sales Item Price List

Example: Create Professional Services Sales Items

This example illustrates how you can configure your sales items for use with customer contracts and
invoices. To drive both accounting and analysis, organize sales items into revenue categories and sales
item groups. You can include informational pricing fields for vendor-specific objective evidence (VSOE),
third-party evidence, and estimated selling price on sales items. You can use these additional pricing fields
for custom reporting and multiple-element arrangements contracts.

Context
Global Modern Services creates a sales item for hourly contract technical writing services.

Prerequisites
Security: Set Up: Sale Item domain in the Customer Accounts and Learning Core functional areas.

Steps
Access the Create Sales Item task.
a. Create a new sales item using this information:

Field Name Entry Value

Sales Item Name Technical Writer
Revenue Category Services
Sales Item Description Technical writing services for software
development team.
Unit of Measure Hour
Unit Price 95
Currency USD
Contract Line Type Project Time and Expense

b. Create another new sales item using this information:

Field Name Entry Value

Sales Item Name Technical Editor/Project Manager
Revenue Category Services
Sales Item Description Technical editing and Project Management
services for software development team.
Unit of Measure Hour
Unit Price 105
Currency USD
Contract Line Type Project Time and Expense
c. Click OK and Done.

Next Steps
Assign Sales Item to Item Group.
Create Sales Item Price List.
Related Information
Tasks
Create Sales Items on page 823

Customer Contracts

Steps: Configure Customer Contracts

Context
Customer contracts enable you to capture the details of customer sales agreements. These details include
sales items or projects, important dates, payment schedules, milestones, and retention. Workday uses
the details that you specify to calculate billing and determine revenue recognition. You can configure each
step of the contract lifecycle from draft to completion, and you can route customer contracts for automatic
approval. Workday can also integrate data from third-party vendors to support contract management.

Steps
1. Edit Business Process Security Policies.
Configure the business processes and security policies for the Customer Contracts and Project Billing
functional areas.

2. Edit Business Processes.

Make changes as needed to these business processes:
• Billing Schedule Event
• Carve In Carve Out or Foreign Currency Adjustment Journal Event
• Contract Rate Sheet Event
• Customer Contract Alternate Event
• Customer Contract Amendment Event
• Customer Contract Asset and Liability Reclassification Journal Event
• Customer Contract Event
• Deferred Cost Installment Event
• Percent Complete Project Event
• Project Transaction Adjustment Event
• Revenue Recognition Installment Event
• Revenue Recognition Schedule Event
3. Create ID Definitions and Sequence Generators.
Create an ID definition that Workday can use to assign sequence numbers to new customer contracts.
4. Access the Edit Tenant Setup - Financials task.
• In the Business Document Sequence IDs section, select the ID definition that you created from the
ID Generator for Customer Contracts prompt.
• In the Customer Contracts Options section, configure your tenant-wide settings for customer
contracts.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
See Reference: Edit Tenant Setup - Financials.
5. Access the Maintain Customer Contract Types task.
(Optional) To link your contracts, enable Linked Contract for at least 1 contract type.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
6. Create Sales Items on page 823.
7. (Optional) Create Billing Schedule Templates for Customer Contracts on page 875.
8. (Optional) Create Consolidated Billing Schedule Templates for Customer Contracts on page 876.
9. Access the Maintain Schedule Types task.
(Optional) To use a consolidated billing schedule, enable Consolidated Billing Schedule for at least 1
schedule type.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
10.Create a billing schedule for the customer contract.
(Optional) To withhold a percentage of the customer invoice, click Edit Retention Terms.
See:
• Create Consolidated Billing Schedules for Customer Contracts on page 877
• Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
11.Create Revenue Recognition Schedules for Customer Contracts on page 905.
12.(Optional) Access the Maintain Journal Sources task.
Security:
• Set Up: Journal Source domain in the Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in the Core Payroll functional area.

13.Set Up Account Posting Rules on page 71.

Configure these account posting rules:
• Deferred Revenue
• Revenue
• Unbilled Receivables
14.Create customer contract templates.
See Steps: Create Customer Contract Templates on page 834.

Next Steps
Complete additional configuration using these tasks:
• Create Date Milestone
• Maintain Customer Contract Amendment Types
• Maintain Customer Contract Discounts and Premiums
• Maintain Date Milestone Types
Related Information
Concepts
Concept: Customer Contracts on page 848
Concept: Billing on page 886
Concept: Revenue Recognition on page 912
Concept: Revenue Recognition Accounting on page 940
Reference
Reference: Contract Line Types for Customer Contracts on page 854

Steps: Upload Customer Contracts

Context
You can add new customer contracts or update existing, unapproved customer contracts in Workday from
a spreadsheet using Enterprise Interface Builder (EIB). The spreadsheet includes sections for customer
contract and contract line data. You can also assign worktags to specific business objects like locations,
cost centers, or projects.
You can submit the contracts or save them in draft mode. In addition, you can optionally lock the contracts
in Workday to prevent editing or cancellation. However, Workday doesn't recommend locking customer
contracts because it prevents you from amending the contracts in Workday. After you approve contract,
you can't make contract amendments through web services, either.
When successfully completed, the upload automatically triggers the Customer Contract Event business
process. Workday can complete approvals automatically, bypass reviews and To Do tasks, and skip
Notifications in the Customer Contract Event business process. To enable these options, select the Auto
Complete option when you prepare the spreadsheet.
After you successfully load the data into Workday, you can view the customer contracts by accessing the
View Customer Contract report.

Steps
1. Set Up Inbound EIB.
Enter Submit Customer Contract (Web Service) at the Template from Web Service Operation prompt.

2. From the related actions menu of the integration system for the upload, select Template Model >
Generate Spreadsheet Template.
To maintain the correct spreadsheet format, don't change the .xml file extension.
Security: Integrations: EIBs , Integration Configure, and Integration Event domains in Integration
functional area.
3. Customize EIB Spreadsheet Template.
To customize the template, edit the template model of the EIB.
4. Set Up EIB Spreadsheet.
Workday determines whether to add or update customer contracts based on your entries in the Add
Only and Customer Contract spreadsheet columns:
• To add a new contract, enter Y in the Add Only field and leave the Customer Contract field blank.
In the Customer Contract Data section, enter a new Customer Contract ID value. Enter this value
if you want to assign a customer contract reference ID instead of Workday generating it during the
upload.
• To update an existing contract, enter N in the Add Only field. Specify the reference ID of the existing
contract in the Customer Contract field. Leave the Customer Contract ID field blank, unless you
want to update the existing customer contract ID to a different value.
5. Launch EIB Spreadsheet Upload.
Confirm that you are in a security group that has these permissions:
• Access to the Submit Customer Contract web service initiating action.
• Modify permission on the Integrations: EIBs domain.
Related Information
Concepts
Concept: Enterprise Interface Builder

Steps: Amortize Customer Contract Costs

Prerequisites
• Create 1 or more customer contracts.

Context
You can incrementally amortize contract costs, such as commissions, for your customer contracts over
time.

Steps
1. (Optional) Access the View Account Posting Rule Set report to manage your deferred cost assets
and amortization expenses posting rules.
Security:
• Set Up: Accounting Rules domain in the Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in the Core Payroll functional area.
2. (Optional) Access the Maintain Cost Types task.
Create 1 or more cost types.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.

3. Access the Create Deferred Cost Transactions task.

Create at least 1 deferred cost transaction for amortization.
Security: Process: Deferred Cost Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.
4. Create Deferred Cost Schedules on page 848.
5. Access the Create Deferred Cost Accounting task.
To generate accounting, select 1 or more deferred cost installments.
Configure the Deferred Cost Installment Event business process and security policy in the Customer
Contracts and Project Billing functional areas.
6. (Optional) Access the Update Deferred Cost Installment Status task.
Select the installments to change manually to Closed status to stop the amortization and accounting.
Security: Process: Deferred Cost Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.

Next Steps
You can create custom reports that pull transaction statuses and amounts to determine installment lines for
manual accounting entries.
Related Information
Reference
Workday 31 What's New Post: Support Accounting for Deferred Costs

Steps: Create Intercompany Contracts

Context
Intercompany contracts document the details of business relationships between legal entities of global
organizations. These contracts offer different transaction rates for worker time and expenses, and supplier
invoices between the companies under negotiated transfer pricing. You can invoice these transactions
separately through direct intercompany invoices.

Steps
1. Maintain Companies as Customers or Suppliers on page 46.
Set up the customer and supplier relationships between your companies.
2. Create Transfer Pricing Rate Sheets on page 1202.
Create standard or custom rate rules for your intercompany project workers to apply to the
intercompany contract.
3. Access the Create Intercompany Contract task.
Set up an evergreen 1-way contract between your companies.
Select any accepted currency of the customer on the intercompany contract.
Note: You can change the intercompany contract currency until you create either an:
• Intercompany Billing Schedule. When you have an intercompany billing schedule and need to
change your currency, cancel your billing schedule. Change your currency, then recreate your billing
schedule.
• Invoice for the contract. Once you've created an invoice for your intercompany contract, you can't
change the currency.
Configure the Intercompany Customer Contract Event business process and security policy in the
Projects functional area.

4. Access the Create Billing Schedule for Intercompany Contract task.

Create your schedule for intercompany contract billing.
Security: Process: Transfer Pricing domain in the Projects functional area.
5. Review Intercompany Billable Transactions on page 838.
Update and approve the transaction associated with this intercompany contract.
6. Access the Create Intercompany Invoices for Intercompany Transactions task.
Create a direct intercompany invoice.
Security: Process: Intercompany Contract domain in the Customer Contracts and Project Billing
functional areas.
Related Information
Concepts
Concept: Intercompany Transactions on page 48
Reference
2020R1 What's New Post: Advanced Labor Costing for Intercompany Contracts
2020R1 What's New Post: Transfer Pricing for Supplier Invoices
Workday 33 What’s New Post: Transfer Pricing for Multicurrency
Workday 31 What’s New Post: Transfer Pricing

Steps: Create Customer Contract Templates

Context
Customer contract templates simplify customer contract creation, maintain consistency, and reduce errors.
You can use templates to populate common options when you create customer contracts.

Steps
1. (Optional) Access the Maintain Worktag Usage report.
To track revenue and expenditures between intercompanies on customer contract lines, configure the
Intercompany Affiliate worktag type for customer contracts.
Security: Set Up: Enable Worktags domain in the Common Financial Management and Worktags
functional areas.
2. Access the Create Customer Contract Template task.
Define template details, including the contract type, billing schedule information, sales items, and
worktags. When you create a customer contract from a template with intercompany affiliate worktags,
Workday populates the Intercompany Affiliate worktag from the template onto the customer contract
lines.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
3. (Optional) Access the Maintain Customer Contract Types task.
Assign a contract template to each of your contract types.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
4. (Optional) Set Up the Create Project Business Process on page 1017.
Add the Create Customer Contract service step after the completion step on the Create Project
business process. This service step creates a customer contract in Draft status from your Project.

Next Steps
Create customer contracts using templates.

Related Information
Concepts
Concept: Customer Contracts on page 848
Tasks
Create Customer Contracts on page 839
Reference
Workday 33 What's New Post: Customer Contract Templates

Steps: Set Up Customer Contract Checklist Templates

Context
You can create a checklist template to define a list of requirements to complete for each customer contract
type. Once you enable the checklist template on a customer contract type, the checklist displays on
the customer contract. You can use the checklist to ensure that you complete each requirement for the
customer contract.

Steps
1. Access the Create Customer Contract Checklist Template task.
You can add comments and attachments for each checklist requirement. Example: Attach PDFs or
Excel spreadsheets that define internal procedures or company policies.
Security: Set Up: Customer Contracts - Checklist Templates domain in the Customer Contracts and
Project Billing functional areas.
2. Access the Maintain Customer Contract Types task.
Select the checklist template that you created from the Checklist Template prompt. You can only
assign 1 checklist template to each customer contract type.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
3. Create Customer Contracts on page 839.
Workday displays a Checklist tab that you can use to view the list of requirements to complete for the
customer contract.
4. Access the Find Customer Contracts report.
From the approved customer contract that you created, click Edit on the Checklist tab.
Select the Complete check box for each checklist requirement that you complete on the customer
contract. You can complete checklist requirements throughout the duration of the contract term. You
can also add comments and attachments for each checklist requirement.
Security: Process: Customer Contract - View domain in the Customer Contracts and Project Billing
functional areas.

Result
When you view the customer contract, Workday displays:
• All the checklist requirements for the contract.
• The completed checklist requirements.
• The date and time that you marked the checklist requirement as complete.
• The user who completed the checklist requirement.
Related Information
Concepts
Concept: Customer Contracts on page 848

Steps: Link Customer Contracts for Revenue Allocation

Context
You can associate multiple related customer contracts with a single parent customer contract. With linked
contracts, you can consolidate all of your revenue in a common currency, display it in a single report, and
reallocate revenue across the linked contracts.

Steps
1. Access the Maintain Customer Contract Types task.
Select the Linked Contract check box for 1 or more contract types.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
2. (Optional) Set Up Revenue Allocation Configurations on page 866.
Select the Allocate Revenue at Summary and Prorate at Line check box. This check box includes all
linked contracts at the summary level and prorates the allocation of revenue on the customer contract
lines.
3. Create Customer Contracts on page 839.
As you complete the task, consider:
Option Description
Contract Type Select a contract type that you enabled for linked
contracts.
Workday populates the Line Type field for all
contract lines with Fixed Amount - Revenue Only.

Revenue Override Amount Complete the contract line information, including

the amount of revenue that you want to recognize
for each contract line.

Next Steps
• Create a custom report that:
• Consolidates information for your linked contracts.
• Displays the balances of all linked contracts in the currency of the parent contract.
• Organizes contract lines by revenue category.
• Perform multiple-element revenue allocation for your linked contracts.
• Create a billing schedule.
• Create a revenue recognition schedule.
Related Information
Tasks
Steps: Create Multiple-Element Revenue Allocation on page 864

Steps: Manage Billable Projects on Usage-Based Transactions

Prerequisites
Create a billable project.

Context
You can associate a billable project with usage-based customer contract lines and transactions, enabling
you to review all your project billing activity at once.

Steps
1. Create Customer Contracts on page 839.
In the Line Details tab of the Usage-Based grid, select a project from the Billable Project prompt to
associate with the usage-based customer contract line.
You can't change the billable project on a usage-based customer contract line when the line is
associated with:
• A billing schedule.
• A revenue recognition schedule.
• An invoice.
• Usage-based transactions.
2. Create Consolidated Billing Schedules for Customer Contracts on page 877.
Create a consolidated billing schedule for the usage-based customer contract line that you associated
with a billable project.
3. Access the Record Usage-Based Transactions task.
Select the:
• Usage-based customer contract from the Customer Contracts prompt.
• Project from the Billable Projects prompt.
Workday only displays customer contract lines from approved customer contracts in the Contract Line
prompt.
Security:
• Process: Project Billing - Usage domain in the Project Billing functional area.
• Process: Usage domain in the Customer Contracts and Project Billing functional areas.
4. Manage All Project Billing Transactions on page 1211 or Manage Project Billing Transactions by
Transaction Source on page 1216.
Select the project from the Billable Projects prompt to view usage-based transactions associated with
the billable project.
5. Manage customer invoice proposals.
Modify usage-based transactions associated with the billable project before invoicing.
See Steps: Manage Customer Invoice Proposals on page 891.
6. (Optional) Create Customer Invoices from Contracts on page 895.
Create customer invoices for usage-based transactions associated with the billable project.
7. (Optional) Access the Create Customer Invoices for Billable Transactions task.
Create customer invoices for usage-based transactions associated with the billable project.
When you generate customer invoices from contracts with a negative amount due, Workday
automatically creates credit adjustment documents linked to the billing schedule. If an invoice has
retention, Workday instead creates a customer invoice with the negative amount.
Security:
• Process: Billing - Invoicing domain in the Customer Contracts and Project Billing functional areas.
• Process: Project Billing - Invoicing domain in the Project Billing functional area.

8. (Optional) Access the Find Billable Project Transactions report.

Select Usage Based from the Transaction Source prompt to view usage-based transactions
associated with the billable project.
Security:
• Manage: Billable Projects domain in the Projects functional area.
• Reports: Project Billing domain in the Project Billing functional area.

Next Steps
Access the View Project report to review amounts and drill down on usage-based transactions associated
with the billable project.
Related Information
Reference
2022R2 What's New Post: Billable Projects on Usage-Based Transactions
2023R1 What’s New Post: Credit Adjustments for Negative Customer Invoice Amounts

Review Intercompany Billable Transactions

Prerequisites
An intercompany contract with billable transactions.
Security: Process: Transfer Pricing domain in the Projects functional area.

Context
You can review your intercompany billable transactions that occur between:
• A parent company and a subsidiary.
• Divisions.
• Subsidiaries.
Using the Review Intercompany Billable Transactions task, you can also:
• Approve transactions.
• Change billable amounts.
• Recalculate billing rates.
• Place transactions on hold.
• Hold transactions from billing.

Steps
1. Access the Review Intercompany Billable Transactions task.
Workday displays the last search criteria you used.
2. Review and process your transactions.
As you complete the task, consider:
Option Description
Billing Status Use this prompt to change the billing status for 1
or multiple lines at once.
Pending Pricing Displays when you've completed both of these
actions:
• Approved the worker time block using standard
cost rates.

Option Description
• Created the advanced labor cost calculation
assignment.
Workday displays the billable amount as zero until
you complete the Schedule Project Advanced
Labor Costing task. This task calculates prorated
cost amounts for worker hours.

Unbillable Displays when your transactions are missing

either or both of the intercompany:
• Billing schedule.
• Contract.

Modify Fields You can update these fields:

• Billing Status for all transaction types.
• Hours to Bill for time transactions only.
• Rate to Bill for time transactions only.
• Amount to Bill for expense and supplier invoice
transactions only.
• Reason for Change for all transaction types.
Note: You can't modify fields for transactions with
a status of:
• Do Not Bill.
• Pending Pricing.
• Unbillable.

Recalculate Rates Select to clear changes you make to any of your

transactions.
Note: You can't recalculate rates for transactions
with a status of:
• Do Not Bill.
• Pending Pricing.
• Unbillable.

Next Steps
Create invoices for intercompany transactions.
Related Information
Tasks
Steps: Create Intercompany Contracts on page 833
Steps: Manage Project Advanced Labor Costs on page 989
Reference
2020R1 What's New Post: Advanced Labor Costing for Intercompany Contracts

Create Customer Contracts

Prerequisites
Configure the Customer Contract Event business process and security policy in the Customer Contracts
and Project Billing functional areas.

Context
You can create customer contracts to specify the rules, terms, and conditions that govern the contract with
your customer. Workday uses the terms that you specify to create:
• Billing schedules.
• Revenue recognition schedules.
• Customer invoices.
• Accounting.

Steps
1. Access the Create Customer Contract task.
When you create your contract from a template and your worktag values conflict, the customer or
company-specific worktags take precedence.
2. As you complete the header, consider:
Option Description
Contract Type Select a contract type that you created on the
Maintain Customer Contract Types task.
Related Customer Contract Select to associate 1 related customer contract
with this customer contract for reporting purposes.
Linked Customer Contracts Select to associate multiple child customer
contracts with this parent customer contract for
revenue purposes.
Displays when you select a Contract Type
enabled for linked contracts.

Parent Customer Contract Select to associate this customer contract with a

parent customer contract for revenue purposes.
When you view the parent customer contract,
Workday displays this customer contract as a
linked contract.
Multiple-Element Revenue Allocation Select when the contract has lines that require
different revenue allocations.
Workday then enables you to select a Fair Value
Price List and define the fair value unit price and
extended amount on the contract lines.

Fair Value Price List Displays when you select the Multiple-Element
Revenue Allocation check box.
Default Tax Code Select a tax code when the contract lines contain
items that are taxable. Workday populates
contract lines with the tax code based on the
values that you enter on the Create Customer
task for:
• Company.
• Customer.
• Revenue Category.
• Ship-From Address.
• Ship-To Address.

Option Description
Worktags To track revenue and expenditures between
intercompanies on customer contract lines,
select the Intercompany Affiliate worktag that you
configured for customer contracts on the Maintain
Worktag Usage report. Workday populates the
Intercompany Affiliate worktag onto the customer
contract lines. Workday also populates the
Intercompany Affiliate worktag from the customer
contract lines onto:
• Ad hoc project transactions.
• Billing installments.
• Installment-type transactions.
• Project-based transactions.
• Revenue installments.
• Usage-based transactions.

Billing Template Select to create consolidated billing schedules.

You can't include a billing template when you
also include an installment or transaction billing
schedule template.
3. As you complete the Line Details tab, consider:
Option Description
Revenue Category Workday populates this field based on your
selection from the Sales Item prompt.
Bundle Workday populates this field when you select a
bundled sales item from the Sales Item prompt.
Click to update the bundled sales item
information.
To allocate revenue for bundled sales items,
click the Bundle button and enter amounts in the
Revenue Override Amount field.

Line Type When you select Prepaid from the Line Type
prompt on the Goods and Services tab and
create customer invoices or customer invoice
proposals, Workday displays the billable project
on the customer invoice lines.
Billable Project When you select a project from the Billable
Project prompt on the Usage-Based tab,
Workday associates the billable project with the
usage-based customer contract line.
You can't change the billable project on a usage-
based customer contract line when the line is
associated with:
• A billing schedule.
• A revenue recognition schedule.
• An invoice.
• Usage-based transactions.

Option Description
Quantity 2 Displays when you select Subscription from the
Line Type prompt.
Unit of Measure 2
Use when you need to display the quantity
of items sold on your billing installments and
customer invoices.
Example: Your customer decides to purchase 20
hours of your service per month.

Contract Line Amount Workday uses the contract line amount on the
billing schedule.
FV Unit Price Calculation: Fair Value Extended Amount ÷ Total
Number of Units.
FV Extended Amount Workday uses this value as the revenue override
amount when you run multiple-element allocation.
Workday updates the extended amount and the
unit price when you change either value.

Phases Select to include 1 or more phases and tasks on

Project Time and Expense contract lines.
Tasks
(Projects only)

Standard Rate Sheet (Projects only) Select to use the tenant-wide rules that you
created on the Create Project Standard Cost
Rate Sheet task, such as:
• Project cost rate rules.
• Worker-specific rates.
• Project role rates.

Contract Rate Sheet (Projects only) When you select both a standard rate sheet and
a contract rate sheet, Workday applies the rates
from the standard rate sheet first.
To add a contract rate sheet to any project
line type, select an option from the Project
Transaction Source prompt.
To compare fixed fee amounts to time and
material amounts, associate a billing rate sheet to:
• Project Time and Expense line types for
transaction-based billing projects.
• Fixed Fee Project and Value-Based Project
line types for installment-based billing projects.

4. As you complete the Revenue and Billing tab, consider:

Option Description
Revenue Treatment Workday uses the revenue treatment to determine
which ledger account in your account posting
rules to credit and debit when you create invoices
and recognize revenue.
Select:

Option Description
• Accrued to credit the Unbilled Receivables
ledger account during invoicing and debit the
Unbilled Receivables ledger account during
revenue recognition.
• Deferred to credit the Deferred Revenue
ledger account during invoicing and debit
the Deferred Revenue ledger account during
revenue recognition.
• Invoice to credit the Revenue ledger account.

Revenue Override Amount Workday uses the revenue override amount on

the revenue recognition schedule.
You can also use this field to record the revenue
amount you allocate on a multiple-element
arrangement contract.

Revenue Template Displays when you select Accrued or Deferred

from the Revenue Treatment prompt. You can
associate the line with a revenue recognition
template in your tenant.
Depending on your template settings, and after
contract line approval, Workday:
• Generates installments.
• Submits the revenue recognition schedule for
approval.

5. As you complete the Additional Information tab, consider:

Option Description
Worktags When you select a billable project on usage-
based customer contract lines, select a project
plan phase or project plan task that's associated
with the billable project.

Result
Workday routes the customer contract to the Customer Contract Event business process for review and
approval.

Next Steps
Create:
• Customer billing schedules.
• Revenue recognition schedules.
Related Information
Concepts
Concept: Customer Contracts on page 848
Concept: Project Billing on page 1248
Tasks
Steps: Create Customer Contract Templates on page 834
Steps: Manage Billable Projects on Usage-Based Transactions on page 836

Steps: Set Up Prepaid Billing Using Installment Billing Schedules on page 873
Steps: Set Up Project Pricing and Billing on page 1195
Steps: Consolidate Billing for Multiple Projects on page 1194
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Create Revenue Recognition Schedules for Customer Contracts on page 905
Add Billing Rate Rules to Contract Rate Sheets on page 1200
Reference
Reference: Billing Rate Rule Types for Projects on page 1207
Reference: Contract Line Types for Customer Contracts on page 854
Workday 31 What’s New Post: Standard Billing Rate Sheet
2022R2 What's New Post: Billable Projects on Usage-Based Transactions

Copy Customer Contracts

Prerequisites
• Approve a customer contract.
• Security: Process: Customer Contract - Core domain in the Customer Contracts and Project Billing
functional areas.

Context
You can copy existing customer contracts when you want to create multiple contracts for the same
customer. Copying customer contracts helps to save you time by automatically populating fields on the
customer contract.

Steps
From the related actions menu of the approved customer contract that you want to copy, select Customer
Contract > Copy.
Workday copies:
• Contract lines as numbered on the original customer contract.
• Billing and customer contract notes.
• Tax codes using the current tax rate.
• The billable project and any phases and tasks on the original customer contract lines.
• Only the current approved version of the customer contract for contracts with multiple amendments.
• Worktags on the original customer contract lines.
Workday doesn't copy:
• Canceled or terminated customer contract lines.
• Associated billing or revenue recognition schedules.

Result
Workday duplicates the original contract in Draft status.

Next Steps
Make the necessary changes to the customer contract and submit it for approval. Workday routes the
customer contract copy to the Customer Contract Event business process for review and approval.
Related Information
Tasks
Create Customer Contracts on page 839

Reference
2022R2 What's New Post: Billable Projects on Usage-Based Transactions

Amend Customer Contracts

Prerequisites
• Approve a customer contract.
• Configure the Customer Contract Amendment Event business process and security policy in the
Customer Contracts and Project Billing functional areas.

Context
You can amend customer contracts when you need to make additions, changes, or corrections to
approved contracts. Workday assigns the next version number to each new amendment, and you can
specify an amendment number to associate with a legal document.
When any of these processes are in progress, you can't submit an amendment:
• An associated billing installment.
• An associated revenue recognition installment.
• An associated customer invoice or invoice adjustment.

Steps
1. From the related actions menu of the approved customer contract that you want to amend, select
Customer Contract > Amend Customer Contract.
2. As you complete the task, consider:
Option Description
Amendment Number Enter an amendment number to associate the
customer contract with a legal document.
New Contract Status When you select:
• Active, Workday updates the customer
contract to an Approved status. There's no
impact to the customer contract lines.
• Canceled, Workday cancels the customer
contract lines. You can't cancel a customer
contract when at least 1 line has an installment
in progress, billed amounts, or revenue
recognized.
• Complete, all customer contract lines must
have a status of Canceled, Complete, or
Terminated. A Complete status indicates
that all activity is complete on the customer
contract.
• Terminated, Workday terminates the customer
contract while retaining all completed
installments. When the customer contract
has lines associated with completed billing or
revenue recognition installments, enter the
billed amount in the Contract Amount field
before terminating the contract. You can't
terminate a customer contract when at least 1
line has a status of Active.

Option Description
Sales Item Workday enables you to edit the sales item when
the customer contract line isn't associated with:
• A billing schedule.
• A revenue recognition schedule.

Revenue Category Workday enables you to edit the revenue

category when the customer contract line isn't
associated with:
• A billing schedule.
• A revenue recognition schedule.

Line Type Workday enables you to edit the line type when
the customer contract line isn't associated with:
• A billing schedule.
• A revenue recognition schedule.

Billable Project Workday enables you to edit the billable project

for usage-based customer contract lines when the
customer contract line isn't associated with:
• A billing schedule.
• A revenue recognition schedule.
• An invoice.
• Usage-based transactions.

Contract Rate Sheet When there are billed work in progress amounts,
you can only edit the contract rate sheet when it's
effective dated.
Worktags When you select a billable project on usage-
based customer contract lines, select a project
plan phase or project plan task that's associated
with the billable project.

Result
You can view a list of changes on the Amendments tab of the customer contract.

Next Steps
When you configure the Customer Contract Amendment Event business process, your revenue recognition
schedule might not update. Verify that your schedule properly updates when you enable the Automatically
Submit Schedule via Contract Amendment check box.
Related Information
Tasks
Create Customer Contracts on page 839
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Create Consolidated Billing Schedules for Customer Contracts on page 877
Create Customer Invoices for Billing Installments on page 893
Create Customer Invoices from Contracts on page 895
Create Revenue Recognition Schedules for Customer Contracts on page 905

Reference
2022R2 What's New Post: Billable Projects on Usage-Based Transactions

Change Customer Contracts

Prerequisites
• Approve a customer contract.
• Configure the Customer Contract Amendment Event business process and security policy in the
Customer Contracts and Project Billing functional areas.
• Security: Process: Customer Contract - View domain in the Customer Contracts and Project Billing
functional areas.

Context
You can change a customer contract without going through the full amendment process. When you
change a customer contract, you have limited options if your contract is associated with a billing or revenue
recognition schedule.

Steps
1. (Optional) Access the Customer Contract Amendment Event business process.
Add condition rules to route amendments and changes differently as needed.
Example: Add 1 condition rule that routes amendments to the Controller, and another condition rule that
routes changes to the Customer Contract Specialist.
2. From the related actions menu of the approved customer contract that you want to change, select
Customer Contract > Change Customer Contract.
3. Make any necessary changes to the fields available for edit.
When the customer contract is associated with a billing or revenue recognition schedule, you can't
change these fields:
• Billable Project
• Company
• Customer
• Currency
• Contract Amount
• Effective Date
• Phases
• Tasks
• Worktags

Result
The Customer Contract Change Event displays on the Process History tab of the contract.
Related Information
Tasks
Edit Business Processes
Reference
2022R2 What's New Post: Billable Projects on Usage-Based Transactions

Create Deferred Cost Schedules

Prerequisites
• Create deferred cost transactions.
• Security: Process: Deferred Cost Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.

Context
You can create a deferred cost schedule for 1 or more transaction lines to amortize. All lines you include in
a schedule must use the same deferred cost amortization method and currency.

Steps
1. Access the Create Deferred Cost Schedule task.
2. Add at least 1 transaction line to the deferred cost schedule.
3. Click Save and Continue to view the draft.
4. Click Generate Installments for amortization to occur.

Next Steps
Optionally update the deferred cost installment status.
Related Information
Tasks
Steps: Amortize Customer Contract Costs on page 832

Concept: Customer Contracts

A customer contract is the agreement between you and your customer. You can define these agreement
details on your customer contracts to determine how Workday generates billing and revenue recognition:
• Contract amount.
• Effective date.
• Line type.
• Revenue treatment.
• Sales items.
• Worktags.
You can manage each step of the contract lifecycle, including automatic routing for approval based on your
business processes.

Customer Contract Amendments and Changes

You can configure contract amendment types on the Maintain Customer Contract Amendment Types
task. Amendments enable you to capture additions, changes, and corrections on approved customer
contracts. You can change the status of an entire customer contract or specific customer contract
lines. You can also configure amendment numbers to track changes made on amendments. Workday
automatically assigns the next version number to each new amendment. You can also specify an optional
amendment number to correlate to an amendment document if 1 exists. Once you create an amendment,
you can view the amendment history of a customer contract or contract line for any version.
Changes enable you to update details on approved customer contracts. If the customer contract has a
billing or revenue recognition schedule, you can only change nonamount details.

Customer Contract Change Orders

Change orders enable you to update the quantity and amount on customer contract lines.

Customer Contract Checklist Templates

You can use the Create Customer Contract Checklist Template task to customize a checklist of
requirements for your contract specialists to use when they create customer contracts. You can then
associate the checklist template with a contract type on the Maintain Customer Contract Types task.
When you create a customer contract using the contract type you associated with the checklist template,
Workday automatically adds a Checklist tab on the contract.

Customer Contract Line Fees

You can add administrative fees as a percentage to the project time and expense lines on your customer
contracts.

Customer Contract Lines

Each customer contract line includes a revenue category that you can enter or derive from a sales item.
To comply with vendor-specific objective evidence (VSOE) requirements, you can distribute line amounts
on customer contracts differently for billing and revenue. The customer contract header ensures that billing
and revenue amounts remain equal. You can also capture discounts as negative customer contract lines.

Customer Contract Templates

Customer contract templates reduce the time and effort needed to create customer contracts by populating
commonly used fields and values. Once you create a template on the Create Customer Contract
Template task, you can either:
• Assign the template to a contract type on the Maintain Customer Contract Types task.
• Create a customer contract using the template on the Create Customer Contract task.

Customer Contract Types

You can manage your customer contracts based on the contract types that you define on the Maintain
Customer Contract Types task. The contract types that you define help you to identify, manage, and
approve your customer contracts based on your business needs. You can customize contract types to
include:
• Checklist templates.
• Contract templates.
• Linked contracts.

Customer Contract Worktags

Customer contract worktags enable you to:
• Analyze and report on revenue details by customer contract.
• Associate costs or transactions with the customer contract.
• Reconcile revenue by customer contract at the ledger level.
You can capture customer contract worktags on operational transactions that originate from a contract,
such as:
• Accounting journals.
• Billing schedules and installments.
• Customer invoices from billing installments.
• Revenue recognition schedules and installments.

You can also associate a customer contract worktag with transactions that impact revenue. Workday
displays the customer contract worktag as an implicit worktag on transactions that originate from the
contract. You can also enable Workday to display the customer contract worktag as an explicit worktag on
transactions that relate to a customer contract. You can use the customer contract worktag on billing and
revenue recognition installment lines, and you can view the worktag on resulting operational journals.
You can enable customer contract worktags on the Maintain Worktag Usage task.

Fair Values on Customer Contract Lines

When you associate a fair value price list with your customer contract, Workday populates the fair value
amounts on your customer contract lines.

Linked and Parent Customer Contracts

Linked and parent customer contracts enable you to associate customer contracts together for allocation
and revenue purposes. You can enable linked customer contracts on the Maintain Customer Contract
Types task. When you create a customer contract, you can then associate multiple linked customer
contracts with a single parent customer contract. The linked customer contracts display on the parent
customer contract and the parent customer contract displays on each linked customer contract.
Workday consolidates the linked customer contract lines and displays 1 line per revenue category on the
parent customer contract. You can also view linked customer contract lines by revenue category when you
create a consolidated revenue recognition schedule. You can create a consolidated revenue recognition
schedule from the related actions menu of the parent customer contract.

Pricing Discounts and Premiums

You can create pricing discounts and premiums using the Maintain Customer Contract Discounts and
Premiums task. You can base pricing rules on your customer contracts and apply them on the customer
contract header or line.

Related Customer Contract

Related customer contracts enable you to associate customer contracts together for reporting purposes.
When you create a customer contract, you can associate 1 related customer contract with it. Related
customer contracts must share the same company and sold-to customer.
Related Information
Concepts
Concept: Project Billing on page 1248
Concept: Revenue Recognition on page 912
Tasks
Create Customer Contracts on page 839
Steps: Create Multiple-Element Revenue Allocation on page 864
Reference
Reference: Contract Line Types for Project Billing on page 1252
Workday 33 What's New Post: Customer Contract Templates
Workday 31 What’s New Post: Pricing Discounts and Premiums

Concept: Customer Contract Renewals

Workday enables you to create renewable sales items and manage renewal terms on the customer
contract and customer profile. You can create custom reports to access renewal information and run
a standard report to view customer contract lines that are up for renewal. Customer contract renewals
are intended for reporting purposes only. Workday doesn't automatically renew expiring customer
contracts.

Sales Items
When you create or edit a sales item, you can mark the sales item as Renewable. When you add the sales
item on a customer contract line, Workday automatically enables the Renewable check box. You can clear
the check box at any time when the renewable sales item doesn't apply to the customer contract. You also
have the option to mark a sales item as Renewable when you create a customer contract line.

Renewal Terms
You can manage the renewal terms either on the customer contract line or on the Renewal Base report on
the customer profile. To manage the renewal terms on the:
• Customer contract line, navigate to the Renewal Terms tab on either the Goods and Services tab or
on the Usage-Based tab.
• Renewal Base report, configure the report to display on the Contracts for Customer Composite View
Profile profile group on the customer profile. The Renewal Base report displays all of the renewable
customer contract lines that are active for the current period. You can use the report to manage the
renewal terms in mass.
You can:
• Add a customer bill-to contact.
• Add an opt-out period for the contract term.
• Enter a renewal quantity, renewal rate, renewal amount, and renewal percent. Example: You can add
a 5 percent increase in price the next time the contract renews by entering 5 in the Renewal Percent
field.
• Set a from date and a to date.

Renewal Reports
You can:
• Create custom reports to access renewal information.
• Access the Find Expiring Customer Contracts report to view all of the customer contract lines that
are expiring soon. By default, the report displays customer contracts that are expiring in the next 30
days, but you can configure the report to display customer contracts that are expiring in the next 60
days, 90 days, or a custom date range that meets the needs of your organization.
Related Information
Tasks
Create Sales Items on page 823
Create Customer Contracts on page 839
Configure the Customer Profile on page 646
Steps: Set Up Profiles and Profile Groups

Concept: Foreign Currency Customer Contracts

In Workday, each company has a ledger currency, but you have the ability to create customer contracts
in a currency different than the company ledger currency. When you create a customer contract, currency
conversion doesn't occur until there's billing or revenue recognition associated with the contract.
Example: A Canadian company creates a contract for a customer in France. The customer contract and
billing are in the contract currency of EUR, and the revenue is in the company ledger currency of CAD.

Billing
When you create a billing schedule and generate billing installments, the installments are in the contract
currency. Currency conversion doesn't occur at this stage because there's no accounting.

When you create a customer invoice, Workday posts the invoice amount to a ledger account and currency
conversion occurs. The invoice amounts display in the contract currency. The journal lines display both the
contract currency amounts and the company ledger currency amounts in their respective currencies.

Revenue Recognition
When you create a revenue recognition schedule for customer contracts with accrued or deferred revenue,
the installments are in the contract currency. Currency conversion doesn't occur at this stage because
there's no accounting.
When you recognize revenue, currency conversion occurs. The journal lines display both the contract
currency amounts and the company ledger currency amounts in their respective currencies.

Currency Rates
Workday provides these currency conversion rates that you can use when you create revenue recognition
schedules and accounting for foreign currency customer contracts:

Currency Conversion Rate Description

Blended rates Workday only supports blended rates on foreign
currency revenue recognition schedules and
accounting created before September 10,
2022. When you generate revenue recognition
installments, the installments use the rate on the
customer contract effective date as the foreign
currency conversion rate. The conversion rate
determines the revenue amount in the company
ledger currency.
When you:
• Generate invoices before recognizing revenue
in the same period, Workday updates the
conversion rate on the revenue recognition
installment to the invoice rate. The revenue
recognition accounting uses the updated
installment rate.
• Recognize revenue before generating invoices
in the same period, the revenue recognition
accounting uses the customer contract rate that
you used to generate the installment.
You can manually override the conversion rate
used to generate the original revenue installments
by editing the revenue recognition schedule. The
rate you set overrides all invoice rates, even when
you invoice before recognizing revenue.

Contract effective date Workday uses the contract effective date to

determine the foreign currency conversion rate.
Invoice rates Workday only supports invoice rates on foreign
currency revenue recognition schedules and
accounting created before September 10, 2022.
When you generate invoices before recognizing
revenue in the same period, Workday uses the
invoice rate to determine the foreign currency
conversion rate.

Currency Conversion Rate Description

Revenue recognition installment date Workday uses the installment date to determine the
foreign currency conversion rate. When there isn't
a rate for the installment date, Workday uses the
rate for the most recent date when you generate
revenue recognition installments and accounting.
After you generate revenue recognition accounting,
the rates on the revenue recognition installment
lines match the rates on the operational journal
lines.
Schedule override rate Workday uses the schedule override rate that
you specify to determine the foreign currency
conversion rate.

Currency Adjustments
When there are variances between billed and recognized revenue amounts in ledger currency, you can
create adjustments using these tasks to reconcile the variance:
• Create Ledger Currency Adjustment Installment: Create adjustments at the end of the customer
contract term.
• Create Customer Contract Foreign Currency Adjustment Journal: Create adjustments at the end of
the month or anytime during the customer contract term.
Example: At the end of the customer contract term, the sum of your ledger currency billed amount and
your recognized revenue amount for the customer contract line reveals a difference of $11.30 in your
accounting. To create a currency adjustment installment, select Revenue Recognition Schedule >
Create Ledger Currency Adjustment Installment from the related actions menu of the approved revenue
recognition schedule with foreign currency.
Related Information
Concepts
Concept: Customer Contracts on page 848
Tasks
Create Customer Contracts on page 839
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Create Revenue Recognition Schedules for Customer Contracts on page 905
Create Ledger Currency Adjustment Installment on page 908
Reference
Reference: Revenue Recognition Currency Conversion Rates for Foreign Currency Customer Contracts on
page 916
Examples
Example: Create Accounting Using Blended Rates for Foreign Currency Customer Contracts on page
925

Concept: Usage-Based Contract Pricing

Workday enables you to charge a customer based on how much they use your product or service. You can
create a usage-based customer contract and manage your pricing with a usage rate sheet.

Minimum Commitments
Workday provides flexibility with rate sheets on your usage-based customer contracts to manage minimum
commitments for your product or service.

Example: A customer contract requires a monthly minimum for support calls of $10,000. You can bill the
minimum amount for the month, if the monthly usage doesn't meet or exceed it, or the actual usage, if
greater.

Tiered and Volume Pricing

Tiered pricing assigns a price per unit based on quantity ranges. You can charge your customers different
pricing based on purchase quantities.
Volume pricing assigns a price for all units based on the total amount within a price range.
Examples: Your customer purchases 150 units of your product. Your pricing per unit is:
• 1-100: $10
• 101+: $8

Tiered Pricing Volume Pricing

You charge your customer $10 for the first 100 You charge your customer $8 for all 150 units, for a
units and $8 for the remaining 50 units, for a total total cost of $1,200.
cost of $1,400.
(100 x $10) + (50 x $8) = $1,400 150 x $8 = $1,200

Tiered and Volume Pricing for Negative Usage-Based Transactions

You can load negative transactions using tiered and volume pricing reset by period or transaction.
For tiered and volume pricing reset by period, first record a usage-based transaction for the customer
contract using a positive quantity. Then, record a second usage-based transaction for the customer
contract using a negative quantity. Loading transactions in this order ensures that Workday prices negative
transactions through the tiers correctly. When you load usage-based transactions with a negative quantity
first, Workday prices them at zero.
For tiered and volume pricing reset by transaction, either:
• Record a usage-based transaction with a positive quantity, followed by a second transaction with a
negative quantity ensuring that Workday prices negative transactions through the tiers correctly.
• Select the Price Negative Units in First Tier check box to ensure that Workday prices negative
transactions at the lowest quantity tier rate.
Example: The billing rate sheet associated with your usage-based customer contract line resets by
transaction and defines tiers for:
• 1-100 units at a rate of $100 per unit.
• 101+ units at a rate of $90 per unit.
When you record a usage-based transaction with a negative quantity, the billing rate sheet uses the
$100 per unit price.
Related Information
Tasks
Create Customer Contracts on page 839

Reference: Contract Line Types for Customer Contracts

Workday provides these contract line types that you can use to create customer contracts:

Contract Line Type Actions Billing Options Revenue Recognition

Cost Reimbursable • Create installment • Installments for Transaction completion
billing schedules prepaid billing or settlement
to deduct cost consumption
reimbursable • Transactions
amounts from
prepayments.
• Create transaction
billing schedules
to bill direct costs
and facilities and
administration
incurred throughout
the billing cycle.
Use this line type on
award contracts only.

Fixed Amount Set the amount for • Installments • Installments

goods and services • Transactions for • Transactions for
independent of activity or order fulfillment order fulfillment
resources.
Fixed Amount - Billing Set the total amount Installments
Only to bill for a sales item
bundle.
Example: You sell a
laptop bundled with a
docking station and
monitor.

Fixed Amount - Revenue Set the amount to Installments

Only recognize revenue for
individual items in a
sales item bundle.
Use this contract line
type with the Fixed
Amount - Billing Only
line type or for revenue
recognition linked
contracts.
Example: You sell a
laptop bundled with a
docking station and
monitor and want to
recognize revenue on
the individual items.

Fixed Fee Project Set the project value • Installments • Installments

based on the scope and • Milestones • Milestones
product when you create
• Percent Complete
the contract.
Intercompany Expense Set the expense rates Intercompany
between legal entities of transactions

Contract Line Type Actions Billing Options Revenue Recognition

global organizations for
intercompany expenses.
Intercompany Time Set the worker rates Intercompany
between legal entities transactions
of global organizations
intercompany time.
Prepaid Apply prepayments Installments You don't need to create
towards installment and a revenue recognition
transaction contract schedule.
line amounts. When
you select this option,
Workday populates
Deferred as the
Revenue Treatment on
the customer contract.
Project Time and Charge the project • Installments • Milestones
Expense as you incur time and • Milestones • Transactions
expenses.
• Transactions

Recurring - Fixed Term Use this contract line Installments Installments

type with variable lines
to manage minimum
commitments that bill
as a set amount on a
recurring basis.
Example: You create
a contract for technical
support with minimum
monthly fees and other
usage-based transaction
lines.

Subscription Installments Installments

Usage-Based Process your Transactions • Installments
transactions as they • Transactions
occur.
Value-Based Project Create revenue • Installments • Installments
installment lines that are • Milestones • Milestones
based on an estimated
amount and aren’t
transaction driven.
The revenue amount
is an estimate. You'll
need to balance the
difference between
final billed and revenue
recognition amounts.
Bill for projects with
variable values based on
external factors. Set the
amount for the contract

Contract Line Type Actions Billing Options Revenue Recognition

item, independent of
resources used or time
expended, and track the
recurring transactions.
Use this line type
on projects contract
lines. Use a revenue
recognition method that
isn't Transaction.

Variable Amount - Non Create revenue Installments • Installments

Project installment lines based • Milestones
on an estimated amount
for goods and services.
The revenue amount is
an estimate. You'll need
to balance the difference
between final billed and
revenue recognized
amounts.
Use this line type on
goods and services
contract lines.

Related Information
Concepts
Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules on page 868
Tasks
Create Customer Contracts on page 839
Reference
2021R1 What's New Post: Prepaid Billing for Installments and Transactions
Workday 31 What’s New Post: Transfer Pricing
Workday 32 What’s New Post: Transfer Pricing for Expenses

FAQ: Customer Contracts

How do I create multiple revenue recognition Select Customer Contracts > Create
schedules for parent linked contracts? Consolidate Revenue Recognition Schedule
from the related actions menu of a parent linked
customer contract.

Can I use the same Administrative Fee for Yes. Access the Maintain Contract Line Fees task
multiple line types or contracts? to create your fee. You can add it to your Project
Time and Expense contract lines. You can add the
fee to other contracts as well.

How do I search for and update external View the Manage Alternate Customer Contract
alternate contracts only? report.

How do I create alternate contracts without Access the Create Standalone Alternate Contract
loading the originating contracts in Workday? task to create alternate contracts and then generate
revenue installments and alternate revenue.

How do I create a revenue recognition schedule Create ledger periods for the latest period that your
with installments for future-dated contracts? installments require before loading your revenue
recognition schedule.

How do I load revenue recognition schedules Use the Enterprise Interface Builder (EIB) with
and select specific installments to be available the Submit Revenue Recognition Schedule web
for accounting? service. Specify an Available installment status
for all installments that you want available for
accounting, and Closed for all others.

Under Accounting Standards Codification (ASC) Workday enables you to create Deferred Cost
Topic 606 and International Financial Reporting Schedules and related installments. You can also
Standard (IFRS) 15, how does Workday handle use the deferred cost account posting rules in the
deferred cost? View Account Posting Rule Set report. These
rules help you manage your deferred assets and
amortized expenses and post the related journal
entries.

If I amend my customer contracts, do I need You can automatically regenerate your installments,
to update my billing and revenue schedules and submit your schedule as part of your billing
manually? and revenue schedule Amendment Processing
sections.
Related Information
Reference
Workday 31 What's New Post: Support Accounting for Deferred Costs
Workday 31 What's New Post: Automatically Update Billing and Revenue Schedules

Troubleshooting: Unable to Create Custom Validations for Taggable Type Report

Fields
Revenue category hierarchy is a taggable type report field that can either be on the:
• Customer contract header.
• Customer contract line.
Cause: Unable to create custom validations for the revenue category hierarchy taggable type report field
on the customer contract header.
Solution: To create custom validations, first create a calculated field to specify that the revenue category
hierarchy taggable type report field is on the customer contract header.

Steps
1. Access the Create Calculated Field task.
Security: Custom Field Management domain in the System functional area.
2. Enter Revenue Category Hierarchy on the Header in the Field Name field.
3. Select Customer Contract from the Business Object prompt.
4. Select Lookup Related Value from the Function prompt.
5. Click OK.
6. Select Customer Contract from the Lookup Field prompt.
7. Select Revenue Category Hierarchies from the Return Value prompt.
8. Click OK.
9. Click Done.

10.Add the calculated field as a condition rule on the Maintain Custom Validations report.
Security: Set Up: Custom Validations domain in the Common Financial Management and System
functional areas.
Cause: Unable to create custom validations for the revenue category hierarchy taggable type report field
on the customer contract line.
Solution: To create custom validations, first create a calculated field to specify that the revenue category
hierarchy taggable type report field is on the customer contract line.

Steps
1. Access the Create Calculated Field task.
Security: Custom Field Management domain in the System functional area.
2. Enter Revenue Category Hierarchy on the Line in the Field Name field.
3. Select Customer Contract Line from the Business Object prompt.
4. Select Lookup Related Value from the Function prompt.
5. Click OK.
6. Select Contract Line from the Lookup Field prompt.
7. Select Revenue Category Hierarchies from the Return Value prompt.
8. Click OK.
9. Click Done.
10.Add the calculated field as a condition rule on the Maintain Custom Validations report.
Security: Set Up: Custom Validations domain in the Common Financial Management and System
functional areas.
Related Information
Tasks
Create Customer Contracts on page 839
Create Calculated Fields
Lookup Related Value
Configure Custom Validation Messages on page 52

Multiple-Element Revenue Allocation

Setup Considerations: Multiple-Element Revenue Allocation

You can use this topic to help make decisions when planning your configuration and use of multiple-
element revenue allocation. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Multiple-element revenue allocation enables you to allocate revenue on customer contracts with multiple
performance obligations.

Business Benefits
Multiple-element revenue allocation reduces manual effort and helps to ensure that you report recognized
revenue in compliance with:
• ASC 606 accounting standards.
• IFRS 15 accounting standards.

Use Cases
Use multiple-element revenue allocation to meet reporting requirements when the revenue line amount on
the customer contract differs from the contract line amount.

Questions to Consider

Questions Considerations
When you do your pricing studies, how do you When your company sells items based on:
determine the fair value price for your sales items?
• A percentage of the list price or a discount from
the list price, you can configure your fair value
price list using a percentage.
• The average selling price over a period of time,
you can configure your fair value price list using
an amount.

How do you want to allocate revenue for a single To calculate revenue allocation:
customer contract?
• Automatically, configure fair value price lists
for each sales item or sales item group on a
customer contract line. Workday applies the fair
value to each line and allocates revenue when
you enable multiple-element revenue allocation
on the customer contract.
• Manually, specify fair value and revenue
allocation amounts for each sales item on a
customer contract line.

How do you allocate revenue among multiple Enable at least 1 customer contract type for
customer contracts? linked contracts. You can then associate multiple
customer contracts with a single parent contract
and allocate revenue among them.
What volume of your customer contracts need To allocate revenue for:
multiple-element revenue allocation?
• A single customer contract, you can create
multiple-element revenue allocation from the
related actions menu of an approved customer
contract. This method enables you to update
range percentages, fair value pricing, revenue
override amounts, and exclude lines from the
calculation.
• Multiple customer contracts, you can run
multiple-element revenue allocation in mass
using a report.

Recommendations

Features Considerations
Lower and Upper Range Percentages When you don't create a fair value price list,
Workday recommends that you calculate revenue
based on a percentage of the sales price.
Allocation Basis Workday recommends that you use an allocation
basis to calculate the relative selling price allocation
for each sales item on a customer contract line.
Do Not Auto-Allocate Revenue When you have a large number of customer
contract lines that you want to allocate revenue for,
Workday recommends that you:
• Enable this option in your revenue allocation
configurations.
• Run allocations in mass using a report.

Revenue Allocated When you create multiple-element revenue

allocation outside of Workday, we recommend
that you enable this check box to indicate that
you've already allocated revenue for the customer
contract.

Requirements
You must:
• Create sales items that use an accrued or deferred revenue treatment for use in a fair value price list.
• Manually enter revenue override amounts for sales item bundles on customer contract lines.

Limitations

Features Considerations
Sales Items and Sales Item Groups You can only:
• Assign sales items to 1 sales item group when
the sales item group has a group type of fair
value pricing.
• Include sales item groups that have a group
type of fair value pricing in a fair value price list.

Variable Customer Contract Lines Workday doesn't support these variable customer
contract lines with multiple-element revenue
allocation:
• Fixed Fee Project
• Prepaid
• Project Time and Expense
• Usage-Based
• Variable Amount Non-Project
• Value-Based Project

Projects Workday doesn't support Time and Material

projects with multiple-element revenue allocation.

Tenant Setup
To define tenant-wide and company-wide configurations, access the Set Up Revenue Allocation
Configuration task. You can use the task to configure how Workday allocates revenue on customer
contracts with multiple-element arrangements.

Security

Domains Considerations
Process: Customer Contract - View in the Customer Report on multiple-element revenue allocation.
Contracts and Project Billing functional areas.
Process: Revenue - Allocations in the Customer Create multiple-element revenue allocation for
Contracts and Project Billing functional areas. approved customer contracts.
Set Up: Customer Contracts - Price Lists in the Maintain and view fair value price lists.
Customer Contracts and Project Billing functional
areas.
Set Up: Revenue - Allocations in the Customer • Create, edit, maintain, and view fair value price
Contracts and Project Billing functional areas. lists.
• Set up revenue allocation configurations.

Set Up: Sale Item in the Customer Accounts and Create and edit sales items.
Learning Core functional areas.
View: Sale Item in the Customer Accounts and Report on sales items.
Learning Core functional areas.

Business Processes

Business Processes Considerations

Customer Contract Event Create and approve customer contracts with
multiple-element revenue allocation.
Revenue Recognition Schedule Event Review and approve revenue override amounts
from multiple-element revenue allocations.

Reporting

Reports or Dashboards Considerations

Carve In/Out report View multiple-element revenue allocations on your
customer contracts.
Fair Value Allocation report View multiple-element revenue allocations
completed for a company.
Fair Value Analysis report View customer contract lines that fall within the
allocation threshold for your tenant.
Maintain Fair Value Price List report View and edit fair value price lists.
Run Multiple-Element Revenue Allocation report Run allocations for available customer contracts.
Revenue dashboard Use this dashboard to access tasks and reports
related to multiple-element revenue allocation.

You can use these report data sources to create custom reports:
• Customer Contracts
• Customer Contracts Lines
• Revenue Recognition Schedules

Integrations

Web Services Considerations

Get Customer Contracts Retrieves customer contracts with multiple-element
revenue allocation enabled.
Get Revenue Allocation Configurations Retrieves the current revenue allocation
configurations in your tenant.
Get Sales Items Retrieves all the sales items in your tenant.
Get Sales Item Fair Value Price Lists Retrieves the fair value price list associated with a
sales item.
Put Revenue Allocation Configuration • Creates new revenue allocation configurations.
• Updates existing revenue allocation
configurations.

Put Sales Item • Creates new sales items.

• Updates existing sales items.

Put Sales Item Fair Value Price List • Creates new fair value price lists.
• Updates existing fair value price lists.

Submit Customer Contract Submits customer contracts with multiple-element

revenue allocation enabled.

Connections and Touchpoints

Features Considerations
Customer Contracts Specify revenue override amounts on customer
contract lines.
Workday applies the revenue override amounts to
the amounts on your revenue recognition schedule.

Financial Accounting Create revenue recognition operational journals for

multiple-element arrangements.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Setup Considerations: Period End Revenue Accounting on page 929
Tasks
Create Sales Items on page 823
Create Fair Value Price Lists on page 865
Set Up Revenue Allocation Configurations on page 866
Create Customer Contracts on page 839

Steps: Link Customer Contracts for Revenue Allocation on page 836

Create Revenue Recognition Schedules for Customer Contracts on page 905

Steps: Create Multiple-Element Revenue Allocation

Prerequisites
• Create sales items.
• Review setup considerations for multiple-element revenue allocation.

Context
You can allocate revenue on customer contracts that have multiple-element arrangements. You can either:
• Manually allocate revenue for each sales item on the customer contract line.
• Enable Workday to automatically create multiple-element revenue allocation in compliance with
recognition standards.

Steps
1. Create Fair Value Price Lists on page 865.
2. Set Up Revenue Allocation Configurations on page 866.
3. Create Customer Contracts on page 839.
To:
• Manually allocate revenue for a single customer contract, enter allocation amounts in the Revenue
Override Amount field. When you manually allocate revenue, you can proceed to the Next Steps
section.
• Set up automatic revenue allocation for a single customer contract, select the Multiple-Element
Revenue Allocation check box and select an option from the Fair Value Price List prompt.
Workday populates the fair values on the customer contract line.
• Set up automatic revenue allocation for multiple customer contracts, select a Contract Type
enabled for linked contracts and select the child customer contracts from the Linked Customer
Contracts prompt.
4. (Optional) To run multiple-element revenue allocation for:
• A single customer contract, select Customer Contract > Create Multiple-Element Revenue
Allocation from the related actions menu of the approved customer contract.
• Linked customer contracts, select Customer Contract > Create Multiple-Element Revenue
Allocation from the related actions menu of the parent linked contract.
Security: Process: Revenue - Allocations domain in the Customer Contracts and Project Billing
functional areas.
5. (Optional) To run multiple-element revenue allocation for multiple customer contracts, access the Run
Multiple-Element Revenue Allocation report.
Click Review Contracts and make any necessary changes.
Security: Process: Customer Contract - View domain in the Customer Contracts and Project Billing
functional areas.

Result
Workday allocates the relative selling price for revenue recognition to the contract lines using your fair
value and revenue allocation configurations.

Next Steps
You can access the:

• Carve In/Out report to view a summary of revenue allocations on your customer contracts.
• Fair Value Analysis report to view whether sales items are in compliance with fair value guidelines.
Related Information
Concepts
Setup Considerations: Multiple-Element Revenue Allocation on page 859
Tasks
Create Sales Items on page 823
Steps: Link Customer Contracts for Revenue Allocation on page 836
Reference
Workday 32 What's New Post: Run Allocations

Create Fair Value Price Lists

Prerequisites
• Create sales items.
• Security: These domains in the Customer Contracts and Project Billing functional areas:
• Set Up: Customer Contracts - Price Lists
• Process: Revenue - Allocations

Context
You can create fair value price lists to associate with your customer contracts. When you add sales items
included in the fair value price list to the customer contract, Workday populates the fair values on the line.
You can configure fair value price lists by:
• Currency
• Contract Effective Date
• Sales Item
• Sales Item Group
• Worktags

Steps
1. Access the Maintain Fair Value Price List report.
2. Click Add.
3. As you complete the task, consider:
Option Description
Worktag Type Select worktag types that you want to associate
with each item on the fair value price list.
Percent or Amount The fair value price list can consist of percentage
and amount values.
• Percent - Enter a percentage to apply to the
list or net item price on the contract line.
• Amount - Enter an amount.

Sales Item and Sales Item Group Workday uses the sales item and then the sales
item group to determine the fair value amount to
use.

Option Description
Related Sales Items You can link 1 sales item to another and calculate
the fair value pricing based on the relationship.
Worktags Select a worktag for each worktag type that you
selected at the header.

Result
You can associate the fair value price list with customer contracts when you select the Multiple-Element
Revenue Allocation check box on the contract.

Next Steps
Add a fair value price list to companies using the Set Up Revenue Allocation Configuration task.
Related Information
Concepts
Setup Considerations: Multiple-Element Revenue Allocation on page 859
Tasks
Create Sales Items on page 823
Create Customer Contracts on page 839

Set Up Revenue Allocation Configurations

Prerequisites
• Create sales items.
• Create fair value price lists.
• Security: Set Up: Revenue - Allocations domain in the Customer Contracts and Project Billing functional
areas.

Context
You can set up tenant-wide and company-wide configurations to specify how Workday allocates
revenue on customer contracts with multiple-element arrangements. When you set up company-wide
configurations, you can also specify revenue allocation for sales items and sales item groups. The
company-wide configurations override the configurations that you set up for the tenant.

Steps
1. Access the Set Up Revenue Allocation Configuration task.
2. As you complete the task, consider:
Option Description
Lower Range Percentage Enter a percentage to use as a threshold for
allocation in relation to the allocation basis.
When the contract line amount is above or below
the fair value extended amount based on the
range percentage you specify, then use the lower
range as your allocation basis.

Upper Range Percentage Enter a percentage to use as a threshold for

allocation in relation to the allocation basis.

Option Description
When the contract line amount is above or below
the fair value extended amount based on the
range percentage you specify, then use the upper
range as your allocation basis.

Allocation Basis Select 1 of these options to determine how

Workday calculates the relative selling price
allocation for each sales item:
• Fair Value - Workday calculates the relative
selling price allocation using the actual fair
value as the basis for the allocation.
• Lower Range - Workday calculates the
relative selling price allocation using the
lower range as the basis for the allocation.
Workday determines the lower range using the
percentage that you specify as the allocation
threshold.
• Midrange - Workday calculates the relative
selling price allocation using the median value
of the Contract Line Amount, Lower Range,
and Upper Range.
• Upper Range - Workday calculates the
relative selling price allocation using the
upper range as the basis for the allocation.
Workday determines the upper range using the
percentage that you specify as the allocation
threshold.

Fair Value Price List Select a fair value price list that you configure on
the Maintain Fair Value Price List task.
Allocate Revenue at Summary and Prorate at Select to prorate revenue allocation using the
Line revenue category on the customer contract lines.
Do Not Auto-Allocate Revenue Select to prevent Workday from automatically
calculating the revenue override amount for all
customer contract lines.
The revenue override amount won't update
until you click Run Allocation when you create
multiple-element revenue allocation from the
related actions menu of the approved customer
contract.

Result
When you add sales items included in the fair value price list on the customer contract line, Workday uses
these configurations to allocate revenue.

Next Steps
Create customer contracts with multiple-element arrangements.

Related Information
Concepts
Setup Considerations: Multiple-Element Revenue Allocation on page 859
Tasks
Create Sales Items on page 823

Customer Contracts Billing

Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules

You can use this topic to help make decisions when planning your configuration and use of prepaid billing
using consolidated billing schedules. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Prepaid billing using consolidated billing schedules enables you to apply prepayments toward installment
and transaction line amounts on a customer contract.

Business Benefits
Prepaid billing using consolidated billing schedules provides greater flexibility in meeting billing
requirements by enabling you to:
• Define the consumption of prepaid balances.
• Distribute prepayments to multiple customer contract lines at once.

Use Cases
Use consolidated billing schedules for prepaid billing when your company needs to:
• Map multiple customer contract lines to 1 prepayment.
• Associate installment and transaction customer contract lines to the same prepayment.
• Specify various revenue treatments on prepaid mapping contract lines.

Questions to Consider

Questions Considerations
Which line types on customer contracts can you You can use installment and transaction lines on a
use to consume prepaid installments? customer contract to consume prepaid installments.
Which revenue treatments can you use for your You can use any revenue treatment for your
prepaid mapping contract lines? prepaid mapping contract lines without creating a
revenue recognition schedule.
When your prepaid mapping contract lines use:
• An Accrued revenue treatment, Workday posts
accounting to the Unbilled Receivables ledger
account.

Questions Considerations
• A Deferred revenue treatment, Workday posts
accounting to the Deferred Revenue ledger
account.
• An Invoice revenue treatment, Workday posts
accounting to the Revenue ledger account.

Recommendations
To direct payments to a specific account, you can configure Prepaid Billing as a dimension and value for
the Deferred Revenue ledger account posting rule.

Requirements
You must:
• Create a customer contract with at least 1 prepaid line type.
• Create a billing schedule with a schedule type enabled for consolidated billing.
• Map prepaid customer contract lines to installment and transaction lines on the same billing schedule.
Then, associate the prepaid mapping to prepaid installments.
• Create a consolidated customer invoice to invoice the prepaid installment.
• Create a consolidated customer invoice to consume installment and transaction activities.
When you update a consolidated billing schedule using the Submit Billing Schedule web service, include
existing prepaid installments in the request to ensure that Workday doesn't remove them.

Limitations
You can't:
• Cancel consolidated billing schedules with prepayment balances.
• Consume against a prepaid installment until you invoice the installment when you configure Workday to
require a paid prepayment status for prepaid billing.

Tenant Setup
Enable tenant-wide configurations for prepaid billing in the Customer Contracts Options section on the
Edit Tenant Setup - Financials task.

Security

Domains Considerations
Manage: Billable Projects in the Projects functional • Review and exclude transactions from
area. prepayment consumption.
Process: Project Billing - Core in the Project Billing • View and drill down on completed prepaid
functional area. installments.

Process: Billing - Invoicing in the Customer • Create customer invoices for prepaid billing
Contracts and Project Billing functional areas. installments that use a billing schedule enabled
Process: Project Billing - Invoicing in the Project for consolidated billing.
Billing functional area. • Enable Workday to bill prepaid installments
on the same invoice as other installments
and transactions when you create customer
invoices.

Domains Considerations
Process: Billing Schedule - Core in the Customer Create consolidated billing schedules with prepaid
Contracts and Project Billing functional areas. mapping.
Process: Revenue Schedule - Core in the Create revenue recognition schedules for prepaid
Customer Contracts and Project Billing functional mapping contract lines with an Accrued or Deferred
areas. revenue treatment.
Set Up: Accounting Rules in the Common Financial Configure Prepaid Billing as a dimension and value
Management functional area. for the Deferred Revenue ledger account posting
rule.
Set Up: Payroll - Company Specific (Accounting) in
the Core Payroll functional area.

Set Up: Customer Contracts - Templates and Create a billing schedule type enabled for
Types in the Customer Contracts and Project Billing consolidated billing.
functional areas.
Set Up: Tenant Setup - Financials in the System Enable Workday to bill:
functional area.
• Transactions against prepayments only after
you apply a customer payment to the related
installment invoice.
• Prepaid installments on the same invoice as
other installments and transactions when you
create customer invoices.

Business Processes

Business Processes Considerations

Billing Schedule Event Create and approve consolidated billing schedules
with prepaid mapping.
Customer Contract Event Create and approve customer contracts with
prepaid line types.
Revenue Recognition Installment Event Create and approve revenue recognition
accounting when you create a revenue recognition
schedule.
Revenue Recognition Schedule Event Create and approve revenue recognition schedules
for prepaid mapping contract lines with an Accrued
or Deferred revenue treatment.

Reporting
No impact.

Integrations
You can use these web services to cancel, retrieve, update, and submit prepaid billing for installments and
transactions:
• Cancel Billing Schedule
• Cancel Customer Invoice
• Get Billing Schedules
• Put Customer Contract Template
• Put Tenant Setup - Financials

• Submit Billing Schedule

• Submit Customer Contract
• Submit Customer Contract Amendment
• Submit Customer Invoice

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Create Consolidated Billing Schedules for Customer Contracts on page 877
Reference
2021R1 What's New Post: Prepaid Billing for Installments and Transactions
2022R1 What's New Post: Customer Invoice Proposals

Steps: Set Up Prepaid Billing Using Consolidated Billing Schedules

Prerequisites
Review setup considerations for prepaid billing using consolidated billing schedules.

Context
You can set up prepaid billing using consolidated billing schedules to apply prepayments towards
installment and transaction line amounts on a customer contract.

Steps
1. Access the Maintain Schedule Types task.
Select the Consolidated Billing Schedule check box for at least 1 schedule type.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
2. (Optional) Access the Edit Tenant Setup - Financials task.
As you complete the Customer Contracts Options section, select the:
• Require Paid Prepayment Status for Prepaid Billing check box to bill transactions against
prepayments only after you apply a customer payment to the related installment invoice.
• Invoice Prepaid Installments with Other Transaction Types check box to bill prepaid installments
on the same invoice as other installments and transactions when you create customer invoices.
See Reference: Edit Tenant Setup - Financials.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
3. (Optional) Set Up Account Posting Rules on page 71.
For the Deferred Revenue ledger account posting rule:
a. Click Edit Posting Rule.
b. Select Prepaid Billing from the Dimension and Values prompts.

4. Create Customer Contracts on page 839.

In the Line Details tab of the Goods and Services grid, select:
a. Prepaid from the Line Type prompt. Workday automatically selects Deferred from the Revenue
Treatment prompt.
b. A project from the Billable Project prompt.
The billable project displays on customer invoice lines when you:
• Select a billable project on prepaid customer contract lines.
• Create customer invoices or customer invoice proposals.
5. Create Consolidated Billing Schedules for Customer Contracts on page 877.
a. Select a schedule type that you enabled for consolidated billing from the Schedule Type prompt.
b. On the Prepaid tab:
1. Select the Invoice Prepaid Installments with Other Transaction Types check box to bill
prepaid installments on the same invoice as other installments and transactions when you create
customer invoices.
2. Map prepaid customer contract lines to installment and transaction type lines on the same billing
schedule.
3. Associate the prepaid mapping to prepaid installments.
6. Create Customer Invoices from Contracts on page 895.
Create a prepaid installment invoice. You can only consume against prepaid installments after you
invoice them.
7. Create Customer Invoices from Contracts on page 895.
Access the task again to consume installment and transaction activities.
When you create a customer invoice from contracts, Workday:
• Applies prepayments to billing installments and transactions.
• Bills prepaid installments on the same invoice as other installments and transactions when you
select the Invoice Prepaid Installments with Other Transaction Types check box.
• Creates offset lines to consume prepayment installments.
• Displays the billable project on the customer invoice lines.
8. Create Revenue Recognition Schedules for Customer Contracts on page 905.
Create a revenue recognition schedule for prepaid mapping contract lines that have a revenue
treatment of Deferred or Accrued.
9. Manage All Project Billing Transactions on page 1211 or Manage Project Billing Transactions by
Transaction Source on page 1216.
On the Prepaid tab:
• (Optional) Select the Exclude from Prepayment check box to exclude transactions from
prepayment consumption.
• View and drill down on completed prepaid installments.
10.(Optional) Access the Review Billable Usage-Based Transactions task.
On the Prepaid tab:
• (Optional) Select the Exclude from Prepayment check box to exclude transactions from
prepayment consumption.
• View and drill down on completed prepaid installments.
Security: Process: Usage domain in the Customer Contracts and Project Billing functional areas.

11.Access the Create Revenue Recognition Accounting task.

When you use a revenue recognition schedule, create revenue recognition accounting.
Configure the Revenue Recognition Installment Event business process and security policy in the
Customer Contracts and Project Billing functional areas.
Related Information
Concepts
Concept: Revenue Recognition Accounting on page 940
Reference
2021R1 What's New Post: Prepaid Billing for Installments and Transactions
2022R1 What's New Post: Customer Invoice Proposals

Steps: Set Up Prepaid Billing Using Installment Billing Schedules

Context
You can set up prepaid billing using installment billing schedules to track advance payments against future
services. Create and track prepayment invoices and Workday automatically offsets billable transaction
invoices against the prepayment amount.

Steps
1. Access the Maintain Schedule Types task.
Select these check boxes for at least 1 schedule type:
• Prepaid
• Billing
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
2. Create Customer Contracts on page 839.
a. Create Project Time and Expense or Usage-Based customer contract lines.
b. Select Deferred from the Revenue Treatment prompt for the customer contract lines.
3. Create Installment or Transaction Billing Schedules for Customer Contracts on page 882.
• Select:
• A schedule type enabled for prepaid billing.
• Installment from the Billing Type prompt.
• Custom from the Billing Method prompt.
• (Optional) the Include Tax on Prepaid check box to apply tax on the initial prepaid installment
and tax your transactions that incur overconsumption.
4. Create Customer Invoices for Billing Installments on page 893.
Workday uses the prepaid amount to offset all future invoices generated from the billable transactions.
5. Access the Create Customer Invoices for Billable Transactions task.
Workday offsets the invoice amount against the prepaid invoices. The offset displays on the customer
invoice as a negative invoice line. You can manually adjust this amount, if needed.
Security:
• Process: Billing - Invoicing domain in the Customer Contracts and Project Billing functional areas.
• Process: Project Billing - Invoicing domain in the Project Billing functional area.

6. Access the View Billing Schedule report.

To review prepayment activity, click the Prepayment Reconciliation tab. This tab displays all invoices
offset against prepaid amounts and remaining prepaid balances.
Security: Process: Billing Schedule - View domain in the Customer Contracts and Project Billing
functional areas.
Related Information
Concepts
Concept: Customer Contracts on page 848
Concept: Billing on page 886
Concept: Project Billing on page 1248

Steps: Create Customer Contracts for Minimum Commitments

Context
Workday enables you to evaluate customer usage and automatically apply a contractual minimum
commitment on a recurring basis.

Steps
1. Create Customer Contracts on page 839.
Create a customer contract that includes Usage-Based and Recurring - Fixed Term contract line types.
Select an option from the Usage Billing Rate prompt. The usage billing rate that you select must
include the Recurring - Fixed Term contract line in the Minimum Commitment section.
2. Create Installment or Transaction Billing Schedules for Customer Contracts on page 882.
Generate billing installments for your customer contract lines.
3. Access the Record Usage-Based Transactions task.
To calculate minimum commitments, select an option from the Unit of Measure prompt that matches
the Unit of Measure on the Usage Billing Rate.
Security:
• Process: Project Billing - Usage domain in the Project Billing functional area.
• Process: Usage domain in the Customer Contracts and Project Billing functional areas.
4. Create Customer Invoices from Contracts on page 895.
Create minimum commitment invoices.

Result
Workday creates invoices based on the minimum commitment requirements that you define.
Related Information
Reference
Reference: Contract Line Types for Customer Contracts on page 854

Steps: Create Retention for Customer Invoices

Prerequisites
Create and approve customer contracts.

Context
You can contractually withhold a portion of a customer invoice using the billing schedule. When your
customer contract meets the requirements, you can release the retention balances by contract line for
invoicing.

Steps
1. (Optional) Set Up Account Posting Rules on page 71.
2. Create Installment or Transaction Billing Schedules for Customer Contracts on page 882.
Include your customer contract lines for installments or transactions in the billing schedule.
Click Edit Retention Terms. These fields are for reporting purposes only:
• Estimated Retention Release Date
• 3rd Party Retention
3. When the customer contract meets the requirements, select Retention > Release Retention from the
related actions menu of the billing schedule to release all or part of the retention balance.

Next Steps
You can run the Customer Retention Balance report to view the retention balance by company.
Related Information
Concepts
Concept: Billing on page 886
Tasks
Create Customer Contracts on page 839

Create Billing Schedule Templates for Customer Contracts

Prerequisites
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.

Context
You can create templates for installment or transaction billing schedules to streamline the billing schedule
creation process for customer contracts. You can associate a customer contract with a billing schedule
template, enabling you to create billing schedules directly from the customer contract. Workday populates
the billing schedule with the information that you specify on the billing schedule template.

Steps
1. Access the Create Billing Schedule Template for Customer Contract task.
2. As you complete the task, consider:
Option Description
Billing Type Select:
• Installment to associate this template with
installment contract line types.
• Transaction to associate this template with
usage-based or time and expense contract line
types.

Option Description
Milestone Specify milestones for the entire billing schedule.
Milestones must be complete for the billing
process to occur on any installments.
Billing Method Select:
• Custom to create custom installment amounts.
• Defined Installment to define the first and
last installment amounts. Workday divides
the remaining amount among the other
installments.
• Spread Even to spread the amounts evenly
across installments.

Group All Related Contract Lines Select to group all contract lines with the same
billing type on the same billing schedule.
Separate Billing Schedule Select to generate a different billing schedule for
each contract line, though contract lines with the
same date remain on the same billing schedule.
Include Attachments on Invoice Displays when you select Transaction as the
Billing Type.
Include expense report or supplier invoice
attachments on customer invoices created from
the billing schedule.

Result
You can select the template on the Billing tab when you create or edit a customer contract.

Next Steps
Create a customer contract.
Related Information
Concepts
Concept: Billing Schedule Templates for Customer Contracts on page 885
Tasks
Create Customer Contracts on page 839
Create Consolidated Billing Schedule Templates for Customer Contracts on page 876

Create Consolidated Billing Schedule Templates for Customer Contracts

Prerequisites
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.

Context
You can create billing templates to streamline the consolidated billing schedule creation process for
customer contracts. Workday populates the billing schedule with the information you specify on the billing
template.

You can apply different billing templates on contract headers and contract lines, enabling you to create
consolidated billing schedules that group by combinations of:
• Billing Template
• Billing To Date
• Billing From Date
Workday groups transaction-based contract lines without Billing To Dates and Billing From Dates with
installment-based contract lines with the earliest Billing From Date.

Steps
1. Access the Create Billing Template for Customer Contract task.
2. As you complete the task, consider:
Option Description
Schedule Type Select the consolidated billing schedule type. You
can't create billing templates for installment or
transaction billing schedules.
Billing Method Select:
• Custom to create custom installment amounts.
• Spread Even to spread the amounts evenly
across installments.

Result
You can select the template when you create or edit:
• Customer contracts, on the Billing tab.
• Customer contract lines, on the Revenue and Billing tab.
• Customer contract templates.
• Sales items, in the Sales Item Attribute section.

Next Steps
Create a customer contract, customer contract template, or sales item.
Related Information
Tasks
Create Customer Contracts on page 839
Create Sales Items on page 823
Reference
2023R1 What's New Post: Consolidated Billing Schedule Templates

Create Consolidated Billing Schedules for Customer Contracts

Prerequisites
• Enable consolidated billing for a billing schedule type.
• Create and approve a customer contract.
• Configure the Billing Schedule Event business process and security policy in the Customer Contracts
and Project Billing functional areas.
• Security: Process: Billing Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.

Context
You can create consolidated billing schedules to specify billing and invoicing information for installment,
transaction, prepaid, and usage-based customer contract lines.
Workday uses the billing schedule to determine how to bill customers for costs on your customer contract
lines. You can group:
• Customer contract lines that span multiple contracts in the same billing schedule.
• Projects for the same company and customer in the same billing schedule.
When you generate installments, Workday associates 1 contract line with each installment line.

Steps
1. Access the Create Billing Schedule for Customer Contract task.
2. As you complete the task, consider:
Option Description
Schedule Type Select a schedule type that you enabled for
consolidated billing on the Maintain Schedule
Types task.
Customer Contracts When you create the billing schedule, Workday
adds the customer contract lines from contracts
that you select.
Billable Project Select the billable project associated with the
customer contract lines that you want to create a
billing schedule for.
3. (Optional) On the Schedule Options tab, consider:
Option Description
Statutory Invoice Type Select a statutory invoice type that you configured
for customer invoices on the Maintain Invoice
Types by Country report. Workday filters the
options that display in this prompt by the company
that you select on the billing schedule.
Workday uses the statutory invoice type to:
• Determine the bill from location.
• Populate the statutory invoice type from
the billing schedule onto the customer
invoice. When you create a customer invoice,
you can change the statutory invoice type to
be different from the statutory invoice type on
the billing schedule.
Workday doesn't support statutory invoice types
on award contracts, intercompany contracts, or
student contracts.

Recurring Invoice Day Enter a day of the month to override the invoice
dates on customer invoices that you create
using this billing schedule. Consolidated billing
schedules only apply invoice dates at the time of
invoicing.

4. (Optional) As you complete the Installment tab, consider:

Option Description
Billing Frequency When you select these options, installment
periods start at the beginning of the selected time
frame:
• Calendar Week
• Calendar Month
• Calendar Quarter
• Calendar Year
When you select these options, installment
periods start at the From Date:
• Weekly
• Monthly
• Quarterly
• Annual

Recurrence Enter a number to generate installments in

multiples of the billing frequency.
Example: When the billing frequency is weekly,
enter 3 to bill the customer every 3 weeks.

Billing Period Determines whether the installment date is inside

or outside of the installment period. When you
select:
• Advance, installment dates start from the last
day of the previous installment period.
• Arrears, installment dates start from the first
day of the next installment period.
• Current, installment dates start from the first
day of the current installment period.

Installment Day When a month doesn't have the date you

select, Workday uses the last day of the month.
Example: When you select 30th, Workday uses
the 28th for an installment in February.
When the billing period is:
• Advance, Workday uses the occurrence of
this day or of the date closest to the end of the
previous installment period.
• Arrears, Workday uses the occurrence closest
to the start of the next installment period.
• Current, Workday uses the occurrence closest
to the start of the current installment period.

Prorate First and Last Installment Displays when you select the Spread Even billing
method and 1 of these billing frequencies:
• Calendar Week
• Calendar Month
• Calendar Quarter

Option Description
Select to prorate the first and last installments
when the installments don't cover a full installment
period.
Example: When the billing frequency is Calendar
Week and the From Date is a Thursday, the first
billing installment covers 4 days instead of a full
calendar week.
When both the first and last installments are
partial periods, use these calculations:
• First installment = (Number of days to bill ÷
Total number of days in the period) × (Total
amount to bill ÷ Number of installments)
• Last installment = (Number of days to bill ÷
Total number of days in the period) × ((Total
amount to bill - First installment amount) ÷
Number of installments))
• Other installments = (Total amount to bill - First
installment amount - Last installment amount)
÷ (Number of installments - 2)
When either the first or last installment is a partial
period and the other installment is a full period,
use these calculations:
• Partial installment = (Number of days to bill ÷
Total number of days in the period) × (Total
amount to bill ÷ Number of installments)
• Other installments = (Total amount to bill
- Partial installment amount) ÷ (Number of
installments - 1)

Automatically Regenerate Installments Select to generate new installments when you

modify the contract line amount on the customer
contract. When you enable proration for the
first and last installments, Workday updates the
proration calculations accordingly.
Automatically Submit Schedule via Contract Displays when you select the Automatically
Amendment Regenerate Installments check box.
Select to submit new installments for approval.
Workday doesn't update installments when
you have contract amendments on a business
process.

Status When you create credit adjustments or credit and

rebill customer invoices, Workday changes the
Completed installment status to Credited.
When you:
• Cancel the billing schedule, Workday only
deletes installments in Available status.
• Change the billing schedule, you can't edit
installments in Credited status.

Option Description
Invoice Workday appends IDs to credit adjustment and
credit and rebill customer invoices using the
custom ID generators that you configure on these
tasks:
• Edit Company ID Definitions
• Edit Tenant Setup - Financials
Example: You can configure these custom IDs to
display on credit adjustment and credit and rebill
customer invoices:
• 9874CR - Credit
• 9875RB - Rebill

5. (Optional) On the Transaction tab, select a Project Invoice Summary Definition to group time
transactions instead of displaying individual lines.
You can create project invoice summary definitions on the Maintain Project Invoice Summary
Definitions task.
6. (Optional) As you complete the Prepaid tab, consider:
Option Description
Invoice Prepaid Installments with Other Displays when you create a customer contract
Transaction Types with at least 1 Prepaid line type and 1 other line
type.
Workday automatically enables this check box
and bills prepaid installments on the same invoice
as other installments and transactions when you
create customer invoices.
When the check box selection that you configure
on the billing schedule is different from the
check box selection on the Edit Tenant Setup –
Financials task, Workday uses the selection on
the billing schedule to bill prepaid installments.

Prepaid Mapping Map prepaid customer contract lines to

installment or transaction type lines.
Installments Set up prepaid installments for each prepaid
mapping. To remove a prepaid line with a prepaid
balance from the billing schedule, create a
negative installment to zero out the prepaid
balance.
You can place prepaid installments On Hold,
but you can't bill or consume against them. You
also can't cancel billing schedules that have
prepayment balances.
When you create a credit adjustment or credit and
rebill a prepaid installment, Workday displays the
credit adjustment and rebilled installment.

7. (Optional) Select Manage Attachments from the More menu to add attachments.

Result
Workday routes the billing schedule to the Billing Schedule Event business process for review and
approval.

Next Steps
Create customer invoices from contracts.
Related Information
Concepts
Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules on page 868
Tasks
Steps: Manage Billable Projects on Usage-Based Transactions on page 836
Steps: Credit and Rebill Customer Invoices on page 686
Create Customer Invoices from Contracts on page 895
Create ID Definitions and Sequence Generators
Reference
Reference: Edit Tenant Setup - Financials
2021R1 What's New Post: Prepaid Billing for Installments and Transactions
2021R1 What's New Post: Consolidated Billing Schedules
2022R1 What's New Post: Customer Invoice Proposals
2022R2 What's New Post: Billable Projects on Usage-Based Transactions

Create Installment or Transaction Billing Schedules for Customer Contracts

Prerequisites
• Create and approve a customer contract.
• Configure the Billing Schedule Event business process and security policy in the Customer Contracts
and Project Billing functional areas.
• Security: Process: Billing Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.

Context
You can create an installment or transaction billing schedule to specify billing and invoice information for
customer contracts. Workday uses the billing schedule to determine how to bill customers for costs on your
customer contract lines. You can group:
• Customer contract lines that span multiple contracts in the same billing schedule.
• Projects for the same company and customer in the same billing schedule.
When you generate installments, Workday associates 1 contract line with each installment line.

Steps
1. Access the Create Billing Schedule for Customer Contract task.
2. As you complete the task, consider:
Option Description
Billing Type Select:
• Installment for fixed amount contract line
types.

Option Description
• Transaction for usage-based or project time
and expense contract line types.

Milestone Select milestones for the entire billing schedule.

Milestones must be complete for the billing
process to occur on an installment.
Displays:
• All tasks from all phase levels for the billable
project.
• When you select Installment from the Billing
Type prompt.

Statutory Invoice Type Select a statutory invoice type that you configured
for customer invoices on the Maintain Invoice
Types by Country report. Workday filters the
options that display in this prompt by the company
that you select on the billing schedule.
Workday uses the statutory invoice type to:
• Determine the bill from location.
• Populate the statutory invoice type from
the billing schedule onto the customer
invoice. When you create a customer invoice,
you can change the statutory invoice type to
be different from the statutory invoice type on
the billing schedule.
Workday doesn't support statutory invoice types
on award contracts, intercompany contracts, or
student contracts.

Delivery Type A read-only field that displays the document

delivery method specified on the customer profile.
Delivery Type Override Select a document delivery option for a given
billing installment or transaction. This value
overrides the default document delivery type
values defined on the customer profile.
Billing Method When you select Defined Installment, you can
specify amounts for the first and last installments.
Workday divides the remainder among the other
installments.
Number of Installments When you specify the number of installments,
Workday determines the installment dates based
on the billing method.
Invoice Date Options Using the installment date information, Workday
rolls back 1 month, then applies the option that
you select for the invoice date.
Example: When you select a Billing Frequency
of Monthly, a From Date of 2020-07-01, and an
invoice date of the 15th, the first installment date
is 2020-06-15.

Option Description
Automatically Regenerate Installments Select to generate new installments when you
modify the contract line amount on the customer
contract.
Displays when you select Spread Even from the
Billing Method prompt.

Automatically Submit Schedule via Contract Select to submit new installments for approval.
Amendment Workday doesn't update installments when
you have contract amendments on a business
process.
Displays when you select the Automatically
Regenerate Installments check box.

3. As you complete or edit the draft billing schedule, consider:

Option Description
Define Installment Amounts Click to enter Regular, First, and Last installment
amounts for each customer contract line.
Displays when you select Installment from the
Billing Type prompt.

Manage Milestones Click to define milestone information.

Workday displays:
• All tasks from all phase levels for the billable
project in the Milestone for Transaction
Billing Schedule prompt.
• Only top-level phases for the billable project in
the Limit Milestone to Phase(s) prompt.
Displays when you select Transaction from the
Billing Type prompt.

4. (Optional) As you complete the Installments tab, consider:

Option Description
Status When you create credit adjustments or credit and
rebill customer invoices, Workday changes the
Completed installment status to Credited.
When you:
• Cancel the billing schedule, Workday only
deletes installments in Available status.
• Change the billing schedule, you can't edit
installments in Credited status.

Invoice Workday appends IDs to credit adjustment and

credit and rebill customer invoices using the
custom ID generators that you configure on these
tasks:
• Edit Company ID Definitions
• Edit Tenant Setup - Financials

Option Description
Example: You can configure these custom IDs to
display on credit adjustment and credit and rebill
customer invoices:
• 9874CR - Credit
• 9875RB - Rebill

Result
Workday routes the billing schedule to the Billing Schedule Event business process for review and
approval.
When you create a credit adjustment or credit adjust and rebill a customer invoice, Workday displays
the credit adjustment and rebilled invoice in the Customer Invoices tab on the customer contract
billing schedule. You can view the credit adjustment and rebilled invoice in the Customer Invoices tab
regardless of whether you enable the Create and Submit Installment for Credit and Rebill check box
on the Edit Tenant Setup - Financials task. When you view the credit adjustment or rebilled invoice,
Workday links to the associated billing schedule in the Billing Schedule field.

Next Steps
Create invoices for billing installments.
Related Information
Concepts
Concept: Project Billing on page 1248
Tasks
Steps: Consolidate Billing for Multiple Projects on page 1194
Steps: Credit and Rebill Customer Invoices on page 686
Create Customer Contracts on page 839
Create Revenue Recognition Schedules for Customer Contracts on page 905
Set Up Bill-To Contacts on page 647
Create Customer Invoices for Billing Installments on page 893
Create ID Definitions and Sequence Generators
Reference
Reference: Edit Tenant Setup - Financials
The Next Level: Billing Schedules
2021R2 What's New Post: Multilevel Project Plans

Concept: Billing Schedule Templates for Customer Contracts

Billing schedule templates streamline the billing schedule creation process by enabling you to select a
template directly from the customer contract. When you select a template from the customer contract,
Workday populates the billing schedule with the information you specify in the template. Using billing
schedule templates helps to eliminate the manual steps involved in creating billing schedules for each
individual customer contract.
Workday offers these 2 billing types when you create billing schedule templates:

Option Description
Installment Use for installment contract line types.
You can:

Option Description
• Group all related contract lines in 1 billing
schedule.
• Group contract lines with the same date in 1
billing schedule.
• Create a separate billing schedule for each
contract line with different dates.
• Create individual billing installments.
• Submit a billing schedule for approval.

Transaction Use for usage-based or project time and expense

contract line types.
You can:
• Group all related contract lines with a
Transaction billing type.
• Create a separate billing schedule for each
contract line.
• Submit a billing schedule for approval.

You can associate both an Installment template and a Transaction template with your contract to address
different types of contract lines on a single contract.
Related Information
Tasks
Create Billing Schedule Templates for Customer Contracts on page 875
Create Consolidated Billing Schedule Templates for Customer Contracts on page 876

Concept: Billing
Workday uses the information that you specify on the customer contract to create a billing schedule. The
billing schedule is based on the billing installments established in the terms of the agreement. On the
appropriate date, Workday then uses the installment information to create a customer invoice and routes it
for management approval.

Milestones
You can create milestones to track the completion of tasks and specify when Workday can process billing
and revenue recognition schedules and installments. You can assign multiple milestones to schedules and
installments. Workday doesn't process schedules or installments with pending milestones.
You can use these tasks to configure standard milestones:
• Maintain Date Milestone Types
• Create Date Milestone
Standard milestones become customer milestones once you add them to a customer. You can view
customer milestone details using the Find Milestones report. Customer milestones are unique for each
customer and company combination.
Workday supports these milestone types:
• Billing Schedule First Invoice: Use to initiate revenue recognition once billing has occurred.
• Date Milestones: Use standard date milestones as the basis for creating customer date milestones.
• Project Tasks: Mark project tasks as milestones in the project. Use project milestones to control when
you bill project transactions and recognize revenue. You can define project milestones for a project
phase or for the overall project to determine when transactions are available for billing. You can use

project tasks marked as milestones as contract milestones. You can't delete project tasks that are
in use on a contract. You can enter estimated and actual completion dates. Once the project task is
complete and you enter an end date, billing can occur. Workday uses the end date as the milestone
completion date.

Schedule Types
You can use the Maintain Schedule Types task to configure schedule types for use on billing and
revenue recognition schedules. When you enable a schedule type for use on:
• Billing schedules, you also have the option to enable Prepaid, Consolidated Billing Schedule, or
Summary Reimbursable.
• Revenue recognition schedules, you also have the option to enable Usage-Based Subscription or Multi-
Period.
Workday displays the usage count for each schedule type, and you can set a schedule type as Inactive at
any time. When you set a schedule type as Inactive, Workday removes the option from the Schedule Type
prompt on billing and revenue recognition schedules.

Billing Schedules and Installments

You can:
• Link contract lines that span multiple contracts for the same company and customer to the same billing
schedule.
• Define schedule types so you can classify your schedules. This process simplifies searches, approvals,
and reporting.
• Create installment or transaction billing schedules to manage certain types of contract lines, or
consolidated billing schedules to manage installment, transaction, and prepaid contract lines in 1
schedule.
Workday creates installments based on the scheduled start and end dates, which can differ from the
contract line start and end dates. You can also configure the invoice date to assign, which can differ from
the installment start date.
Workday supports these billing methods for each billing schedule, and you can change methods
throughout the life of the schedule:
• Defined Installment: Define the first and last installment amount for each contract line. Workday spreads
the remaining amount evenly among the other installments. You can't use this billing method on
consolidated billing schedules.
• Spread Even: Define a set number of installments with equal amounts.
• Custom: You control all aspects of the installments.
A billing schedule includes 1 or more installments. Each billing installment:
• Creates a customer invoice.
• Becomes an invoice line.
• Derives attributes from the associated contract line.
Once you generate installments, you can:
• Manually update individual installments.
• Regenerate billing installments automatically after changes to contract amounts. This function only
applies to Spread Even billing methods or Spread Even and Number of Days revenue recognition
methods.
• Update your schedules automatically when you make changes to your contract lines.
• Edit all installments at once when you have a custom schedule.
Workday assigns an Out of Balance status when:

• You don't schedule your contract line installments exactly.

• A custom schedule overbills.
You can create customer invoices from billing installments after you approve the billing schedule.

Billing for Order Fulfillment

When you record order fulfillment for customer contract lines, you can generate billing based on partially
and completely filled orders.

Create Customer Invoices from Billing Installments

Retention for Customer Invoices

You can:
• Withhold a portion of a customer invoice, enabling you to use billing schedules for retention tracking,
and reducing manual entry errors.
• Post the accounting for the retained amounts from invoices to different ledger accounts using a new
posting rule.
• Support multiple types of billing schedules, including transaction and installment billing.
• Release all or a portion of the retention balances by contract line for invoicing, when your contract
meets the requirements.
Related Information
Tasks
Steps: Create Retention for Customer Invoices on page 874
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Create Consolidated Billing Schedules for Customer Contracts on page 877
Create Customer Invoices for Billing Installments on page 893
Reference
The Next Level: Billing Schedules
The Next Level: Customer Invoicing

Customer Contracts Invoicing

Steps: Create Credit and Rebill Customer Invoices for Customer Contracts

Prerequisites
Create:
• A customer contract.

• Billable transactions.
• A billing schedule for the customer contract.
• Customer invoices from contracts.

Context
When you bill a customer invoice amount incorrectly and want to create 1 corrected invoice, you can
configure Workday to credit the original invoice and create a new rebill invoice. Workday only supports full
credit adjustments and full rebill installments.

Steps
1. (Optional) Set Up Unique Invoice Numbering for a Company on page 662.
Unique invoice IDs enable you to comply with global accounting requirements. When you enable unique
invoice IDs for credits, debits, and rebills, Workday creates and processes an adjustment with a unique
invoice ID.
2. Access the Edit Tenant Setup - Financials task.
In the Customer Contracts Options section, select the Create and Submit Installment for Credit and
Rebill check box to automatically create and submit new installments on the customer contract billing
schedule when you create credit adjustments or credit and rebill customer invoices.
See Reference: Edit Tenant Setup - Financials.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
3. Select Customer Invoice > Create Credit and Rebill from the related actions menu of a customer
invoice.
The Create Credit and Rebill task is only available when:
• The contract line is in Active status and is associated with a billing schedule in Approved status.
• The customer invoice is in Approved status.
• The customer invoice is in Unpaid status.
• The customer invoice isn't created from interest and late fee calculation runs.
• The customer invoice isn't direct intercompany.
• The customer invoice isn't already linked to a credit adjustment or a rebilled invoice that's in
Approved status or In Progress status.
• Workday hasn't already created customer invoices from billing installments or billable transactions.
• You enable the Create and Submit Installment for Credit and Rebill check box on the Edit
Tenant Setup - Financials task.
As you complete the task, consider:
Option Description
Invoice Lines To Copy When you select to copy all the invoice lines,
you can delete unneeded invoice lines on the
rebill. When you adjust the rebill, Workday
recommends that you also update the associated
billing schedule to ensure that the amounts
remain balanced.

Option Description
Bill-To Customer To prevent users from changing the Bill-To
Customer, create a custom validation.

Workday doesn't support credit and rebill for:

• Award contracts or student contracts.
• Contract line fee, minimum commitment, prepaid billing using nonconsolidated billing schedules,
order fulfillment, or retention.
Configure the Customer Invoice Event business process and security policy in the Customer Accounts
functional area.

Result
Workday:
• Automatically approves the Billing Schedule Event business process for credit and rebilled
installments. You can also use the Rebilled Installment from Credit Adjustment report field in
condition rules to define how Workday routes credit adjustments through the Billing Schedule Event
business process.
• Creates and applies a credit adjustment to the original invoice and creates a new rebill invoice. The new
rebill invoice goes through the same business process approval as new invoices.
• Rebills transaction-based invoices.
When you create a credit adjustment or credit and rebill:
• An invoice, Workday displays the credit adjustment and rebill invoice in the Customer Invoices tab
on the customer contract billing schedule. You can view the credit adjustment and rebill invoice in the
Customer Invoices tab regardless of whether you enable the Credit and Submit Installment for
Credit and Rebill check box on the Edit Tenant Setup - Financials task.
• A prepaid installment, Workday displays the credit adjustment and rebill installment in the Prepaid tab
on consolidated customer contract billing schedules.
When you view the credit adjustment or rebill invoice, Workday links to the associated billing schedule in
the Billing Schedule field.
If you enabled unique invoice IDs, Workday creates and processes the adjustment with a unique invoice ID
to comply with global accounting requirements. If you didn't enable unique invoice IDs, Workday uses this
naming convention so that you can easily track credited and rebilled invoices:
• The credit adjustment appends CR to the original invoice number. If there are multiple credit
adjustments, Workday numbers them sequentially. Example: 9531CR, 9531CR2, 9531CR3.
• The rebill invoice appends RB to the original invoice number. Example: 9531RB. Multiple rebill invoices
follow the same naming convention as multiple credit adjustments.
Related Information
Tasks
Create Customer Contracts on page 839
Create Consolidated Billing Schedules for Customer Contracts on page 877
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Reference
Reference: Edit Tenant Setup - Financials

Steps: Manage Customer Invoice Proposals

Prerequisites
Create transactions that are ready to bill.

Context
You can create customer invoice proposals from billable transactions to preview, adjust, and review
information before you create customer invoices. Creating invoice proposals eliminates the need to cancel
and recreate invoices when you want to adjust figures or correct errors. When you add transactions to an
invoice proposal, you can only invoice customers for those transactions by creating an invoice from the
proposal.

Steps
1. (Optional) Access the Edit Tenant Setup - System task.
You can enable workers to add comments on customer invoice proposals. In the Activity Stream
Settings section, select Customer Invoice Proposal from the Selected Objects for Activity Stream
prompt.
See Reference: Edit Tenant Setup - System.
Security: Set Up: Tenant Setup - System domain in the Customer Central and System functional areas.
2. (Optional) Edit Business Processes.
Configure the Customer Invoice Proposal Event business process and security policy to:
• Route customer invoice proposals for review and approvals.
• Automate customer invoice creation.
a) Edit Business Process Security Policies.
On the Customer Invoice Proposal Event business process security policy, add the Approvers
security group to the View and Approve actions. Workday routes the customer invoice proposal to a
designated approver in your organization.
b) Set up the Create Customer Invoice service step on the Customer Invoice Proposal Event business
process. Workday automatically creates customer invoices when you approve the customer invoice
proposal.
3. (Optional) Access the Create Customer Invoice Proposal task.
In the Selection Criteria section, select an option from the Project Owner prompt to view billable
projects for the user you select.
Workday automatically bills prepaid installments on the same invoice as other installments and
transactions when you:
a. Enable the Invoice Prepaid Installments with Other Transaction Types check box on
consolidated billing schedules.
b. Create customer invoice proposals.
Security:
• Process: Billing - Invoice Proposal domain in the Customer Contracts and Project Billing functional
areas.
• Process: Project Billing - Invoice Proposal domain in the Project Billing functional area.

4. (Optional) Access the Customer Invoice Proposal Workspace task.

In the search criteria, select an option from the Project Owner prompt to view billable projects for the
user you select.
As you complete the task, consider:
Option Description
Search Click to change the selection criteria.
Workday saves your selection and uses it each
time you access the task.

Billable Projects Use the drill-down menu to view the project owner
for the billable project.
Status of Pending Events View the status of project transactions and billing
schedules that are pending business process
approval.
Refresh Click to update the selected proposals with new
transactions in Ready to Bill status that meet the
selection criteria.
Create Invoice Once you create a customer invoice, you can't
revert it to an invoice proposal. You can cancel
the invoice to return the transactions to Ready to
Bill status. Then, you can create a new proposal.
Cancel Proposal Click to cancel the selected proposals and return
transactions to Ready to Bill status.
Print Click to generate PDF copies of the selected
proposals. When the PDFs are available,
Workday displays them in the PDF column on the
grid.
You can only print proposals for customers for
which you have View access.

Security:
• Process: Billing - Invoice Proposal domain in the Customer Contracts and Project Billing functional
areas.
• Process: Project Billing - Invoice Proposal domain in the Project Billing functional area.
5. (Optional) From the Proposal column on the Customer Invoice Proposal Workspace task, open the
View Customer Invoice Proposal report in a new window.
View customer invoice custom objects using the Additional Data related action in the Billing Information
section. To view customer invoice custom objects, you must first configure the custom object on the
Create Custom Object task.
When you enable activity streams, you can add comments on the customer invoice proposal and view
comments from other users.
Security:
• Process: Billing - Invoice Proposal domain in the Customer Contracts and Project Billing functional
areas.
• Process: Project Billing - Invoice Proposal domain in the Project Billing functional area.

6. (Optional) From a row on the Customer Invoice Proposal Workspace task, click Edit to access the
Edit Customer Invoice Proposal task.
Edit customer invoice custom objects using the Additional Data related action in the Billing Information
section. To edit customer invoice custom objects, you must first configure the custom object on the
Create Custom Object task.
To add ad hoc invoice lines on customer invoice proposals, you must have a project role or a company
role that matches the company on the project. When you add ad hoc invoice lines on customer invoice
proposals, you can only:
• Add lines that have a Revenue Treatment of Invoice.
• Edit the description of invoice lines that you created on the Create Customer Invoice Proposal
task.
• Select nondeferred customer contract lines.
• Select projects that you already included on the customer invoice proposal.
Refresh the customer invoice proposal when you:
• Add a new line.
• Change existing lines that impact the total invoice amount.
• Remove a new line.
Security:
• Process: Billing - Invoice Proposal domain in the Customer Contracts and Project Billing functional
areas.
• Process: Project Billing - Invoice Proposal domain in the Project Billing functional area.

Next Steps
Create invoices from customer invoice proposals.
Related Information
Concepts
Concept: Customer Invoice Proposal Workspace on page 896
Tasks
Steps: Set Up Project Pricing and Billing on page 1195
Steps: Manage Billable Projects on Usage-Based Transactions on page 836
Manage All Project Billing Transactions on page 1211
Manage Project Billing Transactions by Transaction Source on page 1216
Reference
2021R2 What's New Post: Customer Invoice Proposals
2022R1 What's New Post: Customer Invoice Proposals
2022R2 What's New Post: Ad Hoc Invoice Lines on Customer Invoice Proposals

Create Customer Invoices for Billing Installments

Prerequisites
• Create a billing schedule for a customer contract.
• Security: Process: Billing - Invoicing domain in the Customer Contracts and Project Billing functional
areas.

Context
You can set up a schedule to automate the invoice process for billing installments as a one-time or a
recurring job. Workday doesn't include pending and on hold milestones in the installments.

You can also access the Create Customer Invoices for Billing Installments task to create invoices
immediately.

Steps
1. Access the Schedule Create Customer Invoices for Billing Installments task.
2. As you complete the Criteria section, consider:
Option Description
Invoice Date Days Ahead Enter a:
• Positive number to include installments that
have invoice dates up to this number of days
after the run date.
• Negative number to include installments that
have invoice dates up to this number of days
before the run date.
Leave blank to include installments that have
invoice dates on or before the run date.
Example: When you schedule the process to run
on January 28, enter:
• 3 to include installments that have invoice
dates of January 31 and earlier.
• -3 to include installments that have invoice
dates of January 25 and earlier.

Billing Method Select:

• Custom to create custom installment amounts.
• Defined Installment to define the first and
last installment amount. Workday divides
the remaining amount among the other
installments.
• Number of Days to use the number of days
specified in the billing frequency.
• Spread Even to spread the amounts evenly
across installments.

Preview Installments for Criteria Select to review installments that meet the
selection criteria before you create the schedule.

Result
Workday displays the schedule details and creates the invoices at the time you configured. You can view
the next 10 scheduled launches on the Additional Info tab.
When you generate customer invoices from contracts with a negative amount due, Workday automatically
creates credit adjustment documents linked to the billing schedule. If an invoice has retention, Workday
instead creates a customer invoice with the negative amount.
When you approve the customer invoices, Workday creates accounting using the dimensions that you
configure in the account posting rules. Example: For the Deferred Revenue and Unbilled Receivables
account posting rules, you can configure Customer Group or Project Hierarchy. You can also configure
custom organization and custom worktag dimensions.

Related Information
Concepts
Concept: Billing on page 886
Concept: Revenue Recognition Accounting on page 940
Tasks
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Reference
The Next Level: Customer Invoicing
2023R1 What’s New Post: Credit Adjustments for Negative Customer Invoice Amounts

Create Customer Invoices from Contracts

Prerequisites
Create:
• A customer contract.
• Custom references for ad hoc project transactions.
• Billable transactions.
• A consolidated billing schedule.
Security:
• Process: Billing - Invoicing domain in the Customer Contracts and Project Billing functional areas.
• Process: Project Billing - Invoicing domain in the Project Billing functional area.

Context
You can consolidate billing installments, transactions, and usage-based transactions on customer invoices
using consolidation grouping and invoice date options. You can also override the invoice date on an
installment, and reconsolidate the charges using the new invoice date. You can run either of these tasks:
• Create Customer Invoices from Contracts
• Schedule Create Customer Invoices from Contracts

Steps
1. Access the Create Customer Invoices from Contracts task.
2. As you complete the task, consider:
Option Description
Additional Consolidation Grouping Workday groups the consolidation option you
select with the additional consolidation grouping
options on the same invoice.
Example: Select Customer from the
Consolidation Options prompt and PO Number
to group installments and transactions with the
same customer and purchase order number on
the same invoice.
The custom reference options display in the
prompt when you select these check boxes on the
Enable Ad Hoc Project Transaction Custom
References task:
• Enabled
• Consolidated Billing

Option Description
Invoice Date Options Select:
• Override Blank Transaction Invoice Date to
update all transaction invoice dates.
• Override All Invoice Dates to update all
installment and transaction invoice dates.
The Number of Days Before or After Run Date
field displays when you select Run Date from
either of the previous prompts.

Result
Workday creates customer invoices for installments and transactions using the consolidation and invoice
date options that you specify.
When you generate customer invoices from contracts with a negative amount due, Workday automatically
creates credit adjustment documents linked to the billing schedule. When an invoice has retention,
Workday instead creates a customer invoice with the negative amount.
When you enable the Invoice Prepaid Installments with Other Transaction Types check box on
consolidated billing schedules and create customer invoices from contracts, Workday automatically bills
prepaid installments on the same invoice as other installments and transactions. Once you consume a
prepaid installment, you can't cancel the associated customer invoice.
When you approve the customer invoices, Workday creates accounting using the dimensions that you
configure in the account posting rules. Example: For the Deferred Revenue and Unbilled Receivables
account posting rules, you can configure Customer Group or Project Hierarchy. You can also configure
custom organization and custom worktag dimensions.
Related Information
Concepts
Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules on page 868
Concept: Revenue Recognition Accounting on page 940
Tasks
Steps: Manage Billable Projects on Usage-Based Transactions on page 836
Create Customer Contracts on page 839
Create Custom References for Ad Hoc Project Transactions on page 1203
Create Revenue Installments for Billable Transactions on page 911
Create Consolidated Billing Schedules for Customer Contracts on page 877
Reference
2022R2 What's New Post: Billable Projects on Usage-Based Transactions
2022R1 What's New Post: Customer Invoice Proposals
2021R1 What's New Post: Prepaid Billing for Installments and Transactions
2021R1 What's New Post: Project Roles as Worktags
2020R1 What's New Post: Consolidated Invoice Billing
2023R1 What’s New Post: Credit Adjustments for Negative Customer Invoice Amounts

Concept: Customer Invoice Proposal Workspace

You can access the Customer Invoice Proposal Workspace task to review and manage customer
invoice proposals before you generate customer invoices. To populate the task, first create customer
invoice proposals. Workday groups the customer invoice proposals by billing schedule. When you access
the task for the first time, Workday:

• Prompts you for proposal search criteria.

• Saves your selection for future access.
You can create invoices for transactions on an approved customer invoice proposal directly from the
workspace. Once you create a customer invoice, you can't revert it back to a customer invoice proposal.

Edit Customer Invoice Proposals

When you edit a customer invoice proposal, you can:
• Add ad hoc invoice lines. Ad hoc invoice lines don't consume prepaid installments.
• Change invoice header information.
• Make lump sum adjustments at the time of invoicing.
• Manage prepaid installments.
• Update billable project transactions, excluding daily rate transactions.
• View customer invoice custom objects using the Additional Data related action when you first configure
the customer invoice custom object on the Create Custom Object task.
• View the billable project associated with the customer contract line.
When you edit a customer invoice proposal, you can't update:
• Daily rate transactions.
• On Hold or Milestone prepaid installments.
When you update prepaid installments, Workday:
• Creates new prepaid installments with a Created from Proposal status.
• Submits the associated billing schedule for review and approval.
You can't edit a customer invoice proposal when a transaction on the proposal is awaiting business
process approval.

Print Customer Invoice Proposals

When you print a customer invoice proposal, Workday generates a PDF copy of the invoice proposal.
When the PDF copy is available, you can access it from the PDF column on the customer invoice proposal
workspace.
Related Information
Tasks
Steps: Manage Customer Invoice Proposals on page 891
Reference
2022R2 What's New Post: Ad Hoc Invoice Lines on Customer Invoice Proposals

Customer Contracts Revenue Recognition

Setup Considerations: Revenue Recognition Schedules

You can use this topic to help make decisions when planning your configuration and use of Revenue
Recognition Schedules. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
You can create a schedule to recognize your revenue:
• For individual transactions.
• Independently from billing status.
• Over multiple periods.
You can also configure templates with preselected values. Workday creates a revenue recognition
schedule using the parameters at the same time as your other items, such as your customer contracts.

Business Benefits
Revenue recognition schedules:
• Make it easier to automate period end accounting.
• Dictate timing and the amount of revenue recognition.
• Align with your selected accounting policies.

Use Cases
As a revenue accountant, you need to recognize revenue for deferred and accrued items. Workday
enables you to create revenue recognition schedules for:
• Awards.
• Billable transactions.
• Customer contracts.
• Customer invoices.

Questions to Consider

Question Considerations
When do you want to recognize revenue? When you select a Revenue Recognition
Method of Transaction, you’re able to select the
Independent Revenue Processing check box on
your revenue recognition schedule.
When you select this check box, Workday will
process the revenue even when billing isn’t
complete.

Do you amend your customer contracts? Workday updates the revenue recognition
schedule when you select the Automatically
Regenerate Installments check box on your
revenue recognition schedule.
Workday only regenerates installments when you:
• Use a revenue recognition method of Spread
Even or Number of Days.
• Make changes to the contract line amount or
worktags.
• Don't have your contract amendments on a
business process for approval.

How do you recognize revenue? If your company doesn't have guidelines for
revenue recognition, we provide a reference topic
covering revenue recognition methods.

Recommendations

Functionality Considerations
Milestones Assign a milestone to your revenue recognition
schedules and templates if you don't want revenue
recognition to occur before certain events dictated
by you or your customer.
Schedule Type Select a schedule type when you create your
revenue recognition schedules and templates for
improved reporting capabilities. Workday uses this
field to group your revenue recognition schedules
and templates.
Templates Instead of creating the same revenue recognition
schedules multiple times, Workday recommends
that you create a template to improve efficiency.

Requirements

Feature Considerations
Billable Transactions When you update your billable transactions, your
revenue recognition schedule doesn't update.
Access the Create Revenue Installments for
Billable Transactions task to update your revenue
recognition installments.

Contract Rate Sheets When you update your contract rate sheets, your
revenue recognition schedule doesn't update.
Access the Schedule Revenue Installments for
Billable Transactions task to update your revenue
recognition installments.

Limitations

Feature Considerations
Intercompany worktags Your revenue recognition schedule won't display
any worktags if there’s an intercompany worktag.
The worktags carry from your source transactions
to the revenue recognition accounting that you
create from your revenue installments.

Multiple-element revenue allocation When you run multiple-element revenue allocation

on a contract, you can't use the percent complete
method for your schedule.

Tenant Setup
No impact.

Security

Domains Considerations
Process: Revenue Schedule - Cancel in the Cancel revenue recognition schedules for customer
Customer Contracts and Project Billing functional contracts.
areas.
Process: Revenue Schedule - Core in the Create revenue recognition schedules for customer
Customer Contracts and Project Billing functional contracts.
areas.
Set Up: Customer Accounts in the Customer Import and export templates for revenue recognition
Accounts functional area. schedules.
Process: Customer Invoice - View in the Customer
Accounts functional area.

Set Up: Customer Contracts - Templates and Create templates for revenue recognition
Types in the Customer Contracts and Project Billing schedules.
functional areas.

Business Processes
You can configure the Revenue Recognition Schedule Event business process to enable you to create and
approve revenue recognition schedules.

Reporting
You can use the Revenue dashboard to:
• Create revenue recognition schedules and templates.
• Access reporting on your revenue recognition schedules and templates.
You can use the Revenue Recognition Schedules report data source to create custom reports for
revenue recognition schedules and templates.

Integrations

Web Services Considerations

Cancel Revenue Recognition Schedule Enables you to cancel your existing revenue
recognition schedules.
Get Revenue Recognition Schedules Retrieves revenue recognition schedules according
to selected criteria.
Get Revenue Recognition Schedule Templates Retrieves templates for revenue recognition
schedules according to selected criteria.
Put Revenue Recognition Schedule Template Adds or updates templates for revenue recognition
schedules.
Submit Revenue Recognition Schedule Adds or updates revenue recognition schedules
and submits them to the Revenue Recognition
Schedule business process.

Connections and Touchpoints

Features Considerations
Customer Accounts Nonproject related items that you recognize
revenue for come from the Customer Accounts
functional area.
Expenses Workday uses project expenses to create revenue
recognition schedules.
Financial Accounting You create revenue recognition journals by using
revenue recognition schedules.
Projects You create revenue recognition schedules from
customer contracts created for billable projects.
Project Billing You create revenue recognition schedules from
billable project time and expenses.
Time Tracking You use the time tracked for billable projects to
create revenue recognition schedule.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Create Revenue Recognition Schedules for Customer Contracts on page 905
Reference
Workday 30 What's New Post: Unbilled Project Accruals and Adjustments
Workday 31 What's New Post: Automatically Update Billing and Revenue Schedules
Workday 31 What's New Post: Prorated Revenue Installments
Workday 31 What's New Post: Unbilled Project Accrual for Usage-Based Transactions

Setup Considerations: Cumulative Catch-Up Revenue Installments

You can use this topic to help make decisions when planning your configuration and use of cumulative
catch-up revenue installments. It explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Cumulative catch-up revenue installments enable you to generate new revenue recognition installment
amounts when you modify customer contracts.

Business Benefits
Cumulative catch-up revenue installments reduce manual processing by providing an option to
automatically generate revenue recognition installment amounts when you modify customer contracts.

Use Cases
You can generate cumulative catch-up revenue installments when your company modifies the customer
contract:
• Start and end dates.
• Term and amounts.

Questions to Consider

Questions Considerations
When you amend customer contracts, do you When you change an existing contract line amount
change the existing contract line amount? and enable automatic regeneration of installments
on the revenue recognition schedule, Workday:
• Creates a cumulative catch-up installment for
the completed installment.
• Adjusts future installment amounts.

When you amend customer contracts, do you add a When you add a new line on the contract, you can
new line to update line amounts? either:
• Amend the existing revenue recognition
schedule to generate cumulative catch-up
revenue installments.
• Create a new revenue recognition schedule
to generate cumulative catch-up revenue
installments.

Recommendations
To reduce manual effort, you can enable cumulative catch-up revenue installments on revenue recognition
schedule templates. Workday then automatically enables the option when you create a revenue
recognition schedule for customer contracts using a template.
On the revenue recognition schedule, you can enable Workday to automatically regenerate installments.
When you enable this option and generate cumulative catch-up installments, Workday automatically
creates new installments when you modify the customer contract.

Requirements
To enable cumulative catch-up revenue installments on a revenue recognition schedule or template, you
must use a:
• Revenue recognition method of defined installment, number of days, or spread even.
• Schedule type enabled for revenue recognition.

Limitations
You can't:
• Disable cumulative catch-up revenue installments when you have completed installments.
• Generate cumulative catch-up revenue installments for alternate customer contracts, standalone
invoices with revenue recognition schedules, or customer contracts with a variable amount line type.

Tenant Setup
No Impact.

Security

Domains Considerations
Process: Customer Invoice - View in the Customer Find cumulative catch-up revenue installments
Accounts functional area. on revenue recognition schedules for customer
contracts.
View cumulative catch-up revenue installments on
revenue recognition schedule templates.

Process: Revenue Schedule - Core in the Create cumulative catch-up revenue installments
Customer Contracts and Project Billing functional on revenue recognition schedules for customer
areas. contracts.
Set Up: Customer Accounts in the Customer Create, edit, and view cumulative catch-up revenue
Accounts functional area. installments on revenue recognition schedule
templates.
Set Up: Customer Contracts - Templates and
Types in the Customer Contracts and Project Billing
functional areas.

Business Processes

Business Processes Considerations

Customer Contract Event Review and approve customer contract dates,
terms, and amounts before generating cumulative
catch-up revenue installments.
Revenue Recognition Schedule Event Review and approve revenue recognition schedules
that generate cumulative catch-up revenue
installments for customer contract modifications.

Reporting

Reports Considerations
Find Revenue Recognition Schedules Find revenue recognition schedules by company,
customer, schedule type, and schedule date.
Revenue Recognition Schedule Templates View revenue recognition schedule templates that
generate cumulative catch-up revenue installments.
View Revenue Recognition Schedule Template

Integrations
You can use these web services to retrieve, update, and submit cumulative catch-up revenue installments
on revenue recognition schedules and templates:
• Get Revenue Recognition Schedule Templates
• Get Revenue Recognition Schedules
• Put Revenue Recognition Schedule Template
• Submit Revenue Recognition Schedule

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Related Information
Concepts
Setup Considerations: Revenue Recognition Schedules on page 897
Tasks
Create Revenue Recognition Schedules for Customer Contracts on page 905
Reference
2020R2 What's New Post: Cumulative Catch-Up Revenue Installments

Steps: Create Multiperiod Revenue Recognition Schedules

Prerequisites
Create a customer contract.

Context
You can create revenue recognition schedules that cover multiple periods. You can specify the contract
terms for each period, including the:
• Date range for the period.
• Revenue amount or percentage that you want to allocate to each period.

Steps
1. Access the Maintain Schedule Types task.
Select these check boxes for at least 1 schedule type:
• Multi-Period
• Revenue Recognition
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
2. Create Revenue Recognition Schedules for Customer Contracts on page 905.
Select:
• A Schedule Type that you enabled for multiperiod.
• A Revenue Recognition Method of Number of Days or Spread Even.
On the Multi-Period Allocation tab:
• Click Add.
• Select a From Date and a To Date.
• Allocate a revenue amount or percentage to each period.
The time periods for revenue recognition schedules can overlap, and you can allocate revenue up to
the Revenue Schedule Total.

Next Steps
Generate revenue installments.
Related Information
Concepts
Setup Considerations: Revenue Recognition Schedules on page 897
Concept: Revenue Recognition on page 912
Reference
2020R2 What's New Post: Cumulative Catch-Up Revenue Installments

Create Revenue Recognition Schedules for Customer Contracts

Prerequisites
• Create a customer contract with at least 1 contract line enabled for accrued or deferred revenue.
• Security: Process: Revenue Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.

Context
You can create a revenue recognition schedule for 1 or more lines on your customer contracts. All lines
that you include in a schedule must use the same revenue recognition method. You can also associate the
revenue recognition schedule with dates, project tasks, and billing-related milestones. Milestones must be
complete for revenue recognition to occur on an installment.

Steps
1. Access the Create Revenue Recognition Schedule for Customer Contract task.
2. As you complete the task, consider:
Option Description
Contract Line Company To create a revenue recognition schedule for
an intercompany contract, select a contract
line company that's different from the contract
company. Revenue recognition schedules tie
to the line company, enabling you to recognize
accrued or deferred revenue to the same
company.
Schedule Type To improve reporting capabilities, select a
schedule type enabled for revenue recognition.
When you select Usage-Based Subscription,
Workday restricts the date range and limits the
selection for the Revenue Recognition Method.
You can add the revenue start and end dates on
the Record Usage-Based Transactions task.
Schedule On Hold Select to place the revenue recognition schedule
on hold when you need to take action before
you create accounting. When you release the
hold, installments become available for revenue
recognition accounting the next time you run the
task.
Hold Reasons Select a hold reason that you configured on the
Maintain Customer Contract Schedule Hold
Reasons task.
Displays when you select the Schedule On Hold
check box.

Milestones Displays all tasks from all phase levels for the
billable project.
Default Currency Rate Select 1 of these options for Workday to use as
the default currency conversion rate when you
create new revenue recognition schedules with
foreign currency:

Option Description
• Contract Effective Date - Uses the currency
conversion rate for the contract effective date.
• Revenue Recognition Installment Date -
Uses the installment date on the revenue
recognition schedule to determine the currency
exchange rate. When there isn't a rate for the
installment date, Workday uses the rate for the
most recent date when you generate revenue
recognition installments and accounting.
• Schedule Override Rate - Uses the override
currency conversion rate you enter in the
Schedule Override Rate field.
When you:
• Don't select an option in the prompt, Workday
uses the revenue recognition default currency
conversion rate that you select on the Edit
Tenant Setup - Financials task.
• Select an option in the prompt that's different
from the option you select in the Revenue
Recognition Default Currency Rate prompt
on the Edit Tenant Setup - Financials task,
Workday uses the selection on the revenue
recognition schedule to determine the currency
conversion rate.
Displays on new revenue recognition schedules
with foreign currency.

Schedule Override Rate Enter the override currency conversion rate to use
for all installment lines on the revenue recognition
schedule.
Displays on new revenue recognition schedules
with foreign currency when you select Schedule
Override Rate from the Default Currency Rate
prompt.

Create Reversal Select to create a reversal journal when you

generate accounting for revenue installments.
This option is only available for Project Time and
Expense customer contract lines.
Displays when you select a Revenue
Recognition Method of Transaction.

Independent Revenue Processing Select to:

• Generate revenue installments for transactions
in an Awaiting Review, On Hold, or Ready to
Bill billing status.
• Reverse revenue accounting when you've
already recognized revenue for transactions in
a Do Not Bill billing status.

Option Description
Displays when you select a Revenue
Recognition Method of Transaction.

Automatically Regenerate Installments Select to generate new installments when you

modify the contract line amount on the customer
contract.
Displays when you select:
• A Schedule Type enabled for revenue
recognition.
• A Revenue Recognition Method of Defined
Installment, Number of Days, or Spread Even.

Automatically Submit Schedule via Contract Select to submit new installments for approval.
Amendment The installments won't update when you have
contract amendments on a business process.
Displays when you select:
• A Schedule Type enabled for revenue
recognition.
• A Revenue Recognition Method of Defined
Installment, Number of Days, or Spread Even.
• The Automatically Regenerate Installments
check box.

Generate Cumulative Catch-up Installments Select to generate adjustment revenue

installments when you modify the customer
contract term or amounts.
Displays when you select:
• A Schedule Type enabled for revenue
recognition.
• A Revenue Recognition Method of Defined
Installment, Number of Days, or Spread Even.

3. Select the lines that you want to add to the revenue recognition schedule.
4. Click Save and Continue to view the draft schedule.
5. As you complete the revenue recognition schedule, consider:
Option Description
Manage Lines Lines can span multiple contracts but must match
the schedule company, customer, and currency.
Displays only deferred revenue lines.

Define Installment Amounts To define amounts manually, enter the defined

installment amounts for each customer contract
line.
To prorate the amounts for contracts that begin
with a start date after the first of the month, select
a From Date and To Date. Workday calculates
the first and last installments based on those
dates.

Option Description
Customize Installments When you customize installments and save your
changes, Workday automatically updates the
Revenue Recognition Method to Custom.
Override Currency Rates You can override the exchange rate or the base
currency amount on installments. Workday
displays the Maintain Revenue Recognition
Schedule Currency Rates task with only the
contract lines that you can override.
Displays when you generate installments on
a revenue recognition schedule with foreign
currency.

6. (Optional) To add supporting documentation, select Revenue Recognition Schedule > Manage
Attachments from the related actions menu of the revenue recognition schedule.

Next Steps
• Report on the revenue recognition schedule or on installment hold reasons.
• Create revenue recognition accounting.

Create Ledger Currency Adjustment Installment

Prerequisites
• Create and approve a revenue recognition schedule with at least 1 completed installment for a foreign
currency customer contract.
• Security: Process: Revenue Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.

Context
You can create an extra installment line for revenue recognition adjustments. The adjustment installment
ensures that the invoiced ledger amounts equal the ledger amounts for recognized revenue at a specific
point in time. Workday determines how much you've invoiced your customers in the ledger currency by
adding all the completed installments for a contract line. You can create adjustments for revenue that's out
of balance due to exchange rates or currency rate overrides.
Workday displays every fixed amount line requiring an adjustment from the Manage Lines task for the
revenue recognition schedule. Variable contract lines don't display because the actual ledger amount billed
is already on the installment. Workday displays the ledger amount at both the recorded and historic rates.

Steps
1. From the related actions menu of an approved revenue recognition schedule with foreign currency,
select Revenue Recognition Schedule > Create Ledger Currency Adjustment Installment.
2. As you complete the task, consider:
Option Description
Accounting Date for Adjustment Installment You can override the date with any accounting
date that's applicable to the entire installment.
Create Revenue Recognition Accounting Select for Workday to run the Create Revenue
Recognition Accounting task automatically
when you save the current task. Regular posting
rules and approvals apply. Workday moves

Option Description
the ledger amount for deferred revenue into
the revenue account so that the completed
installment displays on the revenue recognition
schedule with the new ledger amount.
Amount Recorded in Primary Currency Displays the installment amount invoiced to the
customer from the revenue recognition schedule.
Amount at Historic Rate in Primary Currency Displays the customer invoiced amount in the
primary ledger currency at the current point in
time. To preview line details for how Workday
calculates the rate, click the amount.
Revenue Recognition Adjustment in Primary When the Amount at Historic Rate in Primary
Currency Currency is:
• Greater than the Amount Recorded
in Primary Currency, enter a positive
adjustment amount to increase the Amount
Recorded in Primary Currency.
• Less than the Amount Recorded in Primary
Currency, enter a negative adjustment
amount to reduce the Amount Recorded in
Primary Currency.

Result
Workday creates an installment for the revenue recognition schedule. The installment includes ledger
currency amounts without transaction amounts so that you can create accounting for revenue recognition.
Related Information
Concepts
Concept: Revenue Recognition Accounting on page 940
Concept: Foreign Currency Customer Contracts on page 851

Create Revenue Recognition Schedules for Customer Invoices

Prerequisites
• Create a customer invoice with 1 or more lines enabled for deferred revenue.
• Security:
• Process: Customer Invoice - Core domain in the Customer Accounts functional area.
• Process: Revenue Schedule - Core domain in the Customer Contracts and Project Billing functional
areas.

Context
You can create a revenue recognition schedule for 1 or more invoice lines:
• From a single invoice not linked to a contract.
• With deferred revenue.
• With the same revenue recognition method and end date.
Workday doesn't populate the revenue recognition schedule with intercompany worktags. The
intercompany worktags display when you create revenue recognition accounting.

Steps
1. Access the Create Revenue Recognition Schedule for Customer Invoice task.
2. For intercompany invoices, select an Invoice Line Company.
3. As you complete the Revenue Recognition Information section, consider:
Option Description
Schedule Type To improve reporting capabilities, select a
schedule type for revenue recognition.
Milestone Select milestones for the entire revenue
recognition schedule. Milestones must be
complete for revenue recognition to occur on the
installment.
4. Select the lines to add to the revenue recognition schedule.
5. Click Save and Continue to view the draft of the revenue recognition schedule.
6. As you complete the revenue recognition schedule, consider:
Option Description
Manage Lines Click to add or delete lines that use the revenue
recognition schedule.
Define Installment Amounts Click to enter Regular, First, and Last installment
amounts for each invoice line.
Use when you specify a Revenue Recognition
Method of Defined Installment.

Generate Installments Click to generate installments using the Revenue

Recognition Method you selected.
Customize Installments When you customize installments and save your
changes, Workday automatically updates the
Revenue Recognition Method to Custom.
7. (Optional) To add supporting documentation, select Revenue Recognition Schedule > Manage
Attachments from the related actions menu of the revenue recognition schedule.

Result
Workday routes the revenue recognition schedule to the Revenue Recognition Schedule Event business
process for review and approval. The customer invoice line references the revenue recognition schedule.

Next Steps
Create revenue recognition accounting.
Related Information
Concepts
Concept: Revenue Recognition Accounting on page 940
Tasks
Create Customer Invoices for Billing Installments on page 893
Create Revenue Recognition Schedules for Customer Contracts on page 905

Create Revenue Installments for Billable Transactions

Prerequisites
• Approve billable transactions.
• Security: Process: Revenue Schedule - Core domain in the Customer Contracts and Project Billing
functional areas.

Context
When you approve billable transactions, you can accrue revenue by generating revenue installments using
1 of these tasks:
• Create Revenue Installments for Billable Transactions
• Schedule Revenue Installments for Billable Transactions
Workday displays revenue as available to accrue when you change a:
• Transaction billing status from billable to nonbillable.
• Transaction billing status from nonbillable to billable.
• Transaction from a Deferred to an Invoice revenue treatment.

Steps
1. Access the Create Revenue Installments for Billable Transactions task.
As you complete the task, consider:
Option Description
Transaction Type Select:
• Project Time and Expense to create
revenue installments and recognize revenue
independently from billing for Project Time
and Expense customer contract lines. To
enable this process, select the Independent
Revenue Processing check box on the
revenue recognition schedule.
• Fixed Fee Project for Percent Complete
revenue recognition methods.
• Usage-Based to create revenue installments
and recognize revenue independently from
billing for Usage-Based customer contract
lines. To enable this process, select the
Independent Revenue Processing check box
on the revenue recognition schedule.

2. As you complete the Revenue Accruals tab, consider:

Option Description
Select You can update revenue installments until the
installment status is Complete or Canceled.
Amount to Accrue Workday adds the amount to existing Available
revenue installments when the billing transactions
have the same grouping criteria. Otherwise,
Workday creates a new revenue installment.

Option Description
Amount Scheduled to Accrue The amount excludes deleted and offset revenue
installments.
Completed Accrual to Date The amount accrued for revenue installments in
Completed status as of the installment date.
3. On the Revenue Offsets tab, view offset revenue installment lines for billable transactions.
Workday displays offset revenue installment lines that you:
• Changed from billable to nonbillable status.
• Changed from a Deferred to an Invoice revenue treatment.
• Changed in a way that affects accounting.
• Deleted after you recognized revenue.
• Split into multiple transaction lines.
Revenue offsets only apply to Project Time and Expense customer contract lines.

Next Steps
To view the revenue recognition schedule, access the Schedules tab on the customer contract.
Related Information
Tasks
Create Customer Contracts on page 839
Create Customer Invoices from Contracts on page 895
Create Revenue Recognition Schedules for Customer Contracts on page 905
Manage Project Billing Transactions by Transaction Source on page 1216
Manage All Project Billing Transactions on page 1211
Reference
2021R1 What's New Post: Project Roles as Worktags

Concept: Revenue Recognition

You can create revenue recognition schedules for customer contracts based on the contract terms.
Revenue recognition schedules identify and drive accounting for the creation and appropriate amortization
of unrecognized revenue. Revenue recognition operates separately from billing processing.

phase or for the overall project to determine when transactions are available for billing. You can use
project tasks marked as milestones as contract milestones. You can't delete project tasks that are
in use on a contract. You can enter estimated and actual completion dates. Once the project task is
complete and you enter an end date, billing can occur. Workday uses the end date as the milestone
completion date.

Billing Schedules and Installments

• You don't schedule your contract line installments exactly.

• A custom schedule overbills.
You can create customer invoices from billing installments after you approve the billing schedule.

Independent Revenue Processing

To accrue and recognize revenue for project transactions without billing, select the Independent Revenue
Processing check box on the Create Revenue Recognition Schedule for Customer Contract task.

Multi-Period Revenue Schedules

Workday enables you to create revenue recognition schedules that span multiple periods. You can specify
the duration and the amount or percentage of revenue to allocate for each period.

Revenue Recognition for Order Fulfillment

You can track orders fulfilled against a customer contract line. You can then generate billing based on both
partially and completely filled orders, and recognize revenue. You can recognize revenue for orders by:
• Creating a sales item that requires order fulfillment.
• Creating a customer contract with a sales item on the contract line that requires order fulfillment.
• Recording order fulfillment transactions.
• Creating revenue recognition installments for billable transactions.
• Posting revenue recognition accounting for the revenue recognition installments.

Invoices and Revenue Recognition Schedules for Transaction-Based Contract Lines

For transaction-based services that don't have Vendor-Specific Objective Evidence (VSOE), you can
recognize revenue for invoices that are based on the longest-running element of the customer contract.
Recognizable revenue derives from ongoing billing. To add every invoice for a contract line to the revenue
recognition schedule, you can assign a schedule to the transaction-based contract line in your contract
configuration. Revenue recognition for each invoice starts at the invoice date and distributes until the
schedule end date. Workday recalculates the amount if:
• The invoice date falls in an installment that's already in process or completed.
• The schedule method for revenue recognition is Daily or Spread Even.
You can enter different worktags on the invoice and contract lines, but the revenue recognition transaction
worktags automatically populate from the contract line.
When an invoice contains lines that reference a contract line, Workday displays an invoice summary on the
Contract Lines tab on the customer invoice.

Revenue Recognition Accounting

When you create revenue recognition accounting:
• Workday ignores installments with pending milestones.
• Workday generates accounting using the account posting rules for revenue and deferred revenue.
• You can post revenue transactions when the ledger period status is:
• Open
• Open for Journals
• Open for Journals and Payroll
Workday sets the status for revenue recognition installments to Complete after generating accounting
entries.

Related Information
Concepts
Setup Considerations: Revenue Recognition Schedules on page 897
Concept: Customer Contracts on page 848
Concept: Project Billing on page 1248
Concept: Revenue Recognition Accounting on page 940
Tasks
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Create Consolidated Billing Schedules for Customer Contracts on page 877
Steps: Create Multiperiod Revenue Recognition Schedules on page 904
Create Revenue Recognition Schedules for Customer Contracts on page 905

Reference: Revenue Recognition Methods

Workday provides these revenue recognition methods for your revenue recognition schedules and
templates:

Revenue Recognition Method Description

Custom You can customize the:
• Installment date to recognize revenue.
• Customer contract lines that you’re recognizing
revenue for.
• Period of time that you're recognizing revenue
for.
• Amount of revenue that you want to recognize
for that period.
• Worktags that don't populate from the customer
contract line.
When you select a revenue recognition method of
Custom, you must manually verify that the revenue
schedule total matches the total line amount.
Workday doesn't display a critical validation error
when the amounts differ.

Defined Installment Workday uses the:

• Amount of revenue equal to the number of days
that are in the beginning and end periods of the
schedule.
• Spread Even revenue recognition method for
the remaining periods.

Number of Days Workday recognizes revenue proportionate to the

number of days in the period.
Example: You receive more revenue for the March
period than the April period because the month of
March has 1 more day than the month of April.

Percent Complete Workday recognizes revenue equal to the percent

completion of your project for that period.
You can recognize revenue by the:

Revenue Recognition Method Description

• Total cost of the project completed for that
period.
• Number of hours completed for the project in
that period.

Spread Even Workday recognizes the same amount of revenue

for each installment that it creates.
You can create revenue installments by:
• Selecting a date range.
• Entering the number of installments to create.

Transaction You can create a revenue recognition schedule for

these transaction sources:
• Expense
• Miscellaneous Expenses
• Supplier Invoices
• Time
When you select the Create Reversal check box,
Workday:
• Accrues revenue installments, posting the
accrual in each period.
• Creates a reversal journal when you generate
accounting for revenue installments. The journal
reverses the debits and credits using the first
day of the next period.
When you select the Independent Revenue
Processing check box, you can recognize revenue
before creating a customer invoice.

Related Information
Concepts
Setup Considerations: Revenue Recognition Schedules on page 897
Concept: Revenue Recognition on page 912
Tasks
Create Revenue Recognition Schedules for Customer Contracts on page 905

Reference: Revenue Recognition Currency Conversion Rates for Foreign Currency

Customer Contracts
Workday provides these currency conversion rates for revenue recognition schedules and accounting
when you create customer contracts in foreign currencies:
• Blended Rates on page 917
• Invoice Rates on page 918
• Contract Effective Date on page 919
• Revenue Recognition Installment Date on page 920
• Schedule Override Rate on page 923

Blended Rates
Workday only supports blended rates on foreign currency revenue recognition schedules and accounting
created before September 10, 2022. When billing occurs before revenue recognition, Workday derives
the foreign currency conversion rate for revenue recognition installments and accounting using a weighted
average calculation.
Scenario: Your company base currency is USD and you create a customer contract in EUR. The
conversion rate on the contract effective date is 1.350. You invoice the customer quarterly, but recognize
revenue from the contract monthly.
Billing and Revenue Schedule

Month Conversion Rate Billing in EUR Revenue in EUR

January 1.360 30,000 10,000
February 1.370 10,000
March 1.375 10,000
April 1.365 30,000 10,000
May 1.350 10,000
June 1.360 10,000
July 1.375 30,000 10,000
August 1.355 10,000
September 1.365 10,000
October 1.370 30,000 10,000
November 1.345 10,000
December 1.355 10,000
Total 120,000 120,000

Billing and Revenue Schedule - Foreign Currency Conversion Rates on Contract Date

Conversion Rate Billing in USD Revenue in USD Net Deferred Balance

in USD
1.350 40,800 13,500 27,300
1.350 13,500 13,800
1.350 13,500 300
1.350 40,950 13,500 27,750
1.350 13,500 14,250
1.350 13,500 750
1.350 41,250 13,500 28,500
1.350 13,500 15,000
1.350 13,500 1,500
1.350 41,100 13,500 29,100
1.350 13,500 15,600

Conversion Rate Billing in USD Revenue in USD Net Deferred Balance

in USD
1.350 13,500 2,100
Total 164,100 162,000 2,100

Invoice Rates
Workday only supports invoice rates on foreign currency revenue recognition schedules and accounting
created before September 10, 2022. When billing occurs before revenue recognition, Workday derives
the foreign currency conversion rate for revenue recognition installments and accounting using the invoice
rate.
Scenario: Your company base currency is USD and you create a customer contract in EUR. The
conversion rate on the contract effective date is 1.350. You invoice the customer quarterly, but recognize
revenue from the contract monthly.
Billing and Revenue Schedule

Month Conversion Rate Billing in EUR Revenue in EUR

Billing and Revenue Schedule - Foreign Currency Conversion Rates on Invoice Date

Conversion Rate Billing in USD Revenue in USD Net Deferred Balance

in USD
1.360 40,800 13,600 27,200
1.360 13,600 13,600
1.360 13,600 0
1.365 40,950 13,650 27,300
1.365 13,650 13,650
1.365 13,650 0
1.375 41,250 13,750 27,500

Conversion Rate Billing in USD Revenue in USD Net Deferred Balance

in USD
1.375 13,750 13,750
1.375 13,750 0
1.370 41,100 13,700 27,400
1.370 13,700 13,700
1.370 13,700 0
Total 164,100 164,100 0

Contract Effective Date

When you set the default currency conversion rate on the revenue recognition schedule to contract
effective date, Workday uses the contract effective date to determine the currency conversion rate.
Example: You create a foreign currency customer contract:

You create revenue recognition installments:

Installment Installment Date Revenue Amount Conversion Rate Revenue Amount

in Base Currency
1 09/30/2022 1,000 EUR 1.5 1,500 USD
2 10/31/2022 1,000 EUR 1.5 1,500 USD
3 11/30/2022 1,000 EUR 1.5 1,500 USD
4 12/31/2022 1,000 EUR 1.5 1,500 USD
5 01/31/2023 1,000 EUR 1.5 1,500 USD
6 02/28/2023 1,000 EUR 1.5 1,500 USD
7 03/31/2023 1,000 EUR 1.5 1,500 USD
8 04/30/2023 1,000 EUR 1.5 1,500 USD
9 05/31/2023 1,000 EUR 1.5 1,500 USD
10 06/30/2023 1,000 EUR 1.5 1,500 USD
11 07/31/2023 1,000 EUR 1.5 1,500 USD
12 08/31/2023 1,000 EUR 1.5 1,500 USD

Installment Installment Date Revenue Amount Conversion Rate Revenue Amount

in Base Currency
Total 12,000 EUR 18,000 USD

The Conversion Rate and Revenue Amount in Base Currency display on the revenue recognition
schedule once you generate accounting.
You create revenue recognition accounting:

Run Accounting
Installment
Ledger Debit Credit Conversion
Ledger Ledger Calculation
Date Date Date Account Amount Amount Rate Debit Credit
Amount Amount
10/01/202209/30/202209/30/2022Deferred 1,000 1.5 1,500 Base
Revenue EUR USD currency
or amount
Unbilled converted
Receivables using
the rate
for the
contract
effective
date:
1,000
EUR ×
1.5 =
1,500
USD

Revenue 1,000 1.5 1,500

EUR USD
11/01/202210/31/202210/31/2022Deferred 1,000 1.5 1,500 Base
Revenue EUR USD currency
or amount
Unbilled converted
Receivables using
the rate
for the
contract
effective
date:
1,000
EUR ×
1.5 =
1,500
USD

Revenue 1,000 1.5 1,500

EUR USD

Revenue Recognition Installment Date

When you set the default currency conversion rate on the revenue recognition schedule to revenue
recognition installment date, Workday uses the installment date to determine the currency conversion
rate. When there isn't a rate for the installment date, Workday uses the rate for the most recent date when

you generate revenue recognition installments and accounting. After you generate revenue recognition
accounting, the rates on the revenue recognition installment lines match the rates on the operational
journal lines.
Example: You create a foreign currency customer contract:

Option Value
Contract Line Amount 12,000 EUR
Term 12 Months
Contract Effective Date 09/01/2022
Conversion Rate 1.5
Base Currency Amount 18,000 USD
Transaction Currency Amount/Period 1,000 EUR
Installment Date 09/30/2022
Conversion Rate 2.0
Base Currency Amount 24,000
Base Currency Amount/Period 2,000 USD
Installment Date 10/31/2022
Conversion Rate 1.8
Base Currency Amount 21,600 USD
Base Currency Amount/Period 1,800 USD

You create revenue recognition installments:

Installment Installment Date Revenue Amount Conversion Rate Revenue Amount

in Base Currency
1 09/30/2022 1,000 EUR 2.0 2,000 USD
2 10/31/2022 1,000 EUR 1.8 1,800 USD
3 11/30/2022 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
4 12/31/2022 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
5 01/31/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
6 02/28/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
7 03/31/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
8 04/30/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
9 05/31/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting

Installment Installment Date Revenue Amount Conversion Rate Revenue Amount

in Base Currency
10 06/30/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
11 07/31/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
12 08/31/2023 1,000 EUR Determined at the Determined at the
time of accounting time of accounting
Total 12,000 EUR

The Conversion Rate and Revenue Amount in Base Currency display on the revenue recognition
schedule once you generate accounting.
You create revenue recognition accounting:

Run Accounting
Installment
Ledger Debit Credit Conversion
Ledger Ledger Calculation
Date Date Date Account Amount Amount Rate Debit Credit
Amount Amount
10/01/202209/30/202209/30/2022Deferred 1,000 2.0 2,000 Base
Revenue EUR USD currency
or amount
Unbilled converted
Receivables using
the
effective
conversion
rate
for the
posting
period:
1,000
EUR ×
2.0 =
2,000
USD

Revenue 1,000 2.0 2,000

EUR USD
11/01/202210/31/202210/31/2022Deferred 1,000 1.8 1,800 Base
Revenue EUR USD currency
or amount
Unbilled converted
Receivables using
the
effective
conversion
rate
for the
posting
period:
1,000
EUR ×

Run Accounting
Installment
Ledger Debit Credit Conversion
Ledger Ledger Calculation
Date Date Date Account Amount Amount Rate Debit Credit
Amount Amount
1.8 =
1,800
USD

Revenue 1,000 1.8 1,800

EUR USD

Schedule Override Rate

When you set the default currency conversion rate on the revenue recognition schedule to schedule
override rate, Workday uses the schedule override rate you specify to determine the currency conversion
rate.
Example: You create a foreign currency customer contract:

Option Value
Contract Line Amount 12,000 EUR
Term 12 Months
Contract Effective Date 09/01/2022
Conversion Rate 1.5
Base Currency Amount 18,000 USD
Base Currency Amount/Period 1,500 USD
Transaction Currency Amount/Period 1,000 EUR
Conversion Override Rate 1.7
Base Currency Amount 20,400 USD
Base Currency Amount/Period 1,700 USD

You create revenue recognition installments:

Installment Installment Date Revenue Amount Conversion Rate Revenue Amount

in Base Currency
1 09/30/2022 1,000 EUR 1.7 1,700 USD
2 10/31/2022 1,000 EUR 1.7 1,700 USD
3 11/30/2022 1,000 EUR 1.7 1,700 USD
4 12/31/2022 1,000 EUR 1.7 1,700 USD
5 01/31/2023 1,000 EUR 1.7 1,700 USD
6 02/28/2023 1,000 EUR 1.7 1,700 USD
7 03/31/2023 1,000 EUR 1.7 1,700 USD
8 04/30/2023 1,000 EUR 1.7 1,700 USD
9 05/31/2023 1,000 EUR 1.7 1,700 USD
10 06/30/2023 1,000 EUR 1.7 1,700 USD

Installment Installment Date Revenue Amount Conversion Rate Revenue Amount

in Base Currency
11 07/31/2023 1,000 EUR 1.7 1,700 USD
12 08/31/2023 1,000 EUR 1.7 1,700 USD
Total 12,000 EUR 20,400 USD

The Conversion Rate and Revenue Amount in Base Currency display on the revenue recognition
schedule once you generate accounting.
You create revenue recognition accounting:

Run Accounting
Installment
Ledger Debit Credit Conversion
Ledger Ledger Calculation
Date Date Date Account Amount Amount Rate Debit Credit
Amount Amount
10/01/202209/30/202209/30/2022Deferred 1,000 1.7 1,700 Base
Revenue EUR USD currency
or amount
Unbilled converted
Receivables using
the
override
rate
for the
schedule:
1,000
EUR ×
1.7 =
1,700
USD

Revenue 1,000 1.7 1,700

EUR USD
11/01/202210/31/202210/31/2022Deferred 1,000 1.7 1,700 Base
Revenue EUR USD currency
or amount
Unbilled converted
Receivables using
the
override
rate
for the
schedule:
1,000
EUR ×
1.7 =
1,700
USD

Revenue 1,000 1.7 1,700

EUR USD

Related Information
Concepts
Concept: Foreign Currency Customer Contracts on page 851
Concept: Revenue Recognition Accounting on page 940
Tasks
Create Revenue Recognition Schedules for Customer Contracts on page 905
Reference
Reference: Edit Tenant Setup - Financials

Example: Create Accounting Using Blended Rates for Foreign Currency Customer
Contracts
This example illustrates how to create revenue recognition accounting using blended rates for foreign
currency customer contracts. This method only applies to foreign currency revenue recognition schedules
and accounting created before September 10, 2022.

Context
You have a customer that operates in Canadian Dollar (CAD), but your company reports in United States
Dollar (USD). You need to create:
• A customer contract with a Fixed Amount line type of 3,000 CAD and a Deferred revenue treatment.
• A billing schedule using a Spread Even billing method and 3 installments.
• A revenue recognition schedule using a Number of Days revenue recognition method and 3
installments.
• A customer invoice for the billing installments.
• Revenue recognition accounting for the revenue recognition installments.

Prerequisites
Configure these business processes and security policies in the Customer Contracts and Project Billing
functional areas:
• Billing Schedule Event
• Customer Contract Event
• Customer Invoice Event
• Revenue Recognition Installment Event
• Revenue Recognition Schedule Event
Security: These domains in the Customer Contracts and Project Billing functional areas:
• Process: Billing Schedule - Core
• Process: Revenue Schedule - Core

Steps
1. Access the Create Customer Contract task.
2. In the Contract Information section, select:

Field Value
Company 500.1 Global Modern Services, Inc. (USA)
Customer Bluestar Corporation
Contract Type Grid Form
3. Click OK.

4. In the Contract Information section, select:

Field Value
Currency CAD
Effective Date 01/01/2020
5. In the Contract Amounts and Balances section, enter 3,000 in the Contract Amount field.
6. In the Line Details section on the Goods and Services tab, add a row and enter:

Field Value
Revenue Category Product
Line Type Fixed Amount
Contract Line Amount 3,000
7. In the Revenue and Billing section on the Goods and Services tab, select Deferred from the
Revenue Treatment prompt.
8. Click Submit.
9. Access the customer contract for Bluestar Corporation.
10.From the related actions menu, select Customer Contract > Create Billing Schedule.
11.Click OK.
12.In the Generate Installment Information section, select:

Field Value
Billing Method Spread Even
Billing Frequency Monthly
From Date 01/01/2020
Number of Installments 3
13.In the Invoice Date Options section, select the Use From Date option.
14.In the Add Lines grid, select the Add check box for the contract line you created.
15.Click Save and Continue.
16.Click Generate Installments.
17.Click OK.
18.Click Submit.
19.Expand the Billing Schedule Information section to view these installments that Workday creates on
the billing schedule:

Status Invoice Due Date From Date To Date Total Line Amount
Date Amount
Available 01/01/2020 01/31/2020 01/01/2020 01/31/2020 1,000 Product 1,000
(Line 1)
Available 02/01/2020 03/02/2020 02/01/2020 02/29/2020 1,000 Product 1,000
(Line 1)
Available 03/01/2020 03/31/2020 03/01/2020 03/31/2020 1,000 Product 1,000
(Line 1)
20.Click OK.
21.Click Done.

22.Access the customer contract for Bluestar Corporation.

23.From the related actions menu, select Customer Contract > Create Revenue Recognition Schedule.
24.Click OK.
25.In the Generate Installment Information section, select:

Field Value
Revenue Recognition Method Number of Days
From Date 01/01/2020
Number of Installments 3
26.Click Save and Continue.
27.Click Generate Installments.
28.Click OK.
29.Click Submit.
30.Expand the Revenue Recognition Schedule Information section to view these installments that
Workday creates on the revenue recognition schedule:

Status Installment
From To Total Currency
Line Revenue
From To Revenue
Currency
Amount
Date Date Date Amount Category
Date Date AmountRate in
Base
Currency
Available
01/31/2020
01/01/2020
01/31/2020
1,021.98CAD Product Product01/01/2020
01/31/2020
1,021.980.861338
880.27
(Line
1)
Available
02/29/2020
02/01/2020
02/29/2020
956.04 CAD Product Product02/01/2020
02/29/2020
956.04 0.861334
823.47
(Line
1)
Available
03/31/2020
03/01/2020
03/31/2020
1,021.98CAD Product Product03/01/2020
03/31/2020
1,021.980.861338
880.27
(Line
1)

When you create a revenue recognition schedule before invoicing, the installments temporarily use the
effective date on the customer contract to determine the currency rate. Workday also uses the effective
date on the customer contract for the Amount in Base Currency calculation. Workday calculates the
Amount in Base Currency by multiplying the Revenue Amount by the Currency Rate.
31.Click OK.
32.Click Done.
33.Access the billing schedule for Bluestar Corporation.
34.From the related actions menu of an installment, select Billing Installment > Create Customer
Invoice.
35.Click OK.
36.Click Refresh until Workday generates the customer invoice.
37.From the related actions menu of the customer invoice drill-down, select Accounting > View
Accounting.

38.On the Journal Lines tab, view these journal lines that Workday creates on the operational journal:

Ledger Debit Credit Currency Currency Ledger Ledger Ledger

Account Amount Amount Rate Debit Credit Currency
Amount Amount
Accounts 1,088.75 CAD 0.861334 937.77 USD
Receivable
Taxes 88.75 CAD 0.861334 76.44 USD
Payable
Deferred 1,000 CAD 0.861334 861.33 USD
Revenue

Workday updates the revenue recognition installments with the currency rate from the customer invoice.
This method ensures that your billing and revenue recognition balances remain reconciled.
39.Access the revenue recognition schedule for Bluestar Corporation.
40.From the related actions menu of an installment, select Revenue Recognition Installment > Create
Revenue Recognition Accounting.
41.Select the Revenue Recognition Installments check box.
42.Click OK.
43.Click Refresh until Workday generates the revenue recognition accounting.
44.Click the drill-down in the Journal column to view these journal lines that Workday creates on the
operational journal:

Ledger Debit Credit Currency Currency Ledger Ledger Ledger

Account Amount Amount Rate Debit Credit Currency
Amount Amount
Deferred 1,021.98 CAD 0.861328 880.26 USD
Revenue
Revenue 1,021.98 CAD 0.861328 880.26 USD

Workday determines the Currency Rate by dividing the Ledger Debit Amount by the Debit Amount.

Result
You can view reconciled foreign currency billing and revenue balances at the end of the period.
Related Information
Concepts
Concept: Foreign Currency Customer Contracts on page 851
Concept: Revenue Recognition Accounting on page 940
Tasks
Create Customer Contracts on page 839
Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
Create Revenue Recognition Schedules for Customer Contracts on page 905
Create Customer Invoices for Billing Installments on page 893
Maintain Currency Conversion Rates
Reference
Reference: Revenue Recognition Currency Conversion Rates for Foreign Currency Customer Contracts on
page 916

Period End Revenue Accounting

Setup Considerations: Period End Revenue Accounting

You can use this topic to help make decisions when planning your configuration and use of period end
revenue accounting. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Period end revenue accounting enables you to create reclassification adjustments for deferred revenue
balances on a customer contract. You can use period end accounting to adjust deferred revenue balances
to zero when your company has:
• Deferred and accrued revenue adjustments deriving from multiple-element arrangements with revenue
allocations.
• Foreign exchange gain or loss adjustments deriving from foreign currency customer contracts.

Business Benefits
Workday automates the accounting reconciliation process and improves reporting with period end
accounting by enabling you to create reclassification adjustments for deferred revenue balances. Creating
reclassification adjustments ensures that you properly relieve deferred revenue balances at the end of a
customer contract term.

Use Cases
Use period end accounting to:
• Calculate the difference between billing and revenue recognition amounts that have different exchange
rates.
• Reclassify deferred and accrued revenue balances for customer contracts that have multiple-element
revenue allocations.
• Post operational journals for deferred, accrued, and asset and liability reclassifications.

Questions to Consider

Subjects Questions Considerations

Carve In/Carve Out Adjustments How do you reclassify deferred You can create carve in/carve out
and accrued revenue balances adjustment journals to reclassify
for customer contracts that deferred and accrued revenue
have multiple-element revenue balances.
allocations?
Carve In/Carve Out Adjustments Where do your operational Workday creates operational
journals for deferred revenue journals for deferred revenue
reclassifications post? among customer contract lines.
When you use the same Deferred
Revenue ledger account for each

Subjects Questions Considerations

customer contract line, the journal
posts to the same ledger account.

Carve In/Carve Out Adjustments Where do your operational Workday creates operational
journals for accrued revenue journals for unbilled receivables
reclassifications post? among customer contract lines.
When you use the same Unbilled
Receivables ledger account for
each customer contract line, the
journal posts to the same ledger
account.

Carve In/Carve Out Adjustments Which ledger accounts do you Carve in/carve out adjustments
debit and credit for carve in/carve impact these ledger accounts:
out adjustments?
• Deferred Revenue for
customer contract lines with a
deferred revenue treatment.
• Unbilled Receivables for
customer contract lines with
an accrued revenue treatment.
When the adjustment results in a:
• Positive amount for the period,
Workday credits the ledger
account.
• Negative amount for the
period, Workday debits the
ledger account.
(Optional) You can
configure dimensions in the
account posting rules for
Workday to use when creating
operational journals. Example:
For the Deferred Revenue
and Unbilled Receivables
account posting rules, you can
configure Customer Group or
Project Hierarchy. You can also
configure custom organization
and custom worktag dimensions.

Foreign Currency Adjustments How do you account for foreign When there are billing
currency gain or loss amounts on and revenue recognition
a customer contract? discrepancies due to conversion
rates, you can create foreign
currency adjustment journals to
calculate the difference.
Foreign Currency Adjustments Which ledger accounts do you Foreign currency adjustments
debit and credit for foreign impact these ledger accounts
currency gain or loss? when you enable realized gain or
loss as the offset account posting
rule in the foreign currency
adjustment rules:

Subjects Questions Considerations

• Realized Currency Gain
• Realized Currency Loss
When the adjustment results in a:
• Positive amount for the period,
Workday credits the Realized
Currency Gain ledger account
and debits either the Deferred
Revenue ledger account for
customer contract lines with
a deferred revenue treatment
or the Unbilled Receivables
ledger account for customer
contract lines with an accrued
revenue treatment.
• Negative amount for the
period, Workday debits the
Realized Currency Loss
ledger account and credits
either the Deferred Revenue
ledger account for customer
contract lines with a deferred
revenue treatment or the
Unbilled Receivables ledger
account for customer contract
lines with an accrued revenue
treatment.
(Optional) You can
configure dimensions in the
account posting rules for
Workday to use when creating
operational journals. Example:
For the Deferred Revenue
and Unbilled Receivables
account posting rules, you can
configure Customer Group or
Project Hierarchy. You can also
configure custom organization
and custom worktag dimensions.

Foreign Currency Adjustments Which ledger accounts do you Foreign currency adjustments
debit and credit for foreign impact the Revenue ledger
currency revenue? account when you enable
revenue as the offset account
posting rule in the foreign
currency adjustment rules.
When the adjustment results in a:
• Positive amount for the period,
Workday credits the Revenue
ledger account and debits
either the Deferred Revenue
ledger account for customer
contract lines with a deferred

Subjects Questions Considerations

revenue treatment or the
Unbilled Receivables ledger
account for customer contract
lines with an accrued revenue
treatment.
• Negative amount for the
period, Workday debits the
Revenue ledger account and
credits either the Deferred
Revenue ledger account for
customer contract lines with
a deferred revenue treatment
or the Unbilled Receivables
ledger account for customer
contract lines with an accrued
revenue treatment.
(Optional) You can
configure dimensions in the
account posting rules for
Workday to use when creating
operational journals. Example:
For the Deferred Revenue
and Unbilled Receivables
account posting rules, you can
configure Customer Group or
Project Hierarchy. You can also
configure custom organization
and custom worktag dimensions.

Customer Contract Asset and Where do operational journals When the customer contract
Liability Reclassifications for customer contract asset and has more revenue recognized
liability reclassifications post? than billed, Workday creates
operational journals that:
• Debit the Unbilled Receivables
ledger account.
• Credit the Deferred Revenue
ledger account.
Workday also reverses the
operational journal on the first day
of the next period.

Recommendations
When many customer contracts require foreign currency adjustments, Workday recommends that you
schedule the creation of adjustment journals to reduce manual effort.

Requirements

Features Considerations
Account Posting Rules To configure account posting rules for foreign
currency adjustments, create customer contract
foreign currency adjustment rules.
Customer Contract Lines When you create a multiple-element arrangement,
you must have at least 2 customer contract lines
with a deferred or accrued revenue treatment.

Limitations

Features Considerations
Accounting Periods You can only create period end adjustments for
open ledger periods.
Linked Customer Contracts Workday excludes parent customer contracts and
linked customer contracts from adjustments when:
• The transaction currency of the linked customer
contracts doesn't match the transaction currency
of the parent customer contract.
• The base currency of the linked customer
contracts doesn't match the base currency of the
parent customer contract.
• The linked customer contracts have different
transaction or base currencies.
Workday doesn't support parent customer contracts
or linked customer contracts on asset and liability
reclassification journals.

Prepaid Customer Contracts With period end revenue accounting, Workday:

• Excludes prepaid billing schedule types.
• Supports customer contracts with prepaid line
types.
• Supports prepaid lines on consolidated billing
schedules.

Variable Line Customer Contracts Workday excludes all customer contracts with
variable line types from carve in/carve out
adjustments.
Customer Contract Asset and Liability When you rerun the reclassification process,
Reclassification Journals Workday cancels existing reclassification journal
entries for the company, year, and period when the
process completes.
When you enable the business process, Workday
cancels the reclassification journal entries when
you complete the final approval.

Worktag Balancing Workday doesn't support worktag balancing for

carve in/carve out adjustment journals.

Tenant Setup
In the Customer Contracts Options section on the Edit Tenant Setup - Financials task, select the Include
Closed Revenue Recognition Installments in Period-End Revenue Accounting check box to include
closed installments in the total revenue recognized amount calculation.

Security

Domains Considerations
Process: Billing Schedule - Core in the Customer Create billing schedules for customer contracts.
Contracts and Project Billing functional areas.
Process: Revenue - Adjustments in the Customer • View accounting for contract asset and liability
Contracts and Project Billing functional areas. reclassifications.
• View accounting for customer contract
adjustments.

Reports: Financial Accounting in the Financial View reports for ledger details.
Accounting functional area.
Set Up: Revenue - Adjustments in the Customer • Create, edit, and view foreign currency
Contracts and Project Billing functional areas. adjustment rules for customer contracts.
• Create foreign currency adjustment account
posting rules.

Set Up: Tenant Setup - Financials in the System Include closed revenue recognition installments in
functional area. the total revenue recognized amount calculation.

Business Processes

Business Processes Considerations

Carve In Carve Out or Foreign Currency Create and approve carve in/carve out and foreign
Adjustment Journal Event currency adjustment journals.
Customer Contract Asset and Liability Create and approve customer contract asset and
Reclassification Journal Event liability reclassification journals.
Customer Contract Event Create and approve customer contracts.
Revenue Recognition Schedule Event Create and approve revenue recognition schedules.

Reporting

Reports Considerations
Customer Contract Asset and Liability View and drill into asset and liability reclassification
Reclassification Lines for Contract Lines lines for customer contract lines.
Find Carve In/Carve Out Adjustment Journals View and drill into carve in/carve out adjustment
journals.
Find Carve In/Carve Out Adjustment Runs View and drill into carve in/carve out adjustment
runs.
Find Customer Contract Asset and Liability View and drill into asset and liability reclassification
Reclassification Journals journals for customer contracts.

Reports Considerations
Find Customer Contract Foreign Currency View and drill into foreign currency adjustment
Adjustment Journals journals for customer contracts.
Find Customer Contract Foreign Currency View and drill into foreign currency adjustment runs
Adjustment Runs for customer contracts.
Find Journals View journals by year and period.
Intercompany Payables and Receivables View intercompany transactions associated with
Reconciliation carve in/carve out adjustment journals for on-behalf
intercompany contracts.
Ledger Detail View a summary of ledger balances by year and
period.
View Customer Contract Foreign Currency View foreign currency adjustment rules for
Adjustment Rule customer contracts.

You can use these report data sources to create custom reports that display adjustment information:
• Carve In Carve Out Adjustment Lines
• Customer Contract Adjustment Runs
• Customer Contract Adjustments
• Customer Contract Asset and Liability Reclassification Line for Contract Lines
• Customer Contract Asset and Liability Reclassification Lines
• Customer Contract Fx Adjustment Lines

Integrations

Web Services Considerations

Put Ad Hoc Project Transaction Use to include closed billable transactions in the
total billed amount calculation.
Put Usage Based Transaction Use to include closed billable transactions in the
total billed amount calculation.
Submit Billing Schedule Use to include closed billing installments in the total
billed amount calculation.

Connections and Touchpoints

Features Considerations
Customer Contracts Create revenue recognition schedules for period
end accounting.
Financial Accounting Create operational journals for period end
accounting.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Reference
Reference: Edit Tenant Setup - Financials
Reference: Period End Revenue Accounting Reclassification Calculations on page 941

2020R1 What's New Post: Carve In or Carve Out and Foreign Currency Adjustments
The Next Level: Recognizing Revenue by Contract Asset (Unbilled Receivables)
The Next Level: Carve-In/Carve-Out and Foreign Currency Adjustments

Steps: Reclassify Customer Contract Assets and Liabilities

Prerequisites
Review setup considerations for period end revenue accounting.

Context
You can configure Workday to manage your period end accounting to adjust deferred revenue balances to
zero when your company has:
• Deferred and accrued revenue adjustments deriving from multiple-element arrangements with revenue
allocations.
• Foreign exchange gain or loss adjustments deriving from foreign currency customer contracts.
When you run period end accounting, Workday creates an operational journal:
• In the selected period.
• Reversal at the beginning of the next period.
Workday doesn't calculate or post accruals or reversals that relate to linked contracts or prepaid
schedules.

Steps
1. (Optional) Access the Edit Tenant Setup - Financials task.
Select the Include Closed Revenue Recognition Installments in Period-End Revenue Accounting
check box to include closed revenue recognition installments in the total revenue recognized amount
calculation.
See Reference: Edit Tenant Setup - Financials.
Security: Set Up: Tenant Setup - Financials in the System functional area.
2. (Optional) Set Up Account Posting Rules on page 71.
Select:
a. Reclassification from the Dimension prompt.
b. Customer Contract Asset and Liability from the Values prompt for these ledger accounts:
• Deferred Revenue
• Unbilled Receivables
3. Access the Maintain Journal Source Mapping to Operational Transactions task.
To post operational journals, select Customer Contract Asset and Liability Reclassification from the
Customer Contract Asset and Liability Reclassification Journal Entry Source prompt.
Security:
• Set Up: Journal Source domain in the Common Financial Management functional area.
• Set Up: Payroll - Company Specific (Accounting) domain in the Core Payroll functional area.
4. (Optional) Configure Worktag Balancing Rule Sets for Transaction Journals on page 288.
When you use worktag balancing, select an option from the Default Worktag for Customer Contract
Asset and Liability Reclassification prompt to balance your operational journals.
Note: Carve in/carve out adjustment tasks don't support worktag balancing.
5. Create Customer Contracts on page 839.
Add at least 1 contract line with an Accrued or Deferred revenue treatment.

6. (Optional) Access the Maintain Schedule Types task.

When you want to create a consolidated billing schedule, enable consolidated billing for a schedule
type.
Security: Set Up: Customer Contracts - Templates and Types domain in the Customer Contracts and
Project Billing functional areas.
7. Create a billing schedule for the customer contract.
See:
• Create Consolidated Billing Schedules for Customer Contracts on page 877
• Create Installment or Transaction Billing Schedules for Customer Contracts on page 882
8. Create Revenue Recognition Schedules for Customer Contracts on page 905.
9. Create Customer Invoices for Billing Installments on page 893.
10.Access the Create Revenue Recognition Accounting task.
Create accounting for the relevant revenue recognition installments.
Configure the Revenue Recognition Installment Event business process and security policy in the
Customer Contracts and Project Billing functional areas.
11.(Optional) Access 1 of these tasks to reclassify deferred revenue balances for customer contracts that
have multiple-element revenue allocation:
• Create Carve In/Carve Out Adjustment Journal
• Schedule Carve In/Carve Out Adjustment Journal
Workday creates an operational journal to post the reclassification using the dimensions that you
configure in the account posting rules. Example: For the Deferred Revenue and Unbilled Receivables
account posting rules, you can configure Customer Group, Project Hierarchy, custom organization, and
custom worktag dimensions.
Configure the Carve In Carve Out or Foreign Currency Adjustment Journal Event business process and
security policy in the Customer Contracts and Project Billing functional areas.
12.(Optional) Access the Create Customer Contract Foreign Currency Adjustment Rule task.
Define account posting rules and worktags for foreign currency adjustments.
Security: Set Up: Revenue - Adjustments domain in the Customer Contracts and Project Billing
functional areas.
13.(Optional) Access 1 of these tasks to calculate the difference between your billing and revenue
recognition based on transaction periods and exchange rates:
• Create Customer Contract Foreign Currency Adjustment Journal
• Schedule Customer Contract Foreign Currency Adjustment Journal
Workday creates an operational journal based on the foreign currency rules that you define for your
adjustments. You can also configure dimensions in the account posting rules for Workday to use when
creating operational journals. Example: For the Deferred Revenue and Unbilled Receivables account
posting rules, you can configure Customer Group, Project Hierarchy, custom organization, and custom
worktag dimensions.
When there's a prepaid balance in base currency after you fully apply prepaid amounts due to the
exchange rate differences between your prepaid invoice and the consumption invoices, Workday
adjusts the amount when you complete 1 of the tasks. Workday only adjusts amounts for:
• Customer contracts with prepaid line types.
• Prepaid lines on consolidated billing schedules.
Configure the Carve In Carve Out or Foreign Currency Adjustment Journal Event business process and
security policy in the Customer Contracts and Project Billing functional areas.

14.Access 1 of these tasks to create asset and liability reclassification journals:

• Create Customer Contract Asset and Liability Reclassification Journal
• Schedule Customer Contract Asset and Liability Reclassification Journal
Configure the Customer Contract Asset and Liability Reclassification Journal Event business process
and security policy in the Customer Contracts and Project Billing functional areas.

Result
Workday uses the revenue treatment and account posting rules to debit or credit your Deferred Revenue
and Unbilled Receivables ledger accounts.

Next Steps
Use these reports to view your reclassification journals:
• Find Journals
• Find Customer Contract Asset and Liability Reclassification Journals
Related Information
Concepts
Setup Considerations: Period End Revenue Accounting on page 929
Concept: Revenue Recognition Accounting on page 940
Reference
Reference: Period End Revenue Accounting Reclassification Calculations on page 941
What's New Post: Automatically Reclassify Customer Contract Assets and Liabilities
2020R1 What's New Post: Carve In or Carve Out and Foreign Currency Adjustments
The Next Level: Recognizing Revenue by Contract Asset (Unbilled Receivables)
The Next Level: Carve-In/Carve-Out and Foreign Currency Adjustments

Steps: Configure Derivation Rules for Billable Supplier Invoices

Prerequisites
Create a billable:
• Project.
• Supplier invoice associated with a company that's different from the project company.

Context
You can configure revenue company derivation rules to post accounting for billable supplier invoices using
the project company or the supplier invoice line company. Workday posts accounting for billable supplier
invoices using the supplier invoice line company when you don't configure derivation rules. When you
create a billable supplier invoice associated with a company that's different from the project company,
Workday creates on-behalf-of intercompany transactions.

Steps
1. Configure Project Cost and Revenue in Project Hierarchies on page 970.
Select 1 of these options from the Revenue Company is from prompt:
• Project to post revenue for billable supplier invoices using the company on the project.
• Supplier Invoice Line to post revenue for billable supplier invoices using the company on the supplier
invoice line.
2. Create Customer Contracts on page 839.
The company on the customer contract must be the same as the company on the project.

3. (Optional) Create Installment or Transaction Billing Schedules for Customer Contracts on page 882.
When the line type on the customer contract line is Project Time and Expense, create a transaction
billing schedule. The company on the billing schedule must be the same as the company on the project.
Select Transaction from the Billing Type prompt.
4. (Optional) Create Consolidated Billing Schedules for Customer Contracts on page 877.
When the customer contract has different line types that you want to include on 1 billing schedule,
create a consolidated billing schedule. The company on the billing schedule must be the same as the
company on the project.
Select a schedule type enabled for consolidated billing from the Schedule Type prompt.
5. (Optional) Create Revenue Recognition Schedules for Customer Contracts on page 905.
When the revenue treatment on the customer contract line is Accrued or Deferred, create a revenue
recognition schedule. The company on the revenue recognition schedule must be the same as the
company on the project.
Select:
• Transaction from the Revenue Recognition Method prompt.
• The Independent Revenue Processing check box.
6. (Optional) Access the Create Customer Invoices for Billable Transactions task.
When you use a transaction billing schedule, create customer invoices for billable transactions.
Security:
• Process: Billing - Invoicing domain in the Customer Contracts and Project Billing functional areas.
• Process: Project Billing - Invoicing domain in the Project Billing functional area.
7. (Optional) Create Customer Invoices from Contracts on page 895.
When you use a consolidated billing schedule, create customer invoices from contracts.
8. (Optional) Create Revenue Installments for Billable Transactions on page 911.
When the revenue treatment on the customer contract line is Accrued or Deferred, create revenue
installments for billable transactions.
9. (Optional) Access the Create Revenue Recognition Accounting task.
When the revenue treatment on the customer contract line is Accrued or Deferred, create revenue
recognition accounting.
Configure the Revenue Recognition Installment Event business process and security policy in the
Customer Contracts and Project Billing functional areas.

Result
When the revenue treatment on the customer contract line is:
• Invoice, Workday posts accounting at the time of invoicing. Workday posts revenue accounting for
the customer invoice lines using the company derivation rules that you configure for billable supplier
invoices. When the company on the customer invoice line is different from the company on the header,
Workday creates intercompany accounting.
• Accrued or Deferred, Workday posts accounting at the time of revenue recognition accounting.
Workday posts revenue accounting for the installment lines using the company derivation rules that
you configure for billable supplier invoices. When the company on the installment line of the revenue
recognition schedule is different from the company on the header, Workday creates intercompany
accounting.
Related Information
Tasks
Create Projects on page 1019
Create Supplier Invoices on page 1395

Concept: Revenue Recognition Accounting

You can create revenue recognition accounting for your revenue installments using these tasks:
• Create Revenue Recognition Accounting
• Schedule Revenue Recognition Accounting

Revenue Recognition Accounting

When you create accounting, Workday:
• Ignores revenue installments with pending milestones.
• Posts accounting using the dimensions that you configure in the account posting rules. Example:
For the Deferred Revenue and Unbilled Receivables account posting rules, you can configure
Customer Group or Project Hierarchy. You can also configure custom organization and custom worktag
dimensions.
• Processes revenue recognition installments individually, or in batches.
Workday then:
• Initiates the Revenue Recognition Installment Event business process and routes the accounting for
approval.
• Posts the accounting created for each installment in the relevant period, using the installment date as
the accounting date.
When you schedule accounting using the earliest open accounting period, Workday generates accounting
based on the earliest open period even when more than 1 period is open.
Workday displays the amount in base currency and the currency conversion rate on the completed
installment lines when you:
• Cancel completed installments that have accounting.
• Create new revenue recognition schedules with foreign currency and complete installments.
• Generate revenue recognition accounting.
When you create operational journal lines, Workday uses the currency conversion rate that you specify on
the Create Revenue Recognition Schedule for Customer Contract task to display the actual currency
rate for foreign currency installment lines. Once you generate accounting, the currency conversion rate on
the installment lines matches the currency conversion rate on the operational journal lines.
You can use the Find Journals report to ensure that the accounting posts correctly.
When you update usage-based transactions for which you created revenue recognition accounting, you
must:
• Cancel any existing revenue recognition accounting.
• Create new revenue recognition accounting.

Intercompany Revenue Recognition Accounting

Workday creates intercompany accounting when:
• You configure worktag derivation rules for time or expense transactions on a project hierarchy.
• The line company on the customer contract differs from the project or worker company.
For foreign currency customer contracts, Workday uses the contract effective date to post intercompany
accounting for the contract line company and the project or worker company when you:
• Configure worktag derivation rules for time or expense transactions on a project hierarchy.
• Select Contract Effective Date as the default currency rate on the Create Revenue Recognition
Schedule for Customer Contract task. You can only configure the currency conversion rate on new
revenue recognition schedules with foreign currency.

Related Information
Tasks
Create Customer Invoices from Contracts on page 895
Create Revenue Recognition Schedules for Customer Contracts on page 905
Steps: Reclassify Customer Contract Assets and Liabilities on page 936
Steps: Set Up Prepaid Billing Using Consolidated Billing Schedules on page 871
Reference
2022R2 What's New Post: Currency Conversion Rates for Revenue Recognition

Reference: Period End Revenue Accounting Reclassification Calculations

Closed Installments and Transactions in Period End Revenue Accounting Calculations

To include closed:
• Billable transactions in the total billed amount calculation, use the Put Ad Hoc Project Transaction and
Put Usage Based Transaction web services.
• Billing installments in the total billed amount calculation, use the Submit Billing Schedule web service.
• Revenue recognition installments in the total revenue recognized amount calculation, select the Include
Closed Revenue Recognition Installments in Period-End Revenue Accounting check box on the
Edit Tenant Setup - Financials task.

Carve In and Carve Out Reclassification Calculations

Revenue Treatment Criteria Calculation

Accrued Customer contract lines have Workday creates an operational
revenue allocation. journal that:
• Debits the Unbilled
Receivables ledger account
for negative amounts.
• Credits the Unbilled
Receivables ledger account
for positive amounts.

Deferred Customer contract lines have Workday creates an operational

revenue allocation. journal that:
• Debits the Deferred Revenue
ledger account for negative
amounts.
• Credits the Deferred Revenue
ledger account for positive
amounts.

Customer Contract Foreign Currency Reclassification Calculations

Revenue Treatment Criteria Calculation

Accrued and Deferred Billing and revenue recognition When you enable realized gain or
have discrepancies in base loss as the offset account posting
currency amounts due to foreign rule in the foreign currency
currency conversion rates. adjustment rules, Workday
creates an operational journal
that:

Revenue Treatment Criteria Calculation

• Debits the Realized Currency
Loss ledger account for
negative amounts.
• Credits the Realized Currency
Gain ledger account for
positive amounts.
When you enable revenue as the
offset account posting rule in the
foreign currency adjustment rules,
Workday creates an operational
journal that:
• Debits the Revenue ledger
account for negative amounts.
• Credits the Revenue ledger
account for positive amounts.

Customer Contract Asset and Liability Reclassification Calculations

Revenue Treatment Criteria Calculation

Accrued Billed amount is greater than Workday:
recognized revenue amount.
1. Subtracts the total recognized
revenue amount from the total
billed amount.
2. Creates an operational journal
using the difference to debit
the Unbilled Receivables
ledger account and credit
the Deferred Revenue ledger
account.
3. Creates a reversal operational
journal that credits the
Unbilled Receivables ledger
account and debits the
Deferred Revenue ledger
account in the next period.

Accrued Recognized revenue amount is No reclassification occurs.

greater than billed amount.
Deferred Billed amount is greater than No reclassification occurs.
recognized revenue amount.
Deferred Recognized revenue amount is Workday:
greater than billed amount.
1. Subtracts the total billed
amount from the total
recognized revenue amount.
2. Creates an operational journal
using the difference to debit
the Unbilled Receivables
ledger account and credit

Revenue Treatment Criteria Calculation

the Deferred Revenue ledger
account.
3. Creates a reversal operational
journal that credits the
Unbilled Receivables ledger
account and debits the
Deferred Revenue ledger
account in the next period.

Accrued and Deferred Workday:

1. Calculates reclassification for
all Accrued contract lines.
2. Calculates reclassification for
all Deferred contract lines.
3. Calculates the total from steps
1 and 2.
4. Creates an operational
journal using the total to debit
the Unbilled Receivables
ledger account and credit
the Deferred Revenue ledger
account.
5. Creates a reversal operational
journal that credits the
Unbilled Receivables ledger
account and debits the
Deferred Revenue ledger
account in the next period.

Related Information
Concepts
Setup Considerations: Period End Revenue Accounting on page 929
Tasks
Steps: Reclassify Customer Contract Assets and Liabilities on page 936
Reference
2020R1 What's New Post: Carve In or Carve Out and Foreign Currency Adjustments
The Next Level: Recognizing Revenue by Contract Asset (Unbilled Receivables)
The Next Level: Carve-In/Carve-Out and Foreign Currency Adjustments

ASC 606/IFRS 15

Steps: Compare Revenue Allocation Scenarios

Context
Revenue recognition rules require companies to present comparative financial statements using the new
ASC 606 revenue standards. You can create revenue allocation scenarios to compare and display in
reports.

Steps
1. Create Revenue Allocation Rules on page 945.
2. From the Maintain Revenue Allocation Scenarios report, click the Create Contract Set button to
access the Create Customer Contract Set task.
Enter a name for the contract set, or replace the contracts in an existing set with the contracts you
select.
Security: These domains in the Customer Contracts and Project Billing functional areas:
• Process: Alternate Customer Contract
• Process: Customer Contract - View
• Process: Revenue - Allocations
3. Access the Maintain Revenue Allocation Scenarios report.
Set up unique combinations of contract sets and revenue allocation rules to compare in your scenarios.
Security: These domains in the Customer Contracts and Project Billing functional areas:
• Process: Alternate Customer Contract
• Process: Revenue - Allocations

Result
You can compare revenue allocation scenarios for your contract sets.

Next Steps
View your revenue scenario reports on the Revenue Scenario Tool dashboard.
Related Information
Reference
The Next Level: ASC 606 | IFRS 15 Conversion

Create Alternate Contracts

Prerequisites
Security: Process: Customer Contract - View domain in the Customer Contracts and Project Billing
functional areas.

Context
The Accounting Standards Codification (ASC) Topic 606 and International Financial Reporting Standard
(IFRS) 15 revenue recognition rules require companies to present comparative financial statements. You
can create alternate contracts to model out your revenue in the old standard or new standard, based on
your business transition plan.

Steps
1. Access the Manage Customer Contract for Revenue Scenario task.
2. Select the customer contracts that you want to replicate as alternate contracts.

Result
You replicate the selected customer contracts as alternate contracts. Alternate contracts enable you to
model revenue scenarios without altering your actual customer contracts.

Next Steps
You can run multiple-element revenue allocations on your alternate contracts, similar to how you would run
allocations on your customer contracts.
Related Information
Reference
The Next Level: ASC 606 | IFRS 15 Conversion

Create Revenue Allocation Rules

Prerequisites
Security: Set Up: Revenue - Allocations domain in the Customer Contracts and Project Billing functional
areas.

Context
You can create revenue allocation rules that enable you to compare scenarios of your revenue allocations
and display them in reports. These scenarios and reports help you comply with the new Revenue
Recognition rules.

Steps
1. Access the Create Revenue Allocation Rule task.
2. As you complete this task, consider:
Option Description
Allocation Basis You can define how revenue is allocated
according to your Fair Value Price List.
Depending on which option you select, Workday
will automatically allocate the revenue according
to the percentages you define.
The lower and upper ranges are calculated based
off of the Lower Range Percentage and the
Upper Range Percentage percentages and the
Fair Value Price List.

Fair Value Price List You can select a Fair Value Price List to define
the standard selling price for an item.
You can define Fair Value Price Lists in
Workday using the Maintain Fair Value Price
List report.

Do Not Auto-Allocate Revenue Select this check box if you don't want Workday
to calculate revenue override amounts for all
contract lines.
You’ll be able to calculate the Revenue Override
Amount by selecting Run Allocation process on
the Run Multiple-Element Revenue Allocation
task.

3. (Optional) Create an Override Revenue Allocation Rule for each company that requires a separate
revenue allocation rule.

Result
The rules that you create populate revenue allocation information for your companies.

Next Steps
• Create customer contract sets.
• Create revenue allocation scenarios.

Concept: Alternate Contracts

Revenue recognition rules Accounting Standards Codification (ASC) Topic 606 and International Financial
Reporting Standard (IFRS) 15 require you to present comparative financial statements. You can replicate
your customer contracts as alternate contracts. Alternate contracts enable you to model your revenue
based on the current standard or the new standard, for your business transition plan without altering your
actual contracts.

Alternate Contract Business Process

You can manage your new and updated alternate contracts using the Customer Contract Alternate Event
business process to route for approval.

Alternate Linked Contracts

You can associate multiple related contracts with a single parent contract. With linked contracts, you can
consolidate all of your revenue in a common currency, display it in a single report, and reallocate revenue
across the linked contracts.
• With fair value (FV) price lists, you can perform multiple-element revenue allocations through mass
action using the Manage Alternate Customer Contract report.
• Without FV price lists, access the Create Multiple-Element Revenue Allocation task to carve in or
carve out your contract lines.

Alternate Book Codes

You can create alternate book codes using the Maintain Book Codes task and book accounting from your
alternate contracts. This accounting includes:
• Reversal entries from the original contracts under ASC 605.
• Accounting entries under ASC 606.

Alternate Contract Accounting

You can post journal entries by period using the Manage Alternate Customer Contract report. You can
select the original contract offset entries, the alternate contract entries, or both.
Related Information
Reference
Workday 31 What's New Post: Manage Alternate Customer Contracts
The Next Level: ASC 606 | IFRS 15 Conversion

Concept: Revenue Scenario Tool Dashboard

Workday helps you comply with the ASC 606 and IFRS 15 standards. The Revenue Scenario Tool
dashboard provides quick access to tasks and reports that enable you to see the impact of the new
requirements on your historical data.
You can configure the Revenue Scenario Tool dashboard with the Maintain Dashboards task.

Revenue Scenario Reports

You can use several reports to compare revenue allocation based on the rules you configure on the Create
Revenue Allocation Rule task, including:
• Contract Scenario Comparison
• Contract Scenario Comparison by Revenue Category
• Contract Scenario Revenue Trend
• Contract Scenario Scheduled Revenue
For a complete list with report descriptions, access Workday Standard Reports, and select the Customer
Accounts report category.

Preparing Revenue Scenarios

To prepare your revenue scenarios, you can run these reports and tasks from the dashboard:
• Create Revenue Allocation Rule task.
• Maintain Fair Value Price List report.
• Maintain Revenue Allocation Scenarios report.
• Manage Customer Contract for Revenue Scenario report.

Concept: Opportunities
Workday works with Salesforce.com to provide revenue and cost management capabilities during the
opportunity stage of the revenue cycle. Our Opportunity functionality completes the Lead-to-Cash process
using the Financial Management Connector for Salesforce integration. It enables you to track and analyze
cost to close for an opportunity by tagging it with sales expenses and purchases. It eases customer billing
automation by triggering invoices from won opportunities. Opportunity sends useful customer information,
such as balance and payment details, to Salesforce.com for use by sales representatives.

Opportunity Reports
These reports can help you track opportunities and cost to close in Workday:
• Opportunities
• Find Opportunities
• Opportunities and Employee Expenses
• Opportunity Statuses
• Invoices for Salesforce Opportunities
Related Information
Concepts
Concept: Financial Management Connector for Salesforce

Concept: Revenue Dashboard

The Revenue Dashboard enables you to view and drill into your revenue information. It provides you with
access to multiple revenue reports, including the:
• Budget vs. Actuals by Revenue Category report.
• Contract Value by Region report.
• Top 10 Customers by Revenue report.
You can use the Maintain Dashboards task to configure the Revenue Dashboard. You can also add the
Revenue Dashboard as a worklet to your Home page for quick access.

Concept: Workday Revenue

Workday Revenue helps you manage all aspects of revenue from customer creation to sales. Workday
Revenue works with your CRM solution to complete the opportunity-to-cash business process, including:
• Creating customers.
• Recording customer contracts.
• Billing and invoicing.
• Account receivables and cash receipts.
• Recognizing revenue.
• Providing customer and revenue analytics.
When you sell items to your customers, you can use Workday to:
• Manage the invoices and sales terms.
• Record customer payments and cash sales.
• Make deposits.
• Record invoice adjustments.
• Write off bad debt.
• Place overpayment balances on account.
• Create refunds for invoice adjustments and on account balances.
You can track and analyze your customer account data anytime throughout the cycle. Fundamental
integration points give you further flexibility to manage customer revenue.

Create Customers
You can:
• Create customers in Workday to manage your customer accounts.
• Enable suppliers, financial institutions, and tax authorities that you've already configured in Workday to
be customers.
• Use the Financial Management Connector for Salesforce integration to generate customer requests
automatically in Workday and route the requests to administrators for approval.

Create Customer Invoices

To record your sales and create receivables, you can use customer invoices. Triggers for invoice creation
include:
• The shipment of physical goods.
• The delivery of services.
• The billing schedule for an ongoing project, subscription, or membership.
You can print invoices to send to customers as necessary. Unpaid invoices for credit card and direct debit
become available for selection in Workday settlement processing.

Retention for Customer Invoices

Record Payments
The flow of customer payments depends on the payment type.
For customers with accounts in Workday to pay by credit card or direct debit, the unpaid invoices become
inbound transactions that you can pay with a settlement run. As part of settlements, you can authorize and
capture credit card payments through the CyberSource integration. The settlement run also generates and
sends an ACH file to your bank for direct debit payments.
For customers using check, cash, or manual payment methods, you can record the customer payment
transaction. Then you can deposit the customer payment transaction either as part of the payment
recording, or later. You can also record an ad hoc credit card payment, but you must then capture the
payment through a settlement run.

On Account Balances
If a customer overpays, you can keep the extra money on-account. You can then apply this balance to
subsequent invoices, or create a refund.

Create Refunds
You can issue refunds to customers for invoice adjustments where you owe them money, and for on-
account balances.

Deposit Payments
You can select which payments to deposit for a company, and deposit into specific bank accounts.
Customer payments available for deposit can come from:
• Cash sales.
• Check, cash, or manual payments that you record.
• Credit card and direct debit payments that you complete through Workday settlement processing.

Integrations
Workday Revenue includes these integrations to load data from third parties:
• Financial Management Connector for Salesforce: Enables you to:
• Import selected sales data from your Salesforce.com tenant into Workday.
• Display Workday customer activity data in Salesforce tenant.
When you convert an opportunity into an account, the connector syncs the account to a Customer
in Workday so that you can view the Workday transactions in Salesforce tenant. If there's a billing
schedule attached to the opportunity, Workday can create invoices according to that schedule.
• CyberSource: Enables you to authorize and capture credit card payments in Workday. When you create
customers in Workday, you can send data for customer credit cards to CyberSource. You then receive
a secure token to mask credit card information for that customer. Workday uses these secure tokens
when you settle credit card payments in Workday Cash Management.
• Electronic Invoice Connector: Enables you to create custom configuration so that you can send invoice
data electronically to external entities in XML format to meet local government requirements. You can
also receive acknowledgments sent back by external entities.
• Customer Payment Lockbox: Enables you to import Bank Administration Institute (BAI) lockbox data
into Workday-defined file format. The file includes multiple types of records. Some records include
subrecords.
Related Information
Concepts
Concept: Financial Management Connector for Salesforce

Tasks
Create Customer Invoices on page 664
Record Cash Sales on page 774
Record Customer Payments on page 726
Deposit Customer Payments on page 776

Reference: Revenue Reports

You can access these reports to view and drill into revenue details for greater insight into your
organization.

Report Description Security

Budget vs. Actual by Revenue Enables you to review how your Report Execution in the Tenant
Category organization is performing against Non-Configurable functional area.
the budget in particular revenue
categories.
Contract Booking, Billing, and Enables you to chart your total Reports: Revenue domain in the
Revenue bookings, billings, and revenue Customer Contracts and Project
recognition amounts to date for Billing functional areas.
each revenue category.
Contract Value by Business Enables you to chart the current Process: Customer Contract -
Unit contract amount, amount billed to View domain in the Customer
date, and revenue recognized to Contracts and Project Billing
date. You can also organize all functional areas.
business unit information by the
effective date of the contract.
Contract Value by Region Enables you to chart the number Process: Customer Contract -
of contracts by the: View domain in the Customer
Contracts and Project Billing
• Amount remaining to bill.
functional areas.
• Region.
• Total amount billed.
• Value of each contract.

Deferred Revenue By Contract Enables you to view and Reports: Revenue domain in the
Report correct revenue records without Customer Contracts and Project
worktags. Billing functional areas.
Deferred Revenue Roll-Forward Enables you to view beginning Report Execution in the Tenant
balances, activity by journal Non-Configurable functional area.
source, and ending balances
by customer for the period you
select.
Deferred Revenue Scheduled Enables you to calculate the Report Execution in the Tenant
Activity ending balances that you can Non-Configurable functional area.
expect for future periods based
on scheduled billing and revenue
recognition activity.
Revenue Forecast Enables you to view activity for Report Execution in the Tenant
contract and invoice lines for: Non-Configurable functional area.

Report Description Security

• Completed revenue
recognition.
• Expected revenue recognition.
• Scheduled revenue
recognition.

Revenue Trend by Category Enables you to select the revenue Reports: Financial Accounting
accounts and chart the revenue domain in the Financial
for each revenue category Accounting functional area.
trending over a calendar quarter.
Top 10 Customers by Revenue Enables you to view the top 10 Reports: Financial Accounting
customers based on revenue for domain in the Financial
the current year to date. Accounting functional area.

Related Information
Concepts
Concept: Revenue Dashboard on page 947
Concept: Revenue Recognition on page 912

Projects

Steps: Configure Projects

Context
Workday Projects enables you to:
• Define work that aligns with strategic company and individual goals.
• Unify your human resources, financial, and spend information.
• Track project costs and progress using worker logged time and project spending.
• Analyze business results to make adjustments, or gain further insight for future planning.
• Find and compare workers to staff your projects, with clear insight into their availability.

Steps
1. (Optional) Create initiatives to align your projects and nonproject work with an individual or organization
goal.
See Steps: Set Up Initiatives on page 1172.
2. (Optional) Create Basic Project Worktags on page 1016.
Create basic projects that function solely as worktags for your financial transactions and payroll entries.
3. Set up the Projects infrastructure.
See Steps: Set Up Projects Infrastructure on page 963.
4. Build out your projects.
See Steps: Build Projects on page 1001.
5. (Optional) Set up capitalization for the project.
See Steps: Configure Capital Projects on page 1138.

6. (Optional) Compare different combinations of resources and determine their optimal distribution.
See Steps: Set Up Project Scenarios on page 1168.
7. (Optional) Access the Maintain Work Functions task.
Configure the nonproject work for your organization.
Security: Set Up: Job domain in the Jobs & Positions functional area.
8. (Optional) Create and approve project ideas.
See Steps: Set Up Project Ideas on page 1174.

Concept: Workday Projects

Workday Projects enables you to:
• Plan and track your work.
• Integrate your projects with Workday Human Capital Management and Financial Management.
• Use worker attributes and organizations when you configure and manage your projects.
Workday supports these types of projects:

Project Type Use

Basic Basic projects function solely as worktags on
financial transactions and payroll entries. They don't
contain detailed project information.
Nonbillable Internal projects that don’t invoice customers for
work done on the project. With nonbillable projects
you can:
• Divide work into phases and tasks.
• Assign workers and unnamed resources.
• Track costs and spending.

Billable Projects with customer contracts, invoices, and

billing.
When you use billable projects with Workday
Revenue and Project Billing, you can:
• Define billing rates and create contract rate
sheets by project role.
• Define billing rate rules for automatic billing.
• Define hourly billing rates by job profile and
project role.
• Recognize revenue for projects based on the
percent complete accounting method.
• Invoice your customers for billable time and
expense transactions.

Capital Projects with cost transactions. You can record and

manage the costs as long-term assets within the
project. Doing so delays the recognition of these
costs until you're ready to capitalize the costs into
capital business assets.
Opportunity Sales opportunities that you can later convert into a
project.

Project Type Use

You can use opportunities to:
• Prioritize resources and make staffing decisions
based on the probability of the sale.
• Create project plans and generate forecasts.
• Generate financial reports and view the
estimated profit.
When you sell an opportunity project, you can
convert it using the Convert Opportunity Project
to Project task.

Uses for Workday Projects

Alignment You can define company goals and communicate

how you're going to achieve them. Defining these
goals ensures that the work in your organization
lines up with the goals of your organization.
• Use initiatives to align your projects and
nonproject work with company goals. Initiatives
describe how you're going to achieve your goals.
• Use projects and nonproject work to take
concrete steps toward your goal. Workers can
log their time and effort, and you can track
spend costs versus estimated budget.

Planning You can determine an optimum resource

distribution by analyzing labor costs and availability
for allocating your resources.
• Use Idea Management to collect and funnel
ideas from your entire workforce. Then, turn
the best ideas into actual work that drives your
workforce toward a common goal.
• Use Project Scenario Planning to model different
scenarios and potential resource allocations
before creating projects.

Tracking Use Workday Time Tracking or create ad hoc

project time transactions to record hours for projects
and tasks.

Related Information
Concepts
Setup Considerations: Project Creation on page 1011
Tasks
Steps: Configure Projects on page 951
Steps: Set Up Projects Infrastructure on page 963
Create Basic Project Worktags on page 1016
Create Projects on page 1019
Reference
The Next Level: Introduction to Workday Projects

Concept: Project Dashboard

The Projects dashboard (secured to the Reports: Projects domain in the Projects functional area) is a
configurable workspace that gives you quick, visual insight into the health of your projects. You can see
both operational and financial data for your projects in real time. The dashboard also gives you direct
access to frequently used project-related tasks and reports. You can select the tasks that you want to
display in the default menu using the Edit button on the Maintain Dashboards report. The Menu section
on the Content tab enables you to add links to custom reports and external links.
Workday delivers these report worklets available for use in your Projects dashboard:
• Average Project Duration
• Average Revenue by Project Role
• Comparative Revenue by Project
• Forecast vs. Actuals - Project Hours by Month
• Headcount by Job Profile
• Project Actual Hours - Monthly
• Project Forecasted Hours - Monthly
• Project Status by Project Hierarchy
• Project Utilization Report - Monthly
• Projects Headcount Supply and Demand by Job Profile
• Project Profitability
• Trended Revenue by Project
Once you configure the dashboard, you can add it as a worklet to your Home page.
Related Information
Tasks
Steps: Set Up Dashboards and Landing Pages
Reference
Reference: Project Reports on page 954
Reference: Project Profitability Report on page 1246
Reference: Revenue Leakage Report on page 1246

Reference: Project Reports

Workday delivers reports that give you greater insight into the health and progress of your projects and
your project staffing needs.
For a complete list of project reports, access the Workday Standard Reports report and select these
report categories:
• Projects
• Set Up Project

Operational Reports
These reports help you analyze the operational health of your projects.

Report Security Description

• The average project duration
for a project hierarchy and its
subordinate projects.
• All projects with at least 1 day
of duration for your selected
time period.

Forecast vs. Actuals - Project Reports: Manager domain in the Compare the forecasted hours
Hours by Month Staffing functional area. to the actual hours worked on a
project.
Manage: Project Resource
Forecast domain in the Projects
functional area.
Reports: Time Tracking domain
in the Time Tracking and Time
Tracking Hub functional areas.

Projects Headcount Supply and Manage: Project Resources Includes:

Demand by Job Profile domain in the Project Tracking
• Supply: Workers who don't
functional area.
have an assignment to a
Worker Data: Current Staffing resource plan line and are
Information domain in the Staffing within the selected date range.
functional area. • Demand: Resource plan lines
without assigned workers.

Financial Reports
These reports provide insight into the financial health of your projects.

Financial Reports Security Description

To access related tasks, both: number of affected transactions
between them. Transactions may
• Process: Customer Contract
be unbillable, have a contract rate
- View in the Customer
change which has not yet been
Contracts and Project Billing
applied to the time transaction,
functional areas.
or have no billable rate. Only
• Reports: Billing in the includes transactions with one of
Customer Contracts and these:
Project Billing functional
areas. • A contract line type of Project
Time and Expense, or Fixed
Fee.
• A status of Awaiting Review,
or Ready to Bill for rate
changes and missing rates.
• A status of On Hold for
missing rates only.

Project Budgetary Balance with Both: Compare your project budget

Labor Cost to your actuals, including labor
• Reports: Projects in the
costs. Doesn't include ad hoc
Projects functional area.
time blocks. View your project
• Reports: Time Tracking in the actuals and labor costs by the:
Time Tracking functional area.
• Current fiscal year.
• Current period.
• Life to date of your project.
You can run the report by
company, or for all companies
within a company hierarchy.

Project Profitability Reports: Projects domain in the Analyze how direct and labor
Projects functional area. costs consume your profitability.
Workday calculates:
Reports: Time Tracking domain
in the Time Tracking and Time • Gross profit and labor
Tracking Hub functional areas. margins.
• Project revenue and related
direct costs from journal lines
and labor costs based on
approved worker time.
Includes these subreports that
you can view individually:
• Project Profitability Direct
Costs
• Project Profitability Revenue
• Project Profitability Time
Blocks

Revenue Leakage Report Execution domain in For operational and financial

the Tenant Non-Configurable users. View these concessions
functional area. that have been made in the
project:

Financial Reports Security Description

• Contractual versus actual
rates.
• Project hours leaked.
• Revenue leakage.

Trended Revenue by Project Reports: Projects domain in the View revenue by project for the
Projects functional area. top 10 projects over the selected
period. You can analyze revenue
trends by:
• Month-over-month.
• Year-over-year.

View Initial Project Budget Manage: Project Budget domain Examine the details of how
Calculation in the Projects functional area. Workday calculates project
budget lines for draft and
approved budgets sourced from:
• Journal lines (actual revenue).
• Resource forecasts (revenue
and cost forecast).
• Resource plan percentage
allocation by project role
(estimated cost and revenue).
• Revenue recognition
installments (revenue).
• Resource plan estimated
hours by project role
(estimated cost and revenue).
• Time blocks (actual costs).
Calculated project budget lines
don't include manually added
project budget line, including lines
from:
• Project Budget Templates.
• The Import Budget web
service.
• The Maintain Budget task.
• Worksheets.

Talent Reports
These reports, secured to the Metrics Published domain in the System functional area, provide insight into
the workforce behind your projects.

Talent Reports Descriptions

• Marked for external hire.
• With an open job requisition.
• Marked for external hire with a pending worker
associated with the line.
You can also view the ratio of project demand to
staffed workers, where a high ratio indicates a need
for increased staffing.

Related Information
Concepts
Concept: Project Dashboard on page 954
Tasks
Steps: Create Custom Metrics and Scorecards
Reference
Reference: Project Profitability Report on page 1246
Reference: Revenue Leakage Report on page 1246
2023R1 What's New Post: Project Manager Hub - Billing Exceptions Table

Project Setup

Setup Considerations: Project Hierarchies

You can use this topic to help make decisions when planning your configuration and use of project
hierarchies. It explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Project hierarchies define the parent and child relationships between hierarchies and also categorize
projects.
Workday has 2 types of project hierarchies:

Hierarchy Type Definition

Primary Required for project creation.
Child hierarchies and projects inherit their
configuration from the primary parent hierarchy.

Optional Optional for project creation.

Child hierarchies and projects don't inherit
configuration options.

Hierarchy Type Definition

Use optional hierarchies to add more categories to
your projects for increased granularity in your roll-
up reports.

Business Benefits
Project hierarchies simplify the process of creating projects and reporting on them. You can use project
hierarchies to:
• Streamline project creation. Configure the options for the projects on the same primary project
hierarchy. Configuring options at the hierarchy level prevents manually repeating the same
configuration steps for each of the individual projects.
• Create detailed reports to compare the costs, revenue, time, and progress of the projects at your
organization.

Use Cases
With project hierarchies, you can:
• Add a resource plan to a project hierarchy so that the projects in the hierarchy use the same plan.
• Assign roles to workers at the hierarchy level for projects to inherit.
• Categorize projects with primary and optional project hierarchies for detailed roll-up reporting.
• Create budget and worktag rules at the hierarchy level for projects to inherit.
• Configure business processes so that projects in the same hierarchy use the same approval types.
• Prevent project workers from logging time for future dates on the projects in a hierarchy.
• Restrict project plan tasks and project roles to specific primary project hierarchies for streamlined data
entry.

Questions to Consider

Questions Considerations
How can you use hierarchies to group your You can use primary project hierarchies to group
projects? similar types of projects to:
• Apply common configuration options.
• Configure a roll-up security structure for who can
view and report on a set of projects.
• Create roll-up reports.
• Simplify selection prompts when searching for
projects.

Do you need to group your projects into different You can use optional project hierarchies to add
functional or logical categories? more categories to projects for granular reporting.
Example: Group projects by region in 1 optional
hierarchy and by product line in another.

When should you create resource plans for project You can create a resource plan for a primary
hierarchies? project hierarchy, enabling all of the projects that
share the same hierarchy to inherit the same
resource plan.
Use this method to save time for your users if the
projects within a hierarchy always use the same
resource plan.

Questions Considerations
Which project tasks should you restrict to specific You can restrict the availability of project tasks
project hierarchies? to primary project hierarchies. This restriction
simplifies task selection and reduces data entry
errors. Child hierarchies inherit task restrictions
from their parent hierarchies.
Restrict project tasks using the Maintain Project
Tasks task.

Which project roles should you restrict to specific You can restrict the availability of project roles
project hierarchies? to primary project hierarchies. This restriction
simplifies role selection and reduces data entry
errors. Child hierarchies inherit role restrictions from
their parent hierarchies.
Restrict project roles using the Maintain Project
Roles task.

Recommendations
To reduce data entry:
• Configure primary project hierarchies so that the associated projects inherit shared settings.
• Create resource plans at the project-hierarchy level when the associated projects can share the same
resource plan.
• Restrict project tasks and roles to the relevant primary project hierarchies.
For Worktags that you plan to use in derived Worktag rules, access the Maintain Worktag
Usagereport and allow your Worktags to be used on customer contracts and customer invoices.
To increase report detail, create optional project hierarchies to further group your projects.
Only associate 1 project hierarchy that has a custom business process with a project. If a project belongs
to multiple hierarchies, each with its own business process, Workday randomly selects 1 business process
for the project.

Requirements
Create at least 1 primary project hierarchy so that users can create projects.

Limitations
You can't use optional project hierarchies with account posting rules.

Tenant Setup
No impact.

Security

Domains Considerations
Business Process Administration in the System Users secured to this domain can edit the Create
functional area Project Hierarchy business process.
Manage: Business Process Definitions in the Users secured to this domain can manage the
System functional area Create Project Hierarchy business process.

Domains Considerations
Set Up: Project Hierarchy in the Project Tracking Users secured to this domain can manage
functional area project hierarchies and resource plans on project
hierarchies.

To ensure proper access, review these team member roles and activities:

Domain Security Roles Considerations

Project administrator • Edits the Create Project Hierarchy business
process.
• Creates and configures project hierarchies.
• Approves new project hierarchies routed by the
Create Project Hierarchy business process.
• Uses web services.
• Runs reports.
• Creates custom reports.

Project hierarchy manager • Owns and is responsible for the projects within a
project hierarchy.
• Approves new project hierarchies routed by the
Create Project Hierarchy business process.
• Views reports.

Business Processes
The Create Project Hierarchy business process enables you to create, review, and approve new project
hierarchies.

Reporting

Reports Considerations
Navigate Project Hierarchy Provides a high-level view of project hierarchies,
including subordinate hierarchies and projects. You
can also view worker information and edit:
• Project hierarchies
• Projects

View Project Hierarchy Use as a central access point for viewing and
editing information on existing project hierarchies.
View Project Hierarchy Setup Objects Configuration Use to view the direct, inherited, and unrestricted
project tasks and roles. These roles and tasks are
eligible for the projects associated with the primary
project hierarchy.
You can access the report from the related actions
menu of a project hierarchy.

You can also use primary and optional project hierarchies to create custom reports to review project:
• Time
• Revenue
• Cost

• Expense
Custom reports enable you to group multiple projects for security reasons or for summary reporting.
You can use these report data sources to create custom reports:
• Project Hierarchies on the Project Hierarchy business object.
• Project Task on the Project Task business object.
• Project Timesheet Lines by Project and Project Hierarchy on the Project Timesheet Line business
object.
• Timesheet Day for Project Hierarchies and Timesheet Periods on the Timesheet Day business object.
• Top Level Project Hierarchies on the Project Hierarchy business object.

Integrations

Web Services Considerations

Get Workday Project Hierarchies Retrieves project hierarchies and subordinate
hierarchies.
Submit Workday Project Hierarchy Creates a project hierarchy event and submits it
through the Create Project Hierarchy business
process for approval. Workday then creates the
new project hierarchy.
Get Workday Project Hierarchies without Retrieves project hierarchies only. Doesn't include
Dependencies the parent and child relationships of the hierarchies.
Get Resource Plans Retrieves data on resource plans and resource plan
lines on project hierarchies and projects.

Connections and Touchpoints

Features Considerations
Expenses The worktag rules on a project hierarchy enable
you to configure how Workday calculates
expenses.
Revenue The worktag rules on a project hierarchy enable
you to configure how Workday calculates revenue.
Time Tracking The time entry rules on a project hierarchy prevent
project workers from logging future time on a
project.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Project Hierarchies on page 972
Concept: Resource Plans on Projects and Project Hierarchies on page 1090
Tasks
Create Project Hierarchies on page 966
Steps: Set Up Projects Infrastructure on page 963
Create Project Roles on page 1050

Reference
Reference: Project Management Reports on page 1010
2021R1 What's New Post: Project Role Configuration
Examples
Example: Simplify the Selection of Project Tasks on Project Plans on page 1040

Steps: Set Up Projects Infrastructure

Context
You can set up your projects infrastructure to plan, track, and manage work across your organization.
You can predefine project elements, such as:
• Custom labels
• Hierarchies
• Plans
• Rates
• Roles
• Templates

Steps
1. Edit Business Processes.
Configure these business process definitions:
• Ad Hoc Project Transaction Event
• Create Project
• Create Project Hierarchy
• Edit Project
• Project Resource Plan Line
• Rate Work
• Request Worker
2. Edit Business Process Security Policies.
Configure the security policies for these business processes:
• Ad Hoc Project Transaction Event
• Create Project
• Create Project Hierarchy
• Edit Project
• Project Resource Plan Line
• Rate Work
• Request Worker
3. Activate Pending Security Policy Changes
4. (Optional) Configure the Project Profile on page 964.
5. (Optional) Access the Configure Optional Fields task to hide optional fields on the project summary.
From the By Functional Area prompt, select the Project Summary - Composite View option to hide
optional fields on most Projects tasks and reports that display the project summary. When you hide an
optional field, Workday continues to require it for custom validations you've configured.
See
• Hide or Require Optional Fields.
• Reference: Project Tasks and Reports with Configurable Project Summary Fields on page 974.
6. Create Project Hierarchies on page 966.

7. (Optional) Access the Edit Tenant Setup - Financials task.

In the Projects section, configure your tenant-wide settings.
See Reference: Edit Tenant Setup - Financials.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
8. (Optional) Create Custom Labels.
Select Project from the Term Context prompt on the Maintain Custom Labels task.
9. (Optional) Create custom validations. See Steps: Set Up Custom Validations on page 50.
Configure validations for these project transaction types:
• Project
• Project Plan
• Project Resource Plan
• Project Task Resource
10.(Optional) Create project standard cost rates to cost labor without accessing worker-sensitive
information.
See Create Project Standard Cost Rate Sheets on page 991.
11.(Optional) Calculate project cost rates based on worker salaries and an overhead percentage. See:
• Set Up Fully Burdened Cost Rate Definitions for Projects on page 997.
• Create Project Cost Rate Rules on page 996.
12.(Optional) Create advanced labor cost calculations for prorating and overtime.
See Steps: Manage Project Advanced Labor Costs on page 989.
13.(Optional) Define project details.
See Steps: Maintain Project Details on page 967.
14.(Optional) Create Templates for Projects on page 975.
15.Configure your project plans.
See Steps: Set Up Project Plans on page 1030.
16.Configure resource management.
See Steps: Set Up Resource Management on page 1049.

Next Steps
Build projects.
Related Information
Tasks
Steps: Build Projects on page 1001
Reference
Reference: Edit Tenant Setup - Financials
The Next Level: Introduction to Workday Projects
2023R1 What's New Post: Business Process for Ad Hoc Project Transactions
2022R2 What's New Post: Hide Project Summary Fields

Configure the Project Profile

Prerequisites
Security: Set Up: System domain in the System functional area.

Context
The project composite view is a configurable profile for daily project management. This profile displays
when you access a project directly or with the View Project report.
You can:
• Reorder profile groups.
• Hide profile groups.
• Add custom reports and tasks to the profile groups.
• Reorder or hide reports and tasks on the profile groups.

Steps
1. Access the Configure Profile task.
2. Enter Project Composite View Profile.
You can update the composite view of the project profile by:
• Reordering project profile groups.
• Displaying project profile groups.
• Hiding project profile groups.
3. Access the Configure Profile Group task.
4. Select 1 of these options in the Profile Group prompt:
• Financials for Project Composite View Profile
• Overview for Project Composite View Profile
• Project Plan for Project Composite View Profile
• Resources for Project Composite View Profile
5. Click OK.
6. As you complete the task, consider:
Option Description
Display in Profile Select to display the reports in the profile group
on the composite view of the project profile.
*Report Select the reports, custom reports, and custom
tasks that display in the profile group.
The reports and tasks display in sequential order
on the composite view of the project profile.

Result
You can find information and take action from the composite view of the project.

Next Steps
• Create project hierarchies.
• Add project phases and tasks.
Related Information
Tasks
Steps: Set Up Profiles and Profile Groups
Steps: Set Up Project Plans on page 1030

Create Project Hierarchies

Prerequisites
• Review setup considerations for project hierarchies.
• Configure the Create Project Hierarchy business process and security policy in the Project Tracking
functional area.
• Set up assignable roles.

Context
Project hierarchies enable you to define the parent and child relationships between hierarchies, and to
categorize your projects. Use these hierarchies to streamline project creation and to group projects for roll-
up reports.
You must have at least 1 top-level primary project hierarchy that routes to user-based roles, according
to the default Create Project Hierarchy business process definition. You can then use the related actions
menu from this hierarchy to:
• Assign roles.
• Configure common settings.
• Create a business process definition that routes the workflow.
In addition to the primary hierarchies that you create for your projects, you can create 1 or more optional
project hierarchies. Use these optional hierarchies to add more categories for your roll-up reports.

Steps
1. Access the Create Project Hierarchy task.
2. As you complete the task, consider:
Option Description
ID Enter a unique ID or let Workday generate it for
you. Once you save or submit, Workday uses this
value as the reference ID for integrations. Only a
Workday administrator can change the ID.
Enable as Optional Hierarchy Select to create an optional hierarchy that you can
use to:
• Group projects under multiple project
hierarchies for reporting purposes.
• Disable all hierarchy configuration options like
resource plans, derived worktag rules, and
project budgets.
When you create an optional hierarchy, you can't:
• Change it to a primary project hierarchy after
you submit it.
• Change a primary project hierarchy to optional.

Subtype (Optional) Workday uses subtypes to define the

levels in a hierarchical structure on a top-level
organization.
Projects to Include Select the projects that you want to include in the
hierarchy.

Option Description
When you create projects, you must associate
each one with a project hierarchy. To move a
project from:
• Another hierarchy to this hierarchy, select the
project you want here.
• This hierarchy to another hierarchy, open
the project hierarchy you want to move it to,
and select the project to move. This action
removes it from the first hierarchy.

3. Click Submit.
4. Review the Assigned Roles section of the Details tab.
Only workers with roles on the project or project hierarchy can see project information. Workday
assigns roles to the project hierarchy based on the organization types that you enabled for project
hierarchies. You can manage these role assignments by:
• Using the Maintain Assignable Roles task.
• Selecting Roles > Assign Roles from the related action menu on the project hierarchy.

Result
Workday launches the Create Project Hierarchy business process, and then routes the new hierarchy for
approval.

Next Steps
• Create a resource plan for a primary project hierarchy to share staffing across all of its projects.
• Use the related actions menu on a primary project hierarchy to configure the common settings for its
child hierarchies and projects to inherit.
• Use these reports to review project hierarchies:
• Navigate Project Hierarchy
• View Project Hierarchy
Related Information
Concepts
Setup Considerations: Project Hierarchies on page 958
Concept: Project Hierarchies on page 972
Concept: Resource Plans on Projects and Project Hierarchies on page 1090
Tasks
Set Up Assignable Roles
Assign Roles to Projects on page 1024
Steps: Set Up Resource Plans on page 1086

Steps: Maintain Project Details

Context
You can configure custom details for your projects to create definitions for parameters such as project risk
level and priority. You can configure definitions for:
• Importance ratings.
• Project statuses.
• Risk levels.

• Risk severities.
• Risk statuses.
• Success ratings.
• Work priorities.
You can also apply custom risk parameters to project ideas during the approval phase to track overall
project risk and individual risks.

Steps
1. (For Projects and Project Ideas) (Optional) Access the Maintain Risk Levels task.
Define the values for your project risk levels. Example: High, Medium, and Low.
Security: Set Up: Risk and Priorities domain in the Project Tracking functional area.
2. (For Projects and Project Ideas) (Optional) Access the Maintain Risk Severities task.
Define risk severities to categorize individual risks by importance or impact on project objectives.
Example: High, Medium, and Low.
Security: Set Up: Risk and Priorities domain in the Project Tracking functional area.
3. (For Projects and Project Ideas) (Optional) Access the Maintain Risk Statuses task.
Define risk statuses to track the progress of individual risks as assigned workers mitigate them.
Example: New, In Progress, Canceled, and Closed.
Security: Set Up: Risk and Priorities domain in the Project Tracking functional area.
4. (For Projects only) (Optional) Access the Maintain Project Statuses task.
Define the values for the overall statuses of your projects. Example: Green, Red, and Yellow.
Security: Set Up: Project Details domain in the Project Tracking functional area.
5. (For Projects only) (Optional) Access the Maintain Work Priorities task.
Define the values for your project priorities. Example: High, Medium, and Low.
Security: Set Up: Risk and Priorities domain in the Project Tracking functional area.
6. (For Projects only) (Optional) Access the Maintain Success Ratings task.
Define success ratings to score completed projects.
Security: Set Up: Project Tracking domain in the Project Tracking functional area.
7. (For Projects only) (Optional) Access the Maintain Importance Ratings task.
Define the values for the importance levels of your projects. Example: Critical, Significant, and
Important.
Security:
• Manage: Initiatives domain in the Projects functional area.
• Set Up: Project Details domain in the Project Tracking functional area.

Result
Workday makes the details that you've defined available for use on projects and project templates.
Workday makes the risk-related details that you've defined available for use on projects, project templates,
and project ideas.

Next Steps
• Create project ideas.
• Create templates for projects.
• Set up project plans.

Related Information
Tasks
Steps: Set Up Projects Infrastructure on page 963

Set Up Worktag Rules for Project Cost and Revenue

Prerequisites
• To ensure your Worktags derive correctly, access the Maintain Worktag Usage report and set your
Worktags as allowed on customer contracts and customer invoices.
• Security: Set Up: Enable Worktags in the Common Financial Management and Worktags functional
areas.

Context
As a financial administrator, you need the flexibility to determine how to account for project costs and
revenue. This accounting might depend on whether the project resource is an employee or a contingent
worker. In Workday, when workers enter time or submit expense reports against a project, there can be
multiple worktags associated with the project. You can configure simple rules at the project hierarchy level
to determine if project costs and revenue should follow the worker or the project worktags. These derived
worktag rules:
• Automatically apply the correct accounting to project costs and revenue.
• Ensure that the project costs and revenue display in the right organizations, such as Cost Center.
• Only apply to time and expense contract lines that have transaction-based revenue recognition, not to
fixed-fee contract lines with % complete revenue recognition.

Steps
1. Access the Create Derived Worktag Rule task.
Set up a rule that determines which worktags to support when a worker creates an expense report or
bills for time against a project. Workday then derives the worktags to use based on this rule.
2. Enter worktag rule details.
As you complete the rule, consider:

Option Description
Name Enter a name for the rule.
Example: Employee Cost and Revenue Rules.

Company is from (Optional) Select whether to derive the worktags

for the company from either the Project or the
Worker.
This field only applies to project revenue.

Worktag Derived From Select whether the worktags for this rule should
come from the Project or the Worker.
Your selection controls the worktag types
available for selection.

Worktag Types Select the worktag types that you want to use for
the worker or the project. For:
• Project: Only the worktag types you define
on the Maintain Worktag Usage task are
available here. In this task, you can define

Option Description
which worktags the project supports. The
Customer worktag type supports a specific
field on the project rather than one that you
define on this task.
• Worker: Only costing worktags, such as
Business Unit and Location, as well as custom
organizations configured as financial worktags
are available. You can use the Maintain
Organization Types report to edit costing
worktags and custom organizations.

Result
Your worktag rules are now available for use in the project hierarchy configuration.

Next Steps
Create the project hierarchy configuration for this worktag rule.
Related Information
Concepts
Concept: Worktags
Tasks
Steps: Enable Worktags for Cost Allocations
Examples
Example: Configure Worktag Rules for Project Cost and Revenue on page 973

Configure Project Cost and Revenue in Project Hierarchies

Prerequisites
• Set Up Worktag Rules for Project Cost and Revenue on page 969.
• Security: Set Up: Project Hierarchy domain in the Project Tracking functional area.

Context
You can configure your tenant to account for project revenue and costs with either the worker or the project
worktags. You can configure rules for Workday to apply accounting for expenses, supplier invoices, and
time entries to all underlying projects and hierarchies. You can also create configuration rules for a lower-
level project hierarchy, so projects under that hierarchy inherit different worktag rules than the primary
hierarchy.

Steps
1. Access the View Project Hierarchy report, Worktag Rule Configuration tab.
2. Select whether you want to Create a new configuration, or Edit an existing one.
Workday displays the Create Project Hierarchy Configuration for Worktag Rules task.

3. Set up the worktag rules.

You can:
• Configure rules separately for expense reports and for time tracking.
• Configure revenue derivation rules for billable supplier invoices.
• Set different rules for employees than for contingent workers.
• View the derived worktag rule details using the preview button. Workday displays whether the rule
derives from the worker or the project, and the associated worktag types.
As you complete these rule dimensions, consider:
Option Description
Worktag Rules for Project Revenue and Select this option if either:
Project Costs
• There are no worktag rules on the Create
Derived Worktag Rule task.
• You want Workday to ignore the derived
worktags.
Workday then applies all worktags associated
with the project to both expense reports and time
entries. Workday makes no distinction between
employees and contingent workers.
Worktag Rules for Expense Select the worktag rule to apply to expense
reports filed by workers. You can select separate
rules for employees and contingent workers.
On the expense report, when you define worktag
rules, Workday:
• Uses the values for the worktags defined in the
rule and adds them to the expense report line.
• Overrides the entry with the worktag rule value
for this configuration if the worktag already
exists on the expense report line.
Example: If you set a separate cost center for
a worker and the project, Workday uses the
cost center you define here.
• Leaves existing worktags not impacted by
the worktag configuration rules for the project
hierarchy.
• Only includes project worktags that are part of
the worktag rules.

Worktag Rules for Time Select the applicable worktag rule when either:
• Workers submit hours using Time Tracking.
• You create ad hoc project time transactions.
You can select separate rules for employees and
contingent workers.
Note: Workday supports the revenue from time
entry, but not time cost.

Revenue Rule for Supplier Invoice When you select:

Option Description
• Project, Workday posts revenue for billable
supplier invoices using the company on the
project.
• Supplier Invoice Line or leave the prompt
blank, Workday posts revenue for billable
supplier invoices using the company on the
supplier invoice line.
Workday displays the derivation rules that you
configure in the Revenue Company Source
column on the Projects tab of approved customer
contracts.

Result
Workday applies the rules that you configure to all project-related expense, supplier invoice, and time
entries within the project hierarchy.

Next Steps
To enforce the derived worktag rules on expense reports (cost), create a custom validation using the
Worktags Don't Match Project Derived Worktag Rules report field.
Related Information
Tasks
Steps: Configure Derivation Rules for Billable Supplier Invoices on page 938
Create Custom Object Validations
Examples
Example: Configure Worktag Rules for Project Cost and Revenue on page 973

Concept: Project Hierarchies

Project hierarchies define the parent and child relationships within hierarchies and categorize your projects.
Workday has 2 types of project hierarchies:
• Primary
• Optional
Primary project hierarchies pass their configurations onto their child hierarchies and associated projects.
Use these hierarchies to streamline project creation and to group projects for roll-up reports.
You can use primary project hierarchies to:
• Group similar projects and child hierarchies for roll-up reporting.
• Make related projects more accessible.
• Configure resource plans for use on similar projects.
• Configure business process definitions, common settings, and project roles for similar projects.
Optional project hierarchies don't have configuration options for other hierarchies or projects to inherit. Use
optional hierarchies to add additional report categories for more granularity in your roll-up reports.
All projects must belong to a primary project hierarchy and can belong to 1 or more optional project
hierarchies. Assign projects to hierarchies at the time of project creation, or by adding and removing them
from the hierarchy definitions. Don't assign a project to more than 1 node in the hierarchy tree.

Hierarchy Considerations
• After you submit a hierarchy for approval, you can't change its type.
• Child project hierarchies must be the same type as their parent.
• Use custom business processes, including any specific project roles, for only 1 hierarchy.
Related Information
Concepts
Setup Considerations: Project Hierarchies on page 958
Concept: Resource Plans on Projects and Project Hierarchies on page 1090
Tasks
Create Project Hierarchies on page 966

Example: Configure Worktag Rules for Project Cost and Revenue

This example illustrates how to configure worktag rules so that expenses logged by employees and
contingent workers use different worktags.

Context
Project ABC has its own worktags for cost center and region. There are 2 types of workers on the project:
full-time employees and contingent workers. Each worker type has its own associated worktag values for
cost center and region.
Here's the data we'll use for this Example:

Project: ABC Worker: Javier Worker: Isabel

Cost Center: 1001 Cost Center: 5000 Cost Center: 8000
Region: West Region: Central Region: South
Worker Type: Employee Worker Type: Contingent Worker

Your accounting organization would like to ensure that any expense reports filed by workers on the
project follow certain rules. In this case, they want all employee expenses, like Javier's, to attribute to the
employee cost center and region. For Isabel and all other contingent workers, expenses attribute to the
project cost center and region.

Expense Report for Javier Expense Report for Isabel

Item: Meal Item: Meal
Amount: 25 Euro Amount: 25 Euro
Worktags: Worktags:
• Project: ABC • Project: ABC
• Cost Center: 5000 • Cost Center: 1001
• Region: Central • Region: West

Prerequisites
• Security: Set Up: Enable Worktags domain in the Common Financial Management and Worktags
functional areas.
• Security: Set Up: Project Hierarchy domain in Project Tracking functional area.

Steps
1. Access the Create Derived Worktag Rule task to create a worktag rule for employees like Javier.

2. Enter field details:

Name Employee Cost and Revenue Rules

Company is from Worker
Worktag Derived From Worker
Worktag Types Cost Center
Region

3. Click OK and Done.

4. Access the Create Derived Worktag Rule task to create a worktag rule for contingent workers like
Isabel.
5. Enter field details:

Name Contingent Worker Cost and Revenue Rules

Company is from Project
Worktag Derived From Project
Worktag Types Cost Center
Region

6. Access the Worktag Rule Configuration tab on the View Project Hierarchy report to view the
hierarchy for Project ABC.
7. Access the Create Project Hierarchy Configuration for Worktag Rules task by clicking Create.
8. Enter these Worktag Rules for Expense details:
Option Description
Employee Employee Cost and Revenue Rules
Contingent Worker Contingent Worker Cost and Revenue Rules

Result
When contingent workers and employees log expense reports related to Project ABC, all accounting will
follow the rules you configured.

Next Steps
You can ensure that revenue accounting follows similar guidelines. Create Worktag Rules for Time so
that revenue is attributed to the right accounts when Isabel and Javier log time against Project ABC, based
on their employment status.
Related Information
Tasks
Configure Project Cost and Revenue in Project Hierarchies on page 970
Set Up Worktag Rules for Project Cost and Revenue on page 969

Reference: Project Tasks and Reports with Configurable Project Summary Fields
You can hide optional project summary fields on some project tasks and reports. When you hide an
optional field, Workday hides it on all tasks and reports with configurable project summary fields. Workday
continues to require hidden fields for your custom validations.
On some tasks and reports, Workday collapses the project summary by default. Workday doesn't collapse
the project summary on the Project Composite View by default.

Workday applies your configuration for optional fields to these tasks and reports:

Task or Report Collapsible Project Summary

Copy Project No
Create Opportunity Project No
Create Project No
Create Project from Idea No
Create Project from Project Worktag No
Create Project Using Template on Sales Item No
Create Risks Yes
Edit Project No
Edit Project Budget No
Edit Project Details No
Edit Project Summary No
Edit Related Worktags Yes
Edit Risks Yes
Project Composite View Yes
Review Edit Project No
Revise Edit Project No
Revise Opportunity Project Yes
Review Project No
Revise Project No
View Project Yes
View Project Related Worktags Yes
View Project Risks Yes

Related Information
Reference
2022R2 What's New Post: Hide Project Summary Fields

Project Templates
Create Templates for Projects

Prerequisites
Security: Set Up: Project domain in the Projects functional area.

Context
Project templates simplify project creation, maintain consistency, and reduce errors. You can prefill
common options for users when they create a new project using the template.

Steps
1. Access the Create Project Template task.
2. As you complete the Template Information section, consider:
Option Description
Template ID When you leave the template ID blank, Workday
generates a sequential ID.
The template ID becomes the reference ID for
integrations.

Project Plan Template Any project you create from this template also
includes these associated templates.
Resource Plan Template
To select a template for task resources, you must
Task Resource Template
first select a resource plan template and project
Customer Contract Template plan template.
Select a customer contract template when you
create a template for billable projects.

3. As you complete the Reference Information section, consider:

Option Description
Status Presets the overall status of the new project.
Include Project ID in Name Appends the Project ID value to the project name.
Billable Creates new billable projects from the template.
Select to enable time and expense billing and
revenue recognition for the project.

Capital Creates new capital projects from the template.

Company Sets the company for new projects.
Workday populates the company name in time
blocks when workers log time against a project
using Time Tracking. Workday also assigns a
company worktag for the accounting, unless
you override the worktags in the operational
transaction.

Project Currency Sets the currency for new projects.

Workday converts all internal and billable rates to
this currency when you report on the project.

Customer Sets the customer for new projects. Workday

populates the customer name into time blocks
and worksheets when workers log time against
the project. Workday also assigns a customer
worktag for the accounting, unless overridden in
the operational transaction.
Balancing Worktag Select for capital projects. When you enable
worktag balancing for your tenant, select a
worktag to balance journals for transactions. The
balancing rules evaluate the balancing worktag
of the project, not the balancing worktag of the

Option Description
transaction. Workday generates Due To and Due
From accounting entries to balance your journal
when the values on the transaction and project
differ.
When you use a cost center as a balancing
worktag, you can restrict values to companies or
company hierarchies on the Edit Cost Center
task.

Project Groups Associates a new project with a group of related

projects. Project groups make it easier to retrieve
and compare projects using reports.
4. Enter the Worktags you want to set for new projects.
When you enable worktag balancing, Workday only uses the balancing worktag when you select a
worktag of the same type in both the:
• Worktags grid.
• Balancing Worktag field.
Set up related worktags for this object using the related worktag types that you configure on the
Maintain Related Worktag Usage task. Workday automatically populates transactions with the values
in the Default Worktag column when you select the object on the transaction.
5. As you complete the Project Details section, consider:
Option Description
Percent Complete When this value is 100%, workers can't log time
against the project or its tasks.
Risk Level Set the project risk level.
Priority Set the project priority.
Importance Set the importance rating of the project.

Result
Project managers can create new projects based on your template using the:
• Create Project task.
• Related actions menu on the template.

Next Steps
• Create projects.
• Run the Find Project Templates report to retrieve other templates.
Related Information
Concepts
Concept: Worktags
Concept: Balancing Worktags on Capital Project Transactions on page 1155
Tasks
Create Projects on page 1019
Reference
Workday 33 What's New Post: Customer Contract Templates

Create Templates for Project Plans

Prerequisites
• Set up project plans.
• Security: Set Up: Project domain in the Projects functional area.

Context
You can create templates to:
• Make it easier to create project plans for your projects, rather than always creating your plans from
scratch.
• Enforce consistency across projects through the use of shared phases and tasks. Enforcing
consistency enables you to report on and analyze efforts by phase and task across projects. It also
enables you to search for and find workers with similar task experiences.

Steps
1. Access the Create Project Plan Template task.
2. As you complete the task, consider:
Option Description
Template ID If you leave the Template ID blank, Workday
generates a new ID. Integrations use the ID
as a reference and only a Workday System
Administrator can change it.
Use Date Offset Select this check box to define task start and end
dates relative to the project start and end dates.
Date Offset Select the time interval for the date offset.
Phase Select the project phases.
Task Select the project plan tasks for each project plan
phase.
Note: When you create a new project using
a project plan template, Workday only creates
project plan tasks that are:
• Unrestricted.
• Restricted to the project hierarchy of the
project.
• Inherited from the parent hierarchy of the
project.

Start Date Offset Workday populates the dates on the project plan
based on the date offsets relative to the project
End Date Offset
start date.
Non-Billable By marking a task as nonbillable, you can:
• Set filters to generate reports listing nonbillable
tasks, billable tasks, or both.
• Create custom validations to exclude billing for
nonbillable tasks.

Option Description
Milestone Select to use milestones for reporting and
invoicing billable projects.
Closed Select to mark the project task as closed for time
entry.
Utilization Select if the time block associated with this task
qualifies for actual utilization.
You can then create a custom report to determine
utilization.

Next Steps
• Create templates for resource plans and task resources.
• Create project plans.
• Create projects.
Related Information
Tasks
Steps: Set Up Project Plans on page 1030
Create Project Plans on page 1033

Create Templates for Resource Plans

Prerequisites
Security domains in the Projects functional area:
• Set Up: Project
• Worker Data: Standard Cost Rate Override
Security domains in the Project Tracking functional area:
• Manage: Project Resources
• Set Up: Project Hierarchy

Context
Create resource plan templates to populate the common information that most users need to enter.
Templates streamline data entry, reduce user errors, and enforce consistency.

Steps
1. Access the Create Resource Plan Template task.
2. As you complete the task, consider:
Option Description
Template ID Enter a unique Template ID, or leave blank for
Workday to generate the ID.
This value becomes the reference ID for
integrations, and only an administrator can
change it.

Use Date Offset Select this check box to define start and end
dates relative to the project start date.

Option Description
When you select this check box, you must also
select an offset increment in the Date Offset
prompt.

Project Role You can assign the same project role more than
once to a resource plan line.
If a project role isn't eligible for the hierarchy of a
new project, Workday doesn't include it. Workday
only applies the roles that are:
• Unrestricted.
• Restricted to the project hierarchy of the new
project.
• Inherited from the parent hierarchy of the new
project.
The Maintain Project Roles task defines the
project role restrictions to project hierarchies.
Start Date Offset The End Date Offset must be greater than or
equal to the Start Date Offset.
End Date Offset

Standard Cost Rate Override Enter a rate and currency to override the standard
cost rate and standard cost rate currency defined
Standard Cost Rate Currency Override
in the standard cost rate sheet.
Workday calculates and persists time entry costs
upon time entry approval.
Changes to the standard cost rate on the
resource plan line don't change the standard cost
amount for approved project time entries.

Allocation Type Select Assign a Worker to:

• Add unnamed resources to a project role.
• Hire new workers.
Select Associate a Group to add a group of
workers to a project role. Any of the workers
within the group can fill the project role and
charge their time to the project.
Your selection sets the security, reporting, and
worker access to project tasks. It also determines
the fields that display when you add workers or
groups to the project role.

To Be Hired Displays only when you select Assign a Worker.

When you select this check box, you can
complete the resource plan without a direct
assignment and report more accurately on
needed resources.

Resource Enter the number of unnamed resources you

need to fill the role.

Option Description
For each unnamed resource, Workday adds a row
to the Worker grid, which you can replace with a
specific worker later in the resource plan.

Project Role Requirements The Maintain Project Roles task defines the
default values for the project role requirements.
Enter any additional requirements for the project
role.
These requirements help resource managers find
suitable candidates for the project role directly
from the resource plan line.

Next Steps
• Create templates for task resources.
• Create resource plans.
Related Information
Concepts
Setup Considerations: Resource Plans on page 1080
Tasks
Create Project Roles on page 1050
Steps: Set Up Resource Plans on page 1086
Create Resource Plans on page 1088

Create Templates for Task Resources

Prerequisites
Set up templates for:
• Project plans.
• Resource plans.
Security:
• Set Up: Project domain in the Projects functional area.
• Manage: Project Plan domain in the Project Tracking functional area.

Context
Task resource templates simplify the process of adding project plan tasks to a project and assigning them
to workers. Templates maintain consistency, streamline data entry, and reduce errors. You can configure
templates to prefill common options for users when they create a project that includes task resources.

Steps
1. Access the Create Task Resource Template task.
2. As you complete this task, consider:
Option Description
ID When you leave the ID blank, Workday
automatically generates a new ID.

Option Description
The ID becomes the reference ID for integrations.

Use Date Offset Select to define the task start and end dates
relative to the project start and end dates.
Task When you create a new project using a task
resource template, Workday only creates task
resources for project tasks that are:
• Inherited from the parent hierarchy of the
project.
• Restricted to the project hierarchy of the
project.
• Unrestricted.

Resources For direct assignments, select unnamed

resources from the resource plan line.
Resource Plan Line Workday populates this field based on the worker
entry from the associated resource plan template.
Start Date Offset Enter a positive whole number.
End Date Offset The End Date Offset must be greater than or
equal to the Start Date Offset.
Workday populates the dates on the project plan
task based on the date offsets relative to the start
date on the project plan template.

% Allocation Displays when the associated:

• Resource plan template has unnamed
resource assignments or worker group
associations on the resource plan lines.
• Project plan template has defined phases and
tasks.
Workday populates the value from the resource
plan.
You can also enter a new value using whole
numbers that are greater than or equal to zero
and percentages over 100.

Estimated Hours Enter the number of hours you estimate the task
will take. Enter positive numbers with up to 2
decimal points.

Next Steps
Create new projects.
Related Information
Tasks
Create Projects on page 1019

Create Templates for Project Budgets

Prerequisites
Security: Manage: Project Budget in the Projects functional area.

Context
You can create templates to:
• Make it easier to create project budgets, rather than always creating your budgets from scratch.
• Enforce consistency across project budgets.
Enforcing consistency enables you to report on and analyze efforts by phase and task across projects.

Steps
1. Access the Create Project Budget Template task.
2. Select or create a Plan Structure.
Workday creates separate columns on the Project Budget Template for each primary worktag
dimension on the Plan Structure. All other dimensions will be available in the Additional Worktags
field.
Note: Inactivate a template before you can make changes to an associated Plan Structure.
3. (Optional) Select the Override Template with Related Worktags from Project check box.

Next Steps
Create project budgets based on your template using the Create Budget task on the Plan section of the
Financials grid of your project.
Related Information
Concepts
Concept: Project Budgets on page 1123
Tasks
Set Up Plan Structures for Project Budgets on page 1107
Steps: Create Project Budgets on page 1115
Reference
2020R2 What's New Post: Project Budget Templates

Project Labor Costing

Setup Considerations: Project Advanced Labor Costing

You can use this topic to help make decisions when planning your configuration and use of project
advanced labor costing. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
With project advanced labor costing, you can prorate your salaried and nonsalaried labor costs using
standard or fully burdened costing. Proration accounts for hours worked above or below scheduled hours.

Business Benefits
Project advanced labor costing helps you:
• Determine labor actuals by enabling you to adjust costs when worked hours differ from scheduled
hours.
• Understand the impact of hours worked above or below scheduled hours, based on how your costs
increase or decrease with proration.
• Define unique calculation types to prorate worker costs using the costing types, rates, and hours you
want to include.

Use Cases
When salaried workers exceed or work less than their scheduled hours, you can use a calculation method
to:
• Prorate labor costs up or down.
• Prorate all labor costs down using the base rate from the standard cost rate sheet or fully burdened cost
rate definition as the maximum rate.
When salaried or nonsalaried workers exceed their scheduled hours, apply premium percentages to
prorate costs.

Questions to Consider

Questions Considerations
What aspects of worker labor do you need to base You can calculate a factor that prorates worker
proration on? costs based on your:
• Salaried or nonsalaried calculation method.
• Time components.
• Rates for worker overtime.

What time entries do you use to calculate your You can prorate labor costs on these approved time
project labor costs? entries:
• Ad hoc project time transactions.
• Project time blocks.

Do you want to cost all your time entries using You can optionally prorate past time entries
proration, including past time entries that already approved before the date you initiate the project
have cost amounts? advanced labor costing feature to recalculate these
cost amounts.
Do you have various groups of workers that you You can prorate worker groups by configuring cost
need to cost differently? calculation types, then assigning them to your
project cost rate rules.
What impact does advanced labor costing have on Your intercompany billable transactions for time
intercompany billable transactions? have a status of Pending Pricing until the advanced
labor costing process completes.

Recommendations
We recommend that you set up:
• Standard cost rate sheets or a fully burdened cost rate definition for all project workers. Workday uses
these rates to determine prorated cost amounts.
• Advanced labor costing to run on a weekly recurrence. This configuration eliminates manual work and
enables you to review your prorated cost amounts before you complete your month end processing.

Requirements
Either set up Workday Time Tracking or create ad hoc project transactions so you can log time against
project work.

Limitations
No impact.

Tenant Setup
No impact.

Security

Domains Considerations
Setup: Project in the Projects functional area. Create and manage advanced labor costs using
standard or fully burdened costing.
Manage: Ad Hoc Project Costing in the Projects Edit ad hoc project time transactions.
functional area.
Process: Project Billing in the Project Billing
functional area.

Business Processes
You can use the Ad Hoc Project Transaction Event business process to review and approve ad hoc
transactions on projects.

Reporting
You can use these report data sources to create custom reports:
• All Time Blocks
• Ad Hoc Project Transactions

Integrations

Web Services Considerations

Get Project Advanced Labor Cost Calculation Create and preview advanced labor cost calculation
Types types.
Put Project Advanced Labor Cost Calculation Type

Get Project Advanced Labor Cost Definitions Initiate project advanced labor costing.
Put Project Advanced Labor Cost Definition

Connections and Touchpoints

Project advanced labor costing interacts with these other areas in Workday:

Features Considerations
Project Labor Cost Capitalization After you calculate advanced labor costs, you can
use labor cost capitalization to recognize these
project costs as long-term assets rather than short-
term liabilities.
Project Budgets Advanced labor costing can help you better
estimate and manage labor actuals for your
projects.
Intercompany Contracts When you use advanced labor costing to prorate
standard costs, you can use transfer pricing rate
sheets to mark prorated costs up or down.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Manage Project Advanced Labor Costs on page 989
Maintain Project Advanced Labor Cost Calculation Types on page 998
Create Project Standard Cost Rate Sheets on page 991
Set Up Fully Burdened Cost Rate Definitions for Projects on page 997
Reference
2023R1 What's New Post: Business Process for Ad Hoc Project Transactions

Setup Considerations: Ledger Posting for Project Labor Costs

You can use this topic to help make decisions when planning your configuration and use of ledger posting
for project labor costs. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Ledger posting for project labor costs enables you to summarize project labor costs and post these
summaries to your ledger.

Business Benefits
Ledger posting for project labor costs enables you to improve efficiency and reduce manual effort by:
• Analyzing project profitability as a dimension of company profitability.
• Automating ledger posts for your labor cost summaries.
• Making all project labor costs auditable within Workday.
• Reporting on total project labor costs using ledger balances.

Use Cases
• Capitalize labor cost summaries tagged to capital projects.
• Create comprehensive accounting and reporting for project labor cost summaries.
• Summarize labor costs for intercompany projects, and recover the labor cost from either the project or
worker company.
• Summarize labor costs from Workday Payroll journal lines tagged to capital projects.
• Summarize standard and fully burdened labor costs from worker time blocks and ad hoc project time
transactions.

Questions to Consider

Questions Considerations
Which project types do you need to post labor cost You can post labor cost summaries that include all
summaries for? projects or capital projects only.
What level of detail do you need to include in your When configuring summaries for project labor
ledger posts for summarized project labor costs? costs, you can specify worktag details to determine:
• The granularity of summarizations.
• Whether worktags follow projects or workers.

How does project advanced labor costing interact You can summarize and post prorated labor costs
with ledger posting for project labor costs? to your ledger.
What company and cost center combinations will Invalid company and cost center combinations
you use to account for project labor costs? result in labor cost summaries with a status of
Invalid. Workday doesn't create accounting for
invalid labor cost summaries.
How do payroll cost allocations and payroll Workday doesn't support payroll cost allocations
adjustments interact with ledger posting for project or payroll adjustments when summarizing project
labor costs? labor costs.
Where do you want Workday to post project labor You can configure your tenant to create
cost summaries? intercompany accounting entries that post to the
ledger of either the project or worker company.
If you don't configure your tenant to generate
intercompany accounting for project labor cost
summaries, Workday posts all journals to the
actuals ledger of the project company.
Do you want to enable multibook accounting for To set up your tenant to create multibook
capital project transactions? accounting for capital project transactions, ensure
you configure the Business Asset Multibook
Settlement account posting rule.

Recommendations
Run labor cost summarizations for projects after:
• You approve and submit all time.
• The end date of your ledger period passes.
Otherwise, you might summarize the same period multiple times, causing Workday to create a reversal
and a new transaction to account for any changes.
Complete your review of capital project transactions after you run labor cost summarizations.

Include the same worktag types in time entry templates that you include in your criteria for summarizing
project labor costs. This action ensures that worktags are available for summarization.
If you configure balancing worktags in your tenant, require the primary balancing worktag type on the
template for project time entry. Otherwise, labor cost summaries will have a status of Invalid, and Workday
won't generate accounting for them.

Requirements
If you're using advanced labor costing, schedule summarizations for project labor costs after you run
advanced labor costing. This action ensures you include prorated amounts in the summaries.

Limitations
You can only configure this functionality for a tenant-level setup. Company or project-level configurations
are unavailable.

Tenant Setup
Configure Work In Progress (WIP) worktags in your tenant for Workday to include them automatically in
your WIP ledger posting.

Security
These domains in the Capital Projects and Projects functional areas:

Domain Considerations
Manage: Project Labor Cost Accounting Create, schedule, and view labor cost
summarizations that post to your ledger for capital
and noncapital projects.
Set Up: Project Labor Cost Summary Accounting Configure labor cost summarizations that post to
your ledger for capital and noncapital projects.

Business Processes
When you configure the Verify Project Labor Cost Summarization business process for fully burdened and
standard costing methods, Workday:
• Routes your summarizations for approval.
• Creates accounting for your labor cost summaries.

Reporting
Use the:
• Find Project Labor Cost Summaries report to review summarized time transactions and details for
standard and fully burdened labor costs.
• Project Labor Cost Summary report data source to create custom reports.

Integrations
No impact.

Connections and Touchpoints

Feature Considerations
Capital Projects Ledger posting for project labor costs enables you
to configure labor cost summaries for all projects or
capital projects only.
Capitalize labor cost summaries tagged to capital
projects.

Payroll Capitalize summarized labor costs from Workday

Payroll journal lines tagged to capital projects.
Time Tracking Summarize standard or fully burdened labor costs
for worker time blocks and ad hoc project time
transactions.
Configure time entry templates for projects to group
time blocks on labor cost summarizations.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Set Up Project Labor Cost Summary Configurations on page 993
Steps: Manage Project Labor Cost Summaries on page 995
Steps: Configure Capital Projects on page 1138
Reference
2022R2 What's New Post: Project Labor Cost Summarization for Intercompany Projects
2020R1 What's New Post: Ledger Posting for Project Labor Costs

Steps: Manage Project Advanced Labor Costs

Prerequisites
Review Setup Considerations: Project Advanced Labor Costing.

Context
Prorate salaried and nonsalaried workers' standard or fully burdened labor costs for hours worked above or
below scheduled hours. You can use cost calculation types to define proration treatments and calculate a
proration factor to:
• Prorate approved project time blocks and ad hoc project transactions.
• Understand the impact that overtime and over-utilized workers can have on your project cost.

Steps
1. Maintain Project Advanced Labor Cost Calculation Types on page 998.
Configure the cost calculation types to define your proration treatments for your standard or fully
burdened costs. You can preview how your configurations calculate the proration factor.

2. Access the Maintain Project Advanced Labor Cost Calculation Assignment task and enter an
effective date.
You can assign only 1 cost calculation type per project cost rate rule. You can assign multiple rules to a
cost calculation type.
Some workers qualify for more than 1 rule in the list. Workday applies the rate for the first rule that the
worker qualifies for based on attributes, such as:
• Company
• Job profile
• Worker location
When you submit this task, Workday immediately initiates advanced labor costing and discontinues
labor costing for all time transactions within your effective date range. Advanced labor costing initiates
at:
• The ad hoc project transaction submission.
• The approval event for time entry logged against a project or project plan task.
Note: Before inactivating a calculation assignment snapshot, delete all scheduled advanced labor
costing processes. Workday also recommends that you cost all approved time before inactivation.
To inactivate a calculation assignment snapshot, return to this task and select the Inactive check box
for your specified effective date.
Security: Set Up: Project domain in the Projects functional area.
3. (Optional) Access the Project Advanced Labor Costing Preparation task.
Prorate these transactions previously approved before you initiated advanced labor costing:
• Approved project time blocks.
• Approved ad hoc project time transactions.
Security: Set Up: Project domain in the Projects functional area.
4. Access the Schedule Project Advanced Labor Costing task.
Schedule concurrent costing processes to cost your approved time entries. Workday uses the most
recent completed process for your standard or fully burdened cost amounts.
Note: The billing status of intercompany billable transactions for time is Pending Pricing, and your
selected cost amounts display as zero for all projects. When this task completes, cost amounts
calculate and become available for:
• Approved project time blocks.
• Approved ad hoc project time transactions.
Also, let this task complete before you schedule a project labor cost summarization. Your
summarization will post zero to the project company ledger if advanced labor costing is incomplete.
Security: Set Up: Project domain in the Projects functional area.

Next Steps
• Create a custom report using the All Time Blocks or Ad Hoc Project Transaction report data source
to track each worker's:
• Reported standard or fully burdened cost amount in project currency.
• Standard or fully burdened cost rate.
• Proration group start date.
• Cost calculation type.
• Proration factor.
• Manage Scheduled Future Processes to edit or update your scheduled project labor costing job.

Related Information
Concepts
Setup Considerations: Project Advanced Labor Costing on page 983
Reference
2020R1 What's New Post: Project Advanced Labor Cost For Fully Burdened Proration
2020R1 What's New Post: Advanced Labor Costing for Intercompany Contracts

Create Project Standard Cost Rate Sheets

Prerequisites
• (Optional) Create Project Cost Rate Rules on page 996.
• Security: Set Up: Project domain in the Projects functional area.

Context
Create project standard cost rate sheets to cost labor without accessing worker sensitive information.
Configure standard cost rates for:
• Individual workers by name.
• Workers based on worker attributes.
• Workers or unnamed resources based on project roles.
You can override standard cost rates and currency on the project resource plan line.

Steps
1. Access the Create Project Standard Cost Rate Sheet task.
2. As you complete the header, consider:
Option Description
Currency Determines the currency for worker costing. This
currency can differ from the company currency.
Company You can create only 1 rate sheet per company.
You can assign multiple companies to a rate
sheet.
Workday determines the cost rate sheet to use
for:
• Workers using the company from the worker
primary position.
• Unnamed resources using the project
company.

Default Hourly Rate The hourly rate populates the cost rate when
either:
• The worker doesn't meet any criteria.
• The project role doesn't define an unnamed
resource.

Effective Date You can post-date the effective date when you
create or edit a standard cost rate sheet. Workday
calculates and persists time entry costs upon time
entry approval.

Option Description
Note: The standard cost amount for approved
project time entries doesn't change when:
• The standard cost rate sheet doesn't change.
• The override to a cost rate on the resource
plan line doesn't change.
Use the History tab to view effective date
changes to the standard cost rate sheet. From
the related actions menu of the standard cost rate
sheet, select Audits > View Audit Trail to view
change activity.

Inactive Retires the rate sheet permanently. Selecting this

check box isn't reversible.
Order of Execution Determines the order of processing for the rate
sheet tabs.
If a worker qualifies for more than 1 rule, Workday
applies the rate for the first rule that the worker
qualifies for. The Order of Execution option
doesn't apply to unnamed resources.

3. As you complete the rate sheet tabs, consider:

Option Description
Project Rate Rule Defines a group of workers based on a set of
attributes, such as worker location, job profile, or
company.
Worker Configure a rate for a worker included in your list
of companies for this rate sheet.
Project Role The project role for a worker or unnamed
resource.
When a worker replaces the unnamed resource,
Workday uses the Order of Execution to
determine the cost rate with the:
• Project cost rate rule.
• Worker.
• Project role associated with the worker.

Result
Standard cost rates are now available for:
• Capturing actual labor costs.
• Forecasting and budgeting project labor costs.

Next Steps
Configure your project advanced labor costing.
To view the workers in your resource plan, go to the project composite view and select Resources >
Project Resources.

Select View Resource Rates to view and compare project resource cost rates including:
• Fully burdened cost rate definition.
• Standard cost rate.
• Standard cost rate override.
Related Information
Reference
Workday 32: Flexible Labor Standard Costing
2020R1 What's New Post: Project Advanced Labor Cost for Fully Burdened Proration

Steps: Set Up Project Labor Cost Summary Configurations

Prerequisites
Configure your preferred project labor costing method using:
• Advanced labor cost calculation assignments.
• Fully burdened cost rate definitions.
• Payroll to allocate costs towards capital projects.
• Standard cost rate sheets.

Context
You can configure the summarization of your:
• Labor costs for intercompany projects.
• Labor costs from Workday Payroll journal lines tagged to capital projects.
• Standard or fully burdened labor costs for worker time blocks and ad hoc project time transactions.
Workday uses your configuration to create accounting for your project labor costs.

Steps
1. Set Up Account Posting Rules on page 71.
To identify the ledger account in which to record the resulting accounting, configure these account
posting rules:
• Project Labor Cost
• Project Labor Cost Recovery
2. (Optional) Configure project capitalization.
See Steps: Configure Capital Projects on page 1138.
For capital projects, configure Work in Progress accounting and select worktags to include.
3. Edit Domain Security Policies.
Configure the Manage: Project Labor Cost Accounting and Set Up: Project Labor Cost Summary
Accounting security domains in the Capital Projects and Projects functional areas.
4. Edit Business Processes.
Configure the Verify Project Labor Cost Summarization business process and security policy in the
Capital Projects and Projects functional areas.
5. Access the Set Up Project Labor Cost Summary Configuration task.
Configure for All Projects or Capital Projects Only.
You can only configure your tenant to generate intercompany project labor cost summaries for all
projects.
Security: Set Up: Project Labor Cost Summary Accounting domain in the Capital Projects and Projects
functional areas.

6. As you complete the Labor Cost Calculation Method section, consider:

Option Description
Payroll Summarizes payroll journal lines that use:
• A capital projects worktag.
• The same company as the tagged capital
project.
Only available for the Capital Projects Only
configuration.
Standard Costing Summarizes the standard cost amount of worker
time blocks and ad hoc project time transactions
tagged to the project.
Fully Burdened Costing Summarizes the fully burdened cost amount
of worker time blocks and ad hoc project time
transactions tagged to the project.
None Turns off all project calculations for labor cost
summarization.
7. (Optional) For standard or fully burdened costing methods, complete the Summarized By section.
Worktag types you select determine:
• The granularity of the summarization.
• The detail on the journal lines generated from the Project Labor Cost Recovery account posting rule.
Note: Workday automatically includes worktag types in Work In Progress (WIP), primary, and
optional balancing worktags.
8. (Optional) Select the Worker check box under Company is From to include worktag rules, or to
generate intercompany accounting.
9. (Optional) For standard or fully burdened costing methods, complete the Worktag Rules for Labor
Cost Recovery section.
Rules determine whether worktags on journal lines from the Project Labor Cost Recovery account
posting rule follow:
• Projects.
• Workers.
10.(Optional) Set up project time entry.
See Steps: Set Up Project Time Entry.
In the template for project time entry, include the worktag types you would like to group the time blocks
by.
Note: Also include the worktag types that you selected in the Summarized By section to ensure that
the worktags are available for summarization.
If you configure balancing worktags in your tenant, require the primary balancing worktag type on the
template for project time entry. Otherwise, the labor cost summaries will have a status of Invalid, and
Workday won't generate accounting for them.

Next Steps
Create or schedule project labor cost summarizations.
Related Information
Concepts
Concept: Balancing Worktags on Capital Project Transactions on page 1155

Tasks
Set Up Worktag Rules for Project Cost and Revenue on page 969
Steps: Set Up Worktags for Time Entry
Reference
2022R2 What's New Post: Project Labor Cost Summarization for Intercompany Projects
2020R1 What's New Post: Ledger Posting for Project Labor Costs

Steps: Manage Project Labor Cost Summaries

Prerequisites
Configure the Verify Project Labor Cost Summarization business process and security policy in the Capital
Projects and Projects functional areas for fully burdened and standard costing calculation methods.

Context
You can manage the ledger posting of your fully burdened and standard labor cost summaries for projects.

Steps
1. Configure your tenant to create project labor cost summaries.
See Steps: Set Up Project Labor Cost Summary Configurations on page 993.
2. As you create your labor cost summarizations, consider:
Option Description
Create Project Labor Cost Summarization Run your summarization now or once in the
future.
Security: Manage: Project Labor Cost Accounting
domain in the Capital Projects and Projects
functional areas.

Schedule Project Labor Cost Summarization Runs monthly.

Security: Manage: Project Labor Cost Accounting
domain in the Capital Projects and Projects
functional areas.

3. Enter the companies to summarize the project time transactions.

Note: Selected companies and company hierarchies must have the same fiscal schedule.
Workday only summarizes labor costs from projects with an assigned company.
4. Define the periods to summarize your transactions for. As you complete this step, consider:
Option Description
Create Project Labor Cost Summarization Select exact periods to include.
Summarizes time transactions with transaction
dates that are within the selected periods.

Schedule Project Labor Cost Summarization Select the number of immediate past periods to
include.

Option Description
Summarizes time transactions with transaction
dates that are within the selected periods.

Note: When you summarize a period from a previously created labor cost summary, Workday creates
a reversal and a new transaction to account for changes to:
• A time block matching the worktags from the previous summary.
• The project currency.
• The project or worker company.
5. (Optional) Access the Find Project Labor Cost Summaries report.
To find intercompany labor cost summaries, you must search by project company. You can add the
worker company as an additional dimension to narrow the results down further.
Review the summarized time transactions and details for these labor costs when auditing your labor
cost summarizations:
• Fully burdened.
• Standard.
Security: Manage: Project Labor Cost Accounting domain in the Capital Projects and Projects functional
areas.

Result
Workday routes your summarizations for approval through the Verify Project Labor Cost Summarization
business process. Once approved, Workday creates Project Labor Cost accounting for labor cost
summaries in the currency of the project upon summarization. When the ledger currency is different
from the project currency, Workday converts amounts to the ledger currency on the labor cost summary
transaction date.
When the labor cost summary meets a Work In Progress (WIP) exclusion rule, Workday:
• Doesn't create accounting for the Capital Projects Only configuration.
• Creates accounting using the Project Labor Cost account posting rule instead of the WIP account
posting rule for the All Projects configuration.

Next Steps
Capitalize labor cost summaries tagged to capital projects.
Related Information
Tasks
Review Capital Project Transactions on page 1148
Add or Edit Project Assets on page 1141
Reference
2022R2 What's New Post: Project Labor Cost Summarization for Intercompany Projects

Create Project Cost Rate Rules

Prerequisites
Security: Set Up: Project domain in the Projects functional area.

Context
Define a rule that determines project cost rates for workers. Use project cost rate rules to define a group of
workers based on a set of attributes. Example: You might have a group of employees with a job profile of
Consultant, assigned to your San Francisco office.
Use these rules to define:
• Hourly rates on the project standard cost rate sheet.
• Fully burdened cost rate definitions with overhead percentages.

Steps
1. Access the Create Project Cost Rate Rule task.
2. Enter a Description.
The description functions as the name of the project cost rate rule.
3. (Optional) Select an existing rule to copy from the Copy Condition from Rule prompt.
4. Define the Rule Conditions.

Result
You can select the project cost rate rule when you set up:
• Project standard cost rate sheets.
• Fully burdened cost rates.

Set Up Fully Burdened Cost Rate Definitions for Projects

Prerequisites
• For authorized users, set up the Worker Data: Fully Burdened Cost security domain and appropriate
security groups.
• Create compensation plans and compensation bases for assigning worker compensation. See Steps:
Propose Compensation for Employees or Positions and Steps: Manage Compensation Basis.
• Security: Set Up: Fully Burdened Cost Rate domain in the Projects functional area.
• (Optional) Create project cost rate rules to define a group of workers. Workday defines groups based on
a set of attributes such as worker location, job profile, or company. See Create Project Cost Rate Rules.

Context
You can configure a fully burdened cost rate definition to generate an hourly rate for a worker to cost their
time spent on a project. You can also define the cost rate relative to scheduled weekly hours, so that a
worker with fewer hours has a higher per-hour cost rate. In addition, you can apply separate overhead
percentages for costs, such as benefits, to different worker groups.

Steps
1. Access the Set Up Fully Burdened Cost Rate Definition task.
2. Specify details for these fields:
Option Description
Compensation Basis Select a compensation basis that contains the
components for calculating the earnings of a
worker.
Frequency Specify a frequency for calculating the hourly cost
rate for a worker. Use the Maintain Frequencies
task to add, edit, or delete frequencies to use

Option Description
for calculations. To base the cost rate on the
scheduled weekly work hours of the worker,
select Use Weekly Hours.
Default Overhead Percent Specify a percentage of overhead costs to apply
to the base cost for the worker.
Overhead Rate Rule To define an overhead percent for a specific
group of workers, select a Project Cost Rate
Rule. A worker receives the overhead percent
associated with the first overhead rate rule for
which the worker meets the criteria. If there's no
match, Workday uses the Default Overhead
Percent.
If a worker qualifies for multiple project cost rate
rules, Workday applies the overhead rate for the
first project cost rate rule that the worker qualifies
for.

Result
The fully burdened cost rate definition supports costing of projects based on condition rules and
compensation. Workday uses costing rates to calculate time cost for projects and initiatives. You can
see time cost in the project budget information when you view or edit a project. You can see time cost for
initiatives when you analyze them.
To determine the cost rate for workers, Workday uses, in order:
• Standard cost rate override.
• Standard cost rate sheet.
• Fully burdened cost rate.

Next Steps
Run the Fully Burdened Cost Rate for Worker report to understand how Workday uses your
configuration to determine the fully burdened cost rate for specific workers. For workers who have a time
block posted, you can view the cost rate rules and worker compensation factors, as well as a breakdown of
the formula Workday uses to calculate fully burdened cost rates.
Related Information
Reference
2020R1 What's New Post: Project Advanced Labor Cost For Fully Burdened Proration

Maintain Project Advanced Labor Cost Calculation Types

Prerequisites
• Create your standard cost rate sheet or set up a fully burdened cost rate definition.
• Security: Set Up: Project domain in the Projects functional area.

Context
You can define cost calculation types to prorate your project labor costs.

Steps
1. Access the Maintain Project Advanced Labor Cost Calculation Types task.

2. (Optional) For salaried calculation methods, select the Base Cost Rate Is Max check box. This check
box caps the maximum hourly cost rate during the proration calculation not to exceed the base cost rate
from the standard cost rate sheet or fully burdened cost rate definition.
3. Assign the Start Day Of Week to identify the first day of the work week for this cost calculation type.
4. Include time components to calculate your proration factor.
As you complete the Actual Hours For Calculation section, consider:
Option Description
Absence Select to include worker time off and absence
time entries. Doesn't include leave of absence.
Ad Hoc Project Time Select to include approved ad hoc project time
transactions.
Company Holiday Select to include the hours from holidays
designated on the company holiday calendar,
except those holidays occurring on Saturday or
Sunday. Workday calculates holidays as a full
day of work per occurrence, depending on worker
position.
If you plan to submit time entries on holidays,
select Absence instead.

Project Time Block Select to include hours from approved time

entries submitted for project or project plan tasks.
Non-Project Time Select to include approved hours from time
entries submitted with codes other than absence,
project, or project plan tasks.

As you complete the Total Hours For Calculation section, consider:

Option Description
Scheduled Weekly Hours Select to use the scheduled weekly hours based
on the worker primary position from Workday
Human Capital Management (HCM).
When you select the Scheduled Weekly Hours
check box, Workday automatically selects the
Absence and Company Holiday check boxes.

Specified Scheduled Hours (Optional) Enter a value to override the hours

populated from the Schedule Weekly Hours
option.
Absence If you clear this option, the approved hours
from time off entries reduce the values from the
schedule weekly or specified scheduled hours.
Company Holiday If you clear this option, the company holiday hours
and approved time off entries for these holidays
reduce the values from the schedule weekly or
specified scheduled hours. Workday calculates
holidays as a full day of work per occurrence,
depending on worker position.

Option Description
If you plan to submit time entries on holidays,
select Absence instead.

Non-Project Time If you clear this option, the hours from approved
nonproject time entries reduce the values from the
schedule weekly or specified scheduled hours.
5. (Optional) Use the Preview Cost Calculation button to preview how your configured cost calculation
type calculates the proration factor.
Note: The preview results are simulations and don't make updates to your labor cost data for projects.

Next Steps
Assign your cost calculation types to prorate worker groups. Define your worker groups using project cost
rate rules.
Related Information
Tasks
Steps: Manage Project Advanced Labor Costs on page 989
Reference
2020R1 What's New Post: Project Advanced Labor Cost For Fully Burdened Proration

Reference: Causes of Labor Cost Summary Reversals

Workday reverses or recalculates labor cost summaries if you retroactively change a configuration or time
entry.
Workday reverses labor cost summaries when:
• You retroactively add or delete a time block in a summarized period.
• You change a configuration for labor cost summaries.
• You retroactively change a time block in a summarized period.
• Example: You change a worktag or the quantity of time.
• You change the project, project company currency, or worker company currency.
• Worker company currency only applies when you've selected Company from Worker on the Set
Up Project Labor Cost Summary Configuration task.
When you're using advanced project labor costing, Workday recalculates labor cost summaries when:
• You retroactively add or delete a time block in a summarized period.
• You change a worker's job profile as of the end date of the scheduled advanced labor cost job
recurrence.
• Example: A worker changes jobs on 2023-1-15. You schedule the advanced labor cost job for
Weekly Recurrence, and you schedule a labor cost summary for Monthly Recurrence. On your next
labor cost summary, Workday uses the new job profile that's active on 2023-1-15 to summarize the
first week of January, because it's the job profile active on 2023-1-31, the date Workday creates the
summary.
• You change the time calculation type.
• You terminate a worker as of the end date of a scheduled labor cost summary.
• Example: You terminate a worker on 2023-1-15. You schedule the advanced labor cost job for
Weekly Recurrence and you schedule labor cost summaries for Monthly Recurrence. On your next
labor cost summary, Workday creates a labor cost summary for the first week of January. All time
blocks entered after this will be zero rated, because Workday evaluates scheduled hours as of the
last day of the scheduled advanced labor cost job.

Project Management

Steps: Build Projects

Context
Workday Projects enables you to effectively:
• Plan the projects for your organization.
• Track your progress.
• Staff your projects.
• Manage your project resources.
• Enable project workers to log their time and expenses to a project.
You can define project work that aligns with strategic company and individual goals, as well as develop
effective outcomes.

Steps
1. Set up the infrastructure for your project.
See Steps: Set Up Projects Infrastructure on page 963.
2. (Optional) Access the Maintain External Link Validation task to enable external links on projects.
Define the authorized URI formats for the Project External Link option. Example: https://zimit.io/
This validation:
• Enables users to add links that match your specific formats.
• Prevents users from adding unauthorized links.
Security: Set Up: Tenant Setup - Security domain in the System functional area.
3. Create Projects on page 1019.
4. Create Project Plans on page 1033.
5. Create Resource Plans on page 1088.
6. Configure Task Resources on page 1065.
7. Access the Assign Work to Worker task.
Assign project and nonproject work to workers.
Security: Assign Work to Worker business process and security policy in the Projects and Staffing
functional areas.
8. (Optional) Access the Create Risks task.
Define the risks associated with the project.
Security: Manage: Project Details domain in the Project Tracking functional area.
9. (Optional) Create Project Groups on page 1002.
10.(Optional) Set up the Project Manager Hub.
See Steps: Set Up Project Manager Hub on page 1002.

Next Steps
• Use the Projects dashboard to manage your projects.
• Set up resource forecasts.
• Set up project budgets.

Related Information
Concepts
Concept: Project Dashboard on page 954
Tasks
Steps: Set Up Resource Forecasts on page 1097
Steps: Set Up Project Budgets on page 1106
Reference
Reference: Project Reports on page 954

Create Project Groups

Prerequisites
Security: Set Up: Project Tracking domain in Project Tracking functional area.

Context
Project Groups enable you to organize related projects for categorization, prompting, and reporting
purposes. Grouping your projects makes it easier to retrieve and compare them with the Find Projects
report.

Steps
1. Access the Create Project Group task.
2. Add projects.
You can add both active and inactive projects to your group. A project can belong to multiple groups.
3. (Optional) Set the project group to Inactive.

Next Steps
• Search for projects by their project group with the Find Projects report.
• Add project groups to projects.
• Use the View Project Group report to review the projects within a group.

Steps: Set Up Project Manager Hub

Prerequisites
Security: Set Up: Tenant Setup - Hub domain in the Projects functional area.

Context
The Project Manager Hub is a centralized landing page that helps project managers navigate to the tasks
and reports that are most relevant to them. Project managers can use this hub to manage and gain insight
into their projects.
You can configure the hub by:
• Adding announcements.
• Adding links.
• Configuring card attributes and parameters.
• Customizing hub cards.
• Customizing hub sections.

Steps
1. Set Up Hubs.
As you complete the Content tab of the Maintain Hubs task select either:
• Default Sections and Cards to enable Workday to update the Project Manager Hub with:
• The default configurations.
• New enhancements.
• Customize Sections and Cards to:
• Add or remove sections.
• Change the order of your cards.
• Prevent Workday from automatically updating the Project Manager Hub with new enhancements.
2. (Optional) Configure Project Manager Hub Cards on page 1003.
Customize the parameters and information on the project manager hub cards.
3. (Optional) Add cards to the People Experience Home page.
See Steps: Set Up People Experience.
4. Edit Domain Security Policies.
Set up the View: Project Manager Hub domain security policy.
5. Activate Pending Security Policy Changes.
Related Information
Tasks
Steps: Build Projects on page 1001
Reference
2022R1 What's New Post: Project Manager Hub
2023R1 What's New Post: Configure Project Manager Hub Cards

Configure Project Manager Hub Cards

Prerequisites
• Set up the Project Manager Hub. See Steps: Set Up Project Manager Hub on page 1002.
• Security: Set Up: Tenant Setup - General domain in the System functional area.

Context
You can configure some cards in the Project Manager Hub with custom attributes, such as titles and help
text. You can also configure the parameters of some cards, to change the information they display based
on your organization's needs.

Steps
1. Access the Configure Card Overrides by Admin task.
2. Add the cards that you want to configure in the grid and click OK.
3. Select the card that you want to edit.
4. (Optional) As you complete the Informational Text tab, add helpful information about your custom
settings.
5. (Optional) As you complete the Parameter tab, configure the information displayed on the card.
Example: Change the aging range of transactions displayed on the Transactions Awaiting Review
Cards.

6. (Optional) As you complete the Overflow Menu tab, add links to the drop-down menu on the card.
Select the Security Group or Condition Rule option to add a security requirement for your custom
links. Other security requirements still apply to tasks, reports, or dashboards you link to.
Related Information
Reference
2023R1 What's New Post: Configure Project Manager Hub Cards

Reference: Project Manager Hub Cards

Workday displays cards in the Project Manager Hub to centralize insights and prioritize relevant tasks.
To access these cards, you must have access to the View: Project Manager Hub domain in the Projects
functional area.
You can configure the Project Manager Hub cards in order to suit your organization's specific needs.
Workday displays these cards in the Project Manager Hub:

Card Security Description

My Projects Either of these domains in the You can view your active projects
Project Tracking functional area: within a range of weeks that
you enter and set the number
• Manage: Project Details
of weeks that activate the visual
• View: Project indicators.
You can navigate to specific
projects.
Visual indicators:
• Red for approaching end
dates.
• Yellow for approaching start
dates.
• Gray for finished projects.
• Blue for projects in progress.

Tasks Ending Both: You can view project plan tasks

that are incomplete and enter the
• Manage: Project Task
number of weeks to:
Resources domain in the
Projects functional area. • Display project plan tasks past
• Manage: Project Plan domain their end date.
in the Project Tracking • Display project plan tasks with
Functional Area. an upcoming end date.
• Activate the visual indicators.
You can navigate to the:
• Edit Project Plan task.
• Edit Task Resources report.
Visual indicators:
• Red for tasks with overdue
end dates.
• Yellow for tasks with
upcoming end dates.

Card Security Description

Project Forecasted vs. Actual Both: You can view projects with
Hours actual hours that surpass
• Reports: Projects domain in
or are approaching the total
the Projects functional area.
resource forecast hours. You can
• Reports: Time Tracking determine if projects have:
domain in these functional
areas: • An Estimate at Completion
(EAC) that exceeds the
• Time Tracking total forecast hours by a
• Time Tracking Hub percentage you enter.
• Actual hours that exceed
the total forecast hours by a
percentage you enter.
• Actual hours within a
percentage of the total
forecasted hours that you
enter.
You can navigate to the:
• Edit Resource Forecast task.
• Project Forecasted vs.
Actual Hours report.
Visual indicators:
• Red: actuals or EAC
exceeding forecast based
on the value you enter for
Actuals Critical Percent and
EAC Critical Percent.
• Yellow: actuals approaching
or exceeding forecast based
on the value you enter for
Forecast Warning Percent.

Worker Forecasted vs. Actual Reports: Time Tracking domain You can view project workers
Hours in the Time Tracking and Time over a chosen number of past
Tracking Hub functional areas, weeks from the previous Sunday
and either: with:
• Manage: Project Resource • Missing actuals.
Forecast domain in the • Missing forecasts.
Projects functional area. • Actuals and forecasts that
• Reports: Manager domain in differ by the percentage you
the Staffing functional area. enter for Percent Variance.
You can compare the forecast
hours of each project worker to
the actual hours they worked on
a project. You can also view the
time off, in hours, for the project
workers in the details.
You can navigate to the:

Card Security Description

• Forecast vs. Actuals –
Project Hours by Month
report.
• Resource forecast.
Visual indicators:
• Red for workers with missing
actuals or forecast.
• Yellow for workers with
actual hours greater or less
than forecast, based on the
value you enter for Variance
Warning.

Aging Customer Invoices Both: You can view customer invoices

that don't have a currency value
• Reports: Customer Accounts
of zero and:
domain in the Customer
Accounts functional area. • Are past due.
• Reports: Project Billing • Are due today or within a
domain in the Project Billing number of days that you
functional area. specify.
You can navigate to:
• The Find Customer Invoices
for Billable Project report.
• Specific customer invoices
by using the related actions
button.
Visual indicators:
• Red for the number of days
past due.
• Yellow for the number of days
until due within the range you
enter.

Transactions Awaiting Review: Both: You can set a minimum aging

Upper Aging Range range threshold. Workday
• Manage: Billable Projects
displays transactions that are
domain in the Projects
older than the age you enter.
functional area.
• Process: Project Billing - Core You can navigate to the Manage
domain in the Project Billing Project Billing Transactions
functional area. task.
Visual indicator: Red header.

Transactions Awaiting Review: Both: You can set a minimum and

Middle Aging Range maximum aging range threshold.
• Manage: Billable Projects
Workday displays transactions
domain in the Projects
that are within the range you
functional area.
enter.
• Process: Project Billing - Core
domain in the Project Billing
functional area.

Card Security Description

You can navigate to the Manage
Project Billing Transactions
task.
Visual indicator: Yellow header.

Transactions Awaiting Review: Both: You can set a maximum aging

Lower Aging Range range threshold. Workday
• Manage: Billable Projects
displays transactions that are
domain in the Projects
newer than the age you enter.
functional area.
• Process: Project Billing - Core You can navigate to the Manage
domain in the Project Billing Project Billing Transactions
functional area. task.
Visual indicator: Green header.

Staffing That Needs Attention Manage: Advanced Project You can view assignments to
Resource Management domain in resource plan lines that have 1 of
the Projects functional area. these:
• A start date within a number of
weeks that you enter.
• An unnamed resource, no
assigned workers, or assigned
workers pending approval.
You can navigate to the:
• Edit Resource Forecast task.
• Edit Resource Plan task.
• Staffing That Needs
Attention report.
Visual indicators:
• Red for assignments with start
dates in the past.
• Yellow for assignments
with start dates that are
approaching based on the
number of weeks you enter in
Start Date Warning.

Resources Rolling Off Configure the Give Feedback You can view assignments to
business process and security resource plan lines with end
policy in these functional areas: dates within a number of weeks
that you enter.
• Performance Enablement
• Worker Profile and Skills You can navigate to the:
• Edit Resource Forecast task.
• Edit Resource Plan task.
• Give Feedback task.
Visual indicators:
• Red for assignments with past
end dates.

Card Security Description

• Yellow for assignments ending
within the number of weeks
that you enter for End Date
Warning.

Upcoming Holidays Manage: Advanced Project You can view project workers
Resource Management domain in with upcoming holidays. You can
the Projects functional area. control which workers display on
the card by entering the number
of weeks until the end date of
the reporting period in which the
holiday will be reported.
You can navigate to the View
Resource Forecast task.
Visual indicator: Yellow for
upcoming holidays within the
range you enter for Holiday
Warning.

Upcoming Time Off Manage: Advanced Project You can view project workers
Resource Management domain in with upcoming time off. You can
the Projects functional area. control which workers display on
the card by entering the number
of weeks until the end date of the
reporting period in which the time
off will be reported.
You can navigate to the View
Resource Forecast task.
Visual indicator: Yellow for
upcoming time off based on the
value you enter for Start Date
Warning.

Related Information
Tasks
Steps: Set Up Project Manager Hub on page 1002
Reference
2022R1 What's New Post: Project Manager Hub
2023R1 What's New Post: Configure Project Manager Hub Cards

Reference: Project Components

Project Components
After you create a project hierarchy, you can assemble a framework for your projects by defining its
components. These components simplify the process of creating a new project.

Component Description
Project Hierarchy All projects must belong to a primary hierarchy.
You can also specify optional hierarchies to further
group your projects.

Component Description
Note: If you specify an optional hierarchy, you'll
disable all of these hierarchy-level configuration
options:
• Derived worktag rules.
• Project budget configurations.
• Resource plans.

Project Plan Contains the project phases and tasks. Describes

the sequences of steps, activities, and milestones
needed for a project.
Resource Plan Describes who accomplishes the work detailed in
the project and in the project plan. You can:
• Specify the project roles for the workers, and
then assign individual workers or associate
groups of workers to the roles.
• Define groups of workers using talent pools, job
profiles, or cost centers.
• Assign a resource plan to a project or project
hierarchy.
A resource plan that you assign directly to a
project is unique to that project. A resource plan
that you assign to a project hierarchy replicates
to the subordinate projects and hierarchies.

Phases and tasks Phases are the high-level sequence of steps

to complete a project. Example: A software
implementation project might include these phases:
analyze, scope, design, construct, test, document,
deliver, and support.
Tasks are the distinct activities within a phase.
Example: The document phase might have a task
to write end-user instructions.
All project plans, project plan templates, and project
templates have phases and tasks.
When you assign phases and tasks to a project,
Workday creates a specific instance of them that
you can report on for that project.

Templates You can create templates for projects and project

plans that automatically fill in configuration settings
and other information. Templates help reduce the
manual effort required in configuring these settings
every time you create a new project or project plan.
They're also useful in standardizing projects across
your organization.
Project labor costing You can define project labor costs based on either:

Component Description
• Standard cost rate sheets:
Use to define the rates for:
• Unnamed resources based on project roles.
• Workers based on worker attributes, worker
names, and project roles.
• Fully burdened cost rate sheets:
Use to determine an hourly rate to cost the
time spent by a worker on a project. Workday
generates the fully burdened cost rate based on
your configurations of:
• Compensation basis.
• Frequency.
• Overhead percent.
Workday then combines the fully burdened cost
rates with project time tracked by workers to
calculate project costs.

Dates Workday doesn't require or enforce relationships

between start and end dates across these project
areas:
• Project.
• Project Plan Task.
• Resource Plan Line.
• Task Resources.
Examples:
• A project plan task can have an end date after
the project end date.
• A task resource can have a date range outside
the resource plan line.

Related Information
Tasks
Steps: Build Projects on page 1001
Create Projects on page 1019
Create Templates for Projects on page 975

Reference: Project Management Reports

You can use these reports to view your projects at a high level and to manage project details.

Report or Worklet Description Security

My Projects Displays your most frequently Manage: Project Details domain
used projects. in the Project Tracking functional
area.
To add a project to the worklet,
set it as a favorite from the
related actions menu on the
project.

Report or Worklet Description Security

This worklet only displays
projects where users have a
direct assignment.

View Project Enables you to view and edit Manage: Project Details domain
information about existing in the Project Tracking functional
projects. area.
Workday bases this report on the
project profile and profile groups,
giving you a composite view of
the information.
You can configure the information
that displays in this report with the
Configure Profile and Configure
Profile Group tasks.

View Project Hierarchy Enables you to view and edit Set Up: Project Hierarchy domain
information on existing project in the Project Tracking functional
hierarchies. You can: area.
• Add workers to resource plan
lines.
• Configure a project budget.
• Create worktag rules.
• Restrict time entry for future
dates.

View Project Plan Timeline Displays the schedule for project Manage: Project Plan domain in
phases and tasks by: the Project Tracking functional
area.
• Percent complete.
• Estimated hours.
• Hours logged.
• Time remaining.

For a complete list and description of the Workday standard reports for Projects, access Workday
Standard Reports. Then, select the Projects report category.
Related Information
Concepts
Concept: Project Dashboard on page 954
Tasks
Configure the Project Profile on page 964

Project Creation
Setup Considerations: Project Creation
You can use this topic to help make decisions when planning your configuration of how users create and
edit projects. It explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.

• Security requirements and business process configurations.

• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Project creation enables you to plan and track the project work for your organization. You can create these
types of projects:
• Basic projects function solely as worktags on financial transactions and payroll entries.
• Billable projects have customer contracts, invoices, and billing.
• Capital projects have cost transactions for managing project costs as long-term assets.
• Nonbillable projects are internal projects that don’t invoice customers.
• Opportunity projects are sales opportunities that you can later convert into a project.

Business Benefits
Workday reduces data entry by enabling you to:
• Copy data from an existing project.
• Use templates to populate common project information.
• Copy data from an idea.
Workday also streamlines project maintenance by enabling project managers to:
• Update existing projects.
• Approve new and updated projects.
• Generate draft customer contracts.

Use Cases
• Create templates for similar projects to reduce effort, maintain consistency, and avoid errors.
• Set Workday to generate a draft customer contract from a template after a manager approves a billable
project.
• Create new projects.
• Create new projects from approved ideas.
• Copy existing projects.
• Update existing projects.
• Approve changes to projects.
• Convert basic projects into fully defined projects.

Questions to Consider

Questions Considerations
Do you need projects that only function as You can create basic projects to use as worktags
worktags? on financial transactions and payroll entries.
How do you want to configure templates for your You can create templates for similar types of
projects? projects to populate common information that most
users need to enter.
Within the project template, you can further simplify
project creation by associating these additional
templates:
• Project plans.
• Resource plans.

Questions Considerations
• Task resources.
• Customer contracts.

Do you want to use a specific format for the project You can set a custom format for project IDs on the
ID? Edit Tenant Setup - Financials task.
How do you want to maintain consistency between To maintain consistency, you can define common
projects? values for the project fields. Users can then select
these predefined values when they create or
update a project.
How do you want to create new projects? You can simplify the process of creating a new
project by enabling users to copy existing projects.
Users can copy most of the transferable project
information. Example: worktags, project plans, and
resource plans.
You can also enable users to create new projects
from an approved idea. This type of project creation
includes information you define in the idea.
To enable these features, configure the Copy
Project and Create Project from Idea initiating
actions in the security policy for the Create Project
business process.

How do you want to create your customer You can simplify the process of creating customer
contracts? contracts by configuring Workday to generate a
draft customer contract after project approval.
To enable this feature, add the Create Customer
Contract service step to the Create Project
business process after the business process
completes.

What external links should users add to their You can enable users to add external links to their
projects? projects by configuring URIs that:
• Enable the External Link option on projects.
• Prevent users from adding unauthorized links.
Before you begin, determine which external links
your organization approves for project use.

Recommendations
Create templates to populate fields with information common to all your projects. You can also associate
your project templates with these templates:
• Project plans.
• Resource plans.
• Task resources.
• Customer contracts.
Configure the Create Project business process to copy projects.
Configure the Create Project business process to generate a draft customer contract from a template for
billable projects.

Requirements
Create project hierarchies for your organization before you enable users to create projects.

Limitations
You can only:
• Add customer contract templates to billable projects.
• Generate draft customer contracts for billable projects you associate with customer contract templates.

Tenant Setup
To create custom formats for your project IDs, you can configure the ID Generator for Projects option in
the Projects section on the Edit Tenant Setup - Financials task.

Security

Domains Considerations
Set Up: Tenant Setup - Security in the System Users can enable external links on projects and
functional area specify the URIs.
Business Process Administration in the System Users can edit the Create Project and Edit Project
functional area business processes.
Manage: Business Process Definitions in the Users can manage the Create Project and Edit
System functional area Project business processes.
Manage: Initiatives in the Projects functional area Users can create and manage importance ratings.
Manage: Project Details in the Project Tracking Users can:
functional area
• Create and modify importance ratings.
• Run the Find Projects report.
• View projects.

Set Up: Basic Project Worktag in the Common Users can create basic projects to use as worktags.
Financial Management and Worktags functional
areas
Set Up: Project in the Projects functional area Users can create and manage project templates.
Set Up: Project Details in the Project Tracking Users can create and manage:
functional area
• Project statuses.
• Importance ratings.

Set Up: Project Tracking in the Project tracking Users can:

functional area
• Create and manage success ratings.
• Use the Get Projects web service.

Set Up: Risk and Priorities in the Project Tracking Users can create and manage:
functional area
• Risk levels.
• Work priorities.

Ensure proper access to these security roles:

Domain Security Roles Considerations

Project Administrator • Configures tenant setup information.
• Edits the Create Project and Edit Project
business processes.
• Specifies the URIs for external project links.
• Creates projects and templates.
• Uses web services.

Project Manager • Creates and updates projects.

• Manages and views project information.
• Approves changes to projects routed by the
Create Project and Edit Project business
processes.

Business Processes

Business Processes Considerations

Create Project in the Project Tracking functional Enables project administrators to:
area
• Create new projects.
• Copy existing projects.
• Use the Submit Project web service.
Enables project managers to:
• Create new projects.
• Create new projects from approved ideas.
• Copy existing projects.
• Review and approve new projects.
• Generate a draft customer contract for billable
projects.

Edit Project in the Project Tracking functional area Enables project managers to:
• Edit existing projects.
• Review and approve changes to existing
projects.

Reporting
Project managers can view the Find Projects report to search for existing projects.

Integrations

Web Services Considerations

Get Projects Retrieves projects with your specific criteria.
You can request project criteria for a single
transaction based on the Reference value, or
retrieve all transactions when you don't specify any
criteria.

Web Services Considerations

Submit Project Creates a project and submits it through the Create
Project business process for approval.

Connections and Touchpoints

Features Considerations
Customer Contracts When you define project templates for your
customer contracts, project managers can select
them when they create billable projects. You can
enable the Create Project business process to
generate a draft contract after project approval.
Time Tracking You can configure the start and end dates of the
project. This date range sets the initial date range
for project workers to log time against the project or
project tasks.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Set Up Projects Infrastructure on page 963
Set Up the Create Project Business Process on page 1017
Create Templates for Projects on page 975
Create Projects on page 1019
Steps: Set Up Project Ideas on page 1174
Reference
Reference: Edit Tenant Setup - Financials
Reference: Project Reports on page 954
Preconfigured Content: Financials Delivered Configurations

Create Basic Project Worktags

Prerequisites
Security: Set Up: Basic Project Worktag domain in the Common Financial Management and Worktags
functional areas.

Context
Basic projects solely consist of a project name and an ID. They function as worktags on financial
transactions and payroll entries, eliminating the need to create a fully defined project. You can convert a
basic project into a full project later on, if needed.
Basic projects:
• Aren't used to manage a project.
• Don't have detailed project information.
• Don't need enabled financial security domains.

Steps
1. Access the Maintain Basic Projects task.

2. For each new basic project, add a row to the Basic Projects grid.
3. As you complete each row, consider:
Option Description
Project ID Workday generates an incremental ID.
Project Name Enter a project name. Workday displays this
name on the project worktag.
Inactive When you set a basic project as inactive, you
can't use it as a worktag until you activate it. You
can set basic projects as active or inactive using
the Maintain Basic Projects task.

Result
Basic projects are available to use as worktags for:
• All available financial transactions including requisitions, spend authorizations, and expense reports.
• Payroll input by workers.

Next Steps
• Convert a basic project to a full project with the Create Project from Project Worktag task.
• Find and review existing basic projects with the View Basic Projects report.
• Review and edit your basic projects with the Maintain Basic Projects task. You can change the names
of basic projects and set them as active or inactive.
Related Information
Concepts
Setup Considerations: Project Creation on page 1011
Tasks
Convert Basic Worktags to Full Definitions
Create Basic Worktags

Set Up the Create Project Business Process

Prerequisites
Security - These domains in the System functional area:
• Business Process Administration
• Manage: Business Process Definitions

Context
The Create Project business process provides increased visibility and workflow control over the creation of
a new project and changes to an existing project.
This business process enables you to:
• Initiate a project.
• Set approvals for security groups.
• Define advancement to the next step in the process.
• Create a draft customer contract from a template.
• Create custom validations for project creation.
You can edit the security policy for the Create Project business process to set the security groups that can:

• Create new projects.

• Copy existing projects.
• Approve new projects.
• Review new project information.

Steps
1. Access the Create Project business process definition.
2. Select Business Process > Edit Definition from the related actions menu.
As you complete the task, consider:
Option Description
Due Date The elapsed time from when the process starts
until the process is complete.
Due Date is Based on Effective Date The effective date that the project manager
specifies when starting an instance of the
business process:
• If selected, Workday calculates from the
effective date of the business process.
• If not selected, Workday calculates from the
moment the prior step completes.

3. As you complete the Business Process Steps, consider:

Option Description
Order Use to set the completion order of the steps. We
recommend using letters instead of numbers,
because Workday sorts sequentially, not
numerically. Example: 10 sorts before 2.
Parallel Step Inbox Order Use to configure the order of parallel steps in
the business process. A parallel step is when
2 or more Workflow steps have the same
alphanumeric order.
The sequence you enter here determines how
each parallel step displays in the inbox of the
approver.
Note: If an approver sorts their Inbox by Newest
on Top, Workday displays their Inbox tasks in the
opposite order of what you configure here.

Type Use to set the type of step for the business

process.
A business process always starts with an initiation
step.
To route changes to the project manager for
approval, select Approval.
To create a draft customer contract from a
customer contract template, select Service and
specify Create Customer Contract.

Option Description
Group Use to set the type of role that you want to
approve the change. You can select more than 1
option.
All Use if everyone in the specified security groups
must complete this step.
Due Date Use to set the due date for the step.
The due date is the amount of time allotted to
complete the current step, after the previous step
completes.

Due Date is Based on Effective Date Use to change the starting time to the effective
date of this business process instance.

Complete Use for approval steps.

When a Completion step finishes, the business
process completes. Completion makes the data
available for the Edit Project business process.

4. Enable Workday notifications.

a) Add Manager to the notifications using the Maintain System Notifications task.
b) (Optional) Set up Custom Notifications.

Result
The Create Project business process guides the creation and approval of new projects.
Related Information
Concepts
Concept: Inbox
Tasks
Edit Business Processes
Edit Business Process Security Policies
Create Custom Notifications

Create Projects

Prerequisites
• Review setup considerations for project creation.
• Set up assignable roles.
• Create a project hierarchy.
• Configure these business processes and security policies in the Project Tracking functional area:
• Create Project
• Edit Project
• Security: Manage: Project Details domain in the Project Tracking functional area.

Context
You can create nonbillable, billable, capital, and opportunity projects. These Workday projects help you to
plan and track your work and resources. When you create a new project, you can:

• Copy this data from a similar project:

• Financials Summary
• Overview (Summary and Details)
• Project plan
• Resource plan
• Worktags
• Select templates to prefill common project information.
• Enter all your project data manually.

Steps
1. Access 1 of these options:
• Create Project task.
• Create Opportunity Project task.
• A project to copy. From the related actions menu of the project, select Project > Copy Project. You
can only copy the projects and project data that you can access.
• An approved Idea. From the related actions menu of the idea, select Idea > Create Project.
2. (Optional) Select 1 or more templates for your project.
If you select a Customer Contract Template, Workday creates a billable project.
3. As you complete the Project Summary section, consider:
Option Description
Project Name You can reuse project names by editing the
critical validation rule for project names on the
Maintain Custom Validations report.
Start Date Select the start and end dates for the project.
End Date These dates control when workers can log time
against the project in Time Tracking. Workers
can only log time to the project between these 2
dates.

Status Project previews display this status for

informational purposes only. Project Status
doesn't control functional behavior.
Owner Identifies the person responsible for the project.
You can use this information for roll-up reporting.

Probability For an opportunity project, enter a number

between 1 and 100 to specify or indicate the
probability of converting to a project. Workday
appends [O] to the names of opportunity projects.
When you sell an opportunity project, you can
convert it using the Convert Opportunity Project
to Project task.

4. As you complete the Reference Information section, consider:

Option Description
Optional Project Hierarchies Select additional hierarchies to group projects for
reporting purposes.

Option Description
Project ID When you leave the Project ID blank, Workday
generates a sequential ID.
Integrations use the project IDs as a reference
and only Workday administrators can change
them.

Billable Select this check box to enable time and expense

billing, as well as revenue recognition for the
project.
Workday makes a project billable when:
• You link the project to a contract or contract
line.
• You select a customer contract template.
• A worker logs billable time against it.

Capital Select to make the project a capital project.

When you select this check box, you can't:
• Review existing transactions tagged to the
project for capitalization.
• Revert to a noncapital project.
A capital project is specific to a single company
that you select for the project. You can tag
transactions to a capital project when they belong
to this company. Workday registers the resulting
business assets with the company.

Company Workday:
• Populates this company on time blocks when
workers log time against the project.
• Assigns a worktag for the accounting, unless
you override worktags in the operational
transaction.

Project Currency Workday converts all internal and billable rates to

this currency when you report on the project.
Customer Required for billable projects.
Workday:
• Populates this field on time blocks and
worksheets when workers log time against the
project.
• Assigns a worktag for the accounting, unless
you override worktags in the operational
transaction.

Balancing Worktag For capital projects, when you enable worktag

balancing in your tenant, you can select a worktag
to balance journals for transactions. The rules
evaluate the balancing worktag of the project, not
the balancing worktag of the transaction. Workday

Option Description
generates Due To and Due From accounting
entries to balance your journal when the values
on the transaction and project differ.
When you use a cost center as a balancing
worktag, you can restrict values to companies or
company hierarchies on the Edit Cost Center
task.

Optional Balancing Worktags For capital projects, when you enable optional
balancing worktags in your tenant, you can select
up to 5 worktags. You can use them with your
primary balancing worktag to report on and
balance multiple worktags in a single transaction.
Workday includes the Project worktag for the
project.
You can use a cost center as an optional
balancing worktag to restrict values to companies
or company hierarchies on the Edit Cost Center
task.

Project Groups Associate the project with a group of related

projects for easier retrieval and comparison later
on. This grouping is useful for roll-up reporting.
External Project Reference You can associate the project with an external
project ID, such as an ID from a third-party
project.
External Link To link the project to an external web site, enter
the URL here. Example: https://zimit.io/
The URL must match an authorized format
specified by your project administrator.
You can set up external links for the project using
the Maintain External Link Validation task.

Customer Contract Template For billable projects only.

You can configure the Create Project business
process to generate a draft customer contract
from this template.

Prerequisite For Displays all projects that have a dependency

relationship with this project.
Dependencies Select a project to create a dependency
relationship with your current project. This
relationship gives you 2-way visibility into related
project details that might impact the current
project.

5. As you complete the Worktags tab, consider:

• When you select the project on a transaction, Workday populates the transaction with the values in
the Default Worktag column.
• For worktag balancing, Workday only uses a balancing worktag if you select worktags of the same
type in both the:
• Worktags grid.
• Balancing Worktag field.
• You can set up related worktags for the project using the Maintain Related Worktag Usage task.
• When you capitalize a project asset, Workday populates the related worktags in the Location and
Worktags fields of the business asset.
6. (Optional) As you complete the Project Detail tab, consider:
Option Description
Percent Complete When this value is 100%, workers can't log time
against the project or its tasks.
Success Rating After you complete the project, select a success
rating.
If you reduce the Overall % Complete to less
than 100, the Success Rating field clears and
becomes read only.

7. (Optional) Select the Role Assignment tab.

As you complete the tab, consider:
Option Description
Restricted to Single Assignment When selected, you can only assign 1 worker to
the project role.
Assigned To Assigns workers to a project role and grants
them the appropriate security for their role on the
project.

Note: Only workers with roles on the project can see project information. You can also limit roles to
specific workers on this task.
8. (Optional) Complete the Project Plan tab.
When you create a new project, you can only access the project plan tasks on the project plan that are:
• Unrestricted.
• Restricted to the project hierarchy of the new project.
• Inherited from the parent hierarchy of the new project.
You can also add your project plan after project approval.
9. (Optional) Complete the Resource Plan tab.
When you create a new project, you can only access the project roles on the resource plan that are:
• Unrestricted.
• Restricted to the project hierarchy of the new project.
• Inherited from the parent hierarchy of the new project.
You can also add your resource plan after project approval.

Result
Workday submits the project for review and approval.

Next Steps
• Identify project risks.
• (Billable projects only) Create customer contracts, and then add contract rates and billing rate rules.
• Create custom objects.
• Associate an idea with the project from the related actions menu.
Related Information
Concepts
Setup Considerations: Project Creation on page 1011
Concept: Worktags
Concept: Balancing Worktags on Capital Project Transactions on page 1155
Concept: Idea Management on page 1175
Tasks
Create Project Hierarchies on page 966
Create Project Plans on page 1033
Create Resource Plans on page 1088
Steps: Set Up Project Pricing and Billing on page 1195
Create and Edit Custom Object Definitions
Steps: Set Up Project Ideas on page 1174
Set Up Assignable Roles

Assign Roles to Projects

Prerequisites
• Set up assignable roles.
• Create a project hierarchy.
• Create a project.

Context
For workers to manage project information, you must assign them to a role on either a project or a project
hierarchy. Example: Project Resource Manager.

Steps
1. Access a project or project hierarchy.
2. From the related actions menu of the project or hierarchy, select Roles > Assign Roles.
3. Select a starting date for your new role assignments.
4. Click OK.
5. Add a row for each new organizational role.
6. Select the organizational role from the Role prompt.
7. Select the worker from the Assigned To prompt.
Related Information
Concepts
Concept: Assign Roles
Tasks
Set Up Assignable Roles
Create Project Hierarchies on page 966
Create Projects on page 1019

Associate a Project with a Sales Opportunity

Prerequisites
• Add Opportunity as a worktag type for the project transactions on the Maintain Related Worktag
Usage task.
• Configure derived worktag rules to tag your transactions with the opportunity.
• Configure the Create Project business process and security policy in the Project Tracking functional
area.

Context
When you create an opportunity in a third-party software application like Salesforce.com, Workday
generates opportunity and prospect worktags. You can use these worktags to tag expense reports,
purchase orders, and projects. Tagging a project enables you to track sales expenses before securing
the sale or incurring project expenses. This process enables you to track labor costs and expenses for a
specific sales deal.

Steps
1. Access the Create Opportunity Project task.
2. Complete the project summary and reference information.
3. Select the related Opportunity in the Default Worktag column.

Result
When you generate transactions related to this project, Workday tags the transaction with the opportunity.
Related Information
Concepts
Concept: Financial Management Connector for Salesforce

Project Plans
Setup Considerations: Project Plans
You can use this topic to help make decisions when planning your configuration and use of project plans. It
explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

In Workday, you can use project plans to organize these aspects of a project:
• Project phases
• Project tasks
• Worker assignments
• Timelines
• Risks

Business Benefits
• Streamline the creation and management of your project plans.
• Reduce data entry for commonly used information.
• Increase efficiency by defining project timelines and setting milestones for billing and tracking.
• Reduce effort, maintain consistency, and avoid errors by controlling the content of project plans.

Use Cases
• Specify the window of time that workers can record their hours on a project.
• Assign workers to specific project tasks so they can log time against their task assignments.
• Add risks that might affect your project plan, such as extreme weather conditions or personnel turnover.
• Share project information with Microsoft® Project, such as project plan phases and scheduling
information.
• Update all dates on your project tasks, task resources, or task-level resource forecasts at once.

Questions to Consider

Questions Considerations
Do your project plans contain common information? You can use templates to streamline data entry and
reduce user errors.
When you create templates for project plans and
task resources, Workday prefills the common
information that most users need to enter.

How do you want to organize the work for your Workday organizes your project work into:
project plans?
• Phases that sequence the work for the project.
Project phases are a required component of
project plans.
• Tasks that define the work details of the
project phases. Project tasks are an optional
component of project plans. When you configure
project tasks, you can also create detailed
resource forecasts and detailed project budgets.
You can create project plans that have:
• A flat structure with project plan phases all at
the same level. These standard project plans
enable you to use templates to prefill common
information.
• A tree structure with up to 9 child phases
under each top-level project plan phase. These
multilevel project plans enable you to create
detailed Advanced reports.

How do you want to make project tasks available You can restrict project tasks to specific project
for project plans? hierarchies, ensuring that the tasks are only
available to the project plans for the projects on:
• The restricted project hierarchy.
• A parent project hierarchy.
By restricting the project tasks, you ensure that
project managers only see the tasks that are
relevant to their project.

Questions Considerations
Note: When you don't restrict a project task to a
hierarchy, it's available for use on all projects on all
hierarchies.

Do you need custom names for your project plan You can create custom names for your project plan
tasks? tasks to ensure that the names are relevant to your
projects.
To create custom task names, you must first enable
the security policy for the Manage: Project Custom
Task Name domain.

What date range do you want to set for workers By default, Workday sets the date range for time
logging their time on a project? entry to the start and end dates of the project.
You can configure a narrower date range for
workers to log their time when you set up the tenant
by using the dates specified in:
• Resource plans.
• Project plan tasks.
• Task resources.
You can use multiple sources to narrow the date
range. Workers can only log time where the
selected date ranges overlap.

Do you need to import project plans? You can import project plans from Microsoft Project
2016.
Note: We plan to retire the importation of
Microsoft Project plans into Workday in a future
update. Workday recommends that you use the
Project Planner for a more streamlined project
management workflow.

Do you want to define the severity levels for your You can define the severity levels of your project
project risks? risks, to ensure data consistency.
Determine the security levels for your project risks
before you set up your project plans.

Recommendations
• Create templates for your standard project plans and your task resources to reduce the time users
spend on data entry. Workday populates the fields on the project plan with information from its
associated template.
• Restrict project plan tasks to the relevant project hierarchies for simplified task selection.

Requirements
Create a project. You can only create a project plan for an existing project.

Limitations
• Workday didn't design project plans for use with Agile methodologies.
• Project plan tasks don't have dependencies. You can't initiate a cascading update of the dates on
project plan tasks.

• If a project plan has more than 500 rows of phases and tasks in the Project Plan grid, Workday has
reduced performance.
• Multilevel project plans don't allow you to:
• Copy them when you create a new project by copying an existing project.
• Create project plan templates.
• Export multilevel project plans to Microsoft Project.
• The Project Planner report doesn't:
• Support data sorting.
• Copy from the previous row.
• Have related actions directly from the project plan phases, tasks, or resources. To access related
actions, click the hyperlink for the project plan phase or project plan task and select the menu in the
preview window.

Tenant Setup
Access the Projects section on the Edit Tenant Setup - Financials task to:
• Enable Workday to import project plans from Microsoft Project.
• Set the date range within which workers can record their hours on a project.

Security

Domains Considerations
Manage: Project Integration in the Projects Enables users to export project information for use
functional area with Microsoft Project.
Manage: Project Plan in the Project Tracking Enables users to:
functional area
• Manage and view information for both standard
and multilevel project plans.
• Import project information from Microsoft
Project.

Manage: Project Task Resources in the Projects Enables users to manage project plan tasks.
functional area
Set Up: Project Details in the Project Tracking Enables users to manage the configuration for
functional area project details, including phases and tasks.
Manage: Project Details in the Project Tracking Enables users to manage and view existing
functional area projects.
Manage: Project Custom Task Name in the Project Enables users to create and edit custom task
Tracking functional area names.

To ensure proper access, review these team member roles and activities:

Domain Security Roles Responsibilities

Project Administrator • Configures tenant setup information.
• Configures the Project Plan and Project
Planner reports.
• Creates projects.
• Transfers project information between Workday
and Microsoft Project.

Domain Security Roles Responsibilities

Project Manager • Creates projects with project plans.
• Manages the project plan, project phases, and
project tasks.
• Assigns task resources.
• Transfers project information between Workday
and Microsoft Project.

Project Workers Log time on their assigned project plan tasks using
Time Tracking.

Business Processes
No impact.

Reporting

Report Description
Project Planner Create, edit, and view a project plan on 1 page.
View Project Plan Displays the project plan.
View Project Plan Timeline Displays the schedule for project phases and tasks.

You can use these report data sources to create custom reports:
• Project Time Blocks Approved Between a Date Range
• Project Plan Phases
• Project Plan Tasks
• Project Task Resources

Integrations

Web Services Considerations

Get Project Plans Enables you to manage project plans.
Put Project Plan

Get Project Plan without Dependencies Enables you to retrieve multilevel project plans
without retaining the parent and child relationships
between the phase levels.
Get Project Phases Enables you to manage project phases.
Put Project Phase

Get Project Tasks Enables you to manage project tasks.

Put Project Task For Put, all task names must be unique, not just the
task IDs.

Get Project Task Resources Enables you to manage project task resources.
Put Project Task Resources

Connections and Touchpoints

Features Considerations
Time Tracking You can restrict workers to log only their time
during the dates on their project plan tasks, task
resource assignments, or both. Workers can only
log time where the selected date ranges overlap.
Project hierarchies You can restrict project plan tasks to specific
project hierarchies. This restriction ensures that
project managers only see the tasks that are
relevant to their business unit, not all of the tasks in
the tenant.
Resource plans You need to first create a resource plan for your
project and assign workers to it. Then you can
assign workers to the project tasks in your project
plan.
Resource forecasts You can create resource forecasts based on your
task resource assignments.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Set Up Projects Infrastructure on page 963
Reference
Reference: Edit Tenant Setup - Financials
2023R2 What's New Post: Task Resources in Project Planner
2022R2 What's New Post: Project Planner
2021R2 What's New Post: Multilevel Project Plans
2021R2 What's New Post: Project Planner
Examples
Example: Simplify the Selection of Project Tasks on Project Plans on page 1040

Steps: Set Up Project Plans

Prerequisites
Note: The solutions described in this section are not part of the Workday Service. See Legal Notice for
details.
• Create project hierarchies.
• Review setup considerations for project plans.

Context
You can use project plans to organize these aspects of your projects:
• Risks.
• Time lines.
• Work details, such as project phases, project tasks, and worker assignments.
Configure your project plans to:
• Include project phases that organize and sequence the project work.

• Include tasks that define the work details within each of the project phases.
• Use custom task names.
• Restrict time entry to the date ranges for the project plan, the task resources, or both.
• Use templates that simplify the creation of your project plans and task resources.

Steps
1. (Optional) Access the Edit Tenant Setup - Financials task.
Select 1 or more of these check boxes in the Projects section:
• Use Project Plan Task Dates
• Use Task Resource Dates
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
2. (Optional) Configure the Project Profile on page 964.
To replace the Project Plan report with the Project Planner report on the Project Plan tab of the
project profile:
a. Access the Configure Profile Group task.
b. Select the Project Plan for Project Composite View Profile group.
c. Add the Project Planner report to the profile group.
d. Remove the Project Plan report from the profile group.
3. Access the Maintain Project Phases task.
Add the project phases that categorize and sequence the work for your projects. Example: Plan and
Strategize.
You select these phases when you create a new plan or edit an existing one.
Security: Set Up: Project Details domain in the Project Tracking functional area.
4. (Optional) Create Project Tasks on page 1032.
Create the tasks that define the project work.
5. (Optional) Edit Domain Security Policies.
Enable the Manage: Project Custom Task Name domain in the Project Tracking functional area to use
custom task names in your project plans.
6. Access the Maintain Risk Severities task.
Add the risk severity levels for your projects. You can select these risks when you edit your project
plans.
Security: Set Up: Risk and Priorities domain in the Project Tracking functional area.
7. (Optional) Create Templates for Project Plans on page 978.
Create templates for projects with similar project plan types to populate them with common information.
You can only create templates for standard project plans.
8. (Optional) Create Templates for Task Resources on page 981.
Create templates for projects with similar task resources to populate them with common information.

Next Steps
• Create projects.
• Create project plans.
Related Information
Concepts
Setup Considerations: Project Plans on page 1025
Tasks
Create Project Hierarchies on page 966

Reference
2021R2 What's New Post: Project Planner
Reference: Edit Tenant Setup - Financials

Create Project Tasks

Prerequisites
• Create a project hierarchy.
• Security: Set Up: Project Details domain in the Project Tracking functional area.

Context
Project tasks define the work details of a project. You can add these tasks on:
• Project plan phases.
• Task resources.
You can also create resource forecasts based on project plan tasks to view detailed work estimates.

Steps
1. Access the Maintain Project Tasks task.
2. For each new task, add a row to the Project Tasks grid.
3. As you complete the task, consider:
Option Description
Project Task Name Enter a name for the task.
Users see this name when selecting tasks on the:
• Project plan.
• Task resources.
Workday also displays this name on task-level
resource forecasts.

Restricted to Project Hierarchies (Optional) To limit the use of a project task to the
project plans on a specific set of projects, select 1
or more project hierarchies.
Restricting tasks to project hierarchies ensures
that only the relevant tasks are available on the
project plans under those hierarchies.
Note: If you add an unrestricted project task to a
project plan, and then later restrict the same task
to a different project hierarchy:
• The restricted task remains on the original
project plan.
• You can't add another occurrence of the
restricted task to the project plan.
You can use unrestricted project tasks on all
project plans on all hierarchies.

In Use This setting is read-only. Workday marks the

check box when a project task is associated with
1 or more project plans.

Option Description
Inactive Select for unused or obsolete project tasks. When
selected:
• You can hide the inactive tasks in custom
reports.
• Workday prevents project workers from
charging their time to inactive tasks.
• Workday prevents inactive tasks from
displaying on drop-down menus.
• You can hide worktags for inactive project
tasks with the Maintain Worktag Usage
report.
Note: You can still add inactive tasks by
searching for the names of the tasks in the
prompts on:
• Project plans.
• Project plan templates.

Next Steps
Create project plans.
Related Information
Tasks
Create Project Hierarchies on page 966
Examples
Example: Simplify the Selection of Project Tasks on Project Plans on page 1040

Create Project Plans

Prerequisites
Set up project plans.
Create a project.
Security domains in the Project Tracking functional area:
• Manage: Project Plan
• Set Up: Project Details

Context
You can use Workday project plans to capture the details of a project from start to finish, by:
• Listing the phases and tasks that define your project work.
• Designating milestones for your project.
• Marking specific tasks as nonbillable to exclude the associated work hours from billing and revenue
forecasts.
• Marking specific tasks for reports on actual utilization.

Steps
1. Access 1 of these options:
• Create Project Plan task.
• Project Planner tab on the Project Plan profile group for the project.
Before you can use the Project Planner report, you first need to add it to the Project Plan profile
group.
2. As you complete the project plan, consider:
Option Description
Phases and Tasks Once you assign phases and tasks to the project,
Workday creates a project-specific instance of
them for reporting purposes.
Start Date Set these dates to control the number of tasks
that workers can select when they enter the time
End Date
they work on a project.
Non-Billable For billable projects only. You can mark a task as
nonbillable to:
• Create custom validations to exclude billing for
nonbillable tasks.
• Exclude hours from revenue forecast
calculations on project budgets.
• Set filters to generate reports listing nonbillable
tasks, billable tasks, or both.

Milestone Use milestones for reporting and invoicing billable

projects.
Utilization Select if the time block for this task qualifies for
actual utilization.
When selected, you can create a custom report to
determine utilization.

Result
Workday populates the project plan with your information.

Next Steps
• Create a multilevel project plan.
• Create a resource plan.
• Allocate workers to project plan tasks.
Related Information
Concepts
Setup Considerations: Project Plans on page 1025
Tasks
Create Projects on page 1019
Create Resource Plans on page 1088
Configure Task Resources on page 1065
Reference
2023R2 What's New Post: Task Resources in Project Planner

2022R2 What's New Post: Project Planner

2021R2 What's New Post: Project Planner

Create Multilevel Project Plans

Prerequisites
Create a project plan.
Security: Manage: Project Plan domain in the Project Tracking functional area.

Context
You can create multilevel project plans to manage your project work. Workday structures multilevel project
plans to:
• Improve plan organization.
• Increase the granularity of custom reports.
Multilevel project plans can include up to 9 child phases under each top-level parent phase. Each phase
level can include an unlimited number of project plan tasks. When a project plan task is associated with a
transaction, you can't delete the:
• Project plan task.
• Project plan phase or any of its parent phases.

Steps
1. Access 1 of these options:
• Manage Project Plan Levels task.
• Project Planner tab on the Project Plan profile group for the project.
Before you can use the Project Planner report, you first need to add it to the Project Plan profile
group.
2. As you complete the multilevel project plan, consider:
Option Description
Child Phases and Tasks Once you assign child phases and tasks to
the project, Workday creates a project-specific
instance of them for reporting purposes.
If a project plan has more than 500 rows of
phases and tasks in the Project Plan grid,
Workday has reduced performance.

Start Date Set these dates to control the number of tasks

that workers can select when they enter the time
End Date
they work on a project.
Non-Billable For billable projects only. You can mark a task as
nonbillable to:
• Create custom validations to exclude billing for
nonbillable tasks.
• Exclude hours from revenue forecast
calculations on project budgets.
• Set filters to generate reports listing nonbillable
tasks, billable tasks, or both.

Option Description
Milestone Use milestones for reporting and invoicing billable
projects.
Utilization Select if the time block for this task qualifies for
actual utilization.
When selected, you can create a custom report to
determine utilization.

Result
When you view a project plan, you can view and edit the new child phases and their associated project
plan tasks.

Next Steps
• Allocate workers to project plan tasks.
• Create resource plans.
• Revert a multilevel project plan back to a standard project plan from the project menu on the Manage
Project Plan Levels task.
Note: You can't revert to a standard project plan when project plan tasks are associated with
transactions.
Related Information
Concepts
Setup Considerations: Project Plans on page 1025
Tasks
Create Resource Plans on page 1088
Reference
2023R2 What's New Post: Task Resources in Project Planner
2022R2 What's New Post: Project Planner
2021R2 What's New Post: Multilevel Project Plans

Mass Update Project Task Dates

Prerequisites
Create a project with project plan tasks, task resources, or a task-level resource forecast.
Security:
• Manage: Project Plan domain in Project Tracking functional area.
• Manage: Project Resource Forecast domain in the Projects functional area.
• Manage: Project Task Resources domain in the Projects functional area.

Context
You can update start and end dates or hourly allocation dates simultaneously across:
• Project tasks.
• Task resources.
• Resource forecast lines at the task-level.
Mass updating improves the reliability of dates throughout a project and the accuracy of your resource
allocations.

Steps
1. Access the project.
2. (Optional) To mass update the project plan tasks:
a. Click the Project Plan tab.
b. Select 1 of these reports:
• Project Plan
• Project Planner
c. Click Mass Update.
You can either move or set specific start and end dates for the project plan tasks.
3. (Optional) To mass update the task resources:
a. Click the Project Plan tab.
b. Select the Task Resources report.
c. Click Mass Update.
You can either move or set specific start and end dates for the task resources.
4. (Optional) To mass update the resource forecast:
Note: You can only update resource forecasts that use project plan tasks for the forecast level view.
a. Click the Resources tab.
b. Select the Resource Forecast report.
c. Click Mass Update.

Result
When you have potentially impacted dates or hourly allocations, Workday displays 1 of these tasks:
• Mass Update Task Resources: Displays when date changes on the project plan tasks impact the
dates on the task resource lines.
• Mass Update Resource Forecast: Displays when date changes on the task resources impact the
hourly allocations on the resource forecast line.

Next Steps
From the resource plan, synchronize the start and end dates between the resource plan lines and the task
resource lines.

Export Project Plans for Microsoft Project

Prerequisites
• Create and approve a project plan.
• Security: Manage: Project Integration domain in Projects functional area.

Context
You can export a snapshot of a standard project plan for use in Microsoft Project while you continue to
manage your projects in Workday.
Note: You can only export standard project plans to Microsoft Project. You can't export multilevel project
plans.

Steps
1. Access the project.

2. Select the Project Plan tab.

3. Click Export for Microsoft Project.
4. Access your Notifications, and then click My Reports.
The exported XML file displays in a time-stamped list of files.
5. Open Microsoft Project and import the XML file as a new project.
Workday exports the project plan phases and the task dates to Microsoft Project:
• As is, for all the phases and the tasks, when the tasks have both start and end dates.
• As the phase and either the task start date or end date, when a task date is missing.
• As the project start date, if both the task start and end dates are missing.

Result
In Microsoft Project, the Workday project plan phase and task fields map to these Microsoft Project fields:

Workday Field Microsoft Project Field

Phase Task Name
Task Task Name (indented)
Start Date Start
End Date Finish
% Complete % Work Complete
Milestone Milestone
Memo Notes

Import Project Plan Updates from Microsoft Project

Prerequisites
• Microsoft® Project 2016 installed (Build: 7571.2109 or later).
• Microsoft® Project add-in Workday Projects Integration installed.
• Microsoft® Project file exported from Workday.
• Security: Manage: Project Plan domain in the Project Tracking functional area.

Context
Note: We plan to retire the importation of Microsoft Project plans into Workday in a future update.
Workday recommends that you use a custom integration to import from Microsoft Project.
You can make changes to a Microsoft Project file previously exported from Workday. Using the add-in, you
can then import these changes into Workday and synchronize values in these columns with the applicable
values in the associated Workday project:
• Task Start Date
• Task Finish Date
• % Work Complete
You can also change other columns in the Microsoft Project file, but you can't import those changes into
Workday. However, if a change that you make to another column in turn changes these columns, you can
import the changes into Workday:
• Task Start Date
• Task Finish Date
• % Work Complete

Steps
1. Import the exported XML file into Project 2016 as a New Project. Make updates to the Project Start
Date, Finish Date and % Work complete.
2. Access the Workday for Microsoft Project Settings task and record the Client ID value.
3. Configure the Workday Projects Integration add-in with your tenant, Client ID (from Step 3), user ID,
and password.
4. In the Workday Projects Integration, click Update Project to Workday.

Concept: Project Plans

You can use project plans to organize projects into phases and tasks:
• Project plan phases organize and sequence each stage of the project work. Example: Plan and
Strategize.
• Project plan tasks define the work details in each project phase. Example: Define Project Objectives.
Project plans enable you to:
• Assign resources to project plan tasks.
• Monitor project timelines.
• Set date ranges for workers to log their time on a project.
• Specify project risks.
• Streamline data entry by creating templates.
Types of Project Plans
You can create 2 types of project plans:
• Standard
• Multilevel
Standard project plans have a flat structure, with the project plan phases all at the same level. Example:
• Project Plan Phase 1
• Task a
• Task b
• Project Plan Phase 2
• Task c
• Task d
Multilevel project plans have a tree structure. You can add up to 9 project plan phases under each top-
level parent phase. Multilevel project plans can include more details about your project work, improve
organization, and increase the granularity of your custom reports. Example:
• Parent Project Plan Phase 1
• Task a
• Child Project Plan Phase 1.1
• Task b
• Child Project Plan Phase 1.2
• Grandchild Project Plan Phase 1.2.1
• Task c
• Parent Project Plan Phase 2
• Task d

Related Information
Concepts
Setup Considerations: Project Plans on page 1025
Tasks
Steps: Set Up Project Plans on page 1030
Reference
2023R2 What's New Post: Task Resources in Project Planner
2021R2 What's New Post: Multilevel Project Plans
2021R2 What's New Post: Project Planner

Example: Simplify the Selection of Project Tasks on Project Plans

This example explains how to simplify the selection of project tasks for your Workday users when
they create project plans. You can accomplish this simplification by restricting project tasks to project
hierarchies.

Context
By default, Workday doesn't restrict project tasks to project hierarchies. Users can view and select all of
the project tasks available in Workday on their project plans. Not all of these project tasks are relevant to a
specific project and can confuse users, leading to data entry errors and inconsistent project plans.
You want to ensure that only relevant project tasks are available to users on project plans. To limit project
tasks to a specific set of projects, you restrict the appropriate project tasks to a specific project hierarchy.
Users can then only select the restricted project tasks when they create project plans for the projects on
the selected hierarchy.

Prerequisites
Create a primary project hierarchy with this name: Services Projects
Security: Set Up: Project Details domain in the Project Tracking functional area.

Steps
1. Access the Maintain Project Tasks task.
2. Add 2 rows to the Project Tasks grid.
3. Enter these values for the new rows on the Project Tasks grid:
Option Value
Project Task Name • Row 1: Business Plan
• Row 2: Approve Business Plan

Restricted to Project Hierarchies • Row 1: Services Projects

• Row 2: Services Projects

4. Click OK.
5. Click Done.

Result
When users create project plans for their projects, Workday only displays these restricted project plan
tasks on the projects associated with the Services Projects hierarchy:
• Business Plan
• Approve Business Plan

Workday hides these restricted project tasks on the project plans for all other projects on all other
hierarchies.
Unrestricted project tasks are available on all project plans for all projects on all hierarchies throughout
Workday.

Next Steps
• Create projects.
• Create project plans.
Related Information
Concepts
Setup Considerations: Project Hierarchies on page 958
Setup Considerations: Project Plans on page 1025
Tasks
Create Project Hierarchies on page 966
Create Project Tasks on page 1032
Create Projects on page 1019
Create Project Plans on page 1033

Example: Create Advanced Report for Expenses Using Multilevel Project Plans
This example explains how to create an advanced report for a single project that rolls up project expenses
on a multilevel project plan.
Note: You can only roll up Workday advanced reports to 7 groups.

Context
A project manager wants to view the expenses for their project on each project plan phase.

Prerequisites
• Create a project with a multilevel project plan and a resource plan.
• Assign resources to project tasks.
• Create expense report lines for the relevant project plan tasks across the project plan and top-level
project plan phases.
• Security: These domains in the System functional area:
• Custom Field Management
• Custom Report Creation

Steps
1. Access the Create Calculated Field task.
2. Enter these values:

Option Value
Field Name 2nd Level Project Plan Phase
Business Object Expense Report Lines and Itemizations
Function Lookup Related Value
3. Click OK.

4. Select these values on the Create Calculated Field - Lookup Related Value page:

Option Value
Lookup Field Project Plan Task
Return Value Project Plan Phase Level 2
5. Click OK.
6. Click Create Another Calculation.
7. Enter these values:

Option Value
Field Name 3rd Level Project Plan Phase
Business Object Expense Report Lines and Itemizations
Function Lookup Related Value
8. Click OK.
9. Select these values on the Create Calculated Field - Lookup Related Value page:

Option Value
Lookup Field Project Plan Task
Return Value Project Plan Phase Level 3
10.Click OK.
11.Click Done.
12.Access the Create Custom Report task.
13.Enter these values:

Option Value
Report Name Multilevel Expense Report
Report Type Advanced
Optimized for Performance Checked
Data Source Expense Report Lines and Itemizations
14.Click OK.
15.Add rows with these field values to the grid on the Columns tab:
a. Group Name
b. Worker
c. Expense Report Created By Worker for Line
d. Expense Report Line
e. Expense Line Reimbursement Amount
16.Verify that the business object on each row is set to Expense Report Lines and Itemizations.
17.Select Sum from the Options prompt on the Expense Line Reimbursement Amount row.

18.Add rows with these field values to the Sort and Group grid on the Sort tab:
a. Project
b. Project Plan Phase
c. 2nd Level Project Plan Phase (Calculated field)
d. 3rd Level Project Plan Phase (Calculated field)
e. Project Plan Task
f. Worker
19.Verify that the Sort Direction on each row is set to Alphabetical - Ascending.
20.Select these check boxes for each row:
• Display Headers
• Display Subtotals
21.Select the Enable Outlining based on Grouping check box in the Grouping and Totaling Options
section.
22.Add a row with these values to the Filter on Instances grid on the Filter tab, and then select these
values:

Option Value
And/Or And
Field Project
Operator in the selection list
Comparison Type Prompt the user for the value
Comparison Value Default Prompt
23.Click OK.
24.Click Run.
25.Click OK.

Result
You have a multilevel expense report that rolls up to the phase level.
Related Information
Tasks
Create Projects on page 1019
Create Project Plans on page 1033
Create Multilevel Project Plans on page 1035
Create Resource Plans on page 1088
Create Expense Lines on page 1570
Reference
2021R2 What's New Post: Multilevel Project Plans

Reference: Keyboard Shortcuts for Project Planner

You can navigate the Project Planner and enter data with these keyboard commands:

Action Keyboard Shortcut

Move to actionable items on the page. Tab

Move down 1 row in grid. Down arrow

Action Keyboard Shortcut

Move up 1 row in grid. Up arrow
Move right 1 cell in row. Right arrow
Move left 1 cell in row. Left arrow
Activate a cell for data entry. Space
Display the options in a prompt. Tab
or
Enter

Scroll through options in a prompt. Up arrow

or
Down arrow

Select an option in a prompt. Enter

Move to the next cell after data entry. Esc
Add dates manually. Navigate to the month, day, and year with right and
left arrows.
Change the values with the up and down arrows.

Add dates with the calendar date picker. 1. Space activates the date field.
2. Tab activates the date picker.
3. Enter opens the date picker.
4. Up, down, right, and left arrows navigate to a
date.
5. Enter selects the date.

Related Information
Tasks
Steps: Set Up Project Plans on page 1030

Project Transactions
Create Ad Hoc Project Transactions

Prerequisites
• Create custom references for ad hoc project transactions.
• For Time transactions, create a project with assigned workers on the resource plan.
• For Spend transactions, create a project.
• Configure the Ad Hoc Project Transaction Event business process and security policy in the Project
Billing and Projects functional areas.

• Directly charge Spend transactions against projects without using Workday Expenses or Workday
Supplier Accounts. Spend transactions include:
• Expenses.
• Miscellaneous expenses.
• Supplier invoices.
• Integrate your external time tracking and spend transactions with Workday.
• Migrate your project billing into Workday and generate invoices and accounting internally.

Steps
1. Access the Create Ad Hoc Project Transactions task.
2. Enter transaction details.
Users assigned to only 1 of the security domains might have limited access to these options:
• Billing Status
• Include Cost
• Standard Cost Rate
• Cost Currency
• Rate to Bill
• Billing Currency
As you enter task details, consider:
Option Description
Billing Status Select Do Not Bill when you don't want to invoice
your expense to the customer.
Worker (Expense, Miscellaneous Expense, and Time)
Displays all workers on the resource plan on the
project.
Supplier (Miscellaneous Expense and Supplier Invoice)
Select a supplier to provide your item.
Project Phase (Expense, Miscellaneous Expense, and Supplier
Invoice) Displays only top-level phases for the
billable project.
Project Task (Expense, Miscellaneous Expense, and Supplier
Invoice) Displays all tasks from all phase levels
for the billable project.
(Time) Displays all tasks from all phase levels
assigned to the selected worker.

Project Role (Time) Populates based on your selection for

Transaction Date, Worker, and Project Task if
applicable.
Include Cost (Expense, Miscellaneous Expense, and Supplier
Invoice) Select to include a Unit Cost Amount
and Extended Cost Amount for the transaction.
(Time) Select to calculate the Standard Cost
Amount and fully burdened cost amount for the
transaction.
Workday automatically selects this check box.

Option Description
Standard Cost Rate (Time) Enter a rate amount to override the
standard cost rate from the resource plan line or
the project standard cost rate sheet if 1 exists.
Cost Currency (Time) Workday converts the Standard Cost
Amount to the Cost Currency.
Rate to Bill (Time) For billable projects, enter a rate amount
to override the billing rate from the contract rate
sheet if 1 exists.
Billing Currency When you enter a currency different than the
customer contract currency, Workday converts
the Amount to Bill to the billing currency.
Spend Category (Expense, Miscellaneous Expense, and Supplier
Invoice) Select to associate items with their
account posting rules and provide details for
creating invoices. When you select an item before
specifying the spend category, you can't change
the value assigned to the item.
Worktags The worktag derivation rules specified for the
project hierarchy, or the worktags assigned to the
contract line, determine the worktag assignment
for the transaction. For billed transactions, the
worktags apply when you create accounting
entries. You can add or change worktags if
needed.
Memo For billable projects, this field displays in the note
section of the customer invoice.
Custom Reference 1 Enter additional ad hoc project transactions
details for billing and reporting purposes.
Custom Reference 2
Displays when you select the Enabled check
Custom Reference 3
box on the Enable Ad Hoc Project Transaction
Custom Reference 4 Custom References task.
Custom Reference 5 When you enter a Reference Name on the
Enable Ad Hoc Project Transaction Custom
References task, Workday displays the reference
name instead of the Workday-delivered custom
reference.

Result
The ad hoc project transactions for the billable project become available for review on the Manage Project
Billing Transactions task.

Next Steps
Review the billable project transactions.
Related Information
Tasks
Create Custom References for Ad Hoc Project Transactions on page 1203

Set Up Worktag Rules for Project Cost and Revenue on page 969
Manage All Project Billing Transactions on page 1211
Manage Project Billing Transactions by Transaction Source on page 1216
Reference
2021R2 What's New Post: Multilevel Project Plans
2023R1 What's New Post: Business Process for Ad Hoc Project Transactions

Steps: Set Up Project Transaction Summaries

Prerequisites
Projects you want to include in the project transaction summary must:
• Belong to an active and approved project hierarchy.
• Be active, and have a start and end date, resource forecast, and currency.
• Have a project state set to Project.

Context
As a project portfolio manager, you can use a single consolidated data source to generate your custom
reports. This consolidated source can contain data related to project time, cost, and revenue. The reports
can summarize data at a monthly level for unique combinations of project resources and roles.
Note: Workday only includes data that's within the project start and end dates.

Steps
1. Access the Configure Project Transaction Summary task.
Security: Set Up: Project Hierarchy domain in the Project Tracking functional area.
2. Select eligible project hierarchies and projects to include in the data source.
3. Schedule the creation date for the data source.
4. (Optional) Access the Update Project Transaction Summary task.
Run an ad hoc data refresh of specific projects, or for events not tracked by the daily refresh.
Security: Manage: Project Transaction Summary domain in the Project Tracking functional area.

Result
When the scheduled job is complete, you can report on the summarized data. Workday refreshes the data
daily, factoring in changes to:
• Project attributes: start and end dates, Inactive and Billable flags, currency, state, and status.
• Project hierarchy: new project or hierarchy added; hierarchy removed, moved, or marked inactive.
• Worker time block hours.
• Resource forecast hours.
• Resource plan lines.
• Contract rates.
• Cost rates for forecasted hours.
You can select the Disable Project Transaction Summary check box to disable the daily data refresh.

Next Steps
• Create custom reports using the Project Transaction Summary data source.

Project Portfolios
Steps: Manage Project Portfolios and Funding

Context
You can create project portfolios to group your nonbillable projects and other project portfolios. You can
then allocate funding from the top-level or parent portfolio to the subordinate or children projects and
project portfolios. This feature enables you to track project actuals against allocated funding to guide your
portfolio management decisions.

Steps
1. Set up the security policies for these domains in the Projects functional area:
• Manage: Project Portfolios grants access to:
• The Create Project Portfolio task.
• The Edit Project Portfolio task.
• The Project Portfolio Report Data Source.
• The View Project Portfolio report.
• Manage: Project Portfolio Funding grants access to:
• The Manage Project Portfolio Funding task.
• The View Project Portfolio report.
• Funding and Project Budget amount-related fields on the Create and Edit tasks and View reports.
• Currency type report fields on the Project Portfolio business object.
2. Access the Create Project Portfolio task.
Create your top-level or parent project portfolio.
Note:
• All Project Portfolios in the same structure must have the same reporting currency.
• Only unconstrained users can create a top-level project portfolio.
Security: Manage: Project Portfolios domain in the Projects functional area.
3. From the related actions menu of your Project Portfolio, select Roles > Assign Roles.
Workday suggests assigning roles with access to the Manage: Project Portfolios domain to projects or
project hierarchies to ease adding projects to project portfolios.
4. Access the Edit Project Portfolio task.
Create your project portfolio structure to:
• Add the subordinate or children projects.
• Link a superior or parent portfolio.
Note: You can only add projects that you can access from the Manage: Project Portfolio domain as
either:
• An unconstrained user.
• Having a role on the project, the project hierarchy, or the current project portfolio.
5. Access the Manage Project Portfolio Funding task.
Assign funding to your subordinate:
• Projects
• Project Portfolios
Security: Manage: Project Portfolio Funding domain in the Projects functional area.

Next Steps
• Add additional subordinate projects or project portfolios using the Edit Project Portfolio task.
• Create custom objects for Project Portfolio business object.
• Configure the Overview for Project Portfolio profile group to add custom reports to the View Project
Portfolio report.
• Track your project actuals against your allocated funding.

Reference: Project Portfolio Funding Calculations

This table lists fields for project portfolio funding and their definitions and calculations.

Field Definitions and Calculations

Allocated Amount Total approved funding amount allocated to
direct subordinate or children projects and project
portfolios.
The sum of the Funding Amount issued to all
children.

Baseline Amount Total amount of all baseline project budgets in the

project portfolio.
For projects without a project budget configuration,
Workday totals the estimated budget amount field
instead.

Forecast Amount Total amount of all forecast project budgets in the

project portfolio.
Funding Amount Amount allocated from the parent project portfolio
to the project or subordinate project portfolio.
Remaining Amount Funding amount of the project portfolio not yet
allocated to the direct subordinate or children
projects and project portfolios.
The difference of the Funding Amount minus the
Allocated Amount.

Resource Management

Steps: Set Up Resource Management

Prerequisites
Review setup considerations for:
• Project resources.
• Resource plans.
• Resource forecasts.

Context
Resource management for Projects enables you to:
• Plan and organize your resources.
• Staff your projects.

• Specify when workers can log time against a project.

• Rate worker performance.
• Compare the expected and actual utilization rates of workers.
• Forecast worker hours.
• Schedule workers.

Steps
1. Create Project Roles on page 1050.
2. (Optional) Create Project Role Categories on page 1052.
3. Assign Roles to Projects on page 1024.
Assign workers to the organizational roles on a project.
4. (Optional) Create Templates for Resource Plans on page 979.
5. (Optional) Create Templates for Task Resources on page 981.
6. (Optional) Set Up Security for Dynamic Resource Pools on page 1062.
7. (Optional) Create Dynamic Resource Pools on page 1063.
8. (Optional) Create resource pools.
See Steps: Create Resource Pools on page 1064.
9. (Optional) Configure ratings for project workers.
See Steps: Set Up Worker Ratings on page 1071.
10.Set Up Time Entry Dates for Project Workers on page 1067.
11.(Optional) Create Utilization Target Sheets on page 1072.
12.Configure resource plans.
See Steps: Set Up Resource Plans on page 1086.
13.Create Resource Plans on page 1088.
14.(Optional) Configure Task Resources on page 1065.
15.(Optional) Configure resource forecasts.
See Steps: Set Up Resource Forecasts on page 1097.
16.(Optional) Configure resource scheduling.
See Steps: Set Up Resource Scheduling on page 1069.
Related Information
Concepts
Setup Considerations: Resource Plans on page 1080
Setup Considerations: Project Resources on page 1056
Setup Considerations: Resource Forecasts on page 1091
Reference
The Next Level: Resource Management in Projects
Examples
Example: Configure Employee Self-Service for Resource Forecasts on page 1100

Create Project Roles

Prerequisites
Security: Set Up: Project Tracking domain in the Project Tracking functional area.

Context
For each project, you need a standard set of work roles for your project resources. You select these roles
when you create the resource plans for your projects.

Steps
1. Access the Maintain Project Roles task.
2. As you complete the task, consider:
Option Description
Restricted to Project Hierarchies Select 1 or more project hierarchies to restrict the
project role.
The restricted project roles are only available to
the resource plans on projects associated with the
selected hierarchies or their child hierarchies.
If you don't restrict the project role, it’s available
for use on all projects on all project hierarchies.

In Use You can only remove a project role if it isn't in use

on a project.
Inactive Select to inactivate an existing project role.
On the resource plan, any inactive roles in use
display as (inactive) after the project role name.

Project Role Requirements Select role requirements to display on the

resource plan line. Role requirements enable
you to identify qualified workers for project
assignments.
When searching for project workers from the
resource plan line, you can override these values.

Category Select a category for the requirement.

You can have multiple categories for each project
role but only 1 row for each category.

Requirements Select the requirement for the category.

You can include multiple requirements per
category but only 1 requirement for Location and
Job Profile.

Optional Select when the project role requirement isn't

mandatory for your project assignments.

Result
You can select the project role on a resource plan line.

Next Steps
• Create project role categories.
• Set up resource plans.

Related Information
Tasks
Steps: Set Up Resource Plans on page 1086

Create Project Role Categories

Prerequisites
Security: Set Up: Project Details domain in the Project Tracking functional area.

Context
You can create project role categories to group your project roles. You select these categories when you
create the resource plans for your projects.

Steps
1. Access the Maintain Project Role Categories task.
2. As you complete the task, consider:
Option Description
Inactive Select to inactivate an existing project role
category.
On the resource plan, inactive role categories in
use display as (inactive) after the category name.

In Use You can only remove a project role category if it

isn't in use on a project.

Result
You can select a project role category on a resource plan line.

Next Steps
Set up your resource plans.
Related Information
Tasks
Steps: Set Up Resource Plans on page 1086

Reference: Resource Management Reports

Match Resources with Projects

These reports can help you match qualified workers with available projects.

Report Name Description Security

Find Available Workers for Use to find available workers who These domains in the Projects
Project meet specific requirements, and functional area:
then assign them to a project.
• Manage: Advanced Project
To enable this report, select the Resource Management
Always Use Find Available • Manage: Resource Pool
Workers for Project check box
in the Projects section of the Edit
Tenant Setup - Financials task.
When enabled, this report
launches from the Find Workers
button on the resource plan line.

Find Project for Me Enables workers to find projects Self-Service: Resource

with available assignments for Management domain in the
themselves. Projects functional area
To use this report, enable and Modify or grant permissions for
activate the domain security these security group types:
policy.
• Self-Service - Project
• Self-Service - Worker

Find Project for Worker Use to find projects with available Manage: Advanced Project
assignments for a worker. Resource Management domain in
the Projects functional area
Find Worker Assignments Use to determine if your project These domains in the Projects
workers are under or over functional area:
allocated.
• Manage: Advanced Project
Compares the scheduled weekly Resource Management.
hours for workers against their Provides access to the report
total assignments, including: and the Projects and Project
Hierarchies prompt on the
• Holidays.
report.
• Time off.
• Manage: Resource Pool.
• Resource forecast lines. Provides access to the report
and the Resource Pools and
Resource Pool Hierarchies
prompt on the report.
The Reports: Manager domain
in the Staffing functional area.
Provides access to the report and
the Supervisory Organizations
prompt on the report.
Note: Users secured solely to
the Reports Manager domain
can access and view this report,
but they can't expand the rows
to review the details. To ensure
that users can review the report
details, also secure them to
the Manage: Advanced Project
Resource Management domain,

Report Name Description Security

the Manage: Resource Pool
domain, or both.

Find Worker for Project Use to find workers to: These domains in the Projects
functional area:
• View their availability.
• Assign to a project. • Manage: Advanced Project
• Add to a resource pool. Resource Management
• Manage: Resource Pool
You can launch this report from
the Find Workers button on the
resource plan line.

View Resource Commitments

These reports can help resource managers view and manage the assignment of workers across projects.

Report Name Description Security

Find Worker Availability Use to examine the project Manage: Advanced Project
commitments of your workers. Resource Management domain in
the Projects functional area
From the search results, you can
edit existing project assignments,
add workers to another project,
open the Find Worker for Project
report, and preview project
details.

Manage Worker Assignments Use to: Manage: Advanced Project

Resource Management domain in
• View project resource
the Projects functional area
assignments, time off, and
holidays. Manage: Resource Pool domain
• Compare workers for project in the Projects functional area
assignments. Reports Manager domain in the
• Drill into and manage project Staffing functional area
assignments.
To enable this report, set up
resource scheduling.

Utilization Targets for Workers Use to view and manage the Manage: Advanced Project
- Monthly assignment of workers across Resource Management domain in
projects and their utilization the Projects functional area
targets.
To view data in this report, select
the Run Project Worker Days
Job check box on the Edit
Tenant Setup - Financials task.

Worker Availability - Detailed Use to: These domains in the Projects

Allocation functional area:
• Examine the scheduled time
commitment of workers in your • Manage: Advanced Project
supervisory organizations. Resource Management

Report Name Description Security

• Take project allocation actions • Manage: Project Resource
based on worker availability. Forecast
The percentages for worker time These domains in the Time Off
commitments are based on: and Leave functional area:
• Forecast allocations. • Worker Data: Current Staffing
• Approved time off. Information
• Holidays. • Worker Data: Time Off
Manager View
The indication of weekly worker
time commitment displays 3 Reports: Manager domain in the
ranges: Staffing functional area
• Greater than 110% (red icon). Users must have a role in
• 70 to 110% (green icon). the appropriate supervisory
• Less than 70% (yellow icon). organization to view the data in
this report.

Compare Resource Cost Rates

These reports can help resource managers view and compare the cost rates of workers and unnamed
resources.

Report Description Security

Project Forecasted Labor Cost Use to view this information on Manage: Project Resource
workers and unnamed resources Forecast domain in the Projects
in specific projects and project functional area
hierarchies:
Reports: Manager domain in the
• Cost amount. Staffing functional area
• Forecasted hours.
• Standard cost rate.
Workday bases the time period
in this report on the end date
for the fiscal period and uses 3
consecutive fiscal periods.

View Resource Rates Use to view the resource cost View access to either:
rates for a project, including:
• Worker Data: Project Costing
• Fully Burdened Cost Rate domain in the Projects
Definition functional area
• Standard Cost Rate • Worker Data: Fully Burdened
• Standard Cost Rate Override Cost domain in the Projects
functional area
This report launches from the
• Process: Project Billing
View Resource Rates button on
domain in the Project Billing
the Resources profile group of a
functional area.
project.

View Project Standard Cost Use to view the hourly rates on a Set Up: Project domain in the
Rate Sheet specific cost rate sheet for: Projects functional area
• Unnamed Resources based
on project role.

Report Description Security

• Workers based on worker
attributes.

Standard Cost Rate for Worker Use to view the cost rate for Worker Data: Project Costing
project workers, based on the domain in the Projects functional
cost rate rule. area
View Resource Plan Lines Use to find the assigned project Manage: Project Resources
with Conflicting Standard Cost workers who have more than 1 domain in the Project Tracking
Rates standard cost rate. functional area

For a complete list of standard reports for Projects, access the Workday Standard Reports report and
select the Projects report category.
Related Information
Concepts
Concept: Resource Manager Dashboards on page 1074
Tasks
Steps: Set Up Resource Scheduling on page 1069

Project Resources
Setup Considerations: Project Resources
You can use this topic to help make decisions when planning your configuration for project resources. It
explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Project resources include all of the workers on a project. You can configure these features to simplify
project staffing and resource management:
• Resource Pools are stable groups of project workers that organize your resources.
• Dynamic Resource Pools are groups of project workers who match preset criteria, such as skills,
certifications, or location. These types of pools automatically update when workers leave, change roles,
and start new jobs.
• Rate Work enables managers to rate the quality of the project work completed by a worker.
• Utilization Target Sheets provide insight into the productivity of your project workers.

Business Benefits
Project resources in Workday organize and streamline the management, planning, and staffing of your
project workers.

Use Cases
• Create a resource pool of consultants and manage them from the Resource Pool Manager dashboard.
• Create a dynamic resource pool of business analysts with specific skills, and then associate them with a
resource plan.

• Rate the quality of the project work completed by individual workers.

• Define utilization targets for project workers to gain insight into their expected productivity for a specific
time period.

Questions to Consider

Questions Considerations
How do you want to organize your resource pools? Resource pools enable you to run custom reports
and view information on the Resource Pool
Manager dashboard.
You can:
• Borrow workers from other resource managers.
• Compare worker attributes.
• Staff projects.
• View the status and utilization of your workers.
You can also assign 1 or more of the workers in a
resource pool to a resource plan line.
Before you begin creating resource pool hierarchies
and resource pools, determine:
• The organization of the hierarchies.
• The project workers who should be in the
resource pools.

Which dynamic resource pools do you want to use Dynamic resource pools enable you to staff projects
for project staffing? using preset worker qualifications.
You can:
• Associate a dynamic resource pool as a group
with a resource plan line, and then exclude
specific individuals from the group.
• Assign 1 or more individual workers in a
dynamic resource pool to a resource plan line.
• Display dynamic resource pools in reports when
you search for workers.
Project workers in these pools can enter time and
expenses for their project assignments.
Before you begin creating dynamic resource pools,
determine the selection criteria for the workers in
the pools, such as job profile and location.

Do managers want to rate workers on their project Project and resource managers can rate the project
work? workers who have a direct assignment to a project
task, approved time logged against a task, or both.
To rate a worker, managers must also have a role
on the same project as the worker.
Before you set up worker ratings, you need to
determine a rating scale for the completed project
work.

Questions Considerations
How do you want to track the utilization of your Utilization target sheets enable you to define
project resources? utilization targets to benchmark workers for staffing,
workforce planning, and performance.
Before you set up the utilization target sheets,
you need to determine the rules and utilization
percentages for your workers.

Recommendations
We recommend that you configure these features to simplify project staffing:
• Resource pools.
• Dynamic resource pools.

Requirements
No impact.

Limitations
You can't use resource forecasts when you enable workers to enter time on a project with dynamic
resource pools, because:
• Workday doesn't automatically create resource forecast entries for the workers in dynamic resource
pools.
• Workers automatically leave dynamic resource pools when they no longer meet the pool criteria, which
might cause problems with time entry. We recommend that you not manually add workers from dynamic
resource pools to resource forecast lines.

Tenant Setup
Access the Projects section on the Edit Tenant Setup - Financials task to select the:
• Rating Scale to use when evaluating a project worker's performance using the Rate Work task.
• Run Project Worker Days Job check box to view data on the Utilization Targets for Workers -
Monthly report.

Security

Domains Considerations
Set Up: Advanced Project Resource Management Users secured to this domain can:
in the Projects functional area
• Maintain project booking statuses.
• Create and manage utilization target sheets.
• Create custom reports on resource utilization.
Assign this domain to users with unconstrained
security roles, such as the project administrator.

Manage: Advanced Project Resource Management Users secured to this domain can:
in the Projects functional area
• Use the Find Worker Assignments report
to find workers on specific projects or project
hierarchies.

Domains Considerations
• Use these dashboards:
• Resource Manager
• Resource Pool Manager

Manage: Project Resources in the Project Tracking Users secured to this domain can:
functional area
• View the workers listed in a resource pool on
the resource plan and in reports. They can't,
however, view the faceted dimensions or values
that define the resource pool.
• View the View My Favorites report in the
Actions menu on the Resource Manager
dashboard.

Manage: Resource Pool in the Projects functional Users secured to this domain can:
area
• View resource pools and resource pool
hierarchies.
• Use the Find Worker Assignments report
to find workers in specific resource pools and
resource pool hierarchies.
• Use the Resource Pool Manager dashboard.

Management Dashboard: Resource Manager in the Users secured to this domain can use these
Projects functional area dashboards:
• Resource Manager
• Resource Pool Manager

Reports: Manager in the Staffing functional area Users secured to this domain can use the Find
Worker Assignments report to find workers in
specific supervisory organizations.
To ensure that users can review the report details,
also secure them to the Manage: Advanced Project
Resource Management domain, the Manage:
Resource Pool domain, or both. Otherwise, they
can't expand the rows in the report to review the
details.

Set Up: Dynamic Resource Pool in the Project Users secured to this domain can create, edit,
Tracking functional area delete, and view dynamic resource pools.
Assign this domain to users with unconstrained
security roles, such as the dynamic resource pool
administrator.

Set Up: Resource Pool in the Projects functional Users secured to this domain can create, edit,
area delete, and view resource pools and resource pool
hierarchies.
Assign this domain to users with unconstrained
security roles, such as the resource pool
administrator.

To ensure proper access, review these team member roles and activities:

Domain Security Roles Responsibilities

Dynamic resource pool administrator Creates and maintains the definitions for dynamic
resource pools.
Project administrator • Configures tenant setup information.
• Creates and edits resource pools and dynamic
resource pools.
• Edits the Rate Work business process and
security policy.
• Configures the Resource Manager and
Resource Pool Manager dashboards.
• Creates and maintains utilization target sheets.
• Creates custom reports.

Project manager • Rates the performance of project workers using

the Rate Work task.
• Approves performance ratings on project
workers routed by the Rate Work business
process.
• Uses resource pools and dynamic resource
pools to staff projects.
• Views Utilization Target Sheets.

Resource manager • Rates the performance of project workers using

the Rate Work task.
• Approves performance ratings on project
workers routed by the Rate Work business
process.
• Uses the Resource Manager dashboard to
view the status of their project workers.
• Uses resource pools and dynamic resource
pools to staff projects.
• Uses the Find Worker Assignments report to
determine when project workers are under or
over allocated.

Resource pool administrator • Creates and maintains resource pool hierarchies

and resource pools.
• Adds project workers to resource pools.
• Assigns roles to resource pools and resource
pool hierarchies.

Resource pool hierarchy manager • Maintains and views resource pool hierarchies
and resource pools.
• Only has access to the positions in their
supervisory organization.

Resource pool manager • Maintains and views resource pools.

• Uses the Resource Pool Manager dashboard
to view the status of the project workers in
resource pools.

Domain Security Roles Responsibilities

• Only has access to the positions in their
assigned resource pools and supervisory
organizations.

Business Processes
You can use the Rate Work business process to enable project and resource managers to:
• Rate the performance of their project workers.
• Approve the performance ratings of their project workers.

Reporting

Reports and Dashboards Considerations

Find Worker Assignments report Enables you to check the allocations of project
workers.
Resource Manager dashboard Provides access to reports that help manage the
workers in your organization.
Resource Pool Manager dashboard Provides access to reports that help manage
the workers in resource pools. You can view
and manage workers with and without project
assignments.
Utilization Targets for Workers - Monthly report Enables you to view a monthly summary of the
utilization targets for your project workers.
To view the data in this report, you must select the
Run Project Workers Day Job check box on the
Edit Tenant Setup - Financials task.

You can use these report data sources to create custom reports:
• Project Dynamic Resource Pool
• Project Resource Requirements
• Project Worker Days
• Project Worker Holidays
• Resource Pool
• Resource Pool Hierarchy
• Time Off by Date Taken and Resource Pool
• Worker Utilization Target Sheet

Integrations

Web Services Considerations

Get Resource Pool Hierarchies Retrieves resource hierarchies, including the parent
hierarchies and attached resource pools.
Get Resource Pool Hierarchies Without Retrieves only resource hierarchies, not including
Dependencies the parent hierarchies or attached resource pools.
Put Resource Pool Hierarchy Creates and updates resource pool hierarchies.
Get Resource Pools Retrieves resource pools.

Web Services Considerations

Put Resource Pool Creates and updates resource pools.
Get Worker Utilization Target Sheets Retrieves utilization target sheets and their
associated data.
Put Worker Utilization Target Sheet Creates and updates utilization target sheets and
their associated data.

Connections and Touchpoints

Project resources interact with these areas of Human Capital Management (HCM) in Workday:
• Managers assign workers from HCM Core to their projects.
• Projects link to the job requisitions for hiring workers in HCM Core.
• Project workers in dynamic resource pools can use Time Tracking to enter their project hours.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Resource Pool Security on page 1073
Concept: Resource Manager Dashboards on page 1074
Tasks
Create Dynamic Resource Pools on page 1063
Steps: Create Resource Pools on page 1064
Steps: Set Up Worker Ratings on page 1071
Create Utilization Target Sheets on page 1072
Reference
Reference: Security for Resource Manager Dashboards on page 1075
Reference: Resource Management Reports on page 1052
The Next Level: Resource Management in Projects

Set Up Security for Dynamic Resource Pools

Context
There are 2 main domains related to dynamic resource pools. To maintain the security of worker data, we
split permissions between the users who can:
• Create dynamic resource pools.
• View and manage the workers in dynamic resource pools.
The domains are:
• Set Up: Dynamic Resource Pool in the Project Tracking functional area. This domain controls who can
manage resource pools, and only supports user-based security groups and project administrators.
• Manage: Project Resources in the Project Tracking functional area. This domain controls who can
access the workers in a resource pool on both the resource plan and reports. Users can select the
worker and see the available pools. They can't see the faceted dimensions and values that define the
resource pool.
• Domains by dimension. Users must also have access to each dimension to use it in the dynamic
resource pool. Users without access to a dimension can still use dynamic resource pools, but they can't
see that dimension.

Workday manages security permissions automatically as you assign workers to and remove them from
dynamic resource pools on the resource plan line. Example: Workers in a dynamic resource pool can only
track time or file expense reports for projects that you assigned them to.

Steps
1. Access the Edit Domain Security Policy Permissions task for the Set Up: Dynamic Resource Pool
domain.
2. Add Project Administrator as a Security Group.
3. Select Modify so project administrators can create and change dynamic resource pools.
Workday selects View automatically when you select Modify.
4. Use the Activate Pending Security Policy Changes task to create an active timestamp for your
changes.

Result
Project administrators can now create and change dynamic resource pools. Project and resource mangers
can assign workers to projects based on the criteria for the dynamic resource pool.
Related Information
Tasks
Edit Domain Security Policies
Activate Pending Security Policy Changes

Create Dynamic Resource Pools

Prerequisites
• Review setup considerations for project resources.
• Set up security for dynamic resource pools.
• Security: Set Up: Dynamic Resource Pool domain in the Project Tracking functional area.

Context
Dynamic Resource Pools are groups of project workers who match preset criteria, such as skills,
certifications, or location. These types of pools automatically update when workers leave, change roles,
and start new jobs. As you change the criteria for a dynamic resource pool:
• Workers who no longer match your criteria move out of the pool.
• Workers who do match your criteria move into the pool.
Dynamic resource pools provide you with a current source of workers that you can repeatedly assign to
projects based on preset worker criteria. As workers leave or change roles, the dynamic resource pool
updates to reflect your current staffing.
Note: Workday doesn't add workers with multiple jobs to dynamic resource pools.
You can use dynamic resource pools in resource plans when you:
• Associate a worker group with a resource plan line, you can select a dynamic resource pool.
• Assign an individual worker to a resource plan line, you can select them from a dynamic resource pool.
• Associate a dynamic resource pool with a resource plan line, the workers in the pool can log their time
on the project.
You can also use dynamic resource pools to filter your search results with these reports:
• Find Available Workers for Project
• Find Worker Assignments
• Find Worker for Project

Steps
1. Access the Create Dynamic Resource Pool task.
2. Enter a Name and a Description.
The name displays on the resource plan line under Resource Pools for these fields:
• Worker
• Worker Group
Users don't see the description, only the name of the dynamic resource pool.
3. Select the dimensions for your resource pool.
For dimensions that are hierarchy-based, such as Cost Center, Workday returns all workers within
that hierarchy node, but not the workers within subordinate hierarchies. You can add the subordinate
hierarchies separately.
Workday secures each dimension to its own domain. If you don't have security access to a domain for a
dimension, you can't add that dimension or make changes to the field. Example: The Skills dimension
secures to the Worker Data Skills domain. If you don't have security access to that domain, you can't
edit the field.

Next Steps
To see all active dynamic resource pools for a specific worker, use the Project Dynamic Resource Pool
report field.
To search for workers by dynamic resource pool, use these reports:
• Find Available Workers for Project
• Find Worker Assignments
• Find Worker for Project
Related Information
Concepts
Setup Considerations: Project Resources on page 1056

Steps: Create Resource Pools

Prerequisites
• Review setup considerations for project resources.
• Create project roles.
• Security: Set Up: Resource Pool domain in the Projects functional area.

Context
Resource pools are groups of project workers that simplify staffing. They also enable resource managers
to run custom reports and view worker information on the Resource Pool Manager dashboard.

Steps
1. Access the Create Resource Pool Hierarchy task to create a new hierarchy for the resource pool.
You must have at least 1 resource pool hierarchy before you can create a new resource pool.
As you complete the task, consider:
Option Description
ID If you leave the ID blank, Workday automatically
generates a sequential ID for the resource pool.
Resource Pools to Include Select the resource pools for the hierarchy.

Option Description
Role Assign the Resource Pool Hierarchy Manager and
the Resource Pool Manager roles to the users
who manage the resource pool hierarchy and its
associated resource pools.
2. Access the Create Resource Pool task.
As you complete the task, consider:
Option Description
ID If you leave the ID blank, Workday automatically
generates a sequential ID for the resource pool.
Resource Pool Hierarchy Select the hierarchies for the pool.
You can assign a resource pool to multiple
hierarchies, but the pool can't be in 2 hierarchies
within the same tree.

Workers to Include Select the workers for the pool.

If you select a worker that's already in another
resource pool, Workday moves the worker from
their existing pool into the new pool.

Role Assign the Resource Pool Manager role to the

user who will manage the resource pool.

Result
The resource pool managers can access the project workers in their assigned pools.
Note: If resource pool managers need to access workers outside of their assigned resource pools, you
need to create an unconstrained security group for them.

Next Steps
Set up:
• Resource plans.
• Resource Pool Manager dashboard.
Related Information
Concepts
Setup Considerations: Project Resources on page 1056
Concept: Resource Manager Dashboards on page 1074
Tasks
Create Project Roles on page 1050
Create Resource Plans on page 1088
Reference
Reference: Security for Resource Manager Dashboards on page 1075

Configure Task Resources

Prerequisites
• Create a project.
• Create a resource plan.

• Create project tasks.

• Create a project plan.
• Security: Manage: Project Task Resources domain in the Projects functional area.

Context
By configuring task resources, you can add these assignments to specific project plan tasks:
• Individual project workers.
• Unnamed resources.
• Worker groups.
These task resource assignments enable:
• Project workers to log their time to their specific task assignments with Time Tracking and ad hoc
project time transactions.
• Project managers to create detailed resource forecasts.
• Project managers to create detailed project budgets.

Steps
1. Access the project.
2. Select Project Plan.
3. Select 1 of these tabs:
• Project Planner.
• Task Resources.
4. (Optional) Click Edit in Grid to update the task resources in a table format.
Available on the Task Resources tab only.
5. Select or expand a project plan task and enter the assignment details.
As you complete the task, consider:
Option Description
Project Resources Select specific workers or unnamed resources
who are available for assignment from the
resource plan line.
Workers that you assign as task resources can
enter time to a project plan task in Time Tracking
or through ad hoc project time transactions.
Workers on the resource plan can view and log
time to a task without task resources on both
billable and nonbillable projects.
To modify this field on the Project Planner, select
a task resource line and click the pencil icon.

Resource Plan Line Identifies the project role on the resource plan
line. Workday populates this field based on the
worker.
This field displays even when the role is an
association or not yet hired.
To modify this field on the Project Planner, select
a task resource line and click the pencil icon.

Resource Start Date or Start Date Enter a start date that's on or before the end date.

Option Description
Resource End Date or End Date Workday doesn't require or enforce date
relationships across:
• Projects.
• Project plan tasks.
• Resource plan lines.
• Task resources.
Example: You can assign a worker as a task
resource with dates outside their resource plan
line.

% Allocation Available on the Task Resources tab only.

Percentages automatically populate from the
resource plan line when available. Or, you can
enter a new value.
Workday supports whole numbers that are greater
than or equal to zero and percentages over 100.

Estimated Hours Enter the number of hours you estimate the task
takes. You can enter positive numbers up to 2
decimal points.
Memo Enter details to track historical changes to:
• Estimated hours.
• Start and end dates.
• Any other task resource updates.
The memo you enter here follows the worker to
display on the Edit Task Assignment subtask for
the Find Worker Availability report.

6. (Optional) Click Mass Update to set or move the start and end dates for multiple resources at once.

Next Steps
• Synchronize the resource plan and task resource dates from the resource plan on the project.
• Identify conflicts in contract billing rates with the Task Resource Audit report on the project.
• Set up resource forecasts.
Related Information
Tasks
Create Projects on page 1019
Steps: Set Up Project Plans on page 1030
Steps: Set Up Resource Plans on page 1086
Reference
2023R2 What’s New Post: Task Resources in Project Planner

Set Up Time Entry Dates for Project Workers

Prerequisites
• Review setup considerations for resource plans.
• Security: Set Up: Tenant Setup - Financials domain in the System functional area.

Context
By default, Workday enables the date range for time entry as the start and end dates of a project.
You can narrow the date range by using the start and end dates from the:
• Resource plan
• Project plan tasks
• Task resources
To narrow the date range even more, you can select multiple sources for the dates.

Steps
1. Access the Edit Tenant Setup - Financials task.
2. In the Projects section, consider:

Option Description
Use Resource Plan Dates Select to enable workers to log their time during
the date range on the resource plan.
Use Project Plan Task Dates Select to enable workers to log their time during
the date range on the project plan task.
Use Task Resource Dates Select to enable workers to log their time during
the date range on the task resources.

Note:
• If you don't select an option, workers can log their time between the start and end dates of the
project.
• If you select multiple options, workers can only log their time where the date ranges overlap.

Example
A project has these date ranges:
• Project: January 1 through June 30.
• Resource plan: February 1 through May 31.
• Project plan task: March 1 through June 30.
• Task resources: March 1 through April 30.
Depending on the options you select, workers can log their time on the project during these date ranges:

Option Date Range Workers can Log Time

None January 1 through June 30.
The start and end dates on the project.

Resource plan February 1 through May 31.

The start and end dates on the resource plan.

Resource plan March 1 through May 31.

Project plan task The overlap of the 2 date ranges.

Resource plan March 1 through April 30

Project plan task The overlap of the 3 date ranges.

Option Date Range Workers can Log Time

Task resources

Related Information
Concepts
Setup Considerations: Resource Plans on page 1080
Reference
Reference: Edit Tenant Setup - Financials

Steps: Set Up Resource Scheduling

Prerequisites
Create resource plans with start and end dates on the resource plan lines.

Context
Resource scheduling enables you to:
• Create a balanced distribution of worker allocations across your workforce.
• Streamline the allocation of your resources to project work.
When you configure resource scheduling, you can use the Manage Worker Assignments report to view
and manage resource assignments.
When you enable this report for forecast hours, Workday generates the resource forecasts for new and
existing projects without forecasts. These Workday-generated resource forecasts:
• Don't display in Workday, except for reporting.
• Don't overwrite user-created forecasts.
• Are replaced by user-created forecasts.
• Calculate forecast hours at the project level, not the project plan task level.

Steps
1. Access the Edit Tenant Setup - Financials task.
In the Projects section, select the resource scheduling options. These settings enable Workday to
generate resource forecasts for new projects, so that you can view forecast hours in reports.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
2. Access the Schedule Workday Generated Forecasts task.
Enter your project criteria and forecast schedule to run the Create Workday-Generated Forecasts job.
This job creates resource forecasts for existing projects that don't already have a forecast, enabling you
to view the project-level forecast hours in reports.
Note: Workday recommends that you wait until the job finishes before using the Manage Worker
Assignments report. Otherwise, you might not have a complete set of data to display in the report.
Security: Set Up: Advanced Project Resource Management domain in the Projects functional area.
3. (Optional) Configure Custom Validation Messages on page 52.
Configure validation messages for users when they change worker assignments with the Update
Project Assignments task.

4. Edit Domain Security Policies.

Set up these domains for access to the Manage Worker Assignments report and its prompts:

Domain Considerations
Manage: Advanced Resource Management in the Users secured to this domain can access the:
Projects functional area
• Manage Worker Assignments report.
• Projects and Project Hierarchies prompt
within the task.

Manage: Resource Pool in the Projects functional Users secured to this domain can access the:
area
• Manage Worker Assignments report.
• Resource Pools and Resource Pool
Hierarchies prompt.

Reports: Manager in the Staffing functional area Users secured to this domain can access the
Supervisory Organizations prompt.
Note: If a user has sole access to this
domain, they can't access the Manage Worker
Assignments report.

5. Edit Business Process Security Policies.

Configure the security policy for the Update Project Assignment initiating action on the Project
Resource Plan Line business process in the Project Tracking functional area. This initiating action
provides access to the Update Project Assignments task on the Manage Worker Assignments
report.
6. Edit Business Processes.
Add the Recalculate Resource Forecast service step as the last step for all definitions of the Project
Resource Plan Line business process. This service step enables Workday to update a resource
forecast after you edit a resource plan line using the Manage Worker Assignments report.
7. (Optional) Configure Rule-Based Business Processes.
Configure automatic approvals for project assignments updated from the Manage Worker
Assignments report. Automatic approvals enable you to view the modified project assignments
immediately and avoid the wait. To configure automatic approvals for project assignments, use a rule-
based configuration for these business processes and report fields:

Business Process Report Field Business Object

Project Resource Plan Line Edit Resource Plan Line from Project Resource Plan Line
Manage Worker Assignments. Event
Set to True.

Request Worker Request Worker from Manage Request Worker for Resource
Worker Assignments Plan Event
Set to True.

8. Activate Pending Security Policy Changes.

Activate these business security policies:
• Project Resource Plan Line in the Project Tracking functional area.
• Request Worker in the Projects functional area.

Next Steps
Access the Manage Worker Assignments report to schedule your resources.
Related Information
Concepts
Setup Considerations: Resource Plans on page 1080
Setup Considerations: Resource Forecasts on page 1091
Tasks
Steps: Set Up Resource Plans on page 1086
Create Resource Plans on page 1088
Reference
Reference: Edit Tenant Setup - Financials

Steps: Set Up Worker Ratings

Prerequisites
Review setup considerations for project resources.

Context
Project and resource managers can rate the project workers who have a direct assignment to a project
task, approved time logged against a task, or both. To rate a worker, managers must also have a role on
the same project as the worker.
In addition, the project or project task must meet at least 1 of these conditions:
• The project end date is before today.
• The task end date is before today.
• The task is 100 percent complete.
• The task is closed.

Steps
1. Create Rating Scales.
Define the rating scales for your project workers.
2. Access the Edit Tenant Setup - Financials task.
In the projects section, select the Rating Scale to use for rating project work.
Security: Set Up: Tenant Setup - Financials in the System functional area.
3. Edit Business Processes.
Set up the Rate Work business process in the Projects functional area.
4. Edit Business Process Security Policies.
Set up the Rate Work business security policy in the Projects functional area.
5. Activate Pending Security Policy Changes.
Activate the Rate Work business security policy in the Projects functional area.

Result
Managers can rate the work completed by project workers on their assigned tasks, as well as add
qualitative feedback on the worker.
Managers can also filter project workers by their average project rating when they search from the
resource plan line using these reports:
• Find Available Workers for Project

• Find Worker for Project

Next Steps
Rate project workers.
Related Information
Concepts
Setup Considerations: Project Resources on page 1056
Reference
Reference: Edit Tenant Setup - Financials

Create Utilization Target Sheets

Prerequisites
• Create Project Cost Rate Rules on page 996.
• Security: Set Up: Advanced Project Resource Management domain in the Projects functional area.

Context
You can create utilization target sheets to track the estimated productivity of project workers against their
scheduled hours.
You can define utilization targets to benchmark workers for:
• Performance.
• Project staffing.
• Workforce planning.

Steps
1. Access the Create Utilization Target Sheet task.
2. As you complete the task, consider:
Option Description
Company You can create only 1 utilization target sheet for
a company. You can, however, assign multiple
companies to a utilization target sheet.
Effective Date You can past-date the effective date.
1st Priority Workday evaluates the utilization target of project
workers by priority.
2nd Priority
Example: The 1st Priority is Worker and the 2nd
Priority is Utilization Target Rule. Jane Smith has
2 potential utilization targets:
• An individual utilization target of 85%.
• A utilization target rule for California
employees with a value of 90%.
Workday returns a utilization target of 85% for
Jane.
If Jane doesn't have a utilization target on the
Worker tab, Workday retrieves a value from the
utilization target rule.

Option Description
If Jane doesn't have a utilization target on either
the Worker tab or the Utilization Target Rule
tab, Workday can't retrieve a value for her.

3. As you complete the Utilization Target Rule tab, consider:

Option Description
Utilization Target Rule A category of workers with the same productivity
targets. Workday determines the available
categories using project cost rate rules.
Workday generates utilization targets by
sequentially processing the utilization target rules
on your list, starting from the top.
Example: When a worker belongs to more than 1
utilization target rule, Workday derives the value
from the first rule in the sequence.

Utilization Target % The percent of productive time you expect the

project resources to work.
4. As you complete the Worker tab, consider:
Option Description
Worker You can only add workers from the companies
you select for the target sheet.
Utilization Target % The percent of productive time you expect this
individual to work.

Next Steps
• Run the Utilization Targets for Workers - Monthly report. You can compare the utilization target
percent for project workers with their scheduled hours and target utilization hours.
Note: To view data in this report, you must select the Run Project Worker Days Job check box in the
Edit Tenant Setup - Financials task.
• Use the targetsheet search prefix to find an existing target sheet to view or edit.
Related Information
Tasks
Steps: Set Up Projects Infrastructure on page 963
Reference
Reference: Edit Tenant Setup - Financials
Reference: Resource Management Reports on page 1052

Concept: Resource Pool Security

To maintain the security of worker data in resource pools, Workday Projects divides permissions among
the users who can:
• Create and maintain resource pool hierarchies and resource pools without restriction.
• View and access the workers in a resource pool on the resource plan, in reports, and on the Resource
Pool Manager dashboard.
Security domains for resource pool hierarchies and resource pools:

Domain Considerations Security Groups

Set Up: Resource Pool in the Controls who can: Project Administrator
Projects functional area
• Create and view resource Resource Pool Administrator
pools and resource pool
hierarchies.
• Assign roles to the resource
pool and resource pool
hierarchy managers.

Manage: Resource Pool in the Controls who can: Project Manager

Projects functional area
• View resource pools and Project Resource Manager
resource pool hierarchies.
Resource Pool Manager
• View and access the project
workers in a resource pool on Resource Pool Hierarchy
the resource plan, in reports, Manager
and on the Resource Pool
Manager dashboard.

Related Information
Tasks
Steps: Create Resource Pools on page 1064

Concept: Resource Manager Dashboards

Resource managers use these dashboards to manage their project workers:
• Resource Manager
• Resource Pool Manager
They can:
• Borrow workers from other resource managers.
• Compare worker attributes.
• Staff projects.
• View the status and utilization of their workers.
Resource pool managers can also view and manage workers even if they don't have a role on the same
project as the worker.
These dashboards display:
• The status of workers on a project.
• A consolidated view of work allocations.
• Frequently used tasks and reports.
• Your urgent staffing needs. Workday calculates urgency as the sum of these parameters:
• Is the project start date - the current date less than 30? (+1)
• Is the start date for the resource plan line - the current date less than 14? (+1)
• Does the resource plan line have more than 1 unnamed resource? (+1)
• Does the resource plan line have requirements? (+1)
• Is the Project billable? (+1)
Note: To ensure that Workday displays the correct dashboard data, assign managers to a role in the
same supervisory organization as their workers. You might also need to assign resource pool managers to
multiple supervisory organizations.

Related Information
Concepts
Setup Considerations: Project Resources on page 1056
Tasks
Steps: Set Up Dashboards and Landing Pages
Reference
The Next Level: Resource Management in Projects

Reference: Security for Resource Manager Dashboards

Workday provides these dashboards for resource managers, secured to the Management Dashboard:
Resource Manager domain in the Projects functional area:
• Resource Manager
• Resource Pool Manager
When you configure the dashboards, use this security for the worklets:

Worklets Domains
Staffing That Needs Attention Manage: Advanced Project Resource Management
in the Projects functional area
Workers That Need Attention These domains in the Projects functional area:
• Management Dashboard: Resource Manager
• Manage: Resource Pool

Workers Rolling Off Projects In These domains in the Projects functional area:
• Management Dashboard: Resource Manager
• Manage: Resource Pool

Worker Allocations Reports: Manager in the Staffing functional area

These domains in the Projects functional area:
• Manage: Project Resource Forecast
• Manage: Advanced Project Resource
Management
These domains in the Time Off and Leave
functional area:
• Worker Data: Time Off (Time Off)
• Worker Data: Time Off (Time Off Manager View)

Worker Allocations by Resource Pool Manage: Resource Pool in the Projects functional
area

When you configure the Actions menu on the dashboards, use this security:

Report in Actions Menu Domains

Find Worker for Project These domains in the Projects functional area:
• Manage: Advanced Project Resource
Management
• Manage: Resource Pool

Report in Actions Menu Domains

View My Favorites Manage: Project Resources in the Project Tracking
functional area
Manage: Resource Pool in the Projects functional
area

Find Project for Worker Manage: Advanced Project Resource Management

in the Projects functional area

Related Information
Concepts
Setup Considerations: Project Resources on page 1056

Example: Use Unnamed Resources in Projects

This example explains how to use unnamed resources in your projects.

Context
You need to define the resources and scope the work effort for a 1-month project before you can fully staff
it. You add unnamed resources allocated at 100% as placeholders on the resource plan, resource forecast,
and task resources for the project. Once complete, you then review the:
• Estimated work effort for each project worker.
• Task assignments for each project worker.

Prerequisites
Create a project hierarchy.
Configure these business processes and security policies:
• Create Project in the Project Tracking functional area.
• Edit Project in the Project Tracking functional area.
• Project Resource Plan Line in the Project Tracking functional area.
• Request Worker in the Projects functional area.
Security: These domains in the Project Tracking functional area:
• Manage: Project Details
• Manage: Project Plan
• Set Up: Project Details

Steps
1. Access the Create Project task.
a. Create a project without selecting any templates.
b. Enter today as the Start Date.
2. Access the Create Project Plan task.
a. Create a project plan for your project without selecting a template.
b. Add 1 phase and 1 task to your plan.

3. Access the Create Resource Plan for Project task.

a. Create a resource plan for your project without selecting a template.
b. Enter these values on the Resource Plan Line:

Option Value
Project Role Consultant
Start Date Today
End Date A date 1 month in the future.
Allocation Type Assign a Worker
% Allocation 100
Add Unnamed Resources 3

Workday adds your unnamed resources to the resource plan line using the role name appended with an
incremental number. Example: Consultant-1, Consultant-2, Consultant-3.
4. Access the Edit Task Resources report.
a. Select your project.
b. Add 3 rows to the Task Resources grid.
c. As you complete each row, select these values:

Option Value
Project Resources An unnamed resource.
Example: Consultant-1

Resource Plan Line Consultant

Resource Start Date Today
Resource End Date A date 1 month in the future.
% Allocation 100

You see a grid of your unnamed resources and their task assignments for the project.
5. Access the Create Resource Forecast for Project task.
a. Select your project.
b. As you complete the task, enter these values:

Option Value
Forecast Level View Project
Forecast Frequency View Week
Forecast Source Percent Allocation
Forecast Hours Whole Numbers

You see the work estimate for your unnamed resources on the resource forecast.

6. Access the View Project report and select your project.

To review and verify your unnamed resources:
a. Click the Resources profile group.
b. Click the Project Resources tab. You see your unnamed resources in the grid.
c. Click the Resource Plan tab. You see your unnamed resources in the Workers section on the
resource plan line.
d. Click the Resource Forecast tab. You see your unnamed resources and their estimated hours in
the grid.
e. Click the Project Plan profile group.
f. Click the Task Resources tab. You see your unnamed resources and their assigned project tasks in
the grid.

Next Steps
When you’re ready to assign specific workers to your project, use a Find Worker report to replace the
unnamed resources with project workers:
1. Navigate to the resource plan.
2. Click the Find Workers button.
3. Assign a worker to the project.
Workday replaces 1 of the unnamed resources with the new worker, and then automatically updates the
project resources, resource forecast, and task resources with your new worker assignment.
Related Information
Tasks
Create Project Hierarchies on page 966
Create Projects on page 1019
Create Project Plans on page 1033
Create Resource Plans on page 1088
Configure Task Resources on page 1065
Steps: Set Up Resource Forecasts on page 1097
Reference
Reference: Resource Management Reports on page 1052

Troubleshooting: Resource Pool Manager Can't Assign Workers to Pools

Resource pool managers can't access all project workers in all resource pools. Workday restricts resource
pool managers to creating new resource pools only from their original resource pool assignment.
Cause: The Resource Pool Manager security group is a constrained security group. It only enables
resource pool managers to access the workers in their assigned resource pools.
Solution: Create an unconstrained role-based security group for resource pool managers. Then, assign
the new security group and the resource pool manager to a resource pool.

Steps
Security:
• Manage: Resource Pool domain in the Projects functional area.
• Security Activation domain in the Customer Central and System functional areas.
• Security Configuration domain in the System functional area.
• Set Up: Assignable Roles domain in the Organizations and Roles functional area.
• Set Up: Resource Pool domain in the Projects functional area.
1. Access the Maintain Assignable Roles task.

2. Add a new row, and then complete these options:

Option Description
Role Name Enter a name.
Example: Resource Pool Manager
(Unconstrained)

Enabled for Select Resource Pool and Resource Pool

Hierarchy.
Hide on View if Not Assigned Select.
Assigned by Security Groups Select Security Administrator.
3. Access the Create Security Group task.
4. Complete these options:
Option Description
Type of Tenanted Security Group Select Role-Based Security Group
(Unconstrained).
Name Enter the role name.
Example: Resource Pool Manager
(Unconstrained)

5. In the Assignable Role field, select your new role name.

Example: Resource Pool Manager (Unconstrained)
6. Access the Set Up: Resource Pool domain.
7. From the related actions menu of the Domain Security Policy, select Domain Security Policy > Edit
Permissions.
8. Add a new row to the Report/Task Permissions grid and complete these options:
Option Description
Security Groups Enter the name.
Example: Resource Pool Manager
(Unconstrained)

View Select.
Modify Select.
9. Access the Manage: Resource Pool domain.
10.From the related actions menu of the Domain Security Policy, select Domain Security Policy > Edit
Permissions.
11.In the Report/Task Permissions grid, add a new row and complete these options:
Option Description
Security Groups Enter the name.
Example: Resource Pool Manager
(Unconstrained)

View Select.
Modify Select.
12.Access the Activate Pending Security Policy Changes task to confirm your changes.
13.Access the Create Resource Pool task.

14.In the Assign Roles grid, complete these options:

Option Description
Role Select the new unconstrained security group.
Example: Resource Pool Manager
(Unconstrained)

Assigned To Select the person who manages the resource

pool.
Example: Abbie Knickerbocker

Related Information
Concepts
Concept: Roles, Time Zones, and Snapshots
Concept: Resource Pool Security on page 1073
Tasks
Steps: Create Resource Pools on page 1064
Activate Pending Security Policy Changes
Create Role-Based Security Groups

Resource Plans
Setup Considerations: Resource Plans
You can use this topic to help make decisions when planning your configuration and use of resource plans.
It explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Resource plans in Workday help you to staff your projects and enable your workers to charge their time
against a project.

Business Benefits
• Create and update resource plans.
• Reduce data entry for commonly used information.
• Staff your projects with qualified workers.
• Configure custom objects to extend Workday to meet your unique requirements for resource plans.
• Enable project workers to log their time with Workday Time Tracking.

Use Cases
• Specify the window of time that workers can record their hours on a project.
• Control the content of resource plans to reduce effort, maintain consistency, and avoid errors.
• Find qualified workers who are available for project work.
• Balance the distribution of project assignments across your workforce.

Questions to Consider

Questions Considerations
Will your resource plans contain common You can create templates for resource plans to
information? populate the common information that most users
need to enter. Templates streamline data entry and
reduce user errors.
Do you want to enable workers to log their time on Use the time entry template to enable project
any project or only on assigned projects? workers to log time to any project, without having
an assignment on a resource plan.
Otherwise, you must assign project workers to
a resource plan before they can log time to the
project.

What date range do you want workers to access Workers on a resource plan can log time against
when they log their time on a project? a project or a project task. Workday automatically
populates the date range with the start and end
dates of the project.
You can configure a narrower date range for
workers to log their time on the Edit Tenant Setup
- Financials task by using the dates specified in:
• Resource plans.
• Project plan tasks.
• Task resources.
You can use multiple sources to continue narrowing
the date range. Workers can only log time where
the selected date ranges overlap.

How will you find workers for your projects? Workday provides multiple reports that you can use
to find workers to add to your resource plans.
You can configure the Find Workers button to
launch the report that best suits your needs.

What are the requirements for your project roles? You can simplify your staffing effort by specifying
the requirements for your project roles. When
defined, a Find Worker report returns the workers
who match your requirements.
Which project roles should you restrict to project You can restrict the availability of project roles to
hierarchies? specific primary project hierarchies. This restriction
simplifies role selection and reduces data entry
errors. Child hierarchies inherit role restrictions from
their parent hierarchies.
Restrict project roles using the Maintain Project
Roles task.

How do you want to organize your project roles? You can specify the categories for organizing the
project roles on the resource plan lines. Use the
Maintain Project Role Categories task to add or
change your values.
How do you want to approve new or modified To enable manual approvals, configure the Project
resource plan lines? Resource Plan Line business process.

Questions Considerations
If you don't configure this business process,
Workday automatically approves both new and
modified resource plans.

How do you want to approve new project workers? To enable manual approvals, configure the Request
Worker business process.
If you don't configure this business process,
Workday automatically approves new project
workers.

Do you want to differentiate between the confirmed You can configure the project booking status to
and potential workers assigned to a resource plan specify the commitment level of a worker on their
line? assigned resource plan line. Use the Maintain
Project Booking Status task to specify the values.
Example: Hard Booked and Soft Booked.

Do you want to restrict project workers to selecting You can restrict the project worktags that workers
only their assigned projects in their expense can select when they create or edit an expense
reports? report.
To limit workers to selecting only the worktags for
their project assignments, configure the Expenses
Options section on the Edit Tenant Setup -
Financials task.

Recommendations
Configure the Find Workers button to open the Find Available Workers for Project report to streamline
the staffing process. This report enables managers to see an overview of worker qualifications and their
availability all at once.
Create templates for your resource plans to reduce the time users spend on data entry. The templates
prefill the fields with information that is common to all your projects.
Configure resource scheduling to view and manage resource assignments from 1 location with the
Manage Worker Assignments report.
Create your resource plans at the project-hierarchy level when the projects within the same hierarchy use
the same resource plan. This configuration:
• Reduces the time spent on data entry.
• Maintains consistency.
• Avoids errors.
Restrict project roles to specific primary project hierarchies to streamline data entry.

Requirements
Before you can create resource plans, you must first create project:
• Hierarchies.
• Roles.

Limitations
You can't add the same worker to more than 1 resource plan line when the worker has:
• The same project role.

• Overlapping dates.
• Different standard cost rates.
You can't delete a resource plan line when:
• A task resource references the resource plan line.
• It has a pending worker assignment.

Tenant Setup
Access the Projects and Expenses Options sections on the Edit Tenant Setup - Financials task to
configure the project-specific options.
Depending on how you configure your resource plans in Workday, you can:
• Set the date range within which workers can record their hours on a project.
• Enable project and resource managers to use a specific report for staffing their projects. Managers
launch this report from the Find Workers button.
• Restrict workers to select project worktags associated with their assigned resource plans.
• Enable resource scheduling to use the Manage Worker Assignments report.

Security

Domains Considerations
Business Process Administration in the System Users secured to this domain can edit the Project
functional area. Resource Plan Line and Request Worker business
processes.
Manage: Business Process Definitions in the Users secured to this domain can manage the
System functional area. Project Resource Plan Line and Request Worker
business processes.
Set Up: Project in the Projects functional area. Users secured to this domain can:
• Create, edit, and view templates for resource
plans.
• Restrict project roles to primary project
hierarchies.

Set Up: Project Hierarchy in the Project Tracking Users secured to this domain can create, edit, and
functional area. view resource plans on the project hierarchy.
Set Up: Project Tracking in the Project Tracking Users secured to this domain can:
functional area.
• Create, edit, view, and maintain project roles.
• View resource plans.

Manage: Project Resources in the Project Tracking Users secured to this domain can:
functional area.
• View and manage resource plans.
• View project resources.
• Use the Get Resource Plans web services.

Manage: Advanced Project Resource Management Users secured to this domain can use the Manage
in the Projects functional area. Worker Assignments report.
Set Up: Advanced Project Resource Management Users secured to this domain can:
in the Projects functional area.
• View worker availability.
• Staff projects.

Domains Considerations
• Use these web services:
• Get Requirements for Resource Plan
• Put Requirements for Resource Plan

To ensure proper access, review these team member roles and activities:

Domain Security Roles Considerations

Finance administrator Configures tenant setup information.
Project administrator • Edits the Project Resource Plan Line and
Request Worker business processes.
• Creates templates.
• Creates resource plans for project hierarchies.
• Manages and views resource plan information.
• Uses web services.

Project manager • Approves changes to the resource plan lines

Resource manager routed by the Project Resource Plan Line and
Request Worker business processes.
• Creates resource plans for individual projects.
• Manages and views resource plan information.
• Adds workers to resource plans.

Business Processes

Business Processes Considerations

Project Resource Plan Line in the Project Tracking Enables users to:
functional area
• Create resource plans for a project, but not the
project hierarchy.
• Use the Submit Resource Plan web service.
Has a security policy that enables you to open up
approvals to various security groups. You can also
enable manual advancement to the next step by a
business process administrator.
Contextual security for the supervisory organization
is only available for workers assigned to a project,
not workers pending approval. Because of this
security, when you configure a definition step with
a supervisory organization manager, you must also
configure a Worker is Assigned condition rule.

Request Worker in the Projects functional area Enables changes in worker assignments or
associations.
This business process:
• Is a required subprocess of the Project
Resource Plan Line business process.
• Supports the resource plan for the project, not
the project hierarchy.

Business Processes Considerations

• Creates a separate event for each resource plan
line that you modify.
• You can also set up permissions that enable you
to manually advance the business process to
the next step.

Reporting

Reports Considerations
Manage Worker Assignments Use to:
• View project resource assignments, time off,
and holidays.
• Compare workers for project assignments.
• Drill into and manage project assignments.
To enable this report, set up resource scheduling.

Find Available Workers for Project Use this report to find both qualified and available
workers for their projects.
You can configure Workday to launch this report
from the Find Workers button on the resource plan
line.

Find Worker for Project Project and resource managers use this report to
find qualified workers for their projects.
Workday automatically launches this report, by
default, from the Find Workers button on the
resource plan line.

You can use these report data sources to create custom reports:
• Project Resource Plan Line Events - All Statuses on the Project Resource Plan Line Event business
object.
• Project Resource Requirements on the Project Resource Requirement Parameter business object.
• Project Roles on the Project Role business object.
• Project Standard Cost Rate Sheet on the Project Standard Cost Rate Sheet business object.
• Resource Plan Details on the Project Resource Plan Detail business object.
• Resource Plan Details Search on the Project Resource Plan Detail business object.

Integrations

Web Service Considerations

Get Resource Plans Manages data on resource plans and resource plan
lines for both project hierarchies and projects.
Submit Resource Plan
Submit initiates the Project Resource Plan Line
business process for approval only for resource
plans on projects, not project hierarchies.

Get Requirements for Resource Plan Manages data on resource requirements for
resource plans.

Web Service Considerations

Put Requirements for Resource Plan

Connections and Touchpoints

Feature Considerations
Resource Forecasts You must have a resource plan with assigned
resources to create a resource forecast.
Project Budgets You can create a project budget based on a
resource plan.
Time Entry Templates You can enable workers to log time on any
project or project task, even if they don't have an
assignment on a resource plan. Use the time entry
template to enable this feature.
Expenses You can restrict project workers to select only
the project worktags for their assigned resource
plans when they create an expense report. Use the
financial tenant settings to enable this feature.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across
your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Create Project Hierarchies on page 966
Create Project Roles on page 1050
Create Project Role Categories on page 1052
Steps: Set Up Resource Scheduling on page 1069
Create and Edit Custom Object Definitions
Reference
Reference: Edit Tenant Setup - Financials
The Next Level: Resource Management in Projects

Steps: Set Up Resource Plans

Prerequisites
Review setup considerations for resource plans.
Set up project roles.
Set up these business processes and security policies:
• Project Resource Plan Line in the Project Tracking functional area.
• Request Worker in the Projects functional area.

Context
With resource plans, you can enable:
• Managers to assign workers to projects and estimate their cost.
• Workers to charge time against a project.
Resource plans are also a prerequisite for creating resource forecasts.

Steps
1. (Optional) Access the Maintain Project Booking Status task.
The booking status defines the confidence level of the resource booking. Users can select this value
when they assign a worker to a project role on a resource plan.
Security: Set Up: Advanced Project Resource Management domain in the Projects functional area.
2. (Optional) Access the Edit Time Entry Template task.
You can enable project workers to log time to any project without having an assignment on a resource
plan. Select the Enable Time Entry by Project and the Use High Volume Projects Prompt options in
the Projects profile group.
Security: Set Up: Time Tracking domain in the Time Tracking and Time Tracking Hub functional areas.
3. Access the Edit Tenant Setup – Financials task and navigate to the Projects section. As you
complete the task, consider:
Option Description
Use Resource Plan Dates By default, the project workers on a resource plan
can log their time in Workday during the project
Use Project Plan Task Dates
start and end dates.
Use Task Resource Dates
Select 1 or more options to narrow the date range
for time entry.
To apply the most restrictive range, select multiple
date options. Workers can only log time where the
selected date ranges overlap.
Example: If your project start and end dates
are January 1 - March 30, workers can log time
between January 1 - March 30. If you include
dates for project plan tasks, which range from
March 1 - April 30, then workers can only log time
from March 1 - March 30 — where the 2 date
ranges overlap.

Configure Find Worker Report Specify a report for all Find Workers buttons
in Workday. By default, Workday uses the Find
Worker for Project report.
Note: If you specify a custom report, ensure
that users have the correct access so they can
use the Find Workers button. If you configure a
custom report, it must use the Workers for HCM
Reporting data source.

Always use Find Available Workers for Project Select to use the Find Available Workers for
Project report for the Find Workers button.
This setting overrides the report specified for
Configure Find Worker Report.

Security: Set Up: Tenant Setup - Financials domain in the System functional area.
4. (Optional) Create Templates for Resource Plans on page 979.
Related Information
Concepts
Concept: Resource Plans on Projects and Project Hierarchies on page 1090
Tasks
Create Project Roles on page 1050

Create Project Role Categories on page 1052

Reference
Reference: Edit Tenant Setup - Financials
The Next Level: Resource Management in Projects

Create Resource Plans

Prerequisites
• Create a project.
• Set up resource plans.
• Configure these business processes and security policies:
• Project Resource Plan Line in the Project Tracking functional area.
• Request Worker in the Projects functional area.
• Security: Set Up: Project Hierarchy domain in the Project Tracking functional area.

Context
In Workday, you use resource plans to define the workers who work on a project. You can create resource
plans for either the project or the project hierarchy. If a project hierarchy has a resource plan, all projects in
that hierarchy can use the same resource plan.
After you create a resource plan:
• You can assign workers to tasks in the project plan.
• Workers can charge time against the project.

Steps
1. Access 1 of these tasks:
• Create Resource Plan for Project.
• Create Resource Plan for Project Hierarchy.
2. As you complete the task, consider:
Option Description
Project Role You can assign the same project role more than
once to the resource plan.
Standard Cost Rate Override Accept the default rate and currency from the
standard cost rate sheet, or enter new values.
Standard Cost Rate Currency Override
Workday calculates and persists time entry costs
upon approval. Changes to the standard cost
rate on the resource plan line don't change the
standard cost amount for approved project time
entries.

Allocation Type Select Assign a Worker to add individual workers

or unnamed resources to a project role.
Select Associate a group to add a group of
workers to a project role.
Any of the workers, unnamed resources, or
workers within a group can fill the project role and
charge their time to the project.

Option Description
Your selection sets security, reporting, and worker
access to project tasks. It also determines the
detail fields that display when you add workers or
groups to the project role.

To Be Hired Displays only when you select Assign a Worker.

When you select this check box, you can
complete the resource plan without a direct
assignment and report more accurately on
needed resources.

Job Requisition Displays only when you:

• Select the To Be Hired option.
• Have rights to view or change the Manage:
Project Resource Job Requisition domain.
You can assign the same requisition to multiple
resource plan lines, and you can have multiple
workers for the same position.

% Allocation Displays only when you select Assign a Worker.

Enter a percent value for the time commitment
of the worker. Workday supports percentages
greater than 100.
If you specify this field, you can create a project
budget later.

Estimated Hours Displays only when you select Assign a Worker.

Enter the sum of all the resources total estimated
hours for a project, or for a project plan task.
If you specify this field, you can create a project
budget later.

Worker Group Displays only when you select Associate a

group.
Select to identify the groups of workers who can
charge time to the project.

Excluded Workers Displays only when you select Associate a

group.
Select to remove specific workers from the group
for this resource plan only.

Project Booking Status Select from the confidence levels you created on
the Maintain Project Booking Status task.
Worker Displays only when you select Assign a Worker.
Add 1 or more workers to the project role.
For each unnamed resource, Workday adds a row
to the Worker grid, which you can replace with a
specific worker later.

Option Description
If you plan to create a project budget from the
resource plan, you must assign at least 1 worker
or unnamed resource to a project role.

Project Role Requirements Enter the Categories and Requirements. The

Maintain Project Roles task defines the default
values.
These requirements help resource managers find
available candidates for the project directly from
the resource plan.
You can override these default values in the
Project Role Requirements section on the
resource plan line. If you later decide to change to
a new role that doesn’t have default requirements,
Workday maintains your previously saved values.

Next Steps
• Create a resource forecast.
• Identify conflicts with the Standard Cost Rate using the View Resource Plan Lines with Conflicting
Standard Cost Rates report.
• Create custom objects.
Related Information
Tasks
Steps: Set Up Resource Forecasts on page 1097
Create and Edit Custom Object Definitions

Concept: Resource Plans on Projects and Project Hierarchies

You can create resource plans for:
• Projects.
• Primary project hierarchies.
We recommend that you create:
• A unique resource plan for each project when your resource plans differ between projects.
• A shared resource plan for the project hierarchy when the projects on the same hierarchy always use
the same plan. This configuration reduces work effort, since all the projects on the hierarchy inherit this
plan.
Note: Project managers must have a role on the project hierarchy to create a shared resource plan.
These principles apply to resource plans:
• When you create a new project, you can:
• Inherit a preconfigured resource plan from the project hierarchy.
• Select a preconfigured template for the resource plan.
• Manually create a new resource plan.
• When a project uses a resource plan at the task-resource level, you can't remove the plan from the
hierarchy.
• When a project in the hierarchy uses an inherited resource plan, you can't add another resource plan to
the project hierarchy.

Related Information
Concepts
Setup Considerations: Project Hierarchies on page 958
Setup Considerations: Resource Plans on page 1080
Concept: Project Hierarchies on page 972
Tasks
Steps: Set Up Resource Plans on page 1086

Troubleshooting: Can't Add Resource Plan Lines to Resource Plan

When you access a resource plan on a project, the Add option is missing, and you can't add new resource
plan lines.
Cause: Your project has both:
• A resource plan inherited from a project hierarchy.
• Task resource assignments for the inherited resource plan lines.
You can't edit inherited resource plans at the project level, only on the project hierarchy.
Solution:

Steps
Security: Set Up: Project Hierarchy domain in the Project Tracking functional area.
1. Access the View Project Hierarchy report.
Select the project hierarchy.
2. From the related actions menu on the project hierarchy, select Project Hierarchy > Edit Resource
Plan.
3. Add your changes to the resource plan lines.
Related Information
Concepts
Setup Considerations: Project Hierarchies on page 958
Tasks
Create Resource Plans on page 1088

Resource Forecasts
Setup Considerations: Resource Forecasts
You can use this topic to help make decisions when planning your configuration and use of resource
forecasts. It explains:
• Why to set them up.
• How this feature fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Resource forecasts estimate the number of hours that project workers need to complete their work on a
project. You can:
• Generate high-level forecasts from the resource plan.
• Generate detailed forecasts from the task resources.

• Generate daily, weekly, or monthly forecasts.

• Use whole numbers or decimals for the forecast hours.

Business Benefits
Resource forecasting in Workday simplifies the process of estimating project work and ensures that project
and resource managers can easily:
• Plan for projects.
• Schedule project resources.
• Gain insight into staffing requirements and project progress.
• Manage project costs by creating project budgets based on a resource forecast.
In addition, project workers can record their forecast project hours to:
• Increase forecast accuracy.
• Enable managers to make better staffing decisions for headcount planning.

Use Cases
Resource forecasts enable you to:
• Estimate the work hours needed to complete a project or project task.
• Recognize revenue on fixed-fee projects by calculating the percent completion of the project.
• Gain insight into how many work hours you need to complete a project or project task.
• Calculate project budgets based on resource forecasts.
• Use Worksheets to simplify data entry for forecast hours.
• Enable project workers to update their own resource forecasts and route changes to a manager for
approval.

Questions to Consider

Questions Considerations
How do you want to create resource forecasts? You can create resource forecasts from either the
project or the project plan tasks.
For a high-level view, create forecasts from the
project.
For a detailed view, create forecasts from project
plan tasks.
Note: Project budgets reflect the same level of
detail as the resource forecasts that you use to
create them. Example: A detailed project budget
at the task level requires that you first create a
resource forecast from the project plan tasks.

How do you use Worksheets for data entry? You can enable Worksheets to simplify data entry
for forecast hours, reducing manual entry of project
hours on the Resource Forecast grid.
How can workers update their own forecast hours? You can configure resource forecasts so that
workers can forecast their project hours and submit
them to managers for review and approval.
Do you want to simplify staffing by enabling You can enable resource managers to schedule
resource scheduling? their project resources from 1 location using the
Manage Worker Assignments report. This report

Questions Considerations
displays the forecast hours for your assigned
project workers, and requires resource forecasts on
all your projects.
When you enable resource scheduling, Workday
automatically generates resource forecasts for all
your new projects. You can also schedule Workday
to generate resource forecasts for your existing
projects with the Schedule Workday Generated
Forecasts task.
These Workday-generated resource forecasts:
• Don't display in Workday, except for reporting.
• Don't overwrite user-created forecasts.
• Are replaced by user-created forecasts.

Recommendations
We recommend that you:
• Complete your resource plans before you create resource forecasts. Workday creates the first iteration
of the resource forecast from the assigned workers on the resource plan.
• Set up your resource forecasts before work begins on a project. If you configure your resource
forecasts early, you can avoid creating an incomplete resource forecast. You can't past-date the
forecast hours.
• Enable Worksheets to view and edit resource forecasts. Worksheets provide a larger view of the
forecast and simplify editing.
• Enable resource scheduling to streamline project staffing.

Requirements
• Create a project with workers assigned to the resource plan.
• To generate task-level resource forecasts, create a project with a project plan and workers assigned as
task resources.
• To enable users to update their forecast hours with a Worksheet, you must first configure Worksheets
for your tenant.
• To enable workers to update their own forecast hours, you must first configure the Update My Resource
Forecast business process.

Limitations
• The Estimate at Completion (EAC) column on the resource forecast displays only the workers with a
resource forecast entry. Workday doesn't include hours from workers who log time on a project but
aren't in the resource forecast.
• You can't edit forecast intervals for dates in the past.
• Workday limits the number of columns that you can view and edit at one-time in the resource forecast.
• You can't delete a resource forecast when you have:
• A project budget based on the forecast.
• A snapshot of the forecast.

Tenant Setup
Access the Projects section on the Edit Tenant Setup - Financials task to view project-specific tenant
configuration options.

You can select:

• Enable Worksheets for Resource Forecast (Advanced Projects only).
• Enable Resource Scheduling, and then specify your resource forecast options.

Security

Domains Considerations
Business Process Administration in the System Users secured to this domain can edit the Update
functional area. My Resource Forecast business process.
Manage: Business Process Definitions in the Users secured to this domain can manage the
System functional area. Update My Resource Forecast business process.
Manage: Project Resource Forecast in the Projects Users secured to this domain can use tasks,
functional area. reports, and web services to create, edit, delete,
and view resource forecasts.
Reports: Manager in the Staffing functional area. Users secured to this domain can use the Project
Forecasted Hours - Monthly report.
Self-Service: Resource Forecast in the Projects Users secured to this domain can update forecast
functional area. hours for their project assignments.
Set Up: Advanced Project Resource Management Users secured to this domain can use the
in the Projects functional area. Schedule Workday Generated Forecasts task.
Set Up: System in the System functional area. Users secured to this domain can add the
Resource Forecast report to the project profile
using the Configure Profile Group task.
Worksheets in the System functional area. Users secured to these domains can edit resource
forecasts with a Worksheet.
Drive in the System functional area.

To ensure proper access, review these team member roles and activities:

Domain Security Roles Responsibilities

Project administrator • Configures tenant setup information.
• Adds the resource forecast report to project
profiles.
• Edits the Update My Resource Forecast
business process.
• Manages and views resource forecast
information.

Project manager • Approves forecast hours routed by the Update

My Resource Forecast business process.
• Manages and views resource forecast
information.
• Uses Worksheets.

Resource manager • Approves forecast hours routed by the Update

My Resource Forecast business process.
• Manages and views resource forecast
information.
• Schedules project resources.

Domain Security Roles Responsibilities

• Uses Worksheets.

Project worker Updates their own forecast hours.

Business Processes
You can use the Update My Resource Forecast business process to enable project workers to update their
own forecast hours and managers to approve forecast changes.

Reporting

Reports Considerations
Forecast vs. Actuals - Project Hours by Month Compares forecasted hours with actual project
hours.
Project Forecasted Hours - Monthly Displays the forecasted project hours.
Worker Availability - Detailed Allocation Identifies the weekly availability of workers for a 3-
month period, based on:
• Approved time off.
• Forecasted hours.
• Holiday hours.

Manage Worker Assignments Displays project resource:

• Assignments.
• Time off.
• Holidays.
This report enables you to:
• Compare workers for project assignments.
• Drill into and manage project assignments.

Project Forecasted vs. Actual Hours Displays the actual hours that surpass or approach
the total resource forecast hours.
Project Manager Hub card
This card enables you to determine if projects have:
• An Estimate at Completion (EAC) that exceeds
the total forecasted hours.
• Total actual hours that exceed the total
forecasted hours.
• Total actual hours within 5% of the total
forecasted hours.

Worker Forecasted vs. Actual Hours Displays project workers over the past 4 weeks
from the previous Sunday with:
Project Manager Hub card
• Missing actuals.
• Missing forecasts.
• Actuals and forecasts that differ by greater than
±10%.
This card enables you to:

Reports Considerations
• Compare the forecasted hours of each project
worker to the actual hours that they worked on a
project.
• View the time off, in hours, for the project
workers in the details.

You can use these report data sources to create custom reports:
• Project Resource Forecast
• Project Resource Forecast Edit Events - All Statuses
• Project Resource Forecast Line

Integrations

Web Service Considerations

Get Resource Forecasts Enables you to retrieve an existing resource
forecast.
Import Resource Forecast Enables you to:
• Create a new resource forecast.
• Update an existing resource forecast.
• Edit the allocations in an existing resource
forecast.

Connections and Touchpoints

Resource forecasts interact with these other areas in Workday, including:

Feature Considerations
Customer Contracts You can recognize revenue on fixed-fee projects
by using Percent Complete for the Revenue
Recognition Method. Workday calculates this
value from the resource forecast.
Project Budgets You can create project budgets based on a forecast
at either the project or the project-task level.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across
your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Resource Forecast Calculations on page 1098
Tasks
Steps: Set Up Project Budgets on page 1106
Steps: Configure Customer Contracts on page 829
Steps: Set Up Resource Scheduling on page 1069
Reference
The Next Level: Resource Management in Projects
Reference: Project Manager Hub Cards on page 1004

Examples
Example: Configure Employee Self-Service for Resource Forecasts on page 1100

Steps: Set Up Resource Forecasts

Prerequisites
• Review setup considerations for resource forecasts.
• Create a project.
• Set up resource plans.

Context
You can:
• Use resource forecasts to estimate monthly, weekly, or daily estimated hours for the workers on your
projects.
• Enable project workers to update their own resource forecasts and route changes to a manager for
approval.
• Enter fractional or whole numbers for the forecast hours.
• Include both individual workers and unnamed resources in your forecasts.
Workday can generate these types of resource forecasts:
• Project-level forecasts based on the resource assignments in the resource plan.
• Task-level forecasts based on the assignments of the task resources in the project plan.
Note: You can't delete the resource forecasts that you use to create project budgets or resource forecast
snapshots.

Steps
1. Configure the Project Profile on page 964.
If necessary, set up the composite view of the project profile to include the Resource Forecast report
on the Resources profile group.
2. Edit Domain Security Policies.
Edit these domains and security policies:
• Manage: Project Resource Forecast domain in the Projects functional area. Project and resource
managers need this security to create resource forecasts.
• (Optional) Self-Service: Resource Forecast domain in the Projects functional area. Project workers
need this security to access self-service data and tasks.
• (Optional) Worksheets and Drive domains in the System functional area. Project and resource
managers need this security to edit resource forecasts using a worksheet.
3. Edit Business Process Security Policies.
Edit the security policies for these business processes:
• Project Resource Plan Line in the Project Tracking functional area. Project and resource managers
need this security to create resource plans.
• (Optional) Update My Resource Forecast in the Projects functional area. Project workers need this
security to update their resource forecasts.
4. (Optional) Edit Business Processes.
Edit the Update My Resource Forecast business process in the Projects functional area to enable:
• Workers to update their own resource forecasts.
• Managers to approve the forecast change initiated by the workers.

5. (Optional) To enable users to edit resource forecasts with worksheets:

a) Set Up Worksheets and enable worksheets for your tenant.
b) Access the Edit Tenant Setup - Financials task. In the Projects section, select the Enable
Worksheets for Resource Forecast check box.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.
6. Create Resource Plans on page 1088.
Create a resource plan for the project, and then add workers to the resource plan lines.
7. (Optional) Enable resource forecasts to display detailed task information.
a) Create Project Plans on page 1033.
b) Configure Task Resources on page 1065.
8. Access the Create Resource Forecast for Project task.
On the Forecast Level View, when you select:
• Project, Workday generates an upper-level forecast that contains the worker and their forecasted
hours.
• Project Plan Task, Workday generates a detailed forecast that includes the worker, their project
tasks, and their forecasted hours.
Security: Manage: Project Resource Forecast domain in the Projects functional area.

Result
Workday creates the resource forecast and displays a forecast line for each worker that includes the:
• Task. (Displays only if you created the forecast from the project plan task.)
• Total forecasted hours.
• Estimate at Completion (EAC). EAC includes all the hours logged and approved for the project. It also
includes the future hours the worker expects to complete.
• Estimate to Completion (ETC). ETC includes the future hours the worker expects to complete.
• Forecast hours.
Workday calculates the initial forecast hours based on the:
• Start and end dates.
• Percent allocation or estimated hours.

Next Steps
Create a project budget using the resource forecast.
Project workers can access the Update My Resource Forecast task to modify their own forecasts in these
upcoming time periods:
• Current week + next 3 weeks for weekly forecasts.
• Today + next 9 days for daily forecasts.
Related Information
Tasks
Steps: Create Project Budgets on page 1115
Reference
The Next Level: Resource Management in Projects

Concept: Resource Forecast Calculations

Workday generates resource forecasts for your projects using calculations that distribute forecast hours
over a specific date range on weekdays (Monday through Friday). These calculations vary, depending on
your selections for:

• Forecasts for the project or the project plan tasks.

• Forecasts at the daily, weekly, or monthly level.
• Forecast hours based on either the percent allocation or the estimated work hours.
• Forecast hours based on whole numbers or decimals.
Note: Workday rounds forecast hours throughout the calculation process. Depending on the rounding
variance, Workday might add extra hours to the beginning of the forecast or remove extra hours from the
end of the forecast.

Date Ranges for Resource Forecasts

Workday sets the date range for your resource forecast by using the start and end dates of the:
• Resource plan line, for forecasts at the project level.
• Project task resources, for forecasts at the project plan task level.
By default, Workday only calculates forecast hours for dates in the future, not current or past dates. If you
don't specify both the start and end dates, the forecast hours are zero.

Example Calculations
In the example calculations that follow, the resource forecasts have:
• Project-level forecasts.
• Weekly frequencies.
• Whole numbers.
• One assigned project worker, Allison Hunter, who is a Consultant.
Example 1: Percent Allocation
The date range is 4 weeks for these dates: 2020-11-1 to 2020-11-30.
Calculation steps:
1. Workday obtains the scheduled weekly hours for Allison from their primary position. Value: 40 hours per
week.
2. Workday obtains the percent allocation for Allison from the resource plan line. Value: 50%
3. Workday calculates the weekly availability for Allison. Result: 20 hours per week.
4. Workday calculates the daily availability for Allison. Result: 4 hours per day.
5. Workday populates the weekly resource forecast for Allison with:
• 20 hours for the first 4 weeks of November.
• 4 hours for the last day of November, which falls on a Monday.
Example 2: Estimated Hours
The date range is 5 weeks for these dates: 2022-10-31 to 2022-12-2.
Calculation steps:
1. Workday obtains the estimated hours for Allison from the resource plan line. Value: 160 hours.
2. Workday calculates the number of working days (Monday through Friday only) between the start and
ends dates on the resource plan line. Result: 25
3. Workday calculates the daily hours per worker (160/25 = 6.4). The calculation rounds the daily hours to
6 and then evenly distributes the hours across the resource forecast plan. For hours that Workday can't
evenly distribute, it adds more hours at the start of the forecast than at the end.
In this case, Workday multiplies 6 daily hours by 25 days for a total of 150 hours. Workday then
distributes the hours evenly across the resource forecast. For the remaining 10 hours, Workday
distributes an additional 1 hour per day. The distribution starts at the beginning of the resource forecast
and continues towards the end until the forecast reaches a total of 160 hours.

4. Workday populates the weekly resource forecast for Allison with:

• 35 hours for the first 2 weeks.
• 30 hours for the last 3 weeks.
Related Information
Concepts
Setup Considerations: Resource Forecasts on page 1091

Example: Configure Employee Self-Service for Resource Forecasts

This example illustrates 1 way to configure your tenant so that workers can make updates to their hours on
resource forecasts.

Context
As a project manager, you create a resource forecast that includes Anna, a worker on multiple projects.
To keep forecast hours up to date, your resource manager must perform several searches through data
such as PTO, resource forecasts, and historic actuals. Managers then have to confirm the accuracy of the
forecast manually.
During the project, you learn that Anna’s availability has changed unexpectedly. You want to enable
workers like Anna to update their own resource forecasts directly so that you can simply review and
approve changes.

Prerequisites
• Security: Business Process Administration and Manage: Business Process Definitions domains in the
System functional area.
• Create a project with workers assigned to the resource plan.
• Create a resource forecast from either the project or the project plan tasks.

Steps
1. From the related actions menu of the Update My Resource Forecast (Default Definition) business
process, select Business Process > Edit Definition.
2. Enter the current date.
3. Click OK.
4. Click Security Group Restrictions to view the Initiating Security Groups. Workday populates this
field with Contingent Worker As Self and Employee As Self.
5. To include a step that enables you to review and then approve worker updates, add a row to the
Business Process Steps tab.
6. Enter these values:

Order Type Specify Group

b Action Review Update My Project Manager
Resource Forecast

Note: If you don't include an approval step, Workday auto-approves worker updates to resource
forecasts.
7. Click OK.
8. Click Done.
9. To review your security configurations, select Business Process Policy > Edit from the related actions
menu of the business process.
10.Click OK.

Result
When workers make changes to their resource forecasts, Workday sends requests to your inbox for review
and approval.
Related Information
Concepts
Setup Considerations: Resource Forecasts on page 1091
Tasks
Create Projects on page 1019
Create Resource Plans on page 1088
Steps: Set Up Resource Forecasts on page 1097

Project Budgets

Setup Considerations: Project Budgets

You can use this topic to help make decisions when planning your configuration and use of project
budgets. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Project Budgets is the primary financial component within Projects. It enables you to analyze:
• Budget versus actuals.
• Cost versus revenue.
• Labor versus nonlabor.
• Primary variance contributors by various dimensions like ledger account, spend or revenue category,
and supplier.

Business Benefits
Project budgets support:
• Analysis of project budget versus actuals across your organization.
• Automated labor cost calculations based on standard cost rates and forecasted hours.
• Automated revenue calculations based on contract rates, fixed fee installments, or fixed fee percent
complete (hours).
• Worktag dimensions.

Use Cases
With project budgets, you can:
• Create high-level project duration budgets or more detailed monthly budgets.
• Create custom reports to understand your project revenue and costs.
• Develop flexible project budgets at different levels of granularity.
• Use Worksheets to update and maintain project budgets.
• View live data on project progress, time, and spend, as well as budgets and forecasts.

Questions to Consider

Questions Considerations
What project budget types do you need to manage? You can create budgets to manage your cost
projects, revenue projects, or both. Project budgets
are available for:
• Cost with Workday Projects.
• Revenue with Workday Project Billing.
You can:
• Define default cost and revenue worktags for
time to include in budget lines. Workday then:
• Assigns worktags from your selected forecast
source.
• Uses the worktags when you don't list them
on the project as related worktags.
• Identify actuals and forecasts to bring actuals
into the budget, to create an Estimate at
Completion (EAC). Select from time blocks and
ad hoc time, journal lines, or both.
• Identify whether to create your forecast sources
for your budget from hours in the resource plan,
resource forecast, or neither.
• Create a calculation type for each variation you
want to make available for creating budgets.
• Manage budgets using worksheets.
• Use segmented security so that project
managers can view only their budget.

What configuration level do you need to manage You can configure your project budget at the project
your project budgets? hierarchy level, the tenant level, or both.
Project hierarchy configurations take precedence
over tenant configurations.

Will you create your budget using prior actuals? For cost budgets that you want to include actuals
in, use this configuration to identify:
• Ledger accounts
• Spend categories
• Ledger accounts and spend categories
For revenue budgets, include ledger accounts and
revenue categories.
What dimensions do you want to track? Create a plan structure and include the relevant
dimensions.
You can make these dimensions required or
optional. Each budget line must include required
dimensions.

What plan line attributes do you want to track? By default, Workday classifies the plan lines for
project budgets as cost or revenue.
You can also configure Workday to classify the plan
lines for project budgets as labor or nonlabor.

Questions Considerations
You can use the plan line attributes in custom
reports to understand the financial health of your
project.

What resource forecast level do your project Workday generates resource forecasts at the:
budgets have?
• Project level - Including the worker and their
forecasted hours.
• Project Plan Task level - Including the worker
and their project task or forecasted hours for
each task.

Recommendations
When maintaining multiple budget periods at once, use Worksheets rather than updating each period
individually.
Maintain at least 2 calculation types. These calculations types are:
• Baseline, which shouldn't include actuals.
• Forecast, which should include actuals.

Requirements
To ensure that Workday calculates Project Budgets accurately, you should:
• Understand projects.
• Understand project resource plans if generating your budget from your resource forecast or resource
plan.
• For managing your project labor costs, create your standard cost rate sheet.
• For revenue budgets, define your project billing dependencies in Workday.
• For setting up budget check options, understand budgetary control functionality.

Limitations
Workday doesn't:
• Include committed costs, such as purchase orders in project budgets. You can manually add these
transactions as budget line items.
• Support fully burdened costing, or percent complete by cost.
• Support the creation of workbooks from project plan budgets with more than 500 periods or more than
10 years in the future.

Tenant Setup
No impact.

Security

Domain Considerations
Set Up: Project Hierarchy in the Projects functional Can configure and update project budgets on the
area project hierarchy.
Set Up: Project Budget in the Projects functional Can configure and update project budgets on the
area tenant.

Domain Considerations
Manage: Project Budget in the Projects functional Can manage and view budget information.
area
Manage: Project Resource Forecast in the Projects Can manage and view resource forecast
functional area information.
Access Plan Type (segmented) in the Budgets and Can control access to project budgets.
Projects functional areas

Workday uses multiple roles to configure project budgets. However, since several steps in the process are
one-time only, project budgets require minimal maintenance.

Role Considerations
Security Administrator Configures security. Adds project administrators to
the proper security groups.
Budget Administrator Adds Project as an entry type.
Project Administrator Configures project budgets on the:
• Tenant
• Project hierarchy
Defines standard cost rates for:
• Workers based on worker attributes.
• Unnamed resources based on project roles.

Project Hierarchy Administrator Defines the project budget by configuring:

• The project hierarchy or tenant to draw from
specific dimensions from the budget structure.
• The plan calculation types to drive the different
types of plans enabled in the hierarchy or
tenant.

Project Manager Creates and updates project budgets.

Creates plans as outlined by the plan structure and
project hierarchy configurations. Assigns plans as
baselines or forecasts to compare variances across
projects in the hierarchy or tenant.
Creates a revised budget for changes to:
• Contracts.
• Resource forecasts.
• Worker time blocks.
• Past period actuals.
Manages budgetary control options.
Tracks spend and revenue.
Analyzes:
• Profit and losses
• Return on investments

Role Considerations
Contract Administrator for Revenue Budgets Defines the billing rate that Workday uses to
calculate the revenue budget.

Business Processes

Business Processes Considerations

Assign Plan as Baseline Event Can designate the calculation type as a baseline
budget.
Budget Amendment Event Can submit amendments for budget templates
requiring approval or amendment.
Plan Event Can create a budget when the budget template
requires approval or amendments.

Reporting

Reports Considerations
Project Budgetary Balance With Labor Cost You can compare the budget for a project to the
actual cost. This report doesn't apply to duration
budgets.
Project Hierarchy Baseline vs. Forecast Enables organization level reporting on baseline
versus forecast at your project hierarchy or tenant
level. You can customize this report to include the
dimensions and variance thresholds appropriate for
your organization.

You can use these report data sources to create custom reports:
• All Budget Amendments
• Budget Amendments by Organization
• Project Budget Calculation Details

Integrations
You can use these web services to upload your project budgets:
• Import Budget
• Import Budget Amendment
• Put Project Budget Template

Connections and Touchpoints

Project Budgets interacts with:
• Financial accounting.
• Time tracking.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Set Up Project Budgets on page 1106

Steps: Maintain Access to Budget Structures for Projects on page 1107

Set Up Hierarchy Configuration for Project Budgets on page 1110
Set Up Tenant Configuration for Project Budgets on page 1112
Set Up Labor and Nonlabor Attributes for Plan Lines on page 1114
Reference
FAQ: Project Budgeting on page 1134
The Next Level: Project Budgets
2021R2 What's New Post: Plan Line Attributes for Project Budgets
2021R2 What's New Post: Tenant Configuration for Project Budgets

Steps: Set Up Project Budgets

Prerequisites
Review setup considerations for project budgets.

Context
You can configure project budgets to simplify budget creation and ensure consistency across your
organization.

Steps
1. Set up a segmented security group that will configure your project budget.
See Steps: Maintain Access to Budget Structures for Projects on page 1107.
2. Access the Maintain Entry Types task.
Add a new entry type with a Plan Type Usage of Project so you can identify budget lines by plan type
usage. Ensure that the entry type is active.
Security: Set Up: Budget General domain in the Budgets functional area.
3. Set Up Plan Structures for Project Budgets on page 1107.
4. Set up a project budget configuration.
See:
• Set Up Hierarchy Configuration for Project Budgets on page 1110.
• Set Up Tenant Configuration for Project Budgets on page 1112.
5. Create Contract Rate Sheets on page 1198.
Link billable projects to the contract rate sheet for revenue budgets.
6. (Optional) Set Up Labor and Nonlabor Attributes for Plan Lines on page 1114.
7. Create project budgets.
See Steps: Create Project Budgets on page 1115.
8. (Optional) Use Worksheets to manage your project budgets.
See Steps: Manage Project Budgets with Worksheets on page 1119.
9. (Optional) Schedule Project Budget Mass Update on page 1122.
10.(Optional) Set up budget checking for your project budgets.
See Setup Considerations: Budget Check.

Steps: Maintain Access to Budget Structures for Projects

Context
Project administrators will need access rights to configure the budget structure properly. You can create
a segment-based security group for the groups you want to enable to add Project as a plan type to the
budget structure. You then add the security group to the required domain policy.

Steps
1. Access the Edit Security Group task.
2. Select Segment-Based Security Group > Project Plan Type Segment Security Group.
3. Select the Security Groups which you want to have access to the Project plan type on the budget
structure.
Security groups might include: Project Administrator, Project Hierarchy Manager, or Project Resource
Manager.
4. Select Project Plan Type Segment for the Access to Segments field under Access Rights.
Based on this setting, Workday determines the plan type you can access on the budget structure.
5. Access the Edit Permissions task as a related action from the Access Plan Type (Segmented)
domain security policy. This task enables you to add the security group to the domain.

Result
The security group you enabled can now add Project as a plan type on the budget structure and define
budget dimensions.
Related Information
Concepts
Concept: Security Groups
Tasks
Create Segment-Based Security Groups

Set Up Plan Structures for Project Budgets

Prerequisites
• Create an entry type that uses Project as a plan type.
• Access to the Project Plan Type Segment security group.
• Security: Manage: Project Budget domain in the Projects functional area.

Context
You can define the framework and dimensions in project budgets for all projects in a project hierarchy
using plan structures.

Steps
1. Access the Create Plan Structure task.
2. Select Project from the Plan Type prompt.
3. As you complete the header and Schedule tab, consider:
Option Description
Use Contextual Amendments Select to amend plans that you create using this
structure in the context of your current budget and
current spend.

Option Description
When you select this check box, Workday
displays the running total of your budget and
these columns on budget amendment tasks:
• Current Plan Amount
• Current Spend
• Percentage Change
• Proposed Remaining Plan
• Remaining Plan
• Total Plan
You can change this setting at any time. Example:
You didn't originally include this functionality in
your plan structures, but later want to uptake it.

Period Workday bases project budget periods on the

calendar month, except for the first and last
periods. Workday defines the:
• First period as the project start date to the end
of the month.
• Last period as the first day of the month to the
project end date.

4. As you complete the Structured Dimensions tab, consider:

Option Description
Organizing Dimension Type Enter 1 dimension value per plan to populate
each line with the same dimension. This entry
method reduces manual entries and streamlines
review and approval.
Account Set Your selection must match the account set for:
• The companies you plan by, as configured on
the Edit Company Accounting Details task.
• The company hierarchies you plan by, as set
on the Edit Consolidation Details task.
Clear this field to exclude Ledger Account as a
dimension.

Book When you enable budgetary control, Workday

filters the budget check based on the book code
associated with the book you select.
When you select a book on the plan structure, you
can't remove it from the Maintain Books task.
To filter by book on custom reports, you must
use the Journal Lines for Financial Reporting
report data source.

Must Be Empty Select to require that a dimension must have an

empty value for the transaction to be subject to
the budget. This option enables you to define
budgets with and without that specific dimension.

Option Description
Example: You want a budget for transactions
associated with certain cost centers, funds, and
projects. You also want a budget for transactions
associated with just projects and cost centers. For
the latter budget, you can specify that the fund
worktag must be empty on the transaction.

Spend or Revenue Category Required on Plan Select when you want either a spend or a revenue
Lines category to be present on each plan line for the
project budget. When you select this option, you
must have both spend and revenue categories as
optional dimensions on the budget structure.
Disable Related Worktags in Worksheets Select this check box to disable worktag type
precedences for all associated project budgets
that use this plan structure. Disabling the related
worktags avoids duplicate budget lines for
optional dimensions that use related worktags.
Record Quantity When you select this check box, you can view
these fields on plan lines:
• Quantity
• Units (hours)

5. As you complete the Structured Dimension grid, consider:

Option Description
Dimension Workday requires 1 of these dimensions for
project budgets:
• Project
• Project Phase
• Project Task

Primary Worktag Select to display the worktag in its own column

rather than as additional worktags on the plan
lines. When you maintain or amend your budget:
• Workday displays primary worktag columns
in the order that you configure on your plan
structure.
• Primary worktag columns enable you to enter
line information faster.
Because Company and Ledger Account are
required dimensions that display by default, you
can't select them as primary dimensions.
You can designate up to 10 worktags as primary
worktags for each structure.

Top Level Hierarchy Dimension members can be part of multiple

hierarchies. You can determine the uppermost
hierarchy and select it as the top-level hierarchy.
Workday only supports company hierarchies for
virtual parent-child plan structures.

Option Description
Hierarchy Level When you select a top-level hierarchy, you can
select a hierarchy level on this prompt.
Dimensions to Include When you select a structured dimension or
dimension hierarchy, you can't include any
of the superior or subordinate dimensions, or
dimension hierarchies at any other level. This
restriction prevents double-counting budgets
between superior and subordinate dimensions
and dimension hierarchies.

Next Steps
Set up project budget configurations for the project hierarchy.
To view the account set your company uses, access the View Company Accounting Details report.
Related Information
Concepts
Concept: Project Budgets on page 1123
Tasks
Steps: Set Up Project Budgets on page 1106
Reference
Workday 32 What’s New Post: Project Budget by Hours
2020R2 What's New Post: Consolidated Project Budgets For Control And Reporting

Set Up Hierarchy Configuration for Project Budgets

Prerequisites
• Create an entry type that uses Project as a plan type.
• Create a plan structure with Project as a required dimension.
• Security: Set Up: Project Hierarchy domain in the Projects functional area.

Context
You can configure the project hierarchy for all subordinate projects to use as a template when creating
project budgets. You can also create calculation types to enforce different plan types.
Note: Workday gives precedence to project hierarchy configurations over tenant configurations.

Steps
1. Access the View Project Hierarchy report.
2. As you complete the Project Budget Configuration tab, consider:
Option Description
Do Not Allow Creation of Project Budgets (Optional) Select to prevent project managers
from creating budgets for any projects under this
hierarchy.
You can access the report later to remove this
limitation.

Do Not Allow Submission of Forecast Budgets (Optional) Select to prevent users from submitting
their forecast budgets for approval.

Option Description
This setting ensures that Workday continues to
update your forecast budgets with actuals.
You can access the report later to remove this
limitation.

Plan Structure The plan structure that you select determines

the dimensions Workday makes available for
selection.
Plan Eligible For Determines whether you can create a baseline or
forecast budget for the plan calculation type. You
can't edit this field after you've created a budget
for the plan calculation type.
Inactive Select this check box to disable this calculation
type for new project budgets. For existing project
budgets, Workday will continue to use this
calculation type.
Cost Include all budget dimensions that project
managers need as they create budgets for the
Revenue
projects under this tenant. Configure:
• Cost and revenue dimensions if the plan
structure requires them. Include at least 1
dimension from each category.
• Plan structure dimensions. Worktags that you
select in these fields populate on:
• Plan Lines sourced from the resource
forecast.
• Resource plans without project override
data.
To avoid duplicate postings, Workday
recommends that you don't create dimensions
already on the project as worktags.

Actuals Source(s) You can leave this prompt blank to see only your
forecast on your project budget.
If you've already configured your ledger accounts
to include time cost, exclude Time to avoid double
counting.

Forecast Source Specify a cut-off date to include time transactions

instead of resource forecasts in the current
period.
If you haven't reached the cut-off date, Workday
uses the last day of the prior period for time
transactions.

Include Approved Time in Current Period To include time transactions in your resource
Through End of forecast for the current period, select one of
these:
• Prior Day

Option Description
• Day of the Week
• Day of the Month
Workday will include approved time transactions
in the resource forecast for your current period up
to the date you enter.

Result
Workday references these settings to generate the project budget.

Next Steps
• Set up the labor and nonlabor attributes for plan lines.
• Create project budgets.
• Create a resource forecast to capture detailed estimated hours for your workers to include in your
project budget.
Related Information
Concepts
Concept: Project Budgets on page 1123
Tasks
Steps: Set Up Resource Forecasts on page 1097
Set Up Labor and Nonlabor Attributes for Plan Lines on page 1114
Reference
2021R2 What's New Post: Plan Line Attributes for Project Budgets

Set Up Tenant Configuration for Project Budgets

Prerequisites
• Create an entry type that uses Project as a plan type.
• Create a plan structure with Project as a required dimension.
• Configure the plan calculation type on the Assign Plan as Baseline Event business process.
• Security: Set Up: Project Budget domain in the Projects functional area.

Context
You can configure your tenant and use it as a template when creating project budgets. You can also create
calculation types to enforce different plan types.
Note: Workday gives precedence to project hierarchy configurations over tenant configurations.

Steps
1. Access the Maintain Project Budget Tenant Configuration report.
2. On the Default Configuration tab, click Maintain.
3. (Optional) To ensure that Workday continues to update your forecast budgets with actuals, mark the Do
Not Allow Submission of Forecast Budgets check box. Workday uses this setting to prevent users
from submitting their forecast budgets for approval.

4. As you complete the Plan Calculation Type section, consider:

Option Description
Plan Structure Workday uses the plan structure that you select to
determine the dimensions available to configure
for the project.
Plan Eligible For Enable tracking and reporting of plans across
tenants.
Inactive Select this check box to disable this calculation
type for new project budgets. For existing project
budgets, Workday will continue to use this
calculation type.
Cost Include all budget dimensions that project
managers need as they create budgets for the
Revenue
projects under this tenant. Configure:
• Cost and revenue dimensions if the plan
structure requires them. Include at least 1
dimension from each category.
• Plan structure dimensions. Worktags that you
select in these fields populate on:
• Plan Lines sourced from the resource
forecast.
• Resource plans without project override
data.
To avoid duplicate postings, Workday
recommends that you don't create dimensions
that are already on the project as worktags.

Actuals Source(s) You can leave this field blank to see only your
forecast on your project budget.
If you've already configured your ledger accounts
to include time cost, exclude Time to avoid double
counting.

Forecast Source Specify a cutoff date to include time transactions

instead of resource forecasts in the current
period.
If you haven't reached the cut-off date, Workday
uses the last day of the prior period for time
transactions.

Result
Workday references these settings to generate the project budget.

Related Information
Concepts
Concept: Project Budgets on page 1123
Tasks
Steps: Set Up Resource Forecasts on page 1097
Set Up Labor and Nonlabor Attributes for Plan Lines on page 1114
Reference
2021R2 What's New Post: Tenant Configuration for Project Budgets
2021R2 What's New Post: Plan Line Attributes for Project Budgets

Set Up Labor and Nonlabor Attributes for Plan Lines

Prerequisites
• Set up project budgets.
• Security: Set Up: Project Budget domain in the Projects functional area.

Context
You can configure project budgets to classify plan lines as labor or nonlabor, and then apply your changes
to the existing project budgets in your tenant.
This classification makes it easier for project managers to:
• Identify plan lines when they view their project budgets.
• Accurately track the financial health of their projects.
• Inform their stakeholders.

Steps
1. Access the Maintain Project Budget Tenant Configuration task.
2. Click the Plan Line Attribute Configuration tab.
3. Click Maintain.
4. As you complete the task, consider:
Option Description
Spend Categories Select the spend categories for labor.
Workday labels the rest of the spend categories
as nonlabor on the plan lines for the project
budget.

Revenue Categories Select the revenue categories for labor.

Workday labels the rest of the revenue categories
as nonlabor on the plan lines for the project
budget.

Ledger Accounts Select the cost and revenue ledger accounts for
labor.
Workday labels the rest of the ledger accounts as
nonlabor on the plan lines for the project budget.

Result
You can view the labor and nonlabor classifications of your project budgets on the:

• Plan lines.
• Key performance indicator cards.

Next Steps
• Update the plan line attributes for your existing project budgets.
• Create project budgets.
Related Information
Tasks
Steps: Set Up Project Budgets on page 1106
Reference
Reference: Key Performance Indicator Cards on page 1132
2021R2 What's New Post: Plan Line Attributes for Project Budgets

Steps: Create Project Budgets

Prerequisites
Create a project with start and end dates.

Context
A project cost plan gives you insight into approaching costs from your project assigned resources, while a
project revenue plan helps you estimate future revenue from the contract billing process. To populate the
final budget, we pull all dimensions from the plan structure and the project budget configuration. Budget
lines pull from project worktags. Workday then creates a project budget schedule.
As the project progresses, you can update forecasts to include historical data with actuals along with future
estimates, and use this information to revise your project.
You can also create a preliminary project budget without using a resource forecast:
• Create a blank budget and schedule. Useful if there are no labor costs associated with the project, and
the budget is maintainable through manual input.
• Use the percentage allocation or estimated hours from the resource plan as the basis for a high-level
budget.
(Optional) You can differentiate baseline budgets from forecast budgets using plan categories configured
from the project hierarchy. Workday supports the assignment of a single plan for both a baseline and a
forecast in a project.

Steps
1. (Optional) Create Resource Plans on page 1088.
Define your project resource plan with project role assignments and consider:
• Percent Allocation or Estimated Hours.
• Project Resources.
• Start and End Dates.
2. (Optional) Create a resource forecast.
a. Access the Create Resource Forecast for Project task.
b. As you complete the Forecast Level View option, consider:

Option Description
Project Workday generates an upper-level forecast
containing the worker and their forecasted hours.

Option Description
Project Plan Task Workday generates a detailed forecast including
the worker and their:
• Project tasks.
• Forecasted hours for each task.

Security: Manage: Project Resource Forecast domain in the Projects functional area.
3. (Optional) Create Templates for Project Budgets on page 983.
4. Access the project profile.
a. Select the Financials tab.
b. Select the Plan tab.
c. Click Create Budget.
Note: Workday doesn't display the Create Budget button on the Plan tab when:
• There isn't a project budget configuration on the project hierarchy or on the tenant.
• A project budget configuration exists on the hierarchy or tenant, but the configuration disabled the
creation of project budgets.
d. As you complete the task, consider:

Option Description
Company This required field displays only when there isn't a
company identified on the project.
Worktags Enter any additional worktags that are required
dimensions on the plan structure. This field
doesn't display when required dimensions on the
plan structure are on the project hierarchy.
Example: Cost Center is a required dimension on
the plan structure but isn’t defined on the project
or the project budget configuration. Enter the Cost
Center worktag here. Workday saves the Cost
Center value to the project and will use it on the
project budget.

Plan Name Workday displays this name in the Project

Budget grid. Access the grid on the Plan report of
the Financials profile group of the project profile.
Plan Calculation Type Select the revenue and cost inputs configured for
the project hierarchy or tenant that you want to
use as a base to build the project budget.
Resource Forecast Displays when the plan calculation type includes a
resource forecast as the basis for the creation of
the budget.
Revenue Calculation Method Select the basis for calculating revenue for the
project budget:
• Project Time and Expense - Workday creates
a revenue plan using the contract rate sheet
associated with the project. Your contract rate
sheet can support hourly and daily rates and
billing rate rules.

Option Description
• Fixed Fee - Installment - Workday displays
contract lines for fixed fee installments with
generated revenue installments used to
calculate the revenue plan.
• Fixed Fee - Percent Complete (Hours) -
Workday displays available fixed fee contracts
that you can select to populate the Contract
Amount field. Alternatively, you can enter
a contract amount to preview how Workday
calculates the budget. Workday creates the
revenue plan using percent complete revenue
recognition formula for each period based on
actual and forecasted data: (Contract Amount
* Percent Complete)/(Previously Recognized
Revenue)

Plan Structure Displays the plan structure configured on the plan

calculation type for the project hierarchy.
Forecast Source Select the type of forecast source for the project
budget.

Security: Manage: Project Budget in the Projects functional area.

5. (Optional) To create another project budget by copying an existing budget, select Plan > Copy Budget
from the related actions menu on the plan.
Security: Manage: Project Budget in the Projects functional area.
6. To submit the budget for approval, select Plan > Submit Plan for Approval from the related actions
menu on the plan.
7. (Optional) To apply the configuration of the plan line attributes to your project budget:
a. Access the Maintain Project Budget Tenant Configuration task.
b. Click the Plan Line Attribute Configuration tab.
c. Click Update Attributes and complete the task.
Note: When you use Worksheets for project budgets, you must manually update the attributes on the
plan lines in the project budget workbooks.
Security: Set Up: Project Budget domain in the Projects functional area.

Result
You can expand the resulting revenue and cost budget results to view amounts by budget period.
You can examine the Workday calculation details of a draft or approved plan. From the related actions
menu, you can select Plan > View Initial Calculation on the budget line sourced from:
• Ad hoc project time transactions (actual costs).
• Journal lines (actual revenue).
• Resource forecasts (revenue and cost forecast).
• Resource plan estimated hours by project role (estimated cost and revenue).
• Resource plan percent allocation by project role (estimated cost and revenue).
• Revenue recognition installments (for Fixed Fee - Installment revenue plans only).
• Time blocks (actual costs).
Note: Calculated project budget lines don't include:

• Manual changes to project budget lines.

• The addition of budget lines for ledger accounts such as travel, equipment, or facilities.
Related Information
Tasks
Steps: Set Up Project Budgets on page 1106
Steps: Set Up Resource Forecasts on page 1097
Set Control Options for Spend Plans on page 454
Reference
2021R2 What's New Post: Tenant Configuration for Project Budgets
2021R2 What's New Post: Plan Line Attributes for Project Budgets
2020R2 What's New Post: Project Budget Templates

Steps: Create Parent-Child Project Budgets

Prerequisites
Security: Manage: Project Budget in the Projects functional area.

Context
You can create a virtual parent-child structure for project budgets, enabling you to link your existing
individual budgets. You can also streamline activities, such as consolidating reports and adding budget
controls at a more summarized level than your detailed plans.
To create a parent plan, create a plan structure as you normally would, then use the related actions menu
on your new plan structure to link a child plan.

Steps
1. Set Up Plan Structures for Project Budgets on page 1107.
When you create a parent plan structure and include a top-level hierarchy, you can control budgets for
all companies within the hierarchy.
2. From the related actions menu of the new parent structure, select Plan Structure > Link Child Plan
Structure.
When you select 1 or both of these check boxes on the parent plan structure, you must match them on
the child plan structure:
• Spend or Revenue Category required on Plan Lines
• Record Quantity
Note: All required dimensions on the parent plan structure must be required dimensions on the child
plan structure.
3. Access the Create Plan Template task. See Create Plans or Budgets.
Create a parent plan and include your linked plans.

Next Steps
• Review your Virtual Parent plans on the Plan grid of the Financials grid of your project.
• Report at an aggregate level across plan structures that might be different.
Related Information
Reference
2020R2 What's New Post: Consolidated Project Budgets For Control And Reporting

Steps: Manage Project Budgets with Worksheets

Prerequisites
• Set up and configure Worksheets in your tenant.
• Create project budgets.
• Configure the Planning Event business process and security policy in the Planning functional area.
• Security:
• Manage: Project Budget domain in the Projects functional area.
• Set Up: Budget General domain in the Budgets functional area.
• Worksheets domain in the System functional area.

Context
With Worksheets, you can use a spreadsheet framework to:
• Create project budget scenarios based on different assumptions.
• Model nonlabor expenses and materials for a project budget or forecast.
• Collaborate with project members on planning project budgets and forecasts.

Steps
1. From the related actions menu of the plan, select Generate Plan Workbook.
Workday generates a plan workbook with a status of In Worksheets, preventing all other modifications
to the plan.
2. (Optional) Select Plan Workbook > Enter Worksheets Draft Mode from the related actions menu of
the plan.
Suspend validations during editing. Workday doesn't display custom validations in the related
workbooks.
When the plan is in draft mode, Workday changes the status to In Worksheets Draft.
3. (Optional) Select Create Plan Version from the related actions menu of the plan.
Create versions of your workbook. Take a snapshot of your edited workbook at any time while the plan
status is In Worksheets. The original plan and workbook remain active and editable. Workday creates
read-only copies with a status of Versioned.
4. (Optional) From the related actions menu of the plan, select Plan Workbook > Update Plan from
Workbook.
Update the plan with your changes from the active plan entry area in the workbook while the plan status
is In Worksheets.
5. Edit Plan Workbooks on page 1120.
6. (Optional) Lock your workbook from the related actions menu of the plan.
When you lock the workbook, Workday returns the plan to a status of Draft.
7. (Optional) From the related actions menu of the plan, select Update Budget.
Sync your workbook when updating your project budget.
8. (Optional) Select the Update Plan Workbook check box.
Sync the associated workbook. Workday overwrites any changes you make on the sheet containing the
plan entry area. You can only update project budgets with a plan status of Draft.

Next Steps
Submit and route your plan for approval.

Related Information
Concepts
Concept: Managing Workbooks
Concept: Editing Workbooks
Reference
Reference: Automatic Data Updates in Workbooks

Edit Plan Workbooks

Prerequisites
• Create a plan workbook.
• Security:
• Set Up: Planning domain in the Planning functional area.
• Worksheets domain in the System functional area.
• Manage: Project Budget domain in the Planning functional area.

Context
You can edit plan workbooks to:
• Build and link models.
• Update plans from workbooks.
• Plan for both multicompany and multicurrency financial plans.

Steps
1. Access your plan workbook.
2. Make changes to your plan workbook data.
The workbook must be in In Worksheets or Distributed mode. You can't change workbooks in Draft
mode.
The active plan entry area displays inside a green dashed outline in the plan sheet. Changes you make
in this area update your plan when you initiate the Update Plan Workbook task. Changes you make
outside of the active plan entry area don't update the plan.
Follow these guidelines to work with cells in the plan entry area:
• All cells with Workday dimensions are prompts with values set by the plan structure. To search for
prompt values, enter a value or click Alt + Down Arrow to open the list of values.
• A required dimension must have a value in all rows in the plan entry area. An optional dimension can
be empty.
• All validations that display in the plans display in the related workbooks, except custom validations.
3. (Optional) Create planning models and assumptions.
You can perform numerous functions in workbooks to help you analyze and shape your plan data,
including:
• Add or create new columns or rows of data.
• Pivot data.
• Import other Workday reports.
• Import relevant external data into your workbook.

4. (Optional) Click the Share button to invite others to review your workbook.
You can control view, edit, and sharing permissions for users you collaborate with. For decentralized
planning, you can only share your workbook if the plan administrator either:
• Selects Allow Planners to Share on the Create Plan Workbook task.
• Selects Editors can share on the Share Settings of your individual plan workbook.
5. (Optional) Suspend validations during editing.
Select the Plan Workbook > Enter Worksheets Draft Mode related action to suspend validations so
you can edit without interruptions. If the workbook is in Draft mode, Workday changes the plan status to
In Worksheets Draft.
You can only enter draft mode for single workbooks that contain a single or multiple plan entry areas.
When you finish your edits, select the Plan Workbook > Exit Worksheets Draft Mode related action.
Workday resumes validations and returns the plan status to In Worksheets.
6. (Optional) Create versions of your workbook.
Select the Create Plan Version related action to take a snapshot of your workbook at any time. The
plan must have in In Worksheets status. The original plan and workbook remain active and editable.
The versions are copies and read-only.
You can only create versions of plans that contain a single plan entry area in their plan workbooks.
7. (Optional) Update your plan with changes you made in an active plan entry area of your plan workbook.
For plan workbooks with a single or multiple plan entry areas, select Plan Workbook > Update Plan
from Workbook from the related actions menu of the plan workbook. When you update your plan from
your workbook, Workday:
• Applies the changes you made in the active plan entry areas to the plans.
• Performs custom validations configured for lines in your plan. Access the View Plan report and
select the View Exceptions button to see any failed validations.
You can also access the Update Plan from Workbook task using global search. Workday updates all
related plans using the selected plan workbooks.
8. (Optional) Add missing dimension members to your plan workbook.
For a workbook generated with a plan template definition, you can update the plan entry area
with dimension members that are missing. From the related actions menu of the workbook, select
Plan Workbook > Add Missing Dimension Members. Workday compares the plan entry area of
the workbook to source files and adds rows to the workbook for any missing dimension member
combinations.
• The plan or template administrator must configure the plan template definition to include:
• Reports or custom sheets used as source files.
• Dimension members used in the comparison.
• Each missing row added to the plan entry area contains unique data. Workday doesn't add duplicate
rows.
• Workday can add missing dimension members for workbooks with single, multiple, or distributed
plans.
Review the rows added to the bottom of the plan entry area. Correct any errors.

Next Steps
When ready, submit and route your plan for approval. For decentralized planning, you can submit by
accessing:
• Your inbox item.
• Plan Workbook > Submit from the related actions menu of your plan workbook.
If you need to delete a workbook, you can only do so once the plan has been approved from the Drive
home area. You can't delete a workbook with an active plan entry area.

Schedule Project Budget Mass Update

Prerequisites
• Set up project budget configurations.
• Create project budgets.
• Security: Set Up: Project Hierarchy domain in the Projects functional area.

Context
You can schedule regular updates to forecast project budgets in mass, eliminating the need to update
individual budgets. Simultaneously updating all your forecast project budgets ensures that they remain
current with your actuals.
Note: You can schedule a mass update for active projects with a maximum of 500 plans per tenant. The
schedule duration can't be greater than 3 months.

Steps
1. Access the Schedule Project Budget Mass Update task.
2. As you complete the task, consider:
Option Description
Project Hierarchies for Budget Mass Update Create only 1 schedule at a time per project
hierarchy. Workday updates plans that use a
project budget configuration when the:
• Associated project is active.
• Plan is in draft status.
• Plan category is Forecast.
• Resource Forecast is the forecast source.
Note: You can't schedule a mass update for
optional project hierarchies.

3. As you complete the Schedule tab, consider:

Option Description
Priority Setting a higher priority can reduce potential
queuing.
Day(s) of the Month Select to run the update based on calendar date.
To ensure your reports run on schedule, Workday
recommends that you select Last Day of the
Month if you want to run the report at the end of
every month.
Catch Up Behavior Use this option to determine whether Workday
will re-run the process if your tenant was down for
maintenance at the scheduled run time.
When you select:
• None, Workday ignores the missed updates
and continues to run the update at your
scheduled times.
• Run Once, Workday runs the update process
once after your tenant comes back online,

Option Description
and then continues to run the update at your
scheduled times.

Start Date Select a start date and time that are in the future.
The Start Date must occur on the same day of the
week that you selected for Day(s) of the Month or
Day of the Week.

Result
Workday notifies the process owner for each updated forecast project budget.

Next Steps
• (Optional) Manage your scheduled updates with the Scheduled Future Processes report.
• (Optional) Extend or end your scheduled updates with the Mass Update Scheduled Future
Processes task.
Related Information
Concepts
Concept: Project Budgets on page 1123
Concept: Workday Scheduled Processes
Tasks
Set Up Hierarchy Configuration for Project Budgets on page 1110
Manage Scheduled Future Processes
Reference
Reference: Scheduled Future Processes

Concept: Project Budgets

You can gain insight into the approaching costs of a project by creating a project budget. As your projects
progress, you can update them with actuals and future estimates.
You can also use project budgets to:
• Create high-level budgets without using detailed resource forecasts.
• Compare baseline budgets with up-to-date resource forecasts (including actuals) across your project
portfolio.

Baseline Budgets
Within your organization, you can designate plans as eligible for a baseline budget using calculation types.
You can also configure a business process to approve plans as the project baseline in addition to regular
approval. Assign your plan as the baseline to enable reporting of baseline plans at a portfolio level.

Budget Forecasts
Once the project is under way and you have an approved budget, you can create forecasts using the
same Create Budget button to view progress over time. To create the forecast, Workday uses revenue
from the journal lines within historical periods to calculate actual hours from approved time blocks and ad
hoc project time transactions. You can also include approved worker time blocks and ad hoc project time
transactions in the current period. For future periods, Workday uses the resource forecast. The resulting
forecast is a combination of actual amounts and budget amounts, which you can update as many times as
you need.

You can create a project budget snapshot with the Resource Forecast report for the project. As the
project progresses, you can take snapshots of the resource forecast for specific dates to estimate how the
project has evolved over time. You can take 1 snapshot per month. You can't edit snapshots.
Assign your plan as a Forecast to enable reporting of forecasts at a portfolio level. Using the Schedule
Project Budget Mass Update task, you can also regularly update draft forecast plans that use a resource
forecast for the forecast calculation.

Project Financials (Plan Grid)

You can review your project financial metrics on the Plan section of the Financials tab for these Plan
Categories:
• Baseline with a status of Available.
• Forecast.
The grid includes:
• Inception to Date: The plan line amount from the project start date to the reporting period.
• Estimate to Complete: The plan line amount for a period after the reporting period until the project end
date.
Workday doesn't calculate these amounts for duration plans.

Project Financials (Summary Grid)

You can review your project financial metrics on the Summary section of the Financials tab. The Summary
section includes these performance indicators:

Field Description
Project Schedule Calculates using the project start and end dates in
relation to today.
Total Cost Consumed Calculates the total consumed amount divided by
the sum of total consumed and total plan remaining.
Project Spend By Type Summarizes all project spend transactions with the
project worktag, and groups the transactions by
spend type.
Project Revenue For Time Summarizes time transaction amounts from the
Contract/Billing section for billable projects.
Project Time Blocks By Role Pulls the approved project time blocks from the
worker time submission, and then breaks them
down by the project role of the worker.

Edit Plan Details

You can update a plan by selecting Plan > Edit Plan Details from the related actions menu:
• Extend Plan End Date
• Inactivate Plan
• Rename Plan

Project Budgets Without Resource Forecasts

Without using a resource forecast, you can create:
• Blank project budget schedules.
• Blank project budgets without anticipated labor costs. You can then add nonlabor costs.

• Project budgets using only labor actuals.

• Project budgets using estimated hours by project role from the resource plan.
• Project budgets using percent allocation by project role from the resource plan.

Project Budget Templates

You can create default configurations at the project hierarchy level using project budget templates. You
can select a template when creating a project budget, saving time and preventing errors.

Consolidated Project Budgets

Consolidated project budgets deliver a virtual parent-child structure for project budgets, enabling you to link
individual budgets. We also enable you to streamline activities, such as consolidating reports and adding
budgetary controls.
Related Information
Tasks
Steps: Set Up Resource Forecasts on page 1097
Steps: Set Up Project Budgets on page 1106
Reference
Reference: Key Performance Indicator Cards on page 1132
2021R2 What's New Post: Tenant Configuration for Project Budgets
2020R2 What's New Post: Project Budget Templates
2020R2 What's New Post: Consolidated Project Budgets For Control And Reporting

Concept: Multicurrency in Project Budgets

Workday supports multicurrency conversions in project budgets. Depending on the conversion type,
Workday selects different currency rates and effective dates for those rates. For worker time block
conversions, Workday uses a different calculation method than other project budget conversions.
If you used the Edit Company Accounting Details task to configure a Currency Rate Type Override
for your company, Workday uses it as the currency conversion rate in your project budget calculations.
Otherwise, Workday uses the default currency rate for your tenant.
For worker time block conversions, Workday uses the Standard Cost Rate Currency Override on the
Resource Plan Line for the worker. Otherwise, Workday uses the currency rate from the Project Standard
Cost Rate Sheet for the worker company. For ad hoc time blocks, if you specify a currency override on the
transaction, Workday will use the rate you specify. If you don't specify a currency override on an ad hoc
time block, Workday uses the same order of operations as it does for determining the rate type on worker
time block conversions.
You can review your specific currency rates by using the Currency Rates as of Date report. Depending on
the conversion type, Workday uses a different effective date to select the currency conversion rate:

Currency Conversion Type Currency Conversion Date

Project company to project Project start date
Project to project company Transaction date
Worker standard cost to project Transaction date

Example
You submit a worker time entry on 2023-01-14, costing $1500 CAD, for your project budget, which is in
USD.
• The currency rate type override for your company is Average.

• Because the conversion is from worker standard cost to project, Workday uses the currency rate as of
your transaction date (2023-01-14).
• The Average currency rate in your tenant as of 2023-01-14 for the Source Currency CAD and the
Target Currency USD is 0.76.
• The debit to your project budget is $1,140 USD (1,500 x 0.76 = 1,140).

Reference: Project Budget Setup by Role

Project budget configuration requires multiple roles, but you only to need to perform some of the steps
once.

Step Role Frequency and Details

Configure security. Security Administrator Once; add project administrators
to the proper security groups.
Create an entry type. Budget Administrator Once; add an entry type for the
project plan type.
Set up the plan structure. Project Administrator Once, with possible occasional
updates (you can create alternate
Project Manager
plan structures to use with the
same project hierarchy or tenant).
Create the foundation for the
project budget.
Set up the project budget Project Administrator Once per project hierarchy or
configurations. tenant, with possible occasional
updates. Configure:
• The project hierarchy or tenant
to select specific labor cost
and revenue dimensions
based on the plan structure.
• Labor and nonlabor attributes
for plan lines.
• Plan calculation types to drive
the different types of plans
enabled in the hierarchy or
tenant.

Create resource forecast. Project Manager Once per project; add the workers
and estimated hours from the
resource plan to the project
budget.
Create resource forecast Project Manager Periodically; edit the resource
snapshot. forecast as project resources
change and take a snapshot to
apply the updated forecast to the
project budget.
Create standard cost rate sheets. Project Administrator Once per currency. Define
standard cost rates for:
• Workers based on worker
attributes.
• Unnamed resources based on
project roles.

Step Role Frequency and Details

Create contract rate sheet. Contract Administrator Once per contract, with updates
as needed; define the billing rate
that Workday uses to calculate
the revenue budget.
Create project budget. Project Manager As needed; create plans as
outlined by the plan structure
and project hierarchy or tenant
configuration. Assign plans as
baselines or forecasts to compare
variance across projects in the
hierarchy or tenant.
Update project budget. Project Manager As needed; create an updated
budget when you make changes
on your:
• Resource forecast.
• Worker time blocks.
• Ad hoc project time
transactions.
• Contracts.

Related Information
Tasks
Steps: Set Up Project Budgets on page 1106

Reference: Project Budget Calculations

We collect data for cost and revenue budgets from areas within Workday to create the project budget.

Source Per-Period Calculations

Time Approved time blocks and all ad hoc project time
transactions for the project:
• The sum of the total hours grouped by worker
and role per period. The rates use:
1. The standard cost amount in project currency
on the time block.
2. The project currency from the project.
• Workday compares a worker from the time
transaction to the resource plan. If there’s
more than 1 entry on the resource plan for that
worker, Workday considers:
1. The assignment and association.
2. The most recent entry.

Journal Lines The sum of all journal lines that match these
elements:
• Project and Project Company.
• Ledger Account and Type (when listed as a
dimension in the project hierarchy configuration
or the tenant configuration).

Source Per-Period Calculations

• Journal Status, Journal Line Type, and Journal
Entry Type.
• Budget dimensions from the project budget
configuration, budget structure, and worktag
values on the project.

Resource Forecast If there are no actual worker hours logged to

the worker time block or the ad hoc project time
transaction, Workday draws on the resource
forecast and uses:
• The estimated hours by worker and project role
from the resource forecast.
• The standard cost rate and cost rate currency
from the standard cost rate sheet for the project.
Alternatively, Workday uses the override
standard cost rate and cost rate currency from
the resource plan line.

Resource Plan Workday draws estimates from the resource plan

and uses:
• The estimated hours or percentage allocation by
worker and project role.
• The standard cost rate and cost rate currency
from the standard cost rate sheet for the project.
Alternatively, Workday uses the override
standard cost rate and cost rate currency from
the resource plan line.

Contract Rate Sheet Workday gathers actual hours logged to the project
and uses the project billing rate from the rate sheet
on the customer contract, taking into consideration
any billing rate rules.
Workday converts the currency into the project
currency, if applicable. Conversion rates come from
the Currency Rates As of Date task based on
the resource forecast or snapshot date. Workday
determines the currency rate type from the Default
Currency Rate Type field specified on the Edit
Tenant Setup-System task.

Revenue Recognition Installments Workday calculates Fixed Fee - Installment

plans by pulling in installments from the revenue
recognition schedule. Actuals come from journal
lines.
Calculated Project Budget Line Workday calculates Fixed Fee - Percent Complete
(Hours) contracts using this source when:
• Time hasn't been entered in the corresponding
period. The calculated project budget line
reverses the journal line without hours logged to
the project.
• A resource needs to recognize a revenue
adjustment, but doesn’t have a resource

Source Per-Period Calculations

forecast for hours in the current period.
Example: Project EAC has changed, altering
the percent complete for the corresponding
resource.

The calculation details for the project budget line are available on the View Initial Calculation report.
Note: This report doesn't include manual changes to project budget lines.
From the related actions menu of a draft or approved project budget, select Plan > View Initial
Calculation.

Calculation Detail Description

Resource Includes:
• Unnamed resource, associated group, or worker
on the resource forecast line.
• Workers with time logged.

Role Project worker, associated group, or unnamed

resource role assignment on the resource plan line.
Period Inclusive date range for calculation.
Hours Total number of hours used in calculation.
Ledger Account Ledger account for actuals.
Source Draws from 1 of these origins:
• Journal lines.
• Resource forecasts.
• Time blocks.
• Ad hoc project time transactions.
• Resource plan estimated hours or percentage
allocation.
• Installments from revenue recognition schedule.

Cost Rate Cost rate derives at:

• The transaction date of the time block.
• The transaction date of the ad hoc project time
transaction.
• The period end date of the resource forecast
line. Draws from either:
• Override standard cost rate from the
resource plan line.
• Standard cost rate sheet, if override standard
cost rate from resource plan is zero.

Cost Rate Currency Cost rate currency derives at:

• The transaction date of the time block.

Calculation Detail Description

• The transaction date of the ad hoc project time
transaction.
Note: Currency is sourced from the time block
as Project Currency.
• The period end date of the resource forecast
line. Draws from either:
• Override standard cost rate currency from
the resource plan line.
• Standard cost rate sheet.

Cost Amount (Source Currency) Multiplies the cost rate by hours using the source
currency.
Cost Amount (Budget Currency) Multiplies the cost rate by hours using the budget
currency.
Cost Worktags Worktags define:
• The project.
• The time cost of the budget configuration for the
project hierarchy or the tenant.
If the same worktag type defines the project and
the time cost, the project worktag overrides the
configuration worktag.

Billable Hours The total number of billable hours used in

calculation. For project budgets created from
resource forecasts at the task level, billable hours
include:
• Resource forecasted hours for project plan task,
if you don't select the Non-Billable check box.
• These current period time transactions, if you
select the Include Time Actuals in Current
Period check box:
• Ad hoc project time transactions without the
Do Not Bill status.
• Worker time blocks without the Do Not Bill
check box selected.

Days for Period Calculates days from the contract rate sheet.
Billing Rate Draws the contract rate sheet from the first
applicable transaction for the period.
Billing Rate Currency Draws from the contract rate sheet.
Revenue Amount (Source Currency) Uses the source currency, the billable hours, and
the billing rate with considerations from the billing
rate rules.
Revenue Amount (Budget Currency) Uses the budget currency, the billable hours, and
the billing rate with considerations from the billing
rate rules.

Calculation Detail Description

Billing Rate Rules The billing rate rule types applied to calculate the
revenue amount. These rules are from the contract
rate sheet.
Project Inception to Date Hours Workday calculates Fixed Fee - Percent Complete
(Hours) revenue calculation methods as the total
hours worked for matching budget lines from prior
periods through the current period.
Project Estimated Hours at Complete Workday calculates Fixed Fee - Percent Complete
(Hours) revenue calculation methods as the total
hours worked by all project resources.
Percent Complete by Hours Workday calculates Fixed Fee - Percent Complete
(Hours) revenue calculation methods as the Project
Inception to Date Hours divided by the Project
Estimated Hours At Complete.
Contract Amount The total contract amount for Fixed Fee - Percent
Complete (Hours) revenue calculation methods.
Total Recognizable Revenue Workday calculates Fixed Fee - Percent Complete
(Hours) revenue calculation methods as Percent
Complete by Hours multiplied by Contract Amount.
Previously Recognized Revenue Amount Workday calculates Fixed Fee - Percent Complete
(Hours) revenue calculation methods as matching
budget lines (role, resource, and worktags from
prior periods) in the Budget Currency.
Calculated Allocation Workday calculates Fixed Fee - Percent Complete
(Hours) revenue calculation methods as the
allocation of journal lines for the period to:
• Ad hoc project time transactions.
• Associated time blocks.
Workday uses this calculation to project revenue by
resource in future months. A resource or a task on
the journal line matches to the corresponding time
block or ad hoc project time transaction. If there are
no matches, Workday allocates the journal line to
time blocks proportionally by hours logged.
Total Plan Remaining Workday calculates the total plan remaining based
on an available approved baseline plan.
When an approved baseline plan isn't available,
then the calculation is based on the last approved
budget. If neither are available, then the calculation
is based on your estimated budget.

Related Information
Concepts
Concept: Multicurrency in Project Budgets on page 1125
Tasks
Set Up Hierarchy Configuration for Project Budgets on page 1110
Set Up Tenant Configuration for Project Budgets on page 1112

Steps: Set Up Resource Forecasts on page 1097

Create Contract Rate Sheets on page 1198
Create Project Standard Cost Rate Sheets on page 991
Reference
Workday 32 What’s New Post: Exclude Nonbillable Time for Revenue Project Budgets

Reference: Key Performance Indicator Cards

Workday displays project budget metrics in the form of key performance indicator (KPI) cards.
Workday doesn't display KPI cards when a project is missing 1or more of these items:
• A plan structure.
• A budget configuration.
• A project budget.
• An assigned plan category.
• A configured labor or nonlabor plan line attribute.
KPI Cards

Card Description
Project Financial Health The plan lines for the overall project.
Labor Performance The labor plan lines.
Nonlabor Performance The nonlabor plan lines.

Calculations

Metric Calculation Visual Indicator Drill-Down Visual

Indicator
Cost (forecast cost - baseline Green: Less than or Green: Less than zero.
cost) ÷ baseline cost × equal to zero.
Yellow: Greater than
100
Yellow: Greater than zero.
zero.
Red: Greater than 10%.
Red: Greater than 10
percent.

Revenue (forecast revenue - Green: Greater than Green: Greater than

baseline revenue) ÷ zero percent. zero.
baseline revenue × 100
Yellow: Less than zero. Yellow: Less than zero.
Red: Less than -10%. Red: Less than -10%.

Margin (forecast margin - Green: Greater than or Green: Less than zero.
baseline margin) ÷ equal to zero.
Yellow: Greater than
baseline margin × 100
Yellow: Less than zero. zero.
Red: Less than -50%. Red: Greater than 5%.

Margin % forecast margin% - Green: Greater than Green: Greater than

baseline margin. zero percent. zero.
Yellow: Less than zero. Yellow: Less than zero.
Red: Less than -5%. Red: Less than -5%.

Related Information
Concepts
Concept: Project Budgets on page 1123
Tasks
Steps: Set Up Project Budgets on page 1106
Set Up Labor and Nonlabor Attributes for Plan Lines on page 1114
Reference
2021R2 What's New Post: Key Performance Indicators for Project Budgets

Reference: Classification Logic for Plan Line Attributes

Workday classifies the plan line attributes for project budgets using this logic:

Attribute Classification Logic

Cost or Revenue For attribute assignments for cost or revenue,
Workday follows this logic sequence:
1. The plan calculation type is either cost only or
revenue only.
2. The plan line has either a spend category (cost)
or a revenue category (revenue).
3. The plan line matches either the cost or the
revenue actuals configuration on the project
budget configuration.
4. The plan line matches either the default cost
or revenue worktags for Time on the Plan
Calculation Type for the project budget.
5. The plan line has either a debit value (cost) or a
credit value (revenue).

Labor or Nonlabor Labor attribute, if the plan line matches the:

• Labor cost configuration.
• Labor revenue configuration.
Nonlabor attribute for everything else.

Plan or Actuals For period-based budgets only. Not duration

budgets.
Actuals attribute for Workday-generated plan lines
sourced only from journal lines or time transactions.
Plan attribute for everything else.

If you update the configuration for the plan line attributes, apply the new settings to existing project budgets
using the Update Plan Line Attributes for Project Budgets task.
Related Information
Concepts
Setup Considerations: Project Budgets on page 1101
Tasks
Set Up Labor and Nonlabor Attributes for Plan Lines on page 1114
Reference
2021R2 What's New Post: Plan Line Attributes for Project Budgets

FAQ: Project Budgeting

When do I use a project budget to manage my budget?

Use a project budget to:
• Track budgets for billable projects and based off forecasts.
• Use segmented security so that project managers can view only their budget.
• Budget by project duration.
• Manage budgets using worksheets.
• Track projects that require different configurations. Example: projects that require a combination of
budgets tracked by project and project hierarchy level.

When do I use a financial budget with Projects worktag to manage my budget?

Use a financial budget with Projects worktag to:
• Budget at the project hierarchy level.
• Run allocations on budgets.
• Align budget with fiscal schedule. Example: fiscal year, fiscal quarter.
• Use top-down budgeting.
• Roll over budgets into the next period.
Related Information
Concepts
Setup Considerations: Project Budgets on page 1101

Capital Projects

Setup Considerations: Capital Projects

You can use this topic to help make decisions when planning your configuration and use of Capital
Projects. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
This feature enables you to track your spending on projects that result in capitalized assets.

Business Benefits
With capital projects, you can collect costs on a project and convert them into business assets.

Use Cases
You can track spending on large projects that you capitalize and depreciate over time. Examples can
include:
• Building improvements
• Equipment installations

• New buildings
• Software and implementations

Questions to Consider

Questions Considerations
How does your organization capitalize labor costs? You can recognize labor costs on a project as long-
term assets rather than short-term expenses. You
can capitalize labor costs using these methods:
• Fully Burdened
• Payroll
• Standard

What costs do you want to track against your You can create Work in Progress (WIP) exclusion
project that you would never include in a project rules to resolve these transactions automatically
asset? using the spend account posting rule. This posting
rule streamlines accounting and eliminates the
need for review.
Does your organization use primary balancing If so, you must define a primary balancing worktag
worktags? on your capital project to use in WIP accounting.
What optional balancing worktag types does your You can specify up to 5 additional worktag types to
organization use? generate fully balanced journals. You can use these
additional worktags with or without your primary
balancing worktags on WIP accounting.
How do you want to assign your capital project You can assign capital project transactions to
transactions to project assets? project assets either:
• Manually
• Automatically
Automatic assignment reduces the effort of
managing your capital project transactions.

Do you want to enable multibook accounting for To set up your tenant to create multibook
capital project transactions? accounting for capital project transactions, ensure
you configure the Business Asset Multibook
Settlement account posting rule.
How do you want Workday to generate accounting To generate intercompany accounting, select
for your labor cost summaries? All Projects on the Set Up Project Labor Cost
Summary Configuration task.
To generate accounting for eligible Capital
Project time, select Capital Projects Only. When
transactions meet a work in progress exclusion
rule, Workday doesn't generate any accounting.

Recommendations
We recommend that you:
• Create 1 or more WIP Exclusion rules. Your exclusion rules can classify capital project transactions
automatically as expenses or assets, excluding them from manual WIP accounting.

• Create 1 or more Project Asset Assignment rules. Your assignment rules enable Workday to auto-
assign capital project transactions to project assets. This auto-assignment eliminates the manual effort
of reviewing your capital project transactions.
• Use the Capital Project Workbench to:
• Review your transactions in WIP more efficiently.
• Automatically assign capital project transactions to project assets.
• Capitalize project assets.

Requirements
As you configure your Capital Projects, you need to create account posting rules for:
• WIP
• Spend
• Payables
• Project Labor Cost Recovery
If you use balancing worktags, you need to configure the InterWorktag Payables and InterWorktag
Receivables account posting rules.
The line level company for expense reports, supplier invoices, and manual journals must match the capital
project company on that transaction line.

Limitations
You need to create manual journals to account for changes to transactions after you’ve expensed them.
To move the cost of a procurement card transaction to a capital project asset, you need to create a manual
journal and tag it with the capital project.
You can only set primary and optional balancing worktags on capital projects without transactions. Once
your project has transactions, you can't edit the balancing worktags selected on the project. You can only
select optional balancing worktag types set for the tenant before the creation of your project.

Tenant Setup
On the Edit Tenant Setup - Financials task, you can:
• Define the level of detail for the journal lines generated from the Work in Progress posting rule. You can
add these worktag types in the Include Worktag Types in WIP section for:
• Expense report lines and itemizations.
• Labor cost summaries from fully burdened and standard costing summarization methods.
• Supplier invoice line and line splits and supplier invoice adjustment line and line splits.
• Enable the posting of WIP to company asset book codes for multibook asset accounting.

Security
Assign these security domains in the Capital Projects functional area:

Domain Considerations
Manage: Capital Projects Manage project:
• Assets
• Labor Cost Summarizations
• Transactions

Manage: Project Labor Cost Accounting Manage and access labor cost summaries in
reports and tasks.

Domain Considerations
Set Up: Capital Projects Manage:
• Project Asset Assignment Rules.
• WIP Exclusion Rules.

Set Up: Project Labor Cost Summary Accounting Configure labor cost summary accounting for
capital and noncapital projects.

Business Processes

Business Processes Considerations

Verify Capital Project Expense Review and approve transactions reclassified as
expenses.
Verify Project Labor Cost Summarization Review and approve labor costs summarized by the
fully burdened and standard costing methods.
Asset Registration Event Register and assign accounting information to
capitalized project assets.

Reporting

Reports or Dashboards Considerations

Capital Project Transaction Detail Audit all capital project transactions.
Capital Project Workbench Review transactions and capitalize project assets.
Find Project Labor Cost Summaries View labor cost summaries created from the fully
burdened and standard costing summarization
methods.
View Project Review and edit project details such as dates,
organization, and owner.
Work in Progress Reconciliation Report Compare activity related to capital projects from
an operational transaction rather than a ledger
standpoint and reconcile activity.

Integrations
You can use these web services to manage your Capital Projects:
• Get Project Asset
• Put Project Asset

Connections and Touchpoints

Capital Projects interacts with these areas of Workday:

Feature Considerations
Business Assets Designate your project assets to convert them
into business assets and capitalize the associated
costs.

Feature Considerations
Expenses Expense reports flow to capital projects and
become designated as business assets or
expenses.
Financial Accounting Manual journal entries flow to capital projects.
Payroll Capitalize labor costs from Payroll on a project as a
long-term asset.
Supplier Accounts Supplier invoices flow to capital projects and
become designated as business assets or
expenses.
Time Tracking You can capitalize labor costs from Time Tracking
on a project as a long-term asset.
Projects You can capitalize labor costs from ad hoc project
time transactions.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Balancing Worktags on Capital Project Transactions on page 1155
Concept: Capital Project Workbench on page 1153
Concept: Labor Cost Capitalization on page 1154
Tasks
Steps: Configure Capital Projects on page 1138
Steps: Create Project Asset Assignment Rules on page 1143
Reference
Reference: Edit Tenant Setup - Financials
2022R2 What's New Post: Capital Project Asset Quantities
The Next Level: Capital Projects for Core Financials

Steps: Configure Capital Projects

Prerequisites
Set up project infrastructure.

Context
Project capitalization gives you greater visibility into project costs. You can manage your:
• Acquisition in transactions.
• Association of transactions with project assets in the project.
• Capitalization of those project assets into business assets.

Steps
1. Set Up Account Posting Rules on page 71.
To identify the ledger account in which you want to record the resulting accounting for transactions tied
to capital projects, configure the Work In Progress account posting rule.

2. Edit Domain Security Policies.

Configure the Manage: Capital Projects security domain in the Capital Projects functional area.
3. Edit Business Processes.
As you configure the business processes and corresponding security policies related to project
capitalization, consider:
Option Description
Verify Capital Project Expense When you review and mark capital project
transactions as an expense rather than an asset,
Workday launches this business process for
approval.
Asset Registration Event Evaluate your existing configuration to make sure
it meets your needs for capitalization of project
assets into business assets.
4. If you enabled worktag balancing for your tenant, evaluate your worktag balancing rule set and your
financial balancing rule for the supplier invoices and expenses transaction types.
See Concept: Balancing Worktags on Capital Project Transactions on page 1155.
5. (Optional) Access the Edit Tenant Setup - Financials task.
Select worktag types to add to the Include Worktag Types in WIP section. These worktag types define
the level of detail for the journal lines generated from the Work In Progress account posting rule. The
selections apply to:
• Expense report lines and itemizations.
• Labor cost summaries from fully burdened and standard costing summarization methods.
• Supplier invoice lines and line splits.
6. If you enabled multibook asset accounting in your tenant, add or verify book codes for the Company.
See Steps: Set Up Asset Books for a Company on page 1276.
Optionally, enable Post Work in Progress to Company Asset Book Codes in your tenant to post
WIP transactions automatically to each asset book code.
7. (Optional) Steps: Create Capital Project Work In Progress (WIP) Exclusion Rules on page 1145.
Create rules that automatically classify capital project transactions as expenses or assets, eliminating
manual WIP accounting.

Result
You can now create capital projects and tag transactions with those capital projects. You can review WIP
transactions and assign them to project assets, which you can then capitalize.

Next Steps
Capitalize projects.
Related Information
Tasks
Steps: Build Projects on page 1001
Steps: Set Up Projects Infrastructure on page 963
Reference
Workday 32 What’s New Post: Configurable Labor Cost Capitalization

Steps: Manage Capital Projects

Prerequisites
Configure project capitalization.

Context
Once you've configured project capitalization, you can manage project costs, identify them, and delay
recognition of these expenses. Workday automates the accounting entries along the way.

Steps
1. Create Projects on page 1019.
When creating a capital project, select the:
• Capital check box.
• Company that is working on the capital project.
2. Add or Edit Project Assets on page 1141.
To capture separate, ongoing costs of a capital project that's in progress, create project assets.
3. Tag transaction lines with a capital project or 1 of the phases or tasks to place incurred costs into the
Work in Progress (WIP) account.
You can tag these transactions:
• Expense report lines, including line itemization.
• Financial accounting adjustments.
• Manual journal lines with a WIP ledger account that don't go through an account posting rule.
• Supplier invoice lines, including line splits.
• Transactions that result in labor costs (such as time tracking, payroll costing allocations, and payroll
input).
Optionally, access the Create Capital Project WIP Exclusion Rule task to create rules that
automatically classify transactions as expenses or assets, eliminating manual WIP accounting.
See Steps: Create Capital Project Work In Progress (WIP) Exclusion Rules on page 1145.
4. Review Capital Project Transactions on page 1148.
5. (Optional) Set up automatic assignment of project assets.
SeeSteps: Create Project Asset Assignment Rules on page 1143.
6. Capitalize Project Assets on page 1149.
Register your fully accounted project asset costs as business assets.
7. To monitor the capital project to track project assets and total project costs, use the View Project
report.
As you review the report, consider:
Option Description
Transactions Reclassified as Expense Displays summarized expenses by transaction
type for transactions marked as expense
during the transaction review. To view a list of
transactions for that transaction type, click the
amount.
Project Assets Lists all current buckets to capture separate,
ongoing costs of the capital project. Click an
amount to view the transactions that comprise the
uncapitalized, capitalized, and project costs. For a

Option Description
capitalized project asset, click the business asset
to see the details including account information,
depreciation schedule, and lifecycle history.
8. As additional project costs come in, recapitalize project assets to make acquisition or post-acquisition
cost adjustments to the corresponding business asset.
9. Reconcile Work in Progress (WIP) Accounts on page 1152.
At the end of each period, reconcile your WIP accounts to your transactions.
10.(Optional) Adjust expense costs related to the capital project by creating manual journals. Create a
manual journal line against your spend account and tag it with the capital project.
Note: These lines aren’t reviewable in the Review Capital Project Transactions task.

Next Steps
• Track the assets through their entire lifecycle.
• Perform lifecycle events for capital assets.
Related Information
Tasks
Review Billable Project Transactions on page 1222
Steps: Create Capital Project Work In Progress (WIP) Exclusion Rules on page 1145
Reference
2022R2 What's New Post: Capital Project Asset Quantities

Add or Edit Project Assets

Prerequisites
• Create a capital project. See Create Projects and Steps: Manage Capital Projects.
• Security: Manage: Capital Projects domain security policy in Capital Projects functional area.

Context
Project assets are buckets, specific to each capital project, that capture separate, ongoing costs of a
capital project that's in progress. You can associate multiple project assets with a project to track cost
over the life of a project. When you tag all costs from transactions to the capital project, you can convert
project assets to business assets to realize cost and start depreciation. Each asset typically has a different
depreciation schedule.
Example: Your company is building a new restaurant. You want to track ongoing costs for the land,
building, labor, and kitchen equipment independently. You use a different project asset for each part of the
project until you tag all cost transactions.
Workday doesn't support asset pooling for project assets, or for business assets you create when you
capitalize project transactions.

Steps
1. Access the View Project report.
2. On the Financials > Capitalization tab, select Add Project Assets or Edit Project Assets.
3. As you complete the task, consider:
Option Description
Project Asset Spend Category Select from the categories defined to track items
or the hierarchies that contain at least 1 trackable

Option Description
spend category. If you don't see the value that
you want, use the Maintain Spend Categories
task and select Track Items.
When you capitalize the project asset, Workday
uses this spend category for the resulting
business asset. The spend category drives the
depreciation profile and schedule.

Project Asset Quantity Enter the quantity for multiple assets of the same
type. You can adjust this quantity later, so long as
you haven't capitalized the project assets.
Uncapitalized Cost The total cost of all transactions associated with
the project asset before its capitalization. After
you capitalize the project asset, uncapitalized
costs are the cost of transactions that come in
late for the project asset. When you recapitalize
the project asset, these late costs become a cost
adjustment to the corresponding business asset.
Capitalized Cost The transaction costs that you’ve already
capitalized for the project asset.
Project Asset Cost The total cost of the project asset. Equals the sum
of the uncapitalized and capitalized costs.
Capitalization Date The initial date when you capitalized the project
asset to create the business asset.
Asset ID, Acquisition Date, Business Asset Information about the business asset that results
Status from capitalization of the project asset.

Result
Workday updates the Project Assets grid on the Capitalization profile group of the View Project report.

Next Steps
• Optionally, create rules that automatically classify capital project transactions as expenses or assets,
eliminating manual Work In Progress (WIP) accounting.
• Set up the automatic assignment of capital project transactions to project assets.
• Review WIP transactions tagged to the capital project and associate their costs to project assets.
• Capitalize project assets when all transaction costs are in.
• Recapitalize project assets when uncapitalized costs come in late.
Related Information
Concepts
Setup Considerations: Capital Projects on page 1134
Tasks
Create Spend Categories
Steps: Create Project Asset Assignment Rules on page 1143
Reference
2022R2 What's New Post: Capital Project Asset Quantities

Steps: Create Project Asset Assignment Rules

Prerequisites
• Create a capital project with transactions. See Create Projects and Steps: Manage Capital Projects.
• Add or Edit Project Assets.

Context
Before you can capitalize your capital project transactions, you need to assign them to project assets. You
can manually assign transactions to project assets (see Review Capital Project Transactions) or you can
configure Workday to automatically assign capital project transactions to project assets. That way, you can
eliminate manual effort.
Workday runs the assignment job periodically, so you can control how often Workday assigns transactions
to project assets. You can apply your rules to multiple projects or project hierarchies.

Steps
1. Access the Create Project Asset Assignment Rule task.
As you complete the task, consider:

Option Description
Description Workday displays this text when the conditions
that you specify are true.
Category Assigning a category makes the Project Asset
Assignment Rule easier to find.
You can create Capital Project Asset Assignment
Rule categories using the Maintain Condition
Rule Categories task.

Derived Logic The statement you defined with the conditions for
the project asset assignment rule. It displays after
you save a new Project Asset Assignment Rule.
And / Or When 2 or more statements exist, specify how
they relate to each other.
() Use parentheses for 3 or more statements and a
combination of And and Or conditions.
Example: (A and B) or C.

Source External Field or Condition Rule Select:

• Data source report fields for capital project
transactions.
Note: Don't use report fields that populate
using downstream workflow events. Examples:
Accounting Date, Capitalization Date, or
Spend Account.
• Available assignment rules for capital project
assets, or other condition rules.

Comparison Type Specify whether to compare the source to:

• Another field.

Option Description
• A value you enter for Comparison Value.

Comparison Value Based on the Comparison Type, select a

comparison field or enter a value to compare to
the source.

Security: Set Up: Capital Projects domain in the Capital Projects functional area.
2. Access the Edit Project Assets task.
Add the Project Asset Assignment Rules to the appropriate project assets.
Security: Manage: Capital Projects domain in the Capital Projects functional area.
3. Access the Schedule Project Asset Auto-Assignment task to schedule the job that runs the auto-
assignment rules.
As you complete the task consider:
Option Description
Run Frequency Select how often you want Workday to assign
capital project transactions to project assets.
Example: Select Custom Recurrence to set up a
quarterly run frequency.

Unassign Transactions from Project Assets Select to undo previous auto-assignments.

Manually assigned project assets remain
unchanged.
To use this option, you must also select the Run
Now run frequency.

Project Hierarchies Select a project hierarchy.

If you don't select a project or project hierarchy,
Workday applies the Project Asset Assignment
Rules to all of the projects you can access.

Projects Select a project.

If you don't select a project or project hierarchy,
Workday applies the Project Asset Assignment
Rules to all of the projects you can access.

Security: Manage: Capital Projects domain in the Capital Projects functional area.

Next Steps
Run the Capital Project Transaction Detail report to verify that your rules are working as expected.
Related Information
Concepts
Setup Considerations: Capital Projects on page 1134
Reference
2022R1 What's New Post: Automated Project Asset Assignment

Steps: Create Capital Project Work In Progress (WIP) Exclusion Rules

Prerequisites
• Create a Capital Project.
• Apply a Capital Project worktag to project transactions.

Context
Create Work in Progress (WIP) exclusion rules that automatically classify capital project transactions as
expenses or assets, excluding them from manual WIP accounting. Create date-effective WIP exclusion
rule sheets to evaluate and apply WIP exclusion rules in order of display.
WIP exclusion rules apply when these transaction types have a Capital Project worktag:
• Supplier invoice lines and line splits.
• Expense report lines.
• Labor cost summaries.
WIP exclusion rules also apply when you make accounting adjustments to the applicable transaction types.
Transaction dates determine the date-effective WIP exclusion rule sheet to use.

Steps
1. Access the Create Capital Project WIP Exclusion Rule task.
As you complete the task, consider:
Option Description
Description Workday displays this text as a message when
the conditions that you specify are true.
Category Assign a category to make the WIP exclusion rule
easier to find later. You can create Capital Project
WIP Exclusion Rule categories on the Maintain
Condition Rule Categories task.
Derived Logic The statement you defined through the WIP
exclusion rule conditions. It displays after you
save a new WIP exclusion rule.
And / Or When 2 or more statements exist, specify how
they relate to each other.
() Use parentheses for 3 or more statements and a
combination of And and Or conditions.
Example: (A and B) or C.

Source External Field or Condition Rule Select:

• Capital Project Transaction data source report
fields.
Note: Don't use report fields that populate
using downstream workflow events. Examples:
Account Date, Capitalization Date, or Spend
Account.
• Available Capital Project WIP Exclusion Rule,
or other condition rule.

Option Description
Comparison Type Specify whether to compare the source to:
• Another field.
• A value you enter for Comparison Value.

Comparison Value Based on the Comparison Type, select a

comparison field or enter a value to compare to
the source.

Security: Set Up: Capital Projects domain in the Capital Projects functional area.
2. Access the Set Up Capital Project WIP Exclusion Rule Sheet task.
Specify the effective date of the WIP exclusion rule sheet based on the transaction type dates used for
the WIP exclusion rules. You can define multiple rule sheet snapshots, differentiated by effective date.
Add, remove, or reorder the WIP exclusion rules on the rule sheet. Workday applies the first WIP
exclusion rule that matches the transaction.
Security: Set Up: Capital Projects domain in the Capital Projects functional area.
3. (Optional) Access the Capital Project Transaction Detail report.
Use this report to audit your capital project transactions.
To distinguish between capital project transactions and accounting adjustments that met the WIP
exclusion rule, the report has 2 distinct fields with the name Capital Project WIP Exclusion Rule Met.
The field for accounting adjustments is in the Accounting Adjustment Lines for Capital Project
Transaction section of the report.
Security: Manage: Capital Projects domain in the Capital Projects functional area.

Result
Workday uses the Spend account posting rule when a transaction meets the WIP exclusion rule condition.
When transactions don't meet a WIP exclusion rule, Workday uses the Work in Progress account posting
rule to create the WIP account.

Next Steps
Access the Edit Capital Project WIP Exclusion Rules task to update any rule not yet applied to a
transaction.
Access the Delete Capital Project WIP Exclusion Rule task to delete any rule that meets both of these
requirements:
• Not yet applied to a single transaction.
• Not on a Capital Project WIP Exclusion Rule Sheet snapshot.
Related Information
Tasks
Capitalize Project Assets on page 1149
Steps: Manage Capital Projects on page 1140

Example: Create Capital Project Work In Progress (WIP) Exclusion Rule (Spend
Category)
This example illustrates how to create a capital project work-in-progress exclusion rule that automatically
excludes certain spend categories from your WIP accounting.

Context
Your company wants to post any travel and entertainment-related costs incurred during the course of your
capital project to the Spend account. You'll create a WIP exclusion rule to be applied to your capital project
transactions when they fall into the Travel & Entertainment spend category.

Steps
1. Access the Create Capital Project WIP Exclusion Rule task, and enter a description and category for
your rule.
2. Enter these values in the Rule Conditions section:

Source External Field Relational Operator Comparison Type Comparison Value

or Condition Rule
Spend Category as exact match with the Value specified in this Travel & Entertainment
Worktag selection list filter

Result
Workday applies your WIP exclusion rules to your transactions based on the order of precedence that you
specify on the Set Up Capital Project WIP Exclusion Rule Sheet task, and creates accounting in either
the Spend or Work in Progress accounts based on your rules.

Next Steps
Use the Set Up Capital Project WIP Exclusion Rule Sheet task to specify an effective date and order of
precedence for your new rule.

Example: Create Capital Project Work In Progress (WIP) Exclusion Rule (Transaction
Date)
This example illustrates how to create a capital project work-in-progress exclusion rule that automatically
excludes transactions you incur after your project end date from your WIP accounting.

Context
Your company doesn't want any costs incurred after the project end date you've scheduled in Workday to
be included in the WIP accounting. You'll create a WIP exclusion rule to be applied to the capital project
transactions you incur after the project end date.

Steps
1. Access the Create Capital Project WIP Exclusion Rule task, and enter a description and category for
your rule.
2. Enter these values in the Rule Conditions section:

Source or External Relational Operator Comparison Type Comparison Value

Field Condition Rule
Transaction Date greater than Value from another field Project End Date

Next Steps
Use the Set Up Capital Project WIP Exclusion Rule Sheet task to specify an effective date and order of
precedence for your new rule.

Review Capital Project Transactions

Prerequisites
• Create a capital project with project assets.
• Tag these transaction lines with a capital project worktag:
• Expense reports.
• Labor costs.
• Manual journals.
• Supplier invoices.

Context
Review each transaction line tagged to a capital project and either:
• Place the costs into a project asset.
• Reclassify the cost as an expense.
When you reclassify a cost as an expense, Workday moves the accounting out of Work In Progress (WIP)
accounts and back into spend accounts. Optionally, you can create rules that automatically classify capital
project transactions as expenses or assets, eliminating manual WIP accounting.
To review transactions across multiple projects manually, access the Capital Project Workbench.

Steps
1. (Optional) Access the Edit Tenant Setup - Financials task.
Select the Post Work in Progress to Company Asset Book Codes and the Enable Multibook Asset
Accounting check boxes in the Business Assets Options section.
2. Access the View Project report.
3. Select Financials > Capitalization.
4. Click the Review Transactions button and select a review option:
• Use Express Review to review all new, unassigned transaction lines tagged to the capital project for
all capital transaction types.
• Review transaction lines by transaction type, such as expense reports or labor costs. This review
method enables you to work with new transaction lines as well as the transaction lines you’ve
already assigned to project assets.
5. (Non-express only) Use the Search Criteria to narrow the list of transaction lines.
Select Only Transactions Already Assigned to view only transaction lines already assigned to a
project asset, but not lines that you already classified as expenses. Example: Use this option when you
want to reclassify costs from 1 project asset to another.
6. (Non-express only) Select the transaction lines that you want to act on.
7. Select the action that you want to apply to the transaction lines:
Option Description
Mark as Expense Cost Reclassifies the transaction line costs as a project
expense not associated with any asset. This
option doesn’t apply to manual journal entries.
You apply their costs directly to WIP accounting
when you create a manual journal. There’s no

Option Description
original spend account in which to reclassify the
costs.
You can't reverse this choice after you submit.

Assign to Project Asset Associates the transaction line costs with the
correct project asset for this capital project. You
can assign multiple transaction lines to the same
project asset.
Set Project Asset Values to Blank (Non-express only) Reset assigned lines to
unassigned. Use with the Only Transactions
Already Assigned check box in the Search
Criteria. Example: You can use this option when
you incorrectly tie transactions to a project asset.

Result
For transaction lines marked as expense during the review, Workday initiates the Verify Capital Project
Expense business process. A reviewer can confirm that the transactions are expenses not related to any
project asset.
Once approved, Workday moves the expense costs out of the WIP account and into the proper spend
account. Workday determines an account based on your Spend account posting rule and the spend
category from the original transaction line. Workday displays project expenses in the Transactions
Reclassified as Expense section of the Capitalization tab by transaction type. The capital project
remains as a worktag on the transaction line.
If you enable post Work in Progress (WIP) to company book codes with multibook asset accounting,
Workday moves the expense out of the WIP account and into spend. Select Accounting > View
Accounting from the related actions menu of a transaction for details.
For transaction lines assigned to project assets, Workday retains the costs in the WIP account. Workday
displays these costs in the Project Assets section of the capitalization tab as Uncapitalized Cost for the
selected project asset.

Next Steps
• Review the additional transactions for the capital project as they come in.
• Configure the automatic assignment of capital project transactions to project assets.
• Capitalize project assets.
Related Information
Concepts
Concept: Capital Project Workbench on page 1153
Concept: Post Work in Progress to Company Asset Book Codes on page 1154
Tasks
Steps: Create Capital Project Work In Progress (WIP) Exclusion Rules on page 1145

Capitalize Project Assets

Prerequisites
• Review Concept: Project Assets.
• Add or Edit Project Assets.
• (Optional) Create Work in Progress exclusion rules. See Steps: Create Capital Project Work In
Progress (WIP) Exclusion Rules on page 1145.

• Review Capital Project Transactions on page 1148.

• Security: Manage: Capital Projects domain in the Capital Projects functional area.
• To undo project asset capitalization, you need security access to the Asset Removal Event business
process.

Context
When you have capital project assets with assigned transactions, you can capitalize those project assets
to convert them to business assets and capitalize their associated cost. You can then perform lifecycle
events, such as depreciation, on those business assets. See Steps: Perform Lifecycle Events for Capital
Assets.
Before you capitalize a project asset, consider:
• You can't pool the assets that you create when you capitalize a project asset to create multiple business
assets.
• You can include business assets tagged with capital project transactions in composite assets, but those
business assets are no longer available for further capitalization.

Steps
1. Access the Capital Project Workbench and select Capitalize Project Assets.
2. Complete the Search Criteria section. Workday displays a list of project assets that match your criteria.
3. Select the project assets with uncapitalized cost that you want to capitalize.
As you complete the task, consider:
Option Description
Project Asset Quantity You can enter the number of business assets you
want to create when you capitalize the project
asset. Workday creates new business assets
based on the quantity that you enter, and divides
the capitalized cost equally among them. You
can't adjust the asset quantity after you capitalize
project assets.
This field is only available when you access the
task from the Capital Project Workbench.

Capitalization Date You can change the Capitalization Date to a

date in the past or future for any asset that you
haven’t yet capitalized. You can now set these
dates on the resulting business asset to any day
in the past:
• Business acquisition.
• Placed in service.
Example: You acquire an asset, but don't enter
it into Workday until a month later. You can
back date the Capitalization Date. This enables
you to have accurate acquisition and in service
dates after you capitalize the project asset into a
business asset.

Acquisition Adjustment Select when you have a previously capitalized

project asset with new uncapitalized costs that
you want to mark as a post-acquisition cost
adjustment.

Option Description
Enter an Adjustment Date.
Workday divides the cost equally amongst the
business assets generated from the same project
asset, and uses your selections to determine
where on the depreciation schedule to add the
post-acquisition cost adjustment. Workday divides
the cost by the remaining periods on the asset
depreciation profile and the selected date. You
can enter any date during the life of the asset.
When you dispose of a business asset, you can't
make cost adjustments to any other business
assets that were capitalized from the same project
asset.

Result
When you submit the transaction:
• When you capitalize a project asset, Workday initiates the Asset Registration Event business process.
The Asset Assign Accounting Event step of the business process generates journal entries. These
entries move costs out of your WIP accounts and to the business assets. This step displays as an inbox
item for the asset accountant.
• When you recapitalize a project asset, Workday initiates the Asset Cost Adjustment Event business
process.
This process:
• Adjusts the acquisition or post-acquisition cost of the corresponding business assets.
• Applies your decision to approve or deny a cost adjustment to all business assets generated from
the same project asset.
• Generates journal entries to move post-acquisition costs out of your WIP accounts and to the
business assets.

Next Steps
• Capitalize or recapitalize additional project assets.
• Track the resulting assets.
• Perform lifecycle events for the resulting assets.
• Remove business assets capitalized in error. Use the related actions menu of the project asset on the
project composite view.
Related Information
Tasks
Adjust Asset Costs on page 1320
Assign Asset Accounting Information on page 1284
Steps: Manage Capital Projects on page 1140
Reference
2022R2 What's New Post: Capital Project Asset Quantities
2023R2 What's New Post: Undo Project Asset Capitalization

Reconcile Work in Progress (WIP) Accounts

Prerequisites
• Create a capital project. See Create Projects and Steps: Manage Capital Projects.
• Add or Edit Project Assets.
• (Optional) Create rules to automatically assign transactions to WIP accounts. See Steps: Create Capital
Project Work In Progress (WIP) Exclusion Rules.

Context
Work in progress accounts are the accounts (typically asset) where you record the costs of work in
progress for capital projects. For transaction lines with a capital project worktag, Workday uses the Work In
Progress account posting rule to determine the account in which to post journal entries.
When you create work in progress account posting rules, you can use dimensions such as company and
project to determine the correct account. If you have enabled worktag balancing, additional dimensions are
available.
Reconcile your work in progress accounts to:
• Ensure that your transaction amounts for a specified period tie out to your net ledger balance for the
same period.
• Understand the amounts capitalized or reclassified as expense from your work in progress ledger
account.
Note: Workday doesn't use the Work in Progress account posting rule for capital project transactions that
meet a Capital Project Work in Progress Exclusion Rule.

Steps
1. Access the Work in Progress Reconciliation Report.
2. To reconcile, select the Company, Ledger Period, and Ledger Accounts.
When you enable multibook asset accounting, you can select the company book code to reconcile.
3. Review the Ledger Details.
As you review the report, consider:

Field Notes
Project Estimated Budget This field is informational only and has no bearing
on the reconciliation of the work in progress
ledger account.
Ledger Balance at Period End Work in progress ledger account balance at the
end of the period.
Total Ledger Activity for Period This amount should equal the Total Transaction
Activity for Period amount.
Total Transaction Activity for Period The New Transactions in WIP for Period minus
Amount Reclassified as Expense for Period
minus Capitalized Amount for Period.
New Transactions in WIP for Period Doesn't include amounts reclassified as expense
or capitalized amounts.
Amount Reclassified as Expense for Period Credits (subtracts from) the work in progress
ledger account balance.

Field Notes
Spend Category Spend category for the project asset, not the
transaction.
Capitalized Amount for Period Sum of transactions capitalized as a business
asset for the period, crediting the work in progress
ledger account balance.

Concept: Project Assets

A project asset is a container that you use to capture separate transactions from your capital projects in
progress. Once you capture all applicable transactions in a project asset, you capitalize it to convert it to 1
or more business assets. You can configure Workday to automatically assign capital project transactions to
project assets, reducing manual work.
When you capitalize project assets, you set a quantity to determine the number of business assets
Workday creates upon capitalization. Workday equally divides the cost of the transactions between the
resulting business assets and tags them with the assigned capital project transactions.
If you capitalize a project asset, and find you need to undo the capitalization because you made a mistake,
you can remove all of the business assets and move the uncapitalized cost back to the project asset. In
order to undo the capitalization, you need security access to the Asset Removal Event business process.
Navigate to the project composite view, and from the related actions menu of the project asset, select
Remove Business Assets. To remove business assets that you created from project assets, you must
use the related action on the project asset. The related action won't be available if any of the related
business assets have an adjustment or are disposed.
You can recapitalize project assets to create acquisition or post-acquisition cost adjustments to the
business assets Workday created upon the initial capitalization. Workday divides the new cost equally
between the business assets linked to the adjusted project asset.
Before you capitalize a project asset, consider:
• You can't pool the assets that you create when you capitalize a project asset to create multiple business
assets.
• You can include business assets tagged with capital project transactions in composite assets, but those
business assets are no longer available for further capitalization.
Related Information
Tasks
Steps: Manage Capital Projects on page 1140
Add or Edit Project Assets on page 1141
Steps: Create Project Asset Assignment Rules on page 1143
Capitalize Project Assets on page 1149
Reference
2023R2 What's New Post: Undo Project Asset Capitalization

Concept: Capital Project Workbench

The Capital Project Workbench (secured to the Manage: Capital Projects domain in the Capital Projects
functional area) enables you to review and act on pending transactions and capitalization tasks across
multiple projects.
With the Capital Project Workbench, you can:
• Add or Edit Project Assets on page 1141.
• Capitalize Project Assets.
• Review Capital Project Transactions.

With the Capital Project Workbench, you can review these transaction types:
• Capital project labor cost reclassification
• Expense report
• Manual journal entries
• Supplier invoice lines
You can also:
• Auto-assign capital project transactions to project assets.
• Filter search results and apply individual or mass action.
• Search for pending actions by project, project hierarchy, spend category, and worktags.
Related Information
Tasks
Review Capital Project Transactions on page 1148
Capitalize Project Assets on page 1149
Steps: Create Project Asset Assignment Rules on page 1143

Concept: Labor Cost Capitalization

Labor cost capitalization enables you to recognize labor costs on a project as long-term assets rather than
short-term liabilities.
The Project Labor Cost Recovery account posting rule enables you to identify the different contra accounts
(typically liability) in which to record the capitalization of labor costs.
Example: You can have different contra accounts for each cost center or company. These labor costs
come from transactions that you tie to capital projects, phases, or tasks. Workday debits summarized labor
costs from Work in Progress (WIP) accounts and credits the labor costs to contra accounts.
A Labor Cost Summarization subprocess on the transaction combines journal lines from labor costs. It then
posts a:
• Summarized debit line to the correct WIP account based on your WIP account posting rule.
• Credit to contra account to offset the WIP account debit, based on the Project Labor Cost Recovery
account posting rule.
Within the posting rule, you can have different contra accounts for each cost center or company.
Note: For labor costs tagged to capital projects, Workday doesn't create WIP accounting when the labor
cost summary meets a WIP exclusion rule.
Related Information
Tasks
Steps: Manage Project Labor Cost Summaries on page 995
Reference
Workday 32 What's New Post: Configurable Labor Cost Capitalization
2020R1 What's New Post: Ledger Posting for Project Labor Costs

Concept: Post Work in Progress to Company Asset Book Codes

When enabled in your tenant, Workday posts Work in Progress (WIP) capital project transactions to
multiple book codes for company assets. In the Edit Tenant Setup - Financials task, Business Assets
Options section, select these check boxes:
• Enable Multibook Asset Accounting.
• Post Work in Progress to Company Asset Book Codes.
The common book retains the spend transaction, and WIP reclassification entry posts. These entries for
book codes for company assets are:

• Cost reclassifications for capital projects (transactions reclassified to expense).

• Expense reports.
• Labor cost reclassifications for capital projects.
• Supplier invoices.
Related Information
Tasks
Review Capital Project Transactions on page 1148
Capitalize Project Assets on page 1149

Concept: Balancing Worktags on Capital Project Transactions

Balancing Worktags
When you enable worktag balancing for your tenant, you directly impact your Work In Progress (WIP)
capital project financial transactions. These rules determine the balancing worktag to use on the payables
journal line for supplier invoice and expense report transactions:
• Worktag balancing rule sets.
• Your financial balancing rules for the supplier invoices and expenses transaction types.
If set to inherit:
• The payables journal line uses the balancing worktag from the expense report or supplier.
• The WIP journal line uses the same balancing worktag as the capital project.
If set to specify:
• The payables journal line uses the balancing worktag from the balancing rule selected for the
transaction type.
• The WIP journal line uses the balancing worktag from the capital project. When your journal line
balancing worktags for WIP and payables vary, Workday generates due to and due from journal lines.
These journal lines balance the transaction journals.
Note: Spend journal lines always inherit the balancing worktag from the spend transaction line.

Optional Balancing Worktags

Optional balancing worktags for your tenant enable you can specify up to 5 additional worktags to generate
fully balanced journals. You can use these additional worktags with or without your primary balancing
worktags on your WIP transactions.
Once you configure optional balancing worktags, transactions balance based on the worktags you specify.
Workday:
• Inherits optional balancing worktags on Workday-generated entries based on the worktags selected.
• Generates due to and due from journal lines to balance the transaction journal.
Note: You can only set primary and optional balancing worktags on capital projects without transactions.
Once your project has transactions, you can't edit the balancing worktags selected on the project. You can
only select optional balancing worktag types set for the tenant before the creation of your project.
Related Information
Tasks
Configure Worktag Balancing Rule Sets for Transaction Journals on page 288
Define Worktag Balancing Rules for Financial Transactions on page 281

Project Tracking

Setup Considerations: Project Tracking

You can use this topic to help make decisions when planning your configuration and use of Project
Tracking. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Project Tracking gives you access to a limited set of Projects features, and enables you to create projects
specifically for tracking time and expenses.
We recommend using Project Tracking if you don't need to:
• Create billable projects.
• Create capital projects.
• Use advanced resource management.

Business Benefits
You can use Project Tracking to record, manage, and report on the expenses and time worked on your
projects.

Use Cases
You can use Project Tracking to:
• Create and manage projects.
• Track work with project plans.
• Staff workers to projects with resource plans.
• Track and report on the time entered for projects (Time Tracking only).
• Track and report on project expenses (Expenses only).

Questions to Consider

Subjects Questions Considerations

Project IDs Do you want to use a custom You can set a custom format for
format for your Project IDs? project IDs in the Edit Tenant
Setup - Financials task.
Project creation How will you define the common To maintain consistency and
field values for your projects? reduce data entry, you can use
these tasks to define project field
values:
• Maintain Project Statuses
• Maintain Risk Levels
• Maintain Work Priorities
• Maintain Importance Ratings

Subjects Questions Considerations

• Maintain Success Ratings
Users can then select these
values when they create or
update a project.

Project creation How do you want users to create You can greatly simplify the
new projects? process of creating a new project
by enabling users to copy existing
projects.
To enable this feature, configure
the Copy Project initiating action
in the security policy for the
Create Project business process.

Resource plans How do you want to create When you create a resource
resource plans? plan for a project hierarchy, all
of the projects that share the
same hierarchy inherit the same
resource plan. Use this method
to save time for your users if the
projects within a hierarchy always
use the same resource plan.
When you create a resource plan
for an individual project, only that
project will use the resource plan.
Use this method if your resource
plans differ between projects.

Resource plans How do you want to define the If you specify values for the
categories for project roles? Project Role Categories, project
managers can then organize the
project roles on the resource plan
lines.
Resource Plans Do you want to require manual Project and resource managers
approval for new or modified can manually approve changes
resource plan lines? to resource plan lines. To enable
the approval process, configure
the Project Resource Plan Line
business process.
Resource plans How do you want to capture You can configure custom objects
resource plan data that's unique to extend Workday to meet your
to your organization? unique requirements for resource
plans.
Project resources How do you want to manage Project and resource managers
approvals for new project can manually approve workers
workers? when they have new project
assignments. To enable the
approval process, set up the
Request Worker business
process.

Subjects Questions Considerations

Project resources Will you use dynamic resource Dynamic resource pools enable
pools to manage your worker managers to associate groups
groups and simplify project of workers to projects based on
staffing? preset worker qualifications.
They can:
• Associate a dynamic resource
pool as a group to a resource
plan line, and then exclude
specific individuals from the
group.
• Assign 1 or more individual
workers in a dynamic resource
pool to a resource plan line.
• Display dynamic resource
pools in reports when they
search for workers.
The project workers in dynamic
resource pools can enter the time
and expenses for their project
assignments.

Time entry Do you want to enable workers You can enable project workers
to log their time on any project, or to log time to any project without
For Time Tracking only.
only to their project assignments? having an assignment on a
resource plan. Use the Time
Entry Template to enable this
feature.
Otherwise, you must assign
project workers to a resource plan
before they can log time to the
project.

Time entry Which time window do you want Workers on a resource plan
workers to use when they log can log time against a project
For Time Tracking only.
their time on a project? or a project task. Workday
automatically populates the date
range with the start and end
dates of the project.
You can configure a narrower
date range for workers to log their
time with the Edit Tenant Setup
- Financials task by using the
dates specified in:
• Resource plans
• Project plan tasks
You can use multiple sources
to continue narrowing the date
range. Workers can only log time
where the selected date ranges
overlap.

Subjects Questions Considerations

Expenses Do you want to restrict project You can restrict the project
workers to selecting only their worktags that workers can select
For Expenses only.
assigned projects in their when they create or edit an
expense reports? expense report.
To limit workers to selecting only
the worktags for their project
assignments, configure the
Expense section of the Edit
Tenant Setup - Financials task.

Recommendations
We recommend that you:
• Configure the Create Project business process to enable users to copy projects to reduce the time
spent on data entry.
• Create your resource plans at the project-hierarchy level when the projects within the same hierarchy
use the same resource plan. This configuration:
• Reduces the time spent on data entry.
• Maintains consistency.
• Avoids errors.
• Configure dynamic resource pools to simplify project staffing.

Requirements
• Enable the Project Tracking functional area.
• Create project hierarchies.

Limitations
Project Tracking has a limited subset of Projects features. You can't:
• Create billable projects.
• Create capital projects.
• Use a Find Worker report to staff your projects.
• Assign workers to project tasks.
• Create resource forecasts.
• Create labor cost rates or determine labor costs for project.
• Create project budgets.
• Bill customers.

Tenant Setup
Access the Projects and Expense sections on the Edit Tenant Setup - Financials task to view the
project-specific tenant configuration options.
Depending on how you configure Project Tracking in Workday, you can:
• Create a custom format for your project IDs.
• Narrow the date range that project workers can record the hours they work on a project.
• Restrict worker access to the project worktags for their assigned resource plans. This restriction
ensures that the workers select the correct projects for their expense reports.

Security

Domains Considerations
Business Process Administration in the System Users secured to this domain can edit these
functional area business processes:
• Create Project
• Create Project Hierarchy
• Edit Project
• Project Resource Plan Line
• Request Worker

Manage: Business Process Definitions in the Users secured to this domain can manage these
System functional area business processes:
• Create Project
• Create Project Hierarchy
• Edit Project
• Project Resource Plan Line
• Request Worker

Set Up: Project Tracking in the Project Tracking A super domain for the Set Up domains in the
functional area Project Tracking functional area.
Users secured to this domain can configure
projects.

Set Up: Period Schedule in the Project Tracking Users secured to this domain can configure and
functional area manage the payroll period schedules for projects.
Set Up: Project Details in the Project Tracking Users secured to this domain can manage the
functional area configuration for project details, including phases
and tasks.
Set Up: Risk and Priorities in the Project Tracking Users secured to this domain can configure project
functional area risks and priorities.
Set Up: Dynamic Resource Pool in the Project Users secured to this domain can use tasks and
Tracking functional area reports to create, edit, delete, and view Dynamic
Resource Pools.
Manage: Project Tracking in the Project Tracking A super domain for the Manage domains in the
functional area Project Tracking functional area. Users secured to
this domain can manage projects.
Manage: Project Details in the Project Tracking Users secured to this domain can manage and view
functional area existing projects.
You can control access to the project plans and
resource plans through their respective domains.

Manage: Project Plan in the Project Tracking Users secured to this domain can manage and view
functional area project plan information, including the allocation of
resources to project plan tasks.
Manage: Project Custom Task Name in the Project Users secured to this domain can edit and view the
Tracking functional area information on custom task names.
Manage: Project Resources in the Project Tracking Users secured to this domain can manage and view
functional area project resource plans.

Domains Considerations
View: Project in the Project Tracking functional area Users secured to this domain can view projects.
Worker Data: Project Tracking in the Project Users secured to this domain can access a
Tracking functional area worker's project tracking information. This
information includes the project worker roles and
project information on the worker profile.

To ensure proper access, review these team member roles and activities:

Domain Security Roles Responsibilities

Project Tracking administrator • Configures tenant setup information.
• Edits and maintains business processes.
• Creates projects.
• Performs payroll functions.
• Works with the Time Tracking administrator to
ensure that time is ready for payroll processing.

Time Tracking administrator Sets up project time entry in Workday Time

Tracking.
Project manager • Creates projects with resource plans and project
plans.
• Creates basic projects if tracking expenses only.
• Manages the project plan and project phases.
• Approves project time.

Project worker Enters hours worked in Time Tracking by selecting

a project or a project plan task.
Expense Data Entry Specialist Tags expenses to a project using worktags for the
project, project phase, and project task.

Business Processes

Business Processes Considerations

Project Resource Plan Line in the Project Tracking Enables project managers to:
functional area.
• Create resource plans for a project, but not the
project hierarchy.
• Use the Submit Resource Plan web service.
Has a security policy that enables you to open up
approvals to various security groups. You can also
enable manual advancement to the next step by a
business process administrator.

Request Worker in the Projects functional area. Enables changes in worker assignments.
This business process is a required subprocess of
the Project Resource Plan Line business process.

Create Project in the Project Tracking functional Enables Project Tracking administrators to:
area.
• Create new projects.
• Copy existing projects.

Business Processes Considerations

• Use the Submit Project web service.
Enables project managers to:
• Create new projects.
• Copy existing projects.
• Review and approve new projects.

Edit Project in the Project Tracking functional area. Enables project managers to:
• Edit existing projects.
• Review and approve changes to existing
projects.

Reporting

Report Considerations
Find Projects Use this report to search for existing projects.
My Projects Use this worklet to display your most frequently
used projects.
View Project Use this composite report as a central access point
for viewing and editing information on existing
projects.
View Project Plan Timeline Use this report to display the schedule for project
phases and tasks by:
• Percent complete.
• Estimated hours.
• Hours logged.
• Time remaining.

You can use these report data sources to create custom reports:
• Top Level Project Hierarchies on the Project Hierarchy business object.
• Project Hierarchies on the Project Hierarchy business object.
• Project Roles on the Project Role business object.
• Project Plan Phases on the Project Plan Phase business object.
• Project Plan Tasks on the Project Plan Task business object.

Integrations

Web Service Considerations

Get Projects Retrieves projects with all of their associated
details, including:
• A single project based on the Reference ID.
• All projects if you don't specify any criteria.

Get Projects without Dependencies Retrieves projects without the resource plan, or the
Project Groups and Dependencies fields.
You can retrieve:

Web Service Considerations

• A single project based on the Reference ID.
• All projects if you don't specify any criteria.
Only use for data migrations.

Submit Project Creates a project event and submits it through

the Create Project business process for approval.
Workday then creates the new project after
approval.
Get Project Phases Retrieves project phases.
Put Project Phase Adds and updates project phases.
Get Project Role Categories Retrieves project role categories, including:
• A single project role category with the Reference
ID.
• All project role categories if you don't specify
any criteria.

Put Project Role Category Adds and updates project role categories.
Get Resource Plans Retrieves data on resource plans and resource plan
lines.
Submit Resource Plan Sends data on resource plans and resource plan
lines through the Project Resource Plan Line
business process. Upon approval, Workday then
updates the resource plans and resource plan lines
after approval.
Get Project Worker Roles Retrieves project worker roles, including:
• A single project worker role with the Project
Worker Role reference ID.
• All project worker roles if you don't specify any
criteria.

Put Project Worker Role Adds and updates project worker roles.
Get Project Plans Retrieves project plans.
Put Project Plan Adds and updates project plans.
Get Project Tasks Retrieves project tasks.
Put Project Task Adds and updates project tasks.
Note: All task names must be unique, not just the
task IDs.

Get Period Schedules Retrieves the periods for time entry.

For Time Tracking only.

Put Period Schedule Adds and updates the periods for time entry.
For Time Tracking only.

Connections and Touchpoints

Project Tracking interacts with these other areas in Workday:
• Managers assign workers from HCM Core to their projects.
• Project workers can use Time Tracking to enter their project hours.
• Managers and project workers can use Expenses to track their project expenses.
• Administrators can use Time Tracking to specify the period schedules for projects.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Project Tracking on page 1166
Setup Considerations: Project Hierarchies on page 958
Tasks
Create Project Hierarchies on page 966
Set Up the Create Project Business Process on page 1017
Set Up Security for Dynamic Resource Pools on page 1062
Create Dynamic Resource Pools on page 1063
Reference
Reference: Edit Tenant Setup - Financials
Reference: Project Management Reports on page 1010
The Next Level: Project Tracking

Steps: Set Up Security for Project Tracking

Prerequisites
Review setup considerations for project tracking.

Context
You can configure the security for the Project Tracking functional area to determine who can:
• Create and edit project hierarchies and projects.
• Assign workers to individual projects.
• View and analyze project data.
• Set project task dates, percent complete, and milestones.
• Tag projects with worktags and roles.
• Tag and report time and expense entry by projects, phases, and tasks.

Steps
1. Access the Maintain Functional Areas task.
Select the Enabled check box for the Project Tracking functional area.
Security: Security Configuration domain in the Workday functional area.

2. Edit Domain Security Policies.

Set up these domains in the Project Tracking functional area:
• Manage: Project Custom Task Name
• Manage: Project Details
• Manage: Project Plan
• Manage: Project Resources
• Manage: Project Tracking
• Set Up: Dynamic Resource Pool
• Set Up: Period Schedule
• Set Up: Project Details
• Set Up: Project Hierarchy
• Set Up: Project Tracking
• View: Project
• Worker Data: Project Tracking
You can use the View All Domains report to review the security group types permitted for each
domain.
3. Create User-Based Security Groups.
Set up the user-based security groups for each domain, based on the requirements of your
organization.
4. Create Role-Based Security Groups.
Set up the role-based security groups for each domain, based on the requirements of your organization.
5. Create Intersection Security Groups
Set up the intersection security groups for each domain, based on the requirements of your
organization.
6. Set Up Assignable Roles.
7. Edit Business Processes.
Edit the definitions for these business processes, based on your organizational needs:
• Create Project
• Create Project Hierarchy
• Edit Project
• Project Resource Plan Line
8. Edit Business Process Security Policies.
Set up the security policies for these business processes, based on your organizational needs:
• Create Project
• Create Project Hierarchy
• Edit Project
• Project Resource Plan Line
Example: Add approvers to a business process.
9. Activate Pending Security Policy Changes.
Related Information
Reference
The Next Level: Project Tracking for Time Tracking, Expenses, and Core Financials

Steps: Set Up Project Tracking

Prerequisites
Review setup considerations for project tracking.

Context
Project Tracking enables you to create and manage projects designed to track time and expenses. You
can:
• Record and analyze worker time logged against projects and tasks.
• Track project costs using project expense reports.
Note: Since Project Tracking only gives you access to a limited set of Projects features, you can't create
billable or capital projects. You also can't use advanced resource management features, such as resource
forecasting and budgeting.

Steps
1. Set up Project Tracking security.
See Steps: Set Up Security for Project Tracking on page 1164.
2. Create Project Hierarchies on page 966.
3. Create Project Roles on page 1050.
4. (Optional) Create Project Role Categories on page 1052.
5. Create Projects on page 1019.
6. Set up the resource plans.
See Steps: Set Up Resource Plans on page 1086.
7. Create Resource Plans on page 1088.
8. Create Project Plans on page 1033.
9. (Optional) Create Custom Labels.
10.(Optional) Access the Create Risks task.
Define the risks associated with the project.
Security: Manage: Project Details domain in the Project Tracking functional area.
11.(Optional) Create Project Groups on page 1002.

Result
If you have Time Tracking or Expenses, project workers can log their time or expenses against a project.

Next Steps
You can view and report on:
• Time entered for projects. (Time Tracking only.)
• Project expenses. (Expenses only.)
Related Information
Reference
The Next Level: Project Tracking for Time Tracking, Expenses, and Core Financials

Concept: Project Tracking

Project Tracking gives you access to a limited set of Projects features, and enables you to create projects
specifically for tracking time and expenses.
You can use Project Tracking if you don't need to:
• Create billable projects.
• Create capital projects.
• Use advanced resource management.

How Project Tracking Interacts with Time Tracking and Expenses

Workday integrates Project Tracking with Time Tracking and Expenses. You can configure and record
the time worked on a project, as well as the expenses for a project. This table describes the roles and
responsibilities for implementing Project Tracking.

Role Action Results

Project Manager Creates projects with resource Configured projects with phases
plans and project plans. and tasks available in prompts
for worker time entry and project
If tracking expenses only, creates
expense associations.
basic projects.

Time Tracking Administrator Sets up project time entry in Time Workers can enter time for the
Tracking. work they complete on a project.
Project Worker Enters time in Time Tracking Managers can monitor and
and associates it with a project, analyze the time workers spend
project phase, or project task. on their assigned projects.
Expense Data Entry Specialist Uses project, project phase, Managers can monitor and
and project task worktags to tag analyze project expenses.
project expenses.

Project Tracking Components

At minimum, you must create a project hierarchy. However, we recommend that you use additional project
components to reduce data entry.

Component Description
Project Hierarchies Group similar types of projects and subordinate
project hierarchies using tree-like structures.
All projects must belong to a primary project
hierarchy, and can also have 1 or more optional
hierarchies.

Project Plans Organize the project using phases and tasks.

Describes the sequences of steps and activities
necessary to complete a project. You can designate
specific tasks as milestones for your project.
Phases are the high-level sequence of steps
needed to complete a project. Example: A
development project might consist of these phases:
Analyze, Scope, Design, Construct, Test, Deploy,
and Support.
Tasks are the distinct activities within a phase.
Example: A Deploy phase might include a task for
completing a deployment checklist.
Once you assign phases and tasks to a project,
Workday creates a project-specific instance of them
that you can report on for a specific project.

Resource Plans Describe who is working on the project and project

plan. You can:
• Specify project roles.

Component Description
• Assign workers directly to a project role.
• Associate a group of workers with a project role.
You can also assign resource plans to projects or
project hierarchies.

Dates Workday doesn't require or enforce relationships

between the start and end dates across these
project areas:
• Project
• Project Plan Task
• Resource Plan Line
Example: A project plan task can have an end date
after the project end date.

Related Information
Concepts
Setup Considerations: Project Tracking on page 1156
Concept: Project Hierarchies on page 972

Project Scenarios, Initiatives, and Ideas

Project Scenario Planning

Steps: Set Up Project Scenarios

Context
Note: We plan to retire the Project Scenario feature.
You can configure Workday to model your projects using tasks, assignments, and dates in a series of
possible scenarios. These scenarios enable you to compare different resource allocations to optimize the
costs, availability, skills, and work experience of your resources.

Steps
1. Create Project Hierarchies on page 966.
You must have at least 1 project hierarchy to configure project scenarios.
2. Configure the Create Project Scenario business process and security policy in the Projects functional
area.
See Steps: Configure Business Process Definitions.
See Edit Business Process Security Policies.
3. Access the Create Project Scenario Group task.
Create the categories that organize your related project scenarios.
Security: Manage: Project Scenario domain in Projects functional area.
4. (Optional) Access the Maintain Project Phases task.
Define the project phases for your scenarios.
Security: Set Up: Project Details domain in the Project Tracking functional area.

5. (Optional) Access Maintain Project Tasks.

Define the project tasks for your scenarios.
Security: Set Up: Project Details domain in the Project Tracking functional area.

Create Project Scenarios

Prerequisites
• Create Project Scenario Groups.
• Configure the Create Project Scenario business process and security policy in the Projects functional
area.

Context
Create project scenarios to model distributions of resources, dates, and costs to aid in project planning.

Steps
1. Access the Create Project Scenario task.
2. Assign the scenario to a Project Group.
3. Select a Time Unit for Effort.
4. (Optional) Add a row to the Plan to add phase, task, assignment, and other project scenario details.
As you complete the task, consider:

Field Description
Phase and Task Select from existing project phases and tasks.
You can also create new phases and tasks from
this prompt if you have the security access. The
Create Project Phase and the Create Project
Task tasks are secured to the Set Up: Project
Details domain in the Projects functional area.
Start Date and End Date For a task, select start and end dates that fall
within the project scenario start and end dates.
For an assignment, select start and end dates that
fall within the task start and end dates.

Estimated Effort Enter an estimated effort for the task. The units
for the effort are based on your Time Unit for
Effort selection.
Job Profile Select a job profile to assign to the phase or task.
Selecting a job profile also enables you to search
for individual workers by job profile.
Worker Once you select a worker, the worker's job profile
defaults in to the Job Profile field if you have not
defined one.
To Be Hired If you do not select a Worker, this check box is
required.

Result
Submitting launches the Create Project Scenario business process.

Workday calculates effort, budget, and time costs when you submit the project scenario. You can view the
calculations by accessing the View Project Scenario report.

Shift Dates for Project Scenarios

Prerequisites
• Configure the Create Project Scenario business process and security policy in the Projects functional
area.
• Create project scenarios.

Context
You can shift the dates of a project scenario as well as its tasks and assignments. Use this feature to
model a project scenario similar to an existing one with a different time frame or to resolve resource
conflicts with other scenarios.
Workday only makes this feature available for projects that you've saved for later or submitted, but haven't
yet approved.

Steps
1. Access the Revise Project Scenario task or the Review Project Scenario task.
• You can access these tasks from your Inbox if you created the project scenario or are a reviewer.
• Alternatively, to shift the dates of an existing project scenario:
a. Copy the existing scenario. From the related actions menu of the existing scenario, select
Project Scenario > Copy Project Scenario.
b. Save or submit the copied scenario.
c. Access the Revise Project Scenario task or the Review Project Scenario task from your Inbox.
2. Select Shift Dates.
3. Enter an Anchor Date.
Workday uses the anchor date to determine which objects shift dates. When you shift forward, Workday
only shifts dates for objects with start dates that fall on or after the anchor date. When you shift
backward, Workday only shifts dates for objects with end dates that fall before the anchor date.
4. Select a Shift Direction.
5. Enter a Shift Value.
6. Select a Shift Interval.

Result
Workday returns you to the Revise Project Scenario task or the Review Project Scenario task with
updated start and end dates for the project scenario, tasks, and assignments.

Example

Example 1: Shift forward 1 month • Anchor date: 2022-01-01

• Shift Direction: Forward
• Shift Value: 1
• Shift Interval: Month
Results:

Before After
Project 2022-01-01 - 2022-02-01 -
Scenario 2022-05-31 2022-06-30
Task 1 2022-01-01 - 2022-02-01 -
2022-01-31 2022-02-28
Assignment 1A 2022-01-01 - 2022-02-01 -
2022-01-15 2022-02-15
Task 2 2022-02-02 - 2022-03-02 -
2022-05-31 2022-06-30
Assignment 2A 2022-02-02 - 2022-03-02 -
2022-04-30 2022-05-31

Example 2: Shift backward 1 month • Anchor date: 2022-06-01

• Shift Direction: Backward
• Shift Value: 1
• Shift Interval: Month
Results:

Before After
Project 2022-01-01 - 2021-12-01 -
Scenario 2022-05-31 2022-04-30
Task 1 2022-01-01 - 2021-12-01 -
2022-01-31 2021-12-31
Assignment 1A 2022-01-01 - 2021-12-01 -
2022-01-15 2021-12-15
Task 2 2022-02-02 - 2022-01-02 -
2022-05-31 2022-04-30
Assignment 2A 2022-02-02 - 2022-01-02 -
2022-04-30 2022-03-31

Example 3: Anchor date falls between project • Anchor date: 2022-02-01

scenario start and end dates • Shift Direction: Forward
• Shift Value: 1
• Shift Interval: Month
Results:

Before After
Project 2022-01-01 - Unchanged
Scenario 2022-05-31
Task 1 2022-01-01 - Unchanged
2022-01-31
Assignment 1A 2022-01-01 - Unchanged
2022-01-15

Before After
Assignment 1B 2022-01-16 - Unchanged
2022-02-28
Task 2 2022-02-01 - 2022-03-01 -
2022-03-31 2022-04-30
Assignment 2A 2022-02-01 - 2022-03-01 -
2022-03-31 2022-04-30

Workday only shifts the dates for Task 2 and

Assignment 2A forward, because their start dates
fall on or after the anchor date.

Initiatives
Steps: Set Up Initiatives

Context
Initiatives enable you to align project and nonproject work with your organizational goals. You can analyze
initiatives for cost versus budget, on-time success, project spend, and other dimensions that affect
progress towards a goal. Creating initiatives is optional. You don't need to create an initiative to create a
project.

Steps
1. Access the Maintain Work Functions task.
Add the work functions for your project workers.
Security: Set Up: Job domain in the Projects functional area.
2. (Optional) Create or Edit Organization Goals.
Create goals for your initiatives to support.
3. Edit Business Processes.
Edit the definitions for these business processes, based on your organizational needs:
• Cascade Goals to assign personal goals to project workers that are also linked to organizational
goals.
• Assign Work to Worker to assign project work to workers.
4. Edit Business Process Security Policies.
Set up the security policies for these business processes, based on your organizational needs:
• Cascade Goals to assign personal goals to project workers that are also linked to organizational
goals.
• Assign Work to Worker to assign project work to workers.
5. (Optional) Access the Maintain Importance Ratings task.
Add or edit the values that measure the importance of your initiatives. Example: Critical, Significant, and
Important.
Note: You can't delete an importance rating if it's already in use.
Security:
• Manage: Initiatives domain in the Projects functional area.
• Set Up: Project Details domain in the Project Tracking functional area.

Next Steps
Create your initiatives.

Create Initiatives

Prerequisites
• Create projects.
• Set up initiatives.
• Security: Manage: Initiatives domain in the Projects functional area.

Context
Your organization can have both project and nonproject work in progress at the same time. You can group
this work with initiatives to support your organizational goals. Grouping your projects by initiative gives
you a clear view into the work your organization is undertaking. You can then use the reporting tools in
Workday to analyze and drill into project costs versus budget, on-time success, and other dimensions.

Steps
1. Access the Create Initiative task.
2. As you complete this task, consider:
Option Description
Importance Select the value that measures the importance of
the initiative.
Supports Organization Goal The goal can have more than 1 initiative assigned
to it, but each initiative can belong to only 1
organization goal. For an organizational goal
to include initiatives, it must be public and in an
active goal period.
Supporting Projects You can assign an initiative to more than 1
project, but each project can belong to only 1
initiative.

Result
You can use these reports:

Report Description
View Initiative Displays details of the initiative, including the
supporting projects and nonproject work. Project
details include:
• Number of assigned workers.
• Number of workers who have logged time to the
project.
• Total project budget.
• Totals spent on time and project costs.
• Remaining budget.
• Percent complete.
Nonproject work details by work function include:
• Assigned workers.

Report Description
• Workers who logged time.
• Total hours logged.
• Total time cost.
Note: Workday retired the Project Timesheets
feature in Workday 29. Workers can no longer log
time against nonproject work, and you won't see
any data in the Time section of an Initiative. If you
have older data created from this retired feature,
you can still see the information with the correct
security access.

Talent Matrix - Performance by Initiative Compares worker performance the to initiative

Importance importance ratings for the projects they worked on.

Related Information
Concepts
Concept: Talent Matrix Reports
Tasks
Run Talent Matrix Reports
Steps: Set Up Talent Matrix Reports

Ideas
Steps: Set Up Project Ideas

Prerequisites
Review setup considerations for project creation.

Context
Workers can create project ideas that support the goals of your organization. As managers review and
approve these ideas, they can add additional details on the:
• Scope
• Cost
• Risk
When you create a project from an approved idea, Workday populates the project with the details specified
in the idea.

Steps
1. Set up the Manage: Idea domain in the Projects functional area.
See Edit Domain Security Policies.
2. Set up these business processes:
• Create Idea in the Projects functional area.
• Create Project in the Project Tracking functional area.
See Edit Business Processes.

3. Set up these security policies:

• Create Idea in the Projects functional area.
• Create Project in the Project Tracking functional area.
See Edit Business Process Security Policies.
4. (Optional) Set up project risk parameters.
See Steps: Maintain Project Details on page 967.

Result
Approved workers can create new project ideas. Managers can review their ideas, define the risks, and
approve them from their Inbox.
Project managers can then create a new project from an approved idea, and associate an existing project
with an idea.

Next Steps
• Access the Create Idea task to create new project ideas.
• Access the Review Idea task from your Inbox to review, add detail, and approve submitted project
ideas.
• Access the Find Ideas report to view a list of ideas that meet your search criteria.
Related Information
Concepts
Setup Considerations: Project Creation on page 1011
Tasks
Create or Edit Organization Goals
Create Projects on page 1019

Concept: Idea Management

Workday recognizes that all individuals are valuable contributors to an organization. With Workday
Projects, all workers and contingent workers have the opportunity to contribute ideas for how to achieve
company-wide goals. Managers can then prioritize, manage, and, upon approval, turn ideas into projects.
Workday gives you insight into who has the best and most useful ideas.
If you also have Talent Management, you can use the organization goals created there to assign ideas to
your goals.

Idea Review and Approval

Once a worker submits an idea, it then routes to their manager for approval. Managers can then:
• Add details on the scope of the work.
• Outline the budget impact of the idea.
• Identify risk parameters, including the risk severity and status.
• Associate an idea with a project hierarchy, which then routes to the project hierarchy manager for
approval.

Project Generation from Ideas

After approval, ideas are available for association with a project. You can:
• Associate ideas with existing projects.
• Create a project from an idea, after setting the appropriate security.
To set up the security for Idea Management, you need to:

• Edit the Create Project Business Process Security Policy to grant access.
• Ensure that the Initiating Action of the Create Project from Idea has security groups assigned to it.
Related Information
Tasks
Steps: Configure Projects on page 951
Create Projects on page 1019

Project Metrics and Reports

Steps: Set Up Project Transaction Summaries

Next Steps
• Create custom reports using the Project Transaction Summary data source.

Concept: Project Dashboard

Concept: Resource Manager Dashboards

• Frequently used tasks and reports.

• Your urgent staffing needs. Workday calculates urgency as the sum of these parameters:
• Is the project start date - the current date less than 30? (+1)
• Is the start date for the resource plan line - the current date less than 14? (+1)
• Does the resource plan line have more than 1 unnamed resource? (+1)
• Does the resource plan line have requirements? (+1)
• Is the Project billable? (+1)
Note: To ensure that Workday displays the correct dashboard data, assign managers to a role in the
same supervisory organization as their workers. You might also need to assign resource pool managers to
multiple supervisory organizations.
Related Information
Concepts
Setup Considerations: Project Resources on page 1056
Tasks
Steps: Set Up Dashboards and Landing Pages
Reference
The Next Level: Resource Management in Projects

Reference: Security for Resource Manager Dashboards

Workers Rolling Off Projects In These domains in the Projects functional area:
• Management Dashboard: Resource Manager
• Manage: Resource Pool

Worker Allocations Reports: Manager in the Staffing functional area

Worklets Domains
Worker Allocations by Resource Pool Manage: Resource Pool in the Projects functional
area

When you configure the Actions menu on the dashboards, use this security:

Report in Actions Menu Domains

Find Worker for Project These domains in the Projects functional area:
• Manage: Advanced Project Resource
Management
• Manage: Resource Pool

View My Favorites Manage: Project Resources in the Project Tracking

functional area
Manage: Resource Pool in the Projects functional
area

Find Project for Worker Manage: Advanced Project Resource Management

in the Projects functional area

Related Information
Concepts
Setup Considerations: Project Resources on page 1056

Reference: Project Reports

Operational Reports
These reports help you analyze the operational health of your projects.

Report Security Description

Average Project Duration Manage: Project Details domain Review the durations of your
in the Project Tracking functional projects so that you can make
area. improvements for faster returns
on your investments. Includes:
• The average project duration
for a project hierarchy and its
subordinate projects.
• All projects with at least 1 day
of duration for your selected
time period.

Forecast vs. Actuals - Project Reports: Manager domain in the Compare the forecasted hours
Hours by Month Staffing functional area. to the actual hours worked on a
project.

Report Security Description

Manage: Project Resource
Forecast domain in the Projects
functional area.
Reports: Time Tracking domain
in the Time Tracking and Time
Tracking Hub functional areas.

Projects Headcount Supply and Manage: Project Resources Includes:

Financial Reports
These reports provide insight into the financial health of your projects.

Financial Reports Security Description

Average Revenue by Project Reports: Project Billing domain in Analyze how your project staffing
Role the Project Billing functional area. relates to project revenue.
Workday calculates the average
revenue in the project currency by
project role based on:
• Total approved hours.
• Total billings from invoice
lines.
You can see when you use
certain project roles more than
others.
Comparative Revenue by Reports: Projects domain in the Analyze revenue trends for
Project Projects functional area. month-over-month and year-over-
year revenue by project. You can
customize this report to include
quarterly analysis for project
revenue using your existing time
periods.
Project Billing Exceptions To access the report: Process: View a list of all your projects with
Project Billing - Core in the billable transactions that aren't
Project Billing functional area. ready to be billed, and the total
number of affected transactions
To access related tasks, both:
between them. Transactions may
• Process: Customer Contract be unbillable, have a contract rate
- View in the Customer change which has not yet been
Contracts and Project Billing applied to the time transaction,
functional areas. or have no billable rate. Only
• Reports: Billing in the includes transactions with one of
Customer Contracts and these:

Financial Reports Security Description

Project Billing functional • A contract line type of Project
areas. Time and Expense, or Fixed
Fee.
• A status of Awaiting Review,
or Ready to Bill for rate
changes and missing rates.
• A status of On Hold for
missing rates only.

Project Budgetary Balance with Both: Compare your project budget

Revenue Leakage Report Execution domain in For operational and financial

the Tenant Non-Configurable users. View these concessions
functional area. that have been made in the
project:
• Contractual versus actual
rates.
• Project hours leaked.
• Revenue leakage.

Trended Revenue by Project Reports: Projects domain in the View revenue by project for the
Projects functional area. top 10 projects over the selected
period. You can analyze revenue
trends by:

Financial Reports Security Description

• Month-over-month.
• Year-over-year.

Talent Reports
These reports, secured to the Metrics Published domain in the System functional area, provide insight into
the workforce behind your projects.

Talent Reports Descriptions

Project Demand View the number of open resource plan lines
without a worker assignment or group association.
Includes all resource plan lines with at least a 1-day
duration within the current time period.
Project Talent View a count of open resource plan lines:
• Marked for external hire.
• With an open job requisition.
• Marked for external hire with a pending worker
associated with the line.
You can also view the ratio of project demand to
staffed workers, where a high ratio indicates a need
for increased staffing.

Reference: Project Management Reports

You can use these reports to view your projects at a high level and to manage project details.

Report or Worklet Description Security

• Time remaining.

Reference: Resource Management Reports

Match Resources with Projects

These reports can help you match qualified workers with available projects.

Report Name Description Security

Compare Workers for Project Use to compare workers by Manage: Advanced Project
tenure, qualifications, project, and Resource Management domain in
talent from the filtered results of the Projects functional area
the Find Workers for Project
report.
Find Available Workers for Use to find available workers who These domains in the Projects
Project meet specific requirements, and functional area:
then assign them to a project.
• Manage: Advanced Project
To enable this report, select the Resource Management
Always Use Find Available • Manage: Resource Pool
Workers for Project check box
in the Projects section of the Edit
Tenant Setup - Financials task.
When enabled, this report
launches from the Find Workers
button on the resource plan line.

Find Project for Me Enables workers to find projects Self-Service: Resource

Report Name Description Security

Compares the scheduled weekly Provides access to the report
hours for workers against their and the Projects and Project
total assignments, including: Hierarchies prompt on the
report.
• Holidays.
• Manage: Resource Pool.
• Time off.
Provides access to the report
• Resource forecast lines. and the Resource Pools and
Resource Pool Hierarchies
prompt on the report.
The Reports: Manager domain
in the Staffing functional area.
Provides access to the report and
the Supervisory Organizations
prompt on the report.
Note: Users secured solely to
the Reports Manager domain
can access and view this report,
but they can't expand the rows
to review the details. To ensure
that users can review the report
details, also secure them to
the Manage: Advanced Project
Resource Management domain,
the Manage: Resource Pool
domain, or both.

View Resource Commitments

These reports can help resource managers view and manage the assignment of workers across projects.

Report Name Description Security

Manage Worker Assignments Use to: Manage: Advanced Project

Resource Management domain in
the Projects functional area

Report Name Description Security

• View project resource Manage: Resource Pool domain
assignments, time off, and in the Projects functional area
holidays.
Reports Manager domain in the
• Compare workers for project Staffing functional area
assignments.
• Drill into and manage project
assignments.
To enable this report, set up
resource scheduling.

Worker Availability - Detailed Use to: These domains in the Projects

Allocation functional area:
• Examine the scheduled time
commitment of workers in your • Manage: Advanced Project
supervisory organizations. Resource Management
• Take project allocation actions • Manage: Project Resource
based on worker availability. Forecast
The percentages for worker time These domains in the Time Off
commitments are based on: and Leave functional area:
• Forecast allocations. • Worker Data: Current Staffing
• Approved time off. Information
• Holidays. • Worker Data: Time Off
Manager View
The indication of weekly worker
time commitment displays 3 Reports: Manager domain in the
ranges: Staffing functional area
• Greater than 110% (red icon). Users must have a role in
• 70 to 110% (green icon). the appropriate supervisory
• Less than 70% (yellow icon). organization to view the data in
this report.

Compare Resource Cost Rates

These reports can help resource managers view and compare the cost rates of workers and unnamed
resources.

Report Description Security

• Forecasted hours.
• Standard cost rate.
Workday bases the time period
in this report on the end date
for the fiscal period and uses 3
consecutive fiscal periods.

Project Billing

Setup Considerations: Project Billing

You can use this topic to help make decisions when planning your configuration and use of Project Billing.
It explains:
• Why to set it up.

• How it fits into the rest of Workday.

• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Project Billing is part of the Workday Professional Services Automation (PSA) solution. Using information
from customer contracts and Workday Projects, you can create a comprehensive billing process for client-
facing billable projects.

Business Benefits
Project Billing in Workday enables you to:
• Bill customers.
• Bill within your organization.
• Track project revenue.
Project Billing also helps you manage your project financials. Workday helps eliminate reconciliation
between applications and foster collaboration between your controller, project managers, and billing
specialists.
When used with Customer Accounts and Customer Contracts in Workday, you can manage receivable
credit and collection, maintain customer accounts, and automate your billing all at once.

Use Cases
You can combine billable projects with the Workday Revenue and Project Billing solutions, and recognize
your revenue:
• As invoiced.
• Based on completed milestones.
• On a deferred basis.
• On a percent complete basis.
• Through accruals, which enables you to recognize revenue independent from billing.

Questions to Consider

Questions Considerations
How do you handle varying invoice and tax Understand your specific country and regional
requirements in different countries? billing requirements. Invoice and tax requirements
vary from country to country.
What billing methods does your company use? Workday Project Billing supports these billing
methods:
• Fixed Fee - Installments
• Fixed Fee - Milestones - Date
• Fixed Fee - Milestones - Project
• Prepaid
• Retainer/Holdback
• Transactions - Time and Expense

What are your requirements for intercompany Workday Project Billing supports these
transfer pricing? intercompany pricing options:

Questions Considerations
• Cost plus
• Multiparty
• Transfer
• Value-based
Create standard or custom rate rules for transfer
pricing to apply to the intercompany contract.

What billing rates work with Project Billing? Workday Project Billing supports these billing
configurations:
• Billing rate sheets.
• Billing rate rules.
• Custom caps.
• Project caps for Time and Expense.
• Tiered rates.
Structure your billing around these configurations
before applying them to your projects.

What specific billing rate rules does your company Project Billing supports these rate rule
need? configurations:
• Contract-specific caps.
• Discounts.
• Mark-ups.
• Tiered pricing.
Configure these billing rate rules to add them to the
contract rate sheet.

What invoice format modifications do you need for Modifications to invoice formats require Business
Project Billing? Intelligence and Reporting Tools (BIRT)
enhancements. If BIRT support isn’t in scope,
contact your Workday Customer Success Manager
for assistance.
What revenue recognition methods do you use? Workday Project Billing supports these revenue
recognition methods:
• Fixed Fee - Installment and Spread Even
• Fixed Fee - Percent Complete
• Milestones
• Performance-based
• Retainer/Holdback
• Transaction - Time and Expense
Plan your revenue recognition methods for use with
project billing.

Does your project revenue follow the project Workday uses these worktag rules:
worktags or worker worktags?
• Fixed Fee projects follow the contract worktags
designated in the project.
Note: To reclassify the fixed fee revenue at the
worker level manually, you must first create a
custom report.

Questions Considerations
• Transaction-based projects for time and
expense follow the worker worktags or project
worktags.

Does your organization need to integrate your Contact your Workday Customer Success Manager
contingent worker time or expenses into Workday for assistance.
for Project Billing?

Recommendations
Workday recommends:
• Using project hierarchies and project groups for better budgeting and reporting.
• Understanding country or region-specific invoicing requirements.

Requirements
Consider any integration requirements in and out of Workday.

Limitations
Project billing only supports customer contracts for these project-related line types:
• Fixed Fee
• Prepaid
• Time and Expense
• Value-based

Tenant Setup
Select the Only Include Non-Recoverable Tax on Billable Transactions check box on the Edit Tenant
Setup - Financials task. This check box excludes recoverable tax from your expense and supplier invoice
billable amounts.

Security

Domains Considerations
Process: Billing Schedule – Core in the Customer Create billing schedules for customer contracts.
Contracts and Project Billing functional areas.
Process: Billing Schedule – View in the Customer View billing schedules and installments for
Contracts and Project Billing functional areas. customer contracts.
Process: Customer Contract - Core in the Customer Manage customer contracts.
Contracts and Project Billing functional areas.
Process: Project Billing - Core in the Project Billing Manage project billing transactions.
functional area.
Process: Project Billing - Invoice Proposal in the Manage customer invoice proposals.
Project Billing functional area.
Process: Billing - Invoice Proposal in the Customer
Contracts and Project Billing functional areas.

Process: Project Billing - Invoicing in the Project Create customer invoices for billing installments,
Billing functional area. transactions, and consolidated billing.

Domains Considerations
Process: Billing - Invoicing in the Customer
Contracts and Project Billing functional areas.

Process: Revenue Schedule - Core in the Create revenue recognition schedules for customer
Customer Contracts and Project Billing functional contracts.
areas.
Process: Revenue Schedule - View in the View revenue recognition schedules and
Customer Contracts and Project Billing functional installments for customer contracts.
areas.
Set Up: Customer Contracts - Templates and Create templates for billing and revenue recognition
Types in the Customer Contracts and Project Billing schedules.
functional areas.
Set Up: Customer Milestones in the Customer Manage date milestones for customers on:
Contracts and Project Billing functional areas.
• Billing schedules.
• Revenue recognition schedules.

Set Up: Milestone Types in the Customer Contracts Maintain and view milestone types.
and Project Billing functional areas.

As you enable security groups, consider:

Security Groups Considerations

Revenue specialist and customer contract specialist Set up customer contracts.
Accounts Payable specialist Create supplier invoices for costs associated with
the project.
Project manager Review and approve billable transactions for a
project.
Billing specialist Generate customer invoices.
Revenue accountant Manage accounting and related reporting.

As you assign security roles for the project billing and customer contracts domains, consider:

Security Roles Considerations

Assign roles to workers at the project and project You can assign roles at the project or project
hierarchy level. hierarchy level. Projects within these hierarchies
inherit the assignments and reducing security
maintenance.
Assign roles to workers at the company and You can assign roles at the company or company
company hierarchy level. hierarchy level. Projects within these hierarchies
inherit the assignments and reducing security
maintenance.

Business Processes

Business Processes Considerations

Ad Hoc Project Transaction Event Create and approve ad hoc transactions on

projects.

Business Processes Considerations

Billing Schedule Event Create and approve billing schedules.
Contract Rate Sheet Event Create and approve contract rate sheets.
Customer Contract Amendment Event Create and approve customer contract
amendments.
Customer Contract Asset and Liability Create and approve journals for customer contract
Reclassification Journal Event asset and liability reclassifications.
Customer Contract Event Create and approve customer contracts.
Deferred Cost Installment Event Create and approve deferred cost installments.
Project Transaction Adjustment Event Create and approve project transaction
adjustments.
Revenue Recognition Installment Event Create and approve revenue recognition
installments.
Revenue Recognition Schedule Event Create and approve revenue recognition schedules.

Reporting
You can use projects standard reports and tasks to build your Project Billing dashboard.

Integrations

Web Services Considerations

Get Ad Hoc Project Transactions Retrieves all ad hoc project transactions.
Get Contract Rate Sheets Retrieves all contract rate sheets.
Get Project Billing Rate Sheets Retrieves all rate sheets for project billing.
Get Worker Billing Rates Retrieves all worker billing rates.
Import Worker Billing Rate Adds or updates worker billing rates.
Put Ad Hoc Project Transaction Adds or updates ad hoc project transactions.
Put Contract Rate Sheet Adds or updates contract rate sheets.
Put Project Billing Rate Sheet Adds or updates rate sheets for project billing.

Connections and Touchpoints

Project Billing interacts with these other areas in Workday:

Feature Considerations
Customer Accounts Approved project time and expenses for invoicing
flow from Project Billing.
Customer Contracts Prepaid and billing schedules, and project and
usage-based billing rate sheets flow to Project
Billing.
Projects Billable project time and expense and billable
supplier invoices flow to Project Billing.

Steps: Set Up Project Billing

Prerequisites
Review setup considerations for project billing.

Context
Project Billing uses information from customer contracts and Workday Projects to create a comprehensive
billing process for billable projects. To use Project Billing, configure the Financials and Projects product
areas to track and bill for activity against your projects.

Steps
1. Set up billable projects.
See Steps: Build Projects on page 1001.
2. Create Customer Contracts on page 839.
Create a customer contract with billable project lines. The customer contract can reference 1 or more
billable projects.
3. Create a contract rate sheet and billing rate rules for the customer contract.
See:
• Create Contract Rate Sheets on page 1198.
• Add Billing Rate Rules to Contract Rate Sheets on page 1200.
4. Create a billing schedule for the customer contract.
See:
• Create Consolidated Billing Schedules for Customer Contracts on page 877.
• Create Installment or Transaction Billing Schedules for Customer Contracts on page 882.
5. Review and manage project billing transactions.
See Steps: Manage Project Billing Transactions on page 1208.
6. (Optional) Create and review customer invoice proposals.
See Steps: Manage Customer Invoice Proposals on page 891.
7. Create Customer Invoices on page 664.
Generate invoices against the project.
Related Information
Concepts
Setup Considerations: Project Billing on page 1187
Concept: Project Billing on page 1248

Steps: Consolidate Billing for Multiple Projects

Prerequisites
Create multiple billable projects.

Context
When customers have multiple projects, it's easier and more efficient to bill them once for each billing
cycle. You can consolidate your projects into a single billing schedule and invoice based on billing type.

Steps
1. Create Customer Contracts on page 839.
Create a contract that includes more than 1 project. You can have multiple projects on a single contract
with different transaction sources, such as Time, Expense, and Supplier Invoice.
2. Create Consolidated Billing Schedules for Customer Contracts on page 877 or Create Installment or
Transaction Billing Schedules for Customer Contracts on page 882.
(Optional) On an installment billing schedule, click Manage Milestones. You can limit milestones to
specific project phases by individual project, or create milestone lines for each project in the billing
schedule.
Security: Manage: Project Plan domain in the Project Tracking functional area.
3. Create Customer Invoices from Contracts on page 895.
Create customer invoices from contracts for your projects. When a customer invoice includes:
• More than 1 project, Workday references the projects on the invoice lines instead of on the invoice
header.
• Only 1 project, Workday references the project on the invoice header.

Result
When a customer invoice includes:
• More than 1 project reference, Workday debits the Accounts Receivables journal line and not the
individual projects due to worktag balancing limitations. Credits post to the respective projects.
• Only 1 project reference, Workday posts both the debit and credit to the project worktag.

Next Steps
Access the Financials > Customer Invoices profile group on the project profile to view the invoice details.
Related Information
Concepts
Concept: Project Billing on page 1248
Tasks
Create Customer Invoices on page 664
Steps: Set Up Email for Customer Invoice Documents on page 708

Project Pricing and Billing

Steps: Set Up Project Pricing and Billing

Prerequisites
• Create and approve a billable project.
• Associate a customer contract with the billable project.
• Create transactions to bill against the project.

Context
As a project billing specialist, you can bill your customers for the work completed on a project using various
rates and billing rules. You can also set effective dates on your contract rates. Workday uses the latest
version of the rate sheet within the transaction date period when invoicing customers.
Example: You create a rate sheet with an effective date of December 1, 2020 and a rate of 100 USD. You
update the rate sheet using the same effective date of December 1, 2020 and a new rate of 105 USD.
Then, you add a new rate sheet with an effective date of January 1, 2021 and a rate of 110 USD. If you
enter a time block for 1 hour on December 31, 2020, Workday uses the rate of 105 USD.

Steps
1. (Optional) Access the Maintain Daily Rate Transaction Groupings task.
You can group daily rate transactions for granular reporting. You can also view the groupings you
define on the project billing and contract rate sheets.
Workday doesn’t support daily rate transaction groupings for ad hoc billable transactions.
Security: Set Up: Project Billing - Rate Sheet domain in the Project Billing functional area.
2. Create Project Billing Rate Sheets on page 1196.
Define pricing categories and dimensions within those categories for the rate sheet.
3. Create Contract Rate Sheets on page 1198.
Link the standard rate sheet with project roles for the billable project associated with the customer
contract.
4. (Optional) Add Billing Rate Rules to Contract Rate Sheets on page 1200.

Next Steps
Access the:
• Manage Project Billing Transactions task to review and manage project billing transactions.
• Create Customer Invoice Proposal task to create invoice proposals before billing.
Related Information
Tasks
Create Projects on page 1019
Create Customer Contracts on page 839
Reference
Reference: Billing Rate Rule Types for Projects on page 1207
Workday 32 What's New Post: Additional Dimensions for Daily Rate Billing Rate Rules
2020R1 What's New Post: Manage Project Billing Transactions

Create Project Billing Rate Sheets

Prerequisites
Security:
• Process: Billing - Rate Sheet in the Customer Contracts and Project Billing functional areas.
• Process: Project Billing - Viewin the Project Billing functional area.
• Set Up: Project Billing - Rate Sheet in the Project Billing functional area.

Context
You can define different billing rates based on a variety of criteria. When you create rate sheets, you can
set pricing categories and multiple rate dimensions. You can set pricing categories to include a:
• Currency for sales that span multiple countries.
• Region for sales areas that cover a wide territory.

Steps
1. Access the View Project Billing Rates task.
2. On the Rate Sheets tab, click Add.
Workday contextually secures the Create Project Billing Rate Sheet task by company, enabling you to
view only the project billing rates that you have security access to.
3. As you create the project billing rate sheet, consider:
Option Description
Company When you select a Company on the project billing
rate sheet, Workday populates the company on
the contract rate sheet.
Customer When you select a Customer on the project
billing rate sheet, Workday populates the
customer on the contract rate sheet.
Worktags (Optional) Select 1 or more of the predefined
worktags that Workday delivers:
• Business Unit
• Cost Center
• Custom Organizations
• Region
When you select Worktags on the project billing
rate sheet, Workday populates the worktags on
the contract rate sheet.

Unit of Time When you select Days from the prompt, also
specify daily rate transaction details on the Time
Definition tab.
Note: Workday doesn’t support using daily rates
for ad hoc project transactions.

Transaction Grouping Group transactions based on the dimensions

that you configured on the Maintain Daily Rate
Transaction Groupings task.

Option Description
Grouping transactions enables more detailed
grouping and pricing on daily rate transactions.
When you select a Transaction Grouping on the
project billing rate sheet, Workday populates the
grouping on the contract rate sheet.
Displays when you select Days from the Unit of
Time prompt.

Mutually Exclusive Rules Select to apply only the first applicable billing rate
rule for each billing rate rule type.
When you select the check box, Workday
automatically enables the check box on all the
contract rate sheets that use the project billing
rate sheet.

4. On the Rate Dimensions tab, click Edit.

5. As you maintain the project rate categories and members, consider:
Option Description
Category Name The names that you enter display as columns on
the project billing rate sheet. You can add up to 5
pricing categories.
Category Members The members that you enter display as prompt
options for the Category Name columns on the
project billing rate sheet.

Result
Workday populates rates on the project resource plan when you assign roles to projects with an effective
date in the project billing rate sheet.
You can use the project billing rate sheet on all of your projects.

Next Steps
• Map your worktags to the project billing rate sheet and the category dimensions on the Configure
Project Billing Rate Sheet task. Based on your configuration, Workday populates the information from
the project billing rate sheet onto the contract rate sheet.
• To update the billing rates by effective date:
1. Access the View Project Billing Rates task.
2. Select Project Billing Rate Sheet > Edit from the related actions menu of the project billing rate
sheet.
Related Information
Concepts
Concept: Project Billing on page 1248
Tasks
Create Customer Contracts on page 839

Create Contract Rate Sheets

Prerequisites
• Create a customer contract with an approved billable project.
• Configure the Contract Rate Sheet Event business process and security policy in the Customer
Contracts and Project Billing functional areas.
• Security: Process: Billing - Rate Sheet domain in the Customer Contracts and Project Billing functional
areas.

Context
Contract rate sheets enable you to set billing rates for billable projects. You can:
• Apply a discount or premium to all resource rates using an adjustment percentage.
• Apply the billing rate rules to the contract rates.
• Populate values onto the contract rate sheet from the project billing rate sheet.
When you make changes to the contract rate sheet, Workday doesn't reflect the changes on your revenue
recognition installments. To change your revenue recognition installments, access the Schedule Revenue
Installments for Billable Transactions task.

Steps
1. Access the Create Contract Rate Sheet task.
You can access the task from the Contract Rate Sheet prompt on the customer contract line. When
you select a Billable Project, a Project Transaction Source, and a Line Type of Project Time and
Expense on the customer contract line, Workday enables the Contract Rate Sheet prompt. When
enabled, you can access an existing contract rate sheet or create a new contract rate sheet.
Workday contextually secures the task by company, enabling you to view only the project billing rates
that you have security access to.
2. As you complete the task, consider:
Option Description
Effective Date The effective date can't be in the past if it's
already associated with a billable transaction.
The billable transaction date determines which
contract rate sheet and billing rate rule set to use.
Project Billing Rate Sheet (Optional) Select a project billing rate sheet to
update the contract rates. Your selection controls
the options available in the Rate Category
Members prompt.
Workday only displays the project billing rate
sheets that match the company, customer, and
worktags that you specify on the Create Project
Billing Rate Sheet task.

Is Daily Rate Select this check box and complete the Time
Definition tab to convert the hours worked to
days.
Note: Workday doesn't support using daily rates
for ad hoc project transactions.

Transaction Grouping Workday populates this field using the project

billing rate sheet. You can select additional

Option Description
transaction groupings that you configured on the
Maintain Daily Rate Transaction Groupings
task.
Rate Category Members Select from the rate dimensions defined on the
project billing rate sheet.
Adjustment Percentage Enter a positive or negative percentage to apply
to all lines on the contract rate sheet.
Mutually Exclusive Rules Select to apply only the first applicable billing rate
rule for each billing rate rule type.
Workday automatically enables this check box
when you select the check box on the project
billing rate sheet. You can clear the check box at
any time.

Revenue Adjustment Reason Select a reason to include when you create

separate revenue installments for billable
transactions with billing rate rule adjustments.
Workday posts adjustments to the Revenue
ledger account when you add Revenue
Adjustment Reason as a dimension in your
account posting rules.

3. When you select a project billing rate sheet, click Update Contract Rates to populate the rates from
the billing rate sheet for the project.
Workday displays the billing rates that match the:
• Effective date.
• Project billing rate sheet.
• Rate category members.
When you don't have security access to the project billing rate sheet, Workday hides the Update
Contract Rates button.

Result
Workday applies the contract rates to the billable transactions associated with the customer contract line.
Related Information
Concepts
Concept: Project Billing on page 1248
Tasks
Create Customer Contracts on page 839
Manage Project Billing Transactions by Transaction Source on page 1216
Manage All Project Billing Transactions on page 1211
Reference
Reference: Billing Rate Rule Types for Projects on page 1207
2021R2 What's New Post: Gross and Net Accounting Automation for Billable Transactions

Add Billing Rate Rules to Contract Rate Sheets

Context
Billing rate rules enable you to group rule types on contract rate sheets for use in project billing. You can
create billing rate rules to apply:
• A cap on project time and expenses.
• Tiered rates on time transactions.
• Override billing rates on expense, miscellaneous expense, supplier invoice, and time transactions.

Steps
1. Access the Billing Rate Rules tab on the Create Contract Rate Sheet task.
You can access the contract rate sheet from the customer contract line. When you select a Project
Transaction Source and a Line Type of Project Time and Expense on the customer contract line,
Workday enables the Contract Rate Sheet prompt. When enabled, you can access an existing
contract rate sheet or create a new contract rate sheet.
2. Click Add Billing Rate Rule Type to add to your rule set.
When you create multiple rule types, Workday applies the override rate rules first, then the cap rules.
3. Define the rules for each Billing Rate Rule Type Group that you add.
For Expense and Supplier Invoice rules, consider:

Option Description
Expense Item To apply the billing rate rule, associate the
expense report line with a billable project.
Displays on Expense Caps and Override Rate
(Expense) rule types only.

Spend Category To apply the billing rate rule, associate the

supplier invoice line with a billable project.
Displays on Override Rate (Supplier Invoice) rule
types only.

For Override and Tiered Rate rules, consider:

Option Description
Adjustment Type Select:
• Rate Override to enter an amount.
• Percent to override by a percentage.
A positive value applies a mark up and a negative
value applies a discount.

Option Description
Revenue Adjustment Reason Select a reason to include when you create
separate revenue installments for billable
transactions with billing rate rule adjustments.
Workday posts adjustments to the Revenue
ledger account when you add Revenue
Adjustment Reason as a dimension in your
account posting rules.

For Time rules, consider:

Option Description
Dimensions Enter project dimensions for the rule. You can
limit the rule to:
• A complete project phase.
• A task that impacts multiple assignments or
associations.
• An individual worker.

By Amount or Units For Project Cap, select to limit the cap by an

amount or a number of hours for the project
dimension specified. When you review billable
transactions associated with the project, Workday
displays zero for the Amount to Bill once you
reach the cap.
Cap Amount Enter the amount or number of hours to cap for
project billing against time spent on the project.
Cap Units
The cap amount that you enter sets the limit for
the project.
4. To configure the billing rate rules to match the billing agreements with customers, select the
Dimensions and Worktags that apply.
5. Enter an Order for rule type groups with multiple entries.
Order is an alphanumeric field. Workday applies the rules within each billing rate rule type in the order
of entry, if not designated.
6. (Optional) Complete the Reset Option section to reset contract rates periodically throughout the
contract term.
Displays on the Expense Caps, Project Cap, and Tiered Rate rule types only.

Result
Workday applies the billing rate rules on the contract rate sheet to project time and expense transactions
when you approve:
• Expense reports.
• Supplier invoices.
• Worker time blocks.

Next Steps
Review your billable transactions and invoice customers.

Related Information
Tasks
Steps: Set Up Project Pricing and Billing on page 1195
Create Customer Contracts on page 839
Manage Project Billing Transactions by Transaction Source on page 1216
Manage All Project Billing Transactions on page 1211
Reference
Reference: Billing Rate Rule Types for Projects on page 1207
2021R2 What's New Post: Gross and Net Accounting Automation for Billable Transactions

Create Transfer Pricing Rate Sheets

Prerequisites
Security: Set Up: Transfer Pricing domain in the Projects functional area.

Context
You can use transfer pricing rate sheets to define rates for intercompany contracts. Your rate sheets can
include pricing increases or decreases as either a rate or percentage.

Steps
1. Access the Create Transfer Pricing Rate Sheet task.
2. As you complete this task, consider:
Option Description
Transfer Pricing Default Rate / Percent Define a default rate or a percentage for time
blocks not affected by the rate rules listed. The
percentage represents a markup or markdown of
the custom rate or standard cost rate.
Effective Date Workday calculates and persists time entry costs
upon time entry approval. The rate you specify
is applicable to workers in the selected category
based on the applicable effective date.
Note: Changes to the rate sheet or standard cost
rates don't change the cost amount for approved
project time entries.
Use the History tab to view effective date
changes to the standard cost rate sheet. From
the related actions menu for this rate sheet,
select Audits > View Audit Trail to view change
activity.

Project Cost Rate Rules Workday applies the rate for the first project cost
rate rule that the worker qualifies for based on the
order.

Result
Workday establishes transfer pricing rates for intercompany billing.

Next Steps
• Associate your rate sheet with intercompany contracts.
• Create intercompany transactions.
Related Information
Tasks
Steps: Create Intercompany Contracts on page 833

Create Custom References for Ad Hoc Project Transactions

Prerequisites
Security: Set Up: Project Billing - Invoicing domain in the Project Billing functional area.

Context
Custom reference fields enable you to view external reporting data on your billable transactions and
consolidate billing installments and transactions on invoices. You can create custom reference fields to use
on:
• Ad hoc project transactions.
• Customer invoices from contracts.

Steps
1. Access the Enable Ad Hoc Project Transaction Custom References task.
2. As you complete the task, consider:
Option Description
Enabled Select to display the custom reference fields on
these tasks:
• Create Ad Hoc Project Transactions
• Manage Project Billing Transactions

Consolidated Billing Select to add the custom references as options in

the Additional Consolidation Grouping prompt
on these tasks:
• Create Customer Invoices from Contracts
• Schedule Create Customer Invoices from
Contracts

Reference Name Workday displays the reference name that you

enter instead of the Workday-delivered custom
reference on these tasks:
• Create Ad Hoc Project Transactions
• Manage Project Billing Transactions

In Use Workday enables this check box when you use

the custom reference fields on:
• Ad hoc project transactions.
• Customer invoices from contracts.
You can't delete a custom reference field when it's
in use.

Next Steps
• Create ad hoc project transactions.
• Create customer invoices from contracts.
Related Information
Tasks
Create Customer Invoices from Contracts on page 895
Manage Project Billing Transactions by Transaction Source on page 1216
Manage All Project Billing Transactions on page 1211
Reference
2020R1 What's New Post: Consolidated Invoice Billing

Create Ad Hoc Project Transactions

Context
Ad hoc project transactions provide flexibility when you log transactions in Workday. You can use ad hoc
project transactions to:
• Create one-off Time transactions for all projects requiring immediate action without using Workday Time
Tracking.
• Directly charge Spend transactions against projects without using Workday Expenses or Workday
Supplier Accounts. Spend transactions include:
• Expenses.
• Miscellaneous expenses.
• Supplier invoices.
• Integrate your external time tracking and spend transactions with Workday.
• Migrate your project billing into Workday and generate invoices and accounting internally.

Steps
1. Access the Create Ad Hoc Project Transactions task.

2. Enter transaction details.

Users assigned to only 1 of the security domains might have limited access to these options:
• Billing Status
• Include Cost
• Standard Cost Rate
• Cost Currency
• Rate to Bill
• Billing Currency
As you enter task details, consider:
Option Description
Billing Status Select Do Not Bill when you don't want to invoice
your expense to the customer.
Worker (Expense, Miscellaneous Expense, and Time)
Displays all workers on the resource plan on the
project.
Supplier (Miscellaneous Expense and Supplier Invoice)
Select a supplier to provide your item.
Project Phase (Expense, Miscellaneous Expense, and Supplier
Invoice) Displays only top-level phases for the
billable project.
Project Task (Expense, Miscellaneous Expense, and Supplier
Invoice) Displays all tasks from all phase levels
for the billable project.
(Time) Displays all tasks from all phase levels
assigned to the selected worker.

Project Role (Time) Populates based on your selection for

Standard Cost Rate (Time) Enter a rate amount to override the

standard cost rate from the resource plan line or
the project standard cost rate sheet if 1 exists.
Cost Currency (Time) Workday converts the Standard Cost
Amount to the Cost Currency.
Rate to Bill (Time) For billable projects, enter a rate amount
to override the billing rate from the contract rate
sheet if 1 exists.

Option Description
Billing Currency When you enter a currency different than the
customer contract currency, Workday converts
the Amount to Bill to the billing currency.
Spend Category (Expense, Miscellaneous Expense, and Supplier
Invoice) Select to associate items with their
account posting rules and provide details for
creating invoices. When you select an item before
specifying the spend category, you can't change
the value assigned to the item.
Worktags The worktag derivation rules specified for the
project hierarchy, or the worktags assigned to the
contract line, determine the worktag assignment
for the transaction. For billed transactions, the
worktags apply when you create accounting
entries. You can add or change worktags if
needed.
Memo For billable projects, this field displays in the note
section of the customer invoice.
Custom Reference 1 Enter additional ad hoc project transactions
details for billing and reporting purposes.
Custom Reference 2
Displays when you select the Enabled check
Custom Reference 3
box on the Enable Ad Hoc Project Transaction
Custom Reference 4 Custom References task.
Custom Reference 5 When you enter a Reference Name on the
Enable Ad Hoc Project Transaction Custom
References task, Workday displays the reference
name instead of the Workday-delivered custom
reference.

Result
The ad hoc project transactions for the billable project become available for review on the Manage Project
Billing Transactions task.

Next Steps
Review the billable project transactions.
Related Information
Tasks
Create Custom References for Ad Hoc Project Transactions on page 1203
Set Up Worktag Rules for Project Cost and Revenue on page 969
Manage All Project Billing Transactions on page 1211
Manage Project Billing Transactions by Transaction Source on page 1216
Reference
2021R2 What's New Post: Multilevel Project Plans
2023R1 What's New Post: Business Process for Ad Hoc Project Transactions

Reference: Billing Rate Rule Types for Projects

Workday provides 7 billing rate rule types for use in project billing. You can apply the rules and settings
you configure on the contract rate sheet to project time and expense transactions. The contract rate sheet
calculates the project billing rate at a given point in time. You can also define a Reset Option for some
rules to enable you to reset contract rates periodically throughout the contract term.
When you add rule types to a group:
• Workday applies the override rate rules first and cap rules last.
• You can have multiple rules per billing rate rule type.
• You can have only 1 of each billing rate rule type in your set.
• You can order the rules within each group.

Billing Rate Rule Type Description Reset Option Example

Expense Caps Sets a cap on total Yes • Limit airfare to 2,000
(Expense) expenses for a project USD for the project.
or specific expense • Limit total expenses
category. to 20,000 EUR for the
project.

Override Rate (Expense) Sets an override rate as: Not Applicable • Fix hotel rates at 250
• A percentage (either USD per night.
a mark up or a • Offer a 20% discount
discount). on car rentals.
• A specific amount on • Limit meals to 100
expense types for the USD per day.
project.

Override Rate (Misc Sets an override rate on Not Applicable • Fix car rentals at 40
Expense) miscellaneous expenses USD per day.
as a percentage (either • Offer a 15% discount
a markup or discount) or on consulting
as an amount on these services.
dimensions:
• Item (Expense or
Purchase)
• Project Phase
• Project Task
• Spend Category
• Supplier
• Workers

Override Rate (Supplier Sets an override rate Not Applicable • Set a 5% discount
Invoice) on supplier invoices as on other billable
a percentage (either invoices.
a markup or discount) • Set a premium
or as an amount on an rate of 15% on all
expense category. professional services
subcontractors.

Override Rate (Time) Sets an override rate as Not Applicable • Set a 20% discount
a percentage (either a rate for Marion West
mark up or a discount)
or as a specific hour or

Billing Rate Rule Type Description Reset Option Example

amount on these project who's new and still
dimensions: training.
• Project Phase • Set a premium rate
of 10% for all Senior
• Project Role
Consultants.
• Project Task
• Set a premium rate
• Worker for the design phase
of the project since all
workers are outside
consultants and
upper management.

Project Cap (Time) Sets a limit on each Yes • Limit total project
project dimension or to time to 2,000 hours.
the entire project over • Limit the project
time. billing total to
250,000 EUR.
• Limit the design
phase of a project to
500 hours.

Tiered Rate (Time) Sets different rates Yes • Set the first 50 hours
based on tiers (hours or of the project to be
amounts). free.
• Set a discount rate
of 20% after 500
hours worked on the
project.
• Apply a 20% discount
after the project
reaches 50,000 USD.

Project Billing Transactions

Steps: Manage Project Billing Transactions

Prerequisites
• Create and approve a billable project.
• Associate a customer contract with the billable project.
• Create transactions to bill against the project.

Context
You can configure default options for Workday to populate during project billing review. You can also
review billable transactions for projects assigned to your role and perform mass actions on transactions,
including:
• Adjusting amounts.
• Approving transactions.
• Changing billing statuses.
• Creating invoice proposals.

• Recalculating rates.
• Transferring or splitting nonlabor billable transactions.

Steps
1. Set Up Project Billing Configurations on page 1209.
2. Review and manage billable project transactions.
See:
• Manage All Project Billing Transactions on page 1211.
• Manage Project Billing Transactions by Transaction Source on page 1216.
Related Information
Tasks
Steps: Set Up Project Pricing and Billing on page 1195
Reference
Reference: Project Billing Transaction Billing Statuses on page 1226
Reference: Project Billing Transaction Ineligibility Reasons on page 1228

Set Up Project Billing Configurations

Prerequisites
Security: Set Up: Project Billing - Configurations domain in the Project Billing functional area.

Context
You can configure:
• Deferred billable project costs accounting.
• Required fields for Workday to populate when you transfer or split nonlabor billable project transactions
during project billing review.
• Revenue offsets for invoiced billable transactions.
• Workday to recalculate transactions based on billing status.

Steps
1. Access the Set Up Project Billing Configuration task.
2. As you complete the Project Transfer Options tab, consider:
Option Description
Accounting Adjustment Date Select a date for Workday to populate when you
transfer or split paid nonlabor billable project
transactions on the Manage Project Billing
Transactions task.
When you select:
• Use Today's Date, the accounting adjustment
uses the date of the transfer.
• Use Transaction Date, the accounting
adjustment uses the date of the transaction.
Workday requires you to configure an accounting
adjustment date for project transfer.

Accounting Adjustment Reason Select a reason for Workday to populate when

you transfer or split paid nonlabor billable project

Option Description
transactions on the Manage Project Billing
transactions task.
Workday requires you to configure an accounting
adjustment reason for project transfer. You can
configure accounting adjustment reasons on
the Maintain Accounting Adjustment Change
Reason Codes task.

Transfer Reason Required Select to require a transfer reason when you

transfer nonlabor billable project transactions on
the Manage Project Billing transactions task.
3. As you complete the Transfer Reasons tab, consider:
Option Description
Default Select a default transfer reason for Workday
to populate when you transfer unpaid nonlabor
billable project transactions on the Manage
Project Billing Transactions task.
In Use Workday enables this check box when you use
the transfer reason to transfer nonlabor billable
project transactions on the Manage Project
Billing Transactions task.
You can't delete a transfer reason when it's in
use.

4. As you complete the Revenue tab, consider:

Option Description
Revenue Offset for Invoiced Billable Select to prevent the creation of revenue offset
Transactions installments when you've already accrued
revenue.
Enable Deferred Billable Project Costs Select to generate billable project cost recognition
Accounting operational journals for nonlabor billable project
transactions when you recognize revenue.
Once you enable deferred billable project costs
accounting, you can't disable it.

5. As you complete the Billing tab, consider:

Option Description
Automatically Recalculate Transactions Select to recalculate billable project transactions
when there's a change to the associated:
• Billing schedule.
• Billing rate sheet.
• Contract rate sheet.
• Customer contract.
• Standard rate sheet.
When you don't automatically recalculate
transactions, Workday populates the Recalculate
column on the Manage Project Billing

Option Description
Transactions task to identify the billable projects
and transactions that might require recalculation.
Workday doesn't automatically recalculate
transactions when you:
• Add, edit, or delete a project rate rule.
• Add or edit a worker rule billing rate.
• Add or reorder standard billing rate by rules.
• Cancel an invoice resulting in transactions
returning to Ready to Bill status.
• Edit a project.
• Update a worker attribute.

Recalculate Transactions with Billing Status When you select the Automatically Recalculate
Transactions check box, select the billing status
that you want Workday to recalculate.
Reset Invoiced Transactions to Billing Status Select the billing status that you want Workday
to apply to billable project transactions when
you deny, cancel, or credit adjust an invoice. By
default, Workday populates the prompt with a
billing status of Ready to Bill.
Workday doesn't apply the billing status to order
fulfillment or daily project transactions.

Related Information
Concepts
Concept: Set Up Project Billing Configurations on page 1224
Reference
2021R1 What's New Post: Recalculate Billing Rates on Project Billing Transactions
2020R2 What's New Post: Transfer and Split Non-Labor Billable Project Transactions
2021R2 What's New Post: Deferred Billable Project Costs Accounting

Manage All Project Billing Transactions

Prerequisites
Security:
• Manage: Billable Projects domain in the Projects functional area.
• Process: Project Billing - Core domain in the Project Billing functional area.

Context
You can review all transaction sources for your project billing transactions at once, apart from daily rate
transactions. Workday enables you to view aging transactions, view transactions that might require
recalculation, and drill into transactions based on billing status. You can also:
• Adjust transaction hours, rates, and amounts.
• Approve transactions for a project.
• Change the billing status of transactions.
• Create invoice proposals for transactions.
• Filter by and view previously invoiced billable transactions.
• Recalculate transaction amounts using billing rate sheets.

You can add the Manage Project Billing Transactions worklet to your Home page to review project
billing transactions.

Steps
1. Access the Manage Project Billing Transactions task.
Workday displays the search criteria pop up with your previous search criteria saved each time
you access the task.
2. As you complete the search criteria on the project summary view, consider:
Option Description
Billable Projects Select the billable projects that you want to
review.
Workday saves your selection and uses it each
time you access the task.

Show Unbillable Transactions (Optional) Select to display transactions in

Unbillable status.
Workday saves your selection and uses it each
time you access the task.

Review Transactions by Source Clear to view all the transaction sources at once
in the Project Transactions grid on the transaction
details view.
Workday saves this selection and uses it each
time you access the task.

Review Transactions in Detail (Optional) Select to navigate directly to the

transaction details view.
Workday saves this selection and uses it each
time you access the task.

Group Results By (Optional) Select an option to group the

transactions by on the project summary
view. Displays when you clear the Review
Transactions in Detail check box.
Workday saves this selection and uses it each
time you access the task.

3. (Optional) In the Aging Summary section on the project summary view, consider:

4. On the project summary view, select the projects that you want to either review in detail or perform
mass actions on.
You can approve, recalculate rates, create customer invoice proposals, or modify amounts for time
billable project transactions in mass.
5. (Optional) As you complete the mass actions on the project summary view, consider:
Option Description
Approve Click to approve billable transactions at the
project level. Workday updates the status of
Awaiting Review and On Hold billable project
transactions to Ready to Bill.
Recalculate Rates Click to recalculate rates for billable transactions
at the project level. Workday recalculates rates for
billable project transactions in Awaiting Review,
On Hold, and Ready to Bill status.
Create Invoice Proposal Click to create customer invoice proposals for
billable transactions at the project level. Workday
creates customer invoice proposals for billable
project transactions in Ready to Bill status.
Displays when you click the More button.

Submit Mass Modify Amounts Click to mass adjust non-zero amounts for time
billable transactions at the project level. When
you submit mass modify amounts for time billable
project transactions, you must also enter a New
Total Amount to Bill. Workday mass modifies
amounts for time billable project transactions:
• For original and offset billable transactions.
• In Awaiting Review, On Hold, and Ready to Bill
status.
• With negative and positive billable amounts.
Displays when you click the More button.
Note: This option enables you to complete the
same action as the Modify Amount for Time mass
action on the transaction details view, but at the
project level.

6. (Optional) As you complete the search criteria on the transaction details view, select Do Not Bill from
the Billing Status prompt to display transactions in Do Not Bill status.
7. As you complete the header on the transaction details view, consider:
Option Description
Total Amount to Bill The sum of the Amount to Bill for the selected
transactions.
Currency Displays when the selected transactions have the
same billing currency.
Billing Status Select a new billing status for the selected
transactions and click Apply.
Displays when you select Change Billing Status
from the Mass Action prompt.

Option Description
Original Amount to Bill The sum of the Amount to Bill for the selected
Time transactions.
Displays when you select Modify Amount for Time
from the Mass Action prompt.

New Amount to Bill To adjust the Amount to Bill, enter a:

• Positive value if the Billable Amount on the
selected Time transactions is positive.
• Negative value if the Billable Amount on
the selected Time transactions is negative.
Example: Enter -100.00 for a billable amount
of (150.00).
Workday determines the percentage of each
transaction in relation to the total billable amount.
Then, Workday applies that percentage to the
New Amount to Bill that you enter.
Example: You select 2 Time transactions.
Transaction 1 has a Billable Amount of $150.
Transaction 2 has a Billable Amount of $480.
The total billable amount for the 2 transactions is
$630. Transaction 1 is 23.809524% (150÷630)
of the total billable amount and Transaction 2
is 76.190476% (480÷630). You enter a New
Amount to Bill of $500. Workday automatically
populates the Amount to Bill with $119.05 for
Transaction 1 and $380.95 for Transaction 2.
Displays when you select Modify Amount for Time
from the Mass Action prompt.

Zero Amount to Bill Select to update the Amount to Bill to zero for
the selected Time transactions. Workday clears
the New Amount to Bill field when you select this
check box.
Displays when you select Modify Amount for Time
from the Mass Action prompt.

Adjustment Amount The difference between the Original Amount to

Bill for the selected Time transactions and the
New Amount to Bill. When you click:
• Apply, Workday prorates the adjustment
amount across the selected transactions and
populates the revenue adjustment reason on
the transactions.
• Submit, Workday routes the transactions for
review and approval using the Adjustment
business process. You can drill down on the
Adjustment Count column to view the manual
adjustments.
Displays when you select Modify Amount for Time
from the Mass Action prompt.

Option Description
Adjustment Reason When you leave this prompt blank, Workday
populates the selected Time transactions with
the default revenue adjustment reason that
you configured on the Maintain Revenue
Adjustment Reasons task.
Displays when you select Modify Amount for Time
from the Mass Action prompt.

8. (Optional) On the Billing Review tab in the Project Transactions grid, you can change the billing
status, hours to bill, rate to bill, and amount to bill for individual transactions. You can also filter by and
view previously invoiced billable transactions and view billable transactions that require recalculation.
Workday doesn't recalculate offset amounts or populate the Recalculate column for usage-based
transactions.
9. (Optional) On the Prepaid tab in the Project Transactions grid, select the Exclude from Prepayment
check box to exclude transactions from prepayment consumption.
10.(Optional) On the Custom References tab in the Project Transactions grid, edit ad hoc project
transaction details for billing and reporting purposes.
Workday displays this tab when you enable custom references for ad hoc project transactions.
11.Submit, recalculate rates, or create customer invoice proposals for the selected transactions.

Next Steps
Create:
• Customer invoice proposals for billable transactions.
• Customer invoices from contracts.
• Revenue installments for billable transactions.
Related Information
Concepts
Concept: Project Time Entry
Concept: Set Up Project Billing Configurations on page 1224
Tasks
Steps: Set Up Project Pricing and Billing on page 1195
Steps: Manage Billable Projects on Usage-Based Transactions on page 836
Steps: Manage Customer Invoice Proposals on page 891
Create Custom References for Ad Hoc Project Transactions on page 1203
Create Customer Invoices from Contracts on page 895
Create Revenue Installments for Billable Transactions on page 911
Create Expense Reports on page 1565
Create Supplier Invoices on page 1395
Reference
2022R2 What's New Post: Billable Projects on Usage-Based Transactions
2021R1 What's New Post: Prepaid Billing for Installments and Transactions
2021R1 What's New Post: Recalculate Billing Rates on Project Billing Transactions
2020R1 What's New Post: Manage Project Billing Transactions
2020R1 What's New Post: Consolidated Invoice Billing
Reference: Project Billing Transaction Billing Statuses on page 1226
Reference: Project Billing Transaction Ineligibility Reasons on page 1228

Manage Project Billing Transactions by Transaction Source

Prerequisites
• To transfer nonlabor billable project transactions to another project, configure an accounting adjustment
date and an accounting adjustment reason.
• Security:
• Manage: Billable Projects domain in the Projects functional area.
• Process: Project Billing - Core domain in the Project Billing functional area.

Context
You can review all transaction sources for your project billing transactions, apart from daily rate
transactions. Workday enables you to view aging transactions, view transactions that might require
recalculation, and drill into transactions based on billing status. You can also:
• Adjust transaction hours, rates, and amounts.
• Approve transactions for a project.
• Change the billing status of transactions.
• Create invoice proposals for transactions.
• Filter by and view previously invoiced billable transactions.
• Recalculate transaction amounts using billing rate sheets.
• Split nonlabor billable transactions into multiple transactions.
• Transfer billable transactions to another project, phase, or task.
You can add the Manage Project Billing Transactions worklet to your Home page to review project
billing transactions.

Show Unbillable Transactions (Optional) Select to display transactions in

Unbillable status.
Workday saves your selection and uses it each
time you access the task.

Review Transactions by Source Select to view project billing transactions by

transaction source on the transaction details view.
Workday saves your selection and uses it each
time you access the task.

Review Transactions in Detail (Optional) Select to navigate directly to the

transaction details view.

Option Description
Workday saves your selection and uses it each
time you access the task.

Group Results By (Optional) Select an option to group the

transactions by on the project summary
view. Displays when you clear the Review
Transactions in Detail check box.
Workday saves your selection and uses it each
time you access the task.

3. (Optional) In the Aging Summary section on the project summary view, consider:

Card Description
Transactions Awaiting Review Review work in progress (WIP) billable
transactions. You can view billable transactions
grouped by aging days, project, and currency.
Notifications Displays when you modify the associated
standard billing rate sheet rules on the Maintain
Standard Billing Rates by Rules task and have
billable project transactions that might require
recalculation.
4. On the project summary view, select the projects that you want to either review in detail or perform
mass actions on.
You can approve, recalculate rates, create customer invoice proposals, or modify amounts for time
billable project transactions in mass.
5. (Optional) As you complete the mass actions on the project summary view, consider:
Option Description
Approve Click to approve billable transactions at the
project level. Workday updates the status of
Awaiting Review and On Hold billable project
transactions to Ready to Bill.
Recalculate Rates Click to recalculate rates for billable transactions
at the project level. Workday recalculates rates for
billable project transactions in Awaiting Review,
On Hold, and Ready to Bill status.
Create Invoice Proposal Click to create customer invoice proposals for
billable transactions at the project level. Workday
creates customer invoice proposals for billable
project transactions in Ready to Bill status.
Displays when you click the More button.

Option Description
• In Awaiting Review, On Hold, and Ready to Bill
status.
• With negative and positive billable amounts.
Displays when you click the More button.
Note: This option enables you to complete the
same action as the Modify Amount for Time mass
action on the transaction details view, but at the
project level.

6. (Optional) As you complete the search criteria on the transaction details view, select Do Not Bill from
the Billing Status prompt to display transactions in Do Not Bill status.
7. As you complete the header on the transaction details view, consider:
Option Description
Total Amount to Bill The sum of the Amount to Bill for the selected
transactions for each transaction source.
Currency Displays when the selected transactions have the
same billing currency.
Billing Status Select a new billing status for the selected
transactions and click Apply.
Displays when you select Change Billing Status
from the Mass Action prompt.

Original Amount to Bill The sum of the Amount to Bill for the selected
Time transactions.
Displays when you select Modify Amount for Time
from the Mass Action prompt.

New Amount to Bill To adjust the Amount to Bill, enter a:

Option Description
Displays when you select Modify Amount for Time
from the Mass Action prompt.

Adjustment Amount The difference between the Original Amount to

Adjustment Reason When you leave this prompt blank, Workday

populates the selected Time transactions with
the default revenue adjustment reason that
you configured on the Maintain Revenue
Adjustment Reasons task.
Displays when you select Modify Amount for Time
from the Mass Action prompt.

Transfer To Project Plan Task Select an option to mass transfer Time

transactions and click Apply.
The prompt includes all tasks from all phase
levels for the billable project.
Displays when you select Project Transfer from
the Mass Action prompt.

Transfer to Project / Phase / Task Select an option to mass transfer nonlabor billable
transactions and click Apply.
When you transfer transactions to a:
• Project plan task, Workday displays all tasks
from all phase levels for the billable project.
• Project plan phase, Workday displays only top-
level phases for the billable project.
Displays when you select Project Transfer from
the Mass Action prompt.

8. (Optional) On the Billing Review tab, you can change the billing status, hours to bill, rate to bill, and
amount to bill for individual transactions. You can also filter by and view previously invoiced billable
transactions and view billable transactions that require recalculation. Workday doesn't recalculate offset
amounts or populate the Recalculate column for usage-based transactions.
9. As you complete the Project Transfer tab, consider:
Option Description
Transfer To Project Plan Task (Time) Select an option to transfer individual Time
transactions.
Displays all tasks from all phase levels for the
billable project.

Transfer To Project / Phase / Task (Expense and Supplier Invoice) Select an

option to transfer individual nonlabor billable
transactions.
When you transfer:
• Transactions to a project plan task, Workday
displays all tasks from all phase levels for the
billable project.
• Transactions to a project plan phase, Workday
displays only top-level phases for the billable
project.
• Paid nonlabor billable transactions, Workday
creates an accounting adjustment line with
details from the Supplier Invoice or Expense
Report source transaction.
• Unpaid nonlabor billable transactions,
Workday updates the Supplier Invoice or
Expense Report lines on the source document
with the new project worktag.

Split (Expense and Supplier Invoice) Click to allocate a

percentage or amount to split the nonlabor billable
transaction into multiple transactions without
changing the original transaction amount.
When you split:
• Paid nonlabor billable transactions, Workday
creates an accounting adjustment line with
details from the Supplier Invoice or Expense
Report source transaction.
• Unpaid nonlabor billable transactions,
Workday creates a Supplier Invoice line split or
an Expense Report itemization.

Transfer Reason (Expense and Supplier Invoice) Workday

populates this field with the transfer reason that
you configured on the Set Up Project Billing
Configuration task.
Accounting Adjustment Date (Expense and Supplier Invoice) Workday
populates this field with the date that you
configured on the Set Up Project Billing
Configuration task.

Option Description
Displays on paid nonlabor billable project
transactions only.

Accounting Adjustment Reason (Expense and Supplier Invoice) Workday

populates this field with the reason that you
configured on the Set Up Project Billing
Configuration task.
Displays on paid nonlabor billable project
transactions only.

10.(Optional) On the Prepaid tab, select the Exclude from Prepayment check box to exclude
transactions from prepayment consumption.
11.(Optional) On the Worktags tab, view prior and current worktags when you transfer or split nonlabor
billable transactions.
12.(Optional) On the Custom References tab, edit ad hoc project transaction details for billing and
reporting purposes.
Workday displays this tab when you enable custom references for ad hoc project transactions.
13.Submit, recalculate rates, or create customer invoice proposals for the selected transactions.

Next Steps
Create:
• Customer invoice proposals for billable transactions.
• Customer invoices from contracts.
• Revenue installments for billable transactions.
Related Information
Concepts
Concept: Project Time Entry
Concept: Set Up Project Billing Configurations on page 1224
Tasks
Steps: Set Up Project Pricing and Billing on page 1195
Steps: Manage Billable Projects on Usage-Based Transactions on page 836
Steps: Manage Customer Invoice Proposals on page 891
Create Custom References for Ad Hoc Project Transactions on page 1203
Create Customer Invoices from Contracts on page 895
Create Revenue Installments for Billable Transactions on page 911
Create Expense Reports on page 1565
Create Supplier Invoices on page 1395
Reference
2022R2 What's New Post: Billable Projects on Usage-Based Transactions
2021R1 What's New Post: Prepaid Billing for Installments and Transactions
2021R1 What's New Post: Recalculate Billing Rates on Project Billing Transactions
2020R2 What's New Post: Transfer and Split Non-Labor Billable Project Transactions
2020R1 What's New Post: Manage Project Billing Transactions
2020R1 What's New Post: Transfer Non-Labor Project Transactions
2020R1 What's New Post: Consolidated Invoice Billing
2021R2 What's New Post: Multilevel Project Plans
Reference: Project Billing Transaction Billing Statuses on page 1226

Reference: Project Billing Transaction Ineligibility Reasons on page 1228

Review Billable Project Transactions

Prerequisites
Security:
• Manage: Billable Projects domain in the Projects functional area.
• Process: Project Billing - Core domain in the Project Billing functional area.

Context
Workday recommends that you use the Manage Project Billing Transactions task to review your billable
transactions instead. Workday will no longer maintain this task going forward.
You can review and approve all billable transactions for your projects before invoicing. Workday displays
billable transaction rows and the current status of each transaction. For deleted time block transactions in
Time Tracking, Workday generates a negative offset entry. Negative offset entries include any applicable
billing rate rule offsets, so you can accurately track time block deletions. You can:
• Approve transactions.
• Change billable amounts.
• Recalculate billing rates.
• Place transactions on hold.
• Transfer time between projects.

Steps
1. (Optional) Exclude recoverable tax from your expense and supplier invoice billable amounts.
Select the Only Include Non-Recoverable Tax on Billable Transactions check box on the Edit
Tenant Setup - Financials task. You can clear the Billable Transaction Tax check box on the
customer contract line to remove the tax.
2. Access the Review Billable Project Transactions task.
3. As you complete the selection criteria, consider:
Option Description
Phase Displays only top-level phases for the billable
project.
Task Displays all tasks from all phase levels for the
billable project.
4. As you complete the task, consider:

Transaction Source Option Description

Time Approve Once approved, you can
generate invoices against the
transaction.
Time Edit Click Edit to drill into the
individual transactions. You can
change the hours or rates to bill
and approve time transactions
individually, if needed.
Time Transfer Project To transfer project time between
projects, select Transfer

Transaction Source Option Description

Project from the related actions
menu.
Workday displays all tasks
from all phase levels for the
billable project in the Transfer
to Project Plan Task prompt.
After you submit the transfer,
Workday Time Tracking
validates the time.
When you transfer time between
projects, Workday duplicates
revenue installments to the
new project. You must delete
installments for the original
project.

Expense, Misc Expense, and Recalculate Rates Select to rerun the billing rate
Time rule engine to recalculate:
• Corrected caps.
• Corrected tiered rates.
• New effective rates.
The engine recalculates all
transactions, except transactions
with a Do Not Bill status.
When you recalculate rates,
you must update the amounts
on your revenue installments
associated with the billable
transactions.

Expense, Misc Expense, Modify Amounts You can adjust the amount to bill
Supplier Invoice, and Time or reduce the amount to zero.
Workday displays previous
adjustments in the Adjustment
Count column.
For Time, click Edit to access
this option.
When you modify amounts, you
must update the associated
revenue recognition installment
amounts.

Next Steps
• Create customer invoices for billable transactions using the Create Customer Invoices from
Contracts task.
• Update revenue installments for billable transactions using the Schedule Revenue Installments for
Billable Transactions task.

Related Information
Concepts
Concept: Project Time Entry
Tasks
Steps: Set Up Project Pricing and Billing on page 1195
Steps: Manage Project Billing Transactions on page 1208
Steps: Manage Customer Invoice Proposals on page 891
Create Customer Invoices from Contracts on page 895
Create Revenue Installments for Billable Transactions on page 911
Create Expense Reports on page 1565
Create Supplier Invoices on page 1395
Reference
2020R1 What's New Post: Manage Project Billing Transactions
2021R2 What's New Post: Multilevel Project Plans

Concept: Set Up Project Billing Configurations

Workday enables you to set up tenant-wide configurations for your billable project transactions.

Project Transfer Options

You can configure required fields for Workday to populate when you transfer or split nonlabor billable
project transactions during project billing review. Workday creates an accounting adjustment when you
transfer or split paid nonlabor billable project transactions on the Manage Project Billing Transactions
task. Nonlabor billable project transactions include expense reports and supplier invoices. When you
modify paid expense reports or supplier invoices, Workday uses the Spend account posting rule to create
an accounting adjustment. You can configure an:
• Accounting adjustment date.
• Accounting adjustment reason.
Workday uses the accounting adjustment date to determine which date to use for the journal adjustment.
All accounting adjustments require an accounting adjustment reason.
When you transfer:
• A paid nonlabor billable project transaction, you can view the new project worktag on the Accounting
Adjustment tab of the associated supplier invoice or expense report.
• An unpaid nonlabor billable project transaction, you can view the new project worktag directly on the
source transaction line.
When you require a:
• Transfer reason, select a reason on the Manage Project Billing Transactions task for each nonlabor
billable transaction that you transfer.
• Comment on time entry changes using the Time Entry tab on the Edit Time Entry Template task,
select a time block comment on the Manage Project Billing Transactions task. Workday requires
a time block comment for each time billable transaction that you transfer. Enabling this option also
impacts updates made to time blocks.

Transfer Reasons
When you require a transfer reason, configure transfer reasons and set 1 transfer reason as default.
Workday only uses transfer reasons for reporting purposes.

Revenue
You can enable or clear the Revenue Offset for Invoiced Billable Transactions check box at any time.
When you:
• Enable the check box and accrue revenue, Workday doesn't reset the revenue accrual status for
billable transactions or create offset installments upon invoicing.
• Clear the check box, Workday evaluates the worktag derivation rules for the billable transaction upon
invoicing. If there's a change to the worktag on the billable transaction, Workday updates the revenue
accrual status and creates an offset revenue installment.
Example: On the Worktag Rule Configuration tab of the project hierarchy, you configure revenue to
follow the worker. You accrue revenue on 11/15/2022 and the cost center for the worker is 123. On
12/20/2022, you transfer the worker to cost center 124. You invoice the customer on 12/31/2022.

Revenue Offset for Invoiced Billable Revenue Offset for Invoiced Billable
Transactions Check Box Enabled Transactions Check Box Cleared
Revenue installment accounting on 11/15/2022 for Revenue installment accounting on 11/15/2022 for
cost center 123: cost center 123:
• Unbilled Receivables 1000 • Unbilled Receivables 1000
• Revenue 1000 • Revenue 1000

Upon invoicing on 12/31/2022: Upon invoicing on 12/31/2022 for cost center 123:
No accounting • Revenue 1000
• Unbilled Receivables 1000

Upon invoicing on 12/31/2022 for cost center 124:

• Unbilled Receivables 1000
• Revenue 1000

You can use the Enable Deferred Billable Project Costs Accounting check box to generate operational
journals for billable expense reports and supplier invoices when you recognize revenue. Workday uses the
Spend account posting rule to create operational journals. For the Spend account posting rule, you can
configure the resulting ledger account to use an accounting treatment of:
• Cost of Sales to post to a cost or an income statement ledger account.
• Deferred Project Cost to post to an asset or a balance sheet ledger account.
Example: You select the Enable Deferred Billable Project Costs Accounting check box and configure
the resulting ledger account in the Spend account posting rule:

Resulting Ledger Account Dimension Values

Work in Progress Accounting Treatment Deferred Project Cost
Cost of Sales Accounting Treatment Cost of Sales

You create a supplier invoice line with a billable project worktag for $100 and view the resulting accounting:

Ledger Account Debit Amount Credit Amount

Work in Progress 100.00 USD 0.00 USD
Accounts Payable 0.00 USD 100.00 USD

You create a revenue installment and view the resulting accounting:

Ledger Account Debit Amount Credit Amount

Deferred Revenue: Product and 100.00 USD 0.00 USD
Sales
Revenue 0.00 USD 100.00 USD

You create revenue recognition accounting for an accrued or deferred revenue treatment, and you approve
a customer invoice for an invoice revenue treatment. Workday automatically creates this secondary
operational journal:

Ledger Account Debit Amount Credit Amount

Cost of Sales 100.00 USD 0.00 USD
Work in Progress 0.00 USD 100.00 USD

Once you enable deferred billable project costs accounting, you can't disable it.

Billing
You can configure Workday to automatically recalculate transactions when there's a change to the
associated:
• Billing schedule.
• Billing rate sheet.
• Contract rate sheet.
• Customer contract.
• Standard rate sheet.
When you enable the Automatically Recalculate Transactions check box, you can specify which
transaction billing statuses Workday recalculates.
When you don't automatically recalculate transactions, Workday populates the Recalculate column on
the Manage Project Billing Transactions task to identify the billable projects and transactions that might
require recalculation. You can also create custom reports to view billable projects and transactions that
might require recalculation.
You can configure Workday to apply a new billing status to billable project transactions when you deny,
cancel, or credit adjust an invoice. When you schedule invoicing to occur, you can update the Reset
Invoiced Transaction with Billing Status prompt to Awaiting Review to re-evaluate transactions upon
invoice cancellation.
Related Information
Concepts
Concept: Project Time Entry
Tasks
Set Up Project Billing Configurations on page 1209
Manage All Project Billing Transactions on page 1211
Manage Project Billing Transactions by Transaction Source on page 1216

Reference: Project Billing Transaction Billing Statuses

You can use these billing statuses to track your project billing transactions:

Billing Status Description

Approval in Process Workday automatically displays this billing status
when a business process needs approval. You

Billing Status Description

can't take action on transactions until you approve
the business process.
Awaiting Review You can review transactions and change the
transaction billing status to Ready to Bill.
Billed The transaction is completely billed and has no
remaining amount to bill.
Billing in Progress Workday displays this billing status when:
• The customer invoice isn't yet completed or
approved.
• No accounting adjustment or project transaction
adjustment is terminated, canceled, or
completed.
• The transaction is paid by a noncanceled
and noncredited customer invoice line on a
nonzero amount due invoice with no prepaid
consumption lines.
• The transaction is paid by a noncanceled
customer invoice line (for grants).

Closed Workday displays this status when there’s no

accounting for the transactions or the customer
invoice is complete.
Do Not Bill You can't include transactions with this billing status
on customer invoices.
Fixed Fee The transaction has a matching fixed fee or
value-based project contract line with a status of
Complete or Active.
On Hold When you:
• Enable the Independent Revenue Processing
check box on the revenue recognition schedule,
Workday automatically accrues revenue for On
Hold billable transactions.
• Disable the Independent Revenue Processing
check box on the revenue recognition schedule
and place transactions On Hold, Workday
temporarily prevents billing and revenue
recognition from occurring.

Partially Billed The transaction has a remaining amount to bill.

Pending Award Line Date Review Workday displays this status on cost reimbursable
lines when you settle expenses that fall outside
the dates on award lines. To bill these cost
reimbursable lines to the sponsor, change the
spend budget date or the award line dates to
match.
See Set Up Award Costs Processing Rules.

Ready to Bill You can include transactions with this billing status
on customer invoices.

Billing Status Description

Unbillable Workday automatically displays this billing status
when there's an issue on the customer contract
line or billing schedule. You can't take action on
transactions until you resolve the issue.
Example: You entered dates on the customer
contract line that are outside of the transaction date
range, creating an unbillable transaction.

Related Information
Tasks
Manage All Project Billing Transactions on page 1211
Manage Project Billing Transactions by Transaction Source on page 1216

Reference: Project Billing Transaction Ineligibility Reasons

You can use these ineligibility reasons to view why a nonlabor billable transaction is ineligible for transfer
or split during project billing review.

Ineligibility Reason Transfer or Split Eligibility More Information

Expense report isn't approved. Ineligible for transfer and split. You edited the expense report
during an in process transfer
or split. To transfer or split the
expense report, approve the
source document.
Expense report isn't editable. Ineligible for transfer. You can't edit expense reports
with:
• Intercompany billable
transactions.
• Tax declarations.
• Unpaid negative
reimbursements.

Expense report line has a fixed Ineligible for split. Examples:

expense item.
• Mileage.
• Per diem expenses.
• Travel journal items.

Supplier invoice isn't approved. Ineligible for transfer and split. You edited the supplier invoice
during an in process transfer
or split. To transfer or split the
supplier invoice, approve the
source document.
Supplier invoice isn't editable. Ineligible for transfer and split. You can't edit supplier invoices
with:
• A status of Canceled.
• A gapless document number.
• A paid or in progress payment.

Ineligibility Reason Transfer or Split Eligibility More Information

• Lines that have a Project
Transaction Adjustment Event
business process in progress.

Supplier invoice line has bill, Ineligible for transfer.

replace purchase orders, and
worktag balancing.
Supplier invoice line has Ineligible for split.
purchase orders split by quantity.
Supplier invoice line is split by Ineligible for split.
quantity.
Supplier invoice template line is Ineligible for split.
recurring.
Transaction has intercompany Ineligible for transfer and split.
billing.
Transaction has supplier invoices Ineligible for transfer and split. You can only transfer or split
associated with a prepaid unpaid transactions.
schedule.
Transaction is an ad hoc Ineligible for transfer and split. You can't transfer or split ad hoc
transaction or a capital project project transactions.
transaction.
Transaction is in process of an Ineligible for transfer and split. To transfer or split the
accounting adjustment or another transaction, approve the
type of billing review update. accounting adjustment or billing
review update.
Transaction requires a budget Ineligible for transfer and split.
check.

Related Information
Tasks
Manage All Project Billing Transactions on page 1211
Manage Project Billing Transactions by Transaction Source on page 1216
Reference
2020R2 What's New Post: Transfer and Split Non-Labor Billable Project Transactions

Deferred Billable Project Costs Accounting

Setup Considerations: Deferred Billable Project Costs Accounting

You can use this topic to help make decisions when planning your configuration and use of deferred
billable project costs accounting. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is
You can configure Workday to generate secondary journal entries to relieve work-in-progress amounts and
record them as costs when you recognize revenue on a billable project.

Business Benefits
Deferred billable project costs accounting reduces manual reconciliation by automating deferred cost
entries associated with these transactions:
• Expense reports.
• Supplier invoices.

Use Cases
You complete work on a project and incur costs, but you don't immediately bill the costs on a customer
invoice. Use deferred billable project costs accounting to accrue the work-in-progress amounts and record
them as costs associated with the billable project when you recognize revenue.

Questions to Consider

Questions Considerations
Where do operational journals post for expense When you post the source transaction, Workday
report billable transactions? creates operational journals that:
• Debit work-in-progress amounts using the asset
resulting ledger account in the Spend account
posting rule.
• Credit the Employee Expense Payable ledger
account in the Expenses Payable account
posting rule.

Where do operational journals post for supplier When you post the source transaction, Workday
invoice billable transactions? creates operational journals that:
• Debit work-in-progress amounts using the asset
resulting ledger account in the Spend account
posting rule.
• Credit the Accounts Payable ledger account in
the Payables account posting rule.

Recommendations
You can debit the cost of sales ledger account using the revenue category on the customer contract line
when you create invoices or revenue recognition accounting. Configure the Revenue Category dimension
in the cost resulting ledger account for the Spend account posting rule.

Requirements
You must confirm that you want to enable deferred billable project costs accounting.
For the Spend account posting rule, configure these resulting ledger accounts:
• Asset using a Deferred Project Cost accounting treatment.
• Cost using a Cost of Sales accounting treatment.

Limitations
Once you enable deferred billable project costs accounting, you can't disable it.
Deferred billable project costs accounting doesn't support:
• Ad hoc project transactions.
• Billable source transaction lines with capital project worktags.
• Billable source transaction lines with asset or inventory tracking spend categories.

Tenant Setup
To define tenant-wide configurations, enable deferred billable project costs accounting in the Revenue tab
on the Set Up Project Billing Configuration task.

Security

Domains Considerations
Process: Billing - Invoicing in the Customer Create customer invoices from contracts.
Contracts and Project Billing functional areas.
Process: Project Billing - Invoicing in the Project
Billing functional area.

Process: Billing Schedule - Core in the Customer Create consolidated billing schedules for customer
Contracts and Project Billing functional areas. contracts.
Process: Revenue Schedule - Core in the Create:
Customer Contracts and Project Billing functional
• Revenue installments for billable transactions.
areas.
• Revenue recognition schedules for customer
contracts.

Set Up: Accounting Rules in the Common Financial Configure the asset and cost resulting ledger
Management functional area. accounts for the Spend account posting rule.
Set Up: Payroll - Company Specific (Accounting) in
the Core Payroll functional area.

Set Up: Project Billing - Configurations in the Enable deferred billable project costs accounting.
Project Billing functional area.

Business Processes

Business Processes Considerations

Customer Contract Event Create and approve customer contracts.
Customer Invoice Event Create and approve customer invoices.
Expense Report Event Create and approve billable expense reports.
Revenue Recognition Installment Event Create and approve revenue recognition
accounting.
Supplier Invoice Event Create and approve billable supplier invoices.

Reporting
You can use these report data sources to create custom reports that display information on deferred
billable project costs:

• Deferred Billable Project Cost Lines

• Deferred Billable Project Costs

Integrations

Web Services Considerations

Put Resource Category Workday doesn't support these accounting
treatment values:
• Cost of Sales
• Deferred Project Cost

• Submit Expense Report Workday doesn't support billable capital project

• Submit Expense Report for Applicant worktags on expense reports and supplier invoices.
• Submit Expense Report for Non-Worker
• Submit Supplier Invoice
• Supplier Invoice Adjustment

• Submit Supplier Invoice Workday doesn't support spend categories with

• Supplier Invoice Adjustment asset or inventory tracking on expense reports and
supplier invoices.

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Revenue Recognition Accounting on page 940
Reference
2021R2 What's New Post: Deferred Billable Project Costs Accounting

Steps: Set Up Deferred Billable Project Costs Accounting

Prerequisites
Create and approve a billable project.

Context
You can set up deferred billable project costs accounting to relieve work-in-progress amounts and
record them as costs of sales. When you recognize revenue on a project, Workday automatically creates
secondary journal entries associated with expense report and supplier invoice transactions for a billable
project. When the billable project on the customer contract line has a revenue treatment of:
• Accrued or Deferred, Workday recognizes revenue and creates secondary journal entries at the time of
revenue recognition accounting.
• Invoice, Workday recognizes revenue and creates secondary journal entries at the time of invoicing.

Steps
1. Set Up Project Billing Configurations on page 1209.
Select these check boxes:
• Enable Deferred Billable Project Costs Accounting
• I understand that I can't disable deferred billable project costs accounting once it's enabled
2. Set Up Account Posting Rules on page 71.
For the spend account posting rule, configure these options:

Resulting Ledger Account Dimension Values

Asset Accounting Treatment Deferred Project Cost
Cost Accounting Treatment Cost of Sales
Cost Revenue Category
3. (Optional) Assign Company Accounting Details on page 62.
You can configure Workday to post Billable Project Cost Recognition journals using either the
accounting date or the invoice approval date. Select Customer Invoice from 1 of these prompts:
• Allow Accounting in Arrears to post journals at the time of invoicing using the accounting date.
• Allow Accounting by Approval Date to post journals using the invoice approval date.
4. Create Customer Contracts on page 839.
Workday uses the revenue category on the customer contract line to debit the cost of sales ledger
account.
5. Create Expense Reports on page 1565.
On the expense report lines, select:
• A billable project, project phase, or project task from the Worktags prompt.
• The Billable check box.
6. Create Supplier Invoices on page 1395.
On the supplier invoice lines, select:
• A billable project, project phase, or project task from the Worktags prompt.
• The Billable check box.
7. Create Consolidated Billing Schedules for Customer Contracts on page 877.
8. Create Revenue Recognition Schedules for Customer Contracts on page 905.
9. Create Customer Invoices from Contracts on page 895.
10.Create Revenue Installments for Billable Transactions on page 911.
11.Access the Create Revenue Recognition Accounting task.
Configure the Revenue Recognition Installment Event business process and security policy in the
Customer Contracts and Project Billing functional areas.

Result
Workday creates a Billable Project Cost Recognition operational journal using the spend account posting
rule.
Related Information
Concepts
Concept: Revenue Recognition Accounting on page 940
Reference
2021R2 What's New Post: Deferred Billable Project Costs Accounting

Percent Complete Revenue Recognition

Setup Considerations: Percent Complete Revenue Recognition

You can use this topic to help make decisions when planning your configuration and use of percent
complete revenue recognition. It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
Workday enables you to recognize revenue for fixed-fee projects based on the percentage of project
completion.

Business Benefits
Percent complete revenue recognition reduces the manual reconciliation and calculations needed to
identify the percentage of project completion. You can:
• Create percent complete configurations to source actual costs and total estimated costs.
• Recognize revenue on a project as a percent complete by cost or hours.
• Approve percent complete revenue recognition before generating installments.

Use Cases
Use percent complete revenue recognition when your company needs to:
• Generate percent complete calculations by cost or hours.
• Recognize revenue as you log transactions against a project.
• Recognize revenue for fixed-fee projects as a percent complete.

Questions to Consider

Questions Considerations
Where do you source the cost factors from to You can create percent complete configurations to
calculate the percent complete of a project? source:
• The actual cost from your journal entries.
• The total estimated cost from your billable
project budget.

Where do you source the hours factors from to Workday sources:

calculate the percent complete of a project?
• The actual hours from your time entries.
• The total estimated hours from the task resource
or resource forecast within your billable project.

What plan calculation type do you use for your Workday supports these estimated cost factors for
projects? percent complete configurations:
• Baseline

Questions Considerations
• Estimated Budget
• Forecast
• Manual Input

How do you recognize revenue for percent You can configure Workday to apply cost or hours
complete? factors to the contract amount on a cumulative
basis for each billable project.

Recommendations
To reduce manual reconciliation and calculations, Workday recommends that you create percent complete
configurations to source actual costs and total estimated costs.

Requirements

Features Considerations
Cost To recognize revenue for percent complete
projects, you must create and approve a billable
project with a budget.
Project Budget Plans Workday requires a project budget to source the
total estimated costs when you create percent
complete configurations to recognize revenue.
Estimated Cost Factor The estimated cost factor on the percent complete
configuration must match the plan category on the
related project.
Currency These currencies must match the project company
currency:
• Estimated cost factor.
• Manual journal entry.
When the manual journal entry currency doesn't
match the project company currency, Workday
changes the actual cost to zero.

Limitations

Features Considerations
Negative Percent Complete Configurations When your percent complete configuration results
in a negative cost, Workday changes the actual
cost to zero.
Percent Complete Configurations Workday only supports percent complete
configurations for the total cost of your project.

Tenant Setup
No impact.

Security

Domains Considerations
Manage: Project Details in the Project Tracking View project completion for revenue recognition.
functional area.
Set Up: Revenue - Percent Complete in the Create, edit, manage, and view percent complete
Customer Contracts and Project Billing functional configurations.
areas.

Business Processes

Business Processes Considerations

Accounting Journal Event Create and approve accounting journals related to
project transactions.
Customer Contract Event Create and approve customer contracts.
Percent Complete Project Event Create and approve revenue recognition for percent
complete projects.
Revenue Recognition Schedule Event Create and approve revenue recognition schedules
for percent complete projects.

Reporting
You can access the Manage Percent Complete Configurations report to view your percent complete
configurations.
You can use these report data sources to create custom reports that display percent complete project
details:
• Customer Contract Lines
• Percent Complete Configurations
• Percent Complete Lines

Integrations

Web Services Considerations

Get Percent Complete Configurations Retrieves percent complete configurations.
Get Percent Complete for Revenue Retrieves percent complete projects available for
revenue recognition.
Put Percent Complete Configuration Adds or updates percent complete configurations.
Submit Percent Complete for Revenue Submits percent complete projects for revenue
recognition.

Connections and Touchpoints

Features Considerations
Customer Contracts You can create revenue recognition schedules for
percent complete projects on customer contracts.

Features Considerations
Expenses You can use expenses to calculate the percent
complete of a project.
Financial Accounting You can create operational journals for percent
complete revenue recognition.
Project Billing You can use billable project transactions to
calculate the percent complete of a project.
Projects You can recognize revenue for your projects.
Time Tracking You can use the time tracked on billable projects to
calculate the percent complete of a project.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Concepts
Concept: Project Billing on page 1248
Tasks
Create Customer Contracts on page 839
Create Projects on page 1019
Create Percent Complete Configurations for Projects on page 1238
Review Percent Complete Calculations for Revenue Recognition on page 1239
Reference
2020R1 What's New Post: Percent Complete Revenue Recognition for Projects

Steps: Recognize Revenue for Percent Complete

Prerequisites
Review setup considerations for percent complete revenue recognition.

Context
Workday enables you to calculate and recognize revenue automatically using the percentage of completion
accounting method for fixed fee projects. You can incrementally recognize revenue for your projects as you
complete your work.

Steps
1. Edit Business Process Security Policies.
Configure the Percent Complete Project Event business process and security policy in the Customer
Contracts and Project Billing functional areas.
2. Create Customer Contracts on page 839.
Select:
• Fixed Fee Project from the Line Type prompt.
• Deferred from the Revenue Treatment prompt.
• A project from the Billable Project prompt.
The project task must include estimated hours when you want to recognize revenue as a percent
complete by hours.

3. Create Revenue Recognition Schedules for Customer Contracts on page 905.

Select Percent Complete from the Revenue Recognition Method prompt.
4. Create Percent Complete Configurations for Projects on page 1238.
5. Review Percent Complete Calculations for Revenue Recognition on page 1239.
6. Create Revenue Installments for Billable Transactions on page 911.
Accrue revenue for approved billable transactions before you invoice customers.
Related Information
Concepts
Concept: Project Billing on page 1248
Tasks
Create Customer Contracts on page 839
Create Projects on page 1019
Reference
2020R1 What's New Post: Percent Complete Revenue Recognition for Projects

Create Percent Complete Configurations for Projects

Prerequisites
• Create and approve a billable project with a budget.
• Security: Set Up: Revenue - Percent Complete domain in the Customer Contracts and Project Billing
functional areas.

Context
You can create configurations to automate the process of recognizing revenue as a percent complete of
cost for your projects. The configurations use project cost dimensions to source the:
• Actual cost from journal entries or manual inputs.
• Total estimated cost from billable project budgets or manual inputs.
Workday uses the actual cost and total estimated cost to calculate the percent complete by cost for your
projects.

Steps
1. Access the Manage Percent Complete Configurations report.
2. Click Add.
3. As you complete the task, consider:
Option Description
Estimated Cost Factor Select the estimated cost factor that matches the
plan category on the associated project.
When you select 1 of these options, Workday
uses these calculations to determine the revenue
recognized for the project to date:
• Baseline: (Contract Value × Actual Project
Cost to Date) ÷ Baseline Budget Cost
• Estimated Budget: (Contract Value × Actual
Project Cost to Date) ÷ Estimated Budget from
Project Financials

Option Description
• Forecast: (Contract Value × Actual Project
Cost to Date) ÷ (Actual Cost + Estimated
Future Cost)

Ledger Account Workday sources the actual costs from the ledger
accounts you select.
The available ledger accounts display based on
the project hierarchy associated with the billable
project.

Dimension Select the dimensions that match the worktags on

the associated journal.
Values Displays only top-level phases when you select
Project Phase from the Dimension prompt.

Result
Workday uses the configuration to calculate the percent complete by cost for your projects.

Next Steps
Review the percent complete for revenue to view the actual and estimated costs for your projects.
Related Information
Concepts
Concept: Project Billing on page 1248
Setup Considerations: Percent Complete Revenue Recognition on page 1234
Tasks
Create Projects on page 1019
Create Customer Contracts on page 839
Reference
2020R1 What's New Post: Percent Complete Revenue Recognition for Projects
2021R2 What's New Post: Multilevel Project Plans

Review Percent Complete Calculations for Revenue Recognition

Prerequisites
• Project managers must approve time logged against the project in Time Tracking.
• Configure the Percent Complete Project Event business process and security policy in the Customer
Contracts and Project Billing functional areas.

Context
Percent complete calculations enable you to recognize revenue on a project as it progresses. You can
approve your percent complete revenue recognition before generating revenue installments.

Steps
1. Access the Review Percent Complete for Revenue task.
You can select multiple customers, projects, or a project hierarchy to review and edit transactions at
once. Workday groups the contract lines by project into 1 row.

2. Select the rows that you want to change the revenue amounts for.
When a row has more than 1 contract line, click the number in the Contract Lines column to edit
revenue amounts for individual contract lines.
3. As you complete the task, consider:
Option Description
Actual Percent Complete Workday calculates this value using either:
• The Actual Cost divided by the Estimated
Cost for the Cost percent complete method.
• The Cumulative Hours Worked divided by
the Estimated Hours at Complete for the
Hours percent complete method. You can
override this calculation by manually entering a
new estimated hours value.
Workday doesn't display percent complete
projects when:
• The Actual Percent Complete is 100.00%.
• You schedule all the installments.
When you create a revenue installment that has
a percent complete of 100.00%, you must cancel
at least 1 installment to create negative percent
complete project lines.

Cumulative Revenue to Date Workday multiplies the Actual Percent Complete

by the Contract Value.
Current Revenue Amount Workday calculates the difference between
the Cumulative Revenue to Date and the
Cumulative Revenue Recognized to Date
values. You can override this calculation.

Next Steps
Create revenue installments for billable transactions.
Related Information
Concepts
Concept: Project Time Entry
Concept: Revenue Recognition on page 912
Tasks
Create Revenue Recognition Schedules for Customer Contracts on page 905
Create Revenue Installments for Billable Transactions on page 911
Reference
2020R1 What’s New Post: Percent Complete Revenue Recognition for Projects

Project Billing Work Area

Steps: Configure the Project Billing Work Area Profile

Prerequisites
Security: Set Up: System domain in the System functional area.

Context
The Project Billing Work Area Composite View is a configurable profile for daily billing management with
profile groups for:
• Billing Specialists
• Project Managers
• Revenue Specialists
Workday enables you to configure the content of this view to meet your business requirements. For each
role that uses the composite view, you can:
• Add custom reports.
• Hide the profile group tabs.
• Reorder the profile group tabs.

Steps
1. Access the Configure Profile task.
a. Select Project Billing Work Area Composite View from the Profile prompt.
b. (Optional) Reorder the display of the profile groups in the composite view.
c. Clear the Display in Profile check box to hide a section configuration.
2. Access the Configure Profile Group task.
Manage the content within each of the profile groups that you selected to display on the profile.
a. Select from the available profile groups for the Project Billing Work Area Composite View.
b. Add, remove, or reorder reports.
c. (Optional) Repeat steps 2a and 2b for each of the profile groups that you want to configure.
Workday defines the selection list and includes available standard and custom reports on the work area
composite view for project billing. For best display, select 10 groups or less.
Note: Security rules determine the tabs that display for each role.

Next Steps
Set up security for your users to view the profiles, profile groups, and reports.
Related Information
Tasks
Steps: Set Up Profiles and Profile Groups

Concept: Project Billing Work Area

You can use the Project Billing Work Area to view project billing transaction activity for multiple companies
at once. This composite view enables billing specialists, project managers, and revenue specialists to:
• View billable transactions awaiting review, invoicing, and revenue recognition.
• Preview summarized invoice lines.
• Create customer invoices for billable transactions.
• Generate installments for billable transactions that require accrual.
You can manage the display of the profiles and reports in the composite view using the Configure Profile
and Configure Profile Group tasks.
You can enable these profiles and reports on the Project Billing Work Area task.

Profile Details Composite Report Details

Transactions Awaiting Review Transactions Ready to Review: Displays
transactions for all billable projects by billing
Role:
schedule.
• Project Manager
Preview Invoices: Displays invoices by customer
Security domains: and billing schedule.
• Manage: Project in the Projects functional area.
• Process: Project Billing - Core in the Project
Billing functional area.
• Process: Billing - Invoicing in the Customer
Contracts and Project Billing functional areas.
• Process: Project Billing - Invoicing in the Project
Billing functional area.
• Process: Project Billing - View in the Project
Billing functional area.

Transactions Awaiting Invoicing Project Billing Summary: Displays billing details

by customer contract line.
Role:
Preview Invoices: Displays invoices by customer
• Project Billing Specialist
and billing schedule.
Security domains:
• Process: Billing - Invoicing in the Customer
Contracts and Project Billing functional areas.
• Process: Project Billing - View in the Project
Billing functional area.
• Process: Project Billing - Invoicing in the Project
Billing functional area.
• Process: Project Billing - Core in the Project
Billing functional area.

Transactions Awaiting Revenue Recognition Review Revenue: Displays pending transactions

awaiting revenue recognition.
Role:
Transactions Requiring Accrual: Displays
• Revenue Specialist
installments by revenue recognition schedule.
Security domains:
• Process: Revenue Schedule - Core in the
Customer Contracts and Project Billing
functional areas.

Related Information
Tasks
Steps: Set Up Profiles and Profile Groups
Review Billable Project Transactions on page 1222
Create Customer Invoices on page 664
Create Revenue Installments for Billable Transactions on page 911

Project Billing Reporting

Concept: Project Dashboard

Reference: Project Billing Reports

Project managers and executives need insight into project performance indicators to assure organizations
maintain business objectives. They need to know how projects are doing and how they can do better.
Workday delivers a number of financial reports for projects.

Financial Reports Security Description

You can see when you use
certain project roles more than
others.
Comparative Revenue by Reports: Projects domain in the Analyze revenue trends for
Project Projects functional area. month-over-month and year-over-
year revenue by project. You can
customize this report to include
quarterly analysis for project
revenue using your existing time
periods.
Project Billing Exceptions To access the report: Process: View a list of all your projects with
Project Billing - Core in the billable transactions that aren't
Project Billing functional area. ready to be billed, and the total
number of affected transactions
To access related tasks, both:
between them. Transactions may
• Process: Customer Contract be unbillable, have a contract rate
- View in the Customer change which has not yet been
Contracts and Project Billing applied to the time transaction,
functional areas. or have no billable rate. Only
• Reports: Billing in the includes transactions with one of
Customer Contracts and these:
Project Billing functional • A contract line type of Project
areas. Time and Expense, or Fixed
Fee.
• A status of Awaiting Review,
or Ready to Bill for rate
changes and missing rates.
• A status of On Hold for
missing rates only.

Project Budgetary Balance with Both: Compare your project budget

Financial Reports Security Description

Includes these subreports that
you can view individually:
• Project Profitability Direct
Costs
• Project Profitability Revenue
• Project Profitability Time
Blocks

Revenue Leakage Report Execution domain in For operational and financial

the Tenant Non-Configurable users. View these concessions
functional area. that have been made in the
project:
• Contractual versus actual
rates.
• Project hours leaked.
• Revenue leakage.

Related Information
Reference
Reference: Project Reports on page 954
2023R1 What's New Post: Project Manager Hub - Billing Exceptions Table

Reference: Project Profitability Report

This report helps financial users analyze project profitability over a given time period. The report helps you
to understand how direct and labor costs consume the profitability of your project. This report pulls direct
costs from journal lines and labor costs from approved worker time blocks. It calculates the gross and labor
margins by project and project hierarchy.
After prompting you with required filtering criteria, such as Ledger and Time Period, Workday displays a
grid type report with these calculated results.

Fields Description
Revenue The total revenue associated with a project or
project hierarchy. This amount is all revenue
booked to the accounts prompted for this report.
Direct Costs Total direct costs related to the project excluding
hours. This amount includes project expense
reports, supplier invoice billable transactions, and
any other costs incurred to the project worktag.
Uses all the Direct Cost Accounts you select from
the prompt on the report filter page to populate this
column.
Labor Costs Total labor costs based on actual hours logged and
the standard cost rate entered on the resource plan
line. Uses the All Time Blocks data source and
returns the calculated total labor costs for a worker
based on their role.
Gross Profit Total revenue after costs:
Revenue - (Direct Costs + Labor Costs).

Gross Profit Margin % Gross Profit / Revenue.

Labor Margin Revenue - Labor Costs.
Labor Margin % Labor Margin / Revenue.

Related Information
Concepts
Concept: Project Dashboard on page 954

Reference: Revenue Leakage Report

The Revenue Leakage report helps you identify where concessions are occurring on your projects. The
report displays revenue leakage for the overall project, the project hours leaked, and the discrepancies
between contractual and actual rates. You can also use the report to determine concession causes
associated with the company, customer, project, project role, or worker. You can view:
• Rate adjustments that you made.
• Hours that you haven't billed.
Note: The report uses the base currency of the company on the customer contract.

Fields Description
Company The company for the customer contract associated
with the project.
Customer The bill-to customer for the billable transaction.
Project Role The project role associated with the worker for the
billable transaction.
Worker The worker associated with the billable transaction.
Billable The total available hours to bill. The billable hours
include the worker time booked against the project,
project role, and worker combination.
Actual The current hours to bill that the billing rate rules
or manual overrides changed during the review
billable project transaction process.
Hours Leaked The difference between the actual hours and the
billable hours.
Average Rate - Standard The rate by project role before any negotiations
or discounts. When you select the Standard
Rate Sheet check box on the customer contract,
Workday uses the rates that you define in the
standard rate sheet. When you clear the check
box, Workday uses the rates that you define in the
contract rate sheet. The average standard rate
takes the total billable transactions and averages
the standard rate of those billable transactions.
Average Rate - Contract The rate by project role. When you select the
Standard Rate Sheet check box on the customer
contract, Workday uses the rates that you define in
the standard rate sheet. When you clear the check
box, Workday uses the rates that you define in the
contract rate sheet. The average contract rate takes
the total billable transactions and averages the
contract rates of those billable transactions.
Average Rate - Actual The rate to bill the customer for a given billable
transaction. The average actual rate takes the total
of the billable transactions and averages the actual
rates of those billable transactions.
Billable Amount Contract Rate x Billable Hours.
Actual Amount Actual Rate x Actual Hours.
Revenue Leakage Actual Amount - Billable Amount.
Revenue Leakage % Revenue Leakage / Billable Amount.
Variances - Contract Rate vs. Standard Rate Standard Rate - Contract Rate.
Variance % = (Standard Rate - Contract Rate) /
Standard Rate.

Variances - Contract Rate vs. Actual Rate Actual Rate - Contract Rate.

Fields Description
Variance % = (Actual Rate - Contract Rate) /
Contract Rate.

Variances - Standard Rate vs. Actual Rate Actual Rate - Standard Rate.
Variance % = (Actual Rate - Standard Rate) /
Standard Rate.

Related Information
Concepts
Concept: Project Dashboard on page 954
Reference
Reference: Project Billing Reports on page 1243

Concept: Project Billing

Project Billing uses information from customer contracts and Workday Projects to create a comprehensive
billing process for billable projects.

Project Rate Sheets

Workday enables you to configure multidimensional project rate sheets to:
• Bill your customers against projects.
• Define the project pricing dimension using rate categories.
• Create project price lists for multiple projects.
• Base project price lists on rate categories such as daily or hourly rates, customer size, or project type.
You can use the project rate sheet to configure the contract rates.

Billing Rate Rules

Workday enables you to create standard billing rate rules to give you more control of your billing rates for
time and expense billable projects.

Standard Billing Rate Sheets

Workday enables you to create rule and worker-based standard billing rate sheets to apply billing rates
across multiple contracts for your projects. You can create a rate sheet for each currency you need to bill in
using these tasks:
• Maintain Standard Billing Rates by Rules
• Maintain Standard Billing Rates by Worker

Workday Time Tracking and Project Billing

Workday integrates projects, time tracking, and project billing so you can configure and manage the billing
of your projects. These roles are responsible for the process:
• Time Tracking Administrators configure project time entry in Workday Time Tracking as a one-time
task.
• Workers enter time blocks in Time Tracking and associate them with a project task.
• Contract Administrators create customer contracts, billing schedules, and contract rate sheets with
billing rate rules.
• Project Managers approve or deny time blocks.

• Billing Specialists:
• Edit and recalculate rates.
• Generate and print invoices for customers.
• Review and approve or reject billable transactions.
• Customer Collections Specialists track and manage customer invoices.

Time Block Adjustments

You can adjust your time blocks until you invoice your customer. To make changes after you invoice
your customers or recognize revenue, you must delete and re-enter your time blocks. When a manager
approves a timesheet with a deleted time block, Workday reverses the original time block from the billable
transaction. Reversal transactions also include any billing rate rule offsets.

Billable Transaction Worktag Derivation Logic

Workday provides a hierarchy for derivation rules for all of your transaction types. These rules help you
reconcile and identify the resulting worktags on billable transaction invoices and revenue accounting.

Transaction Types Worktag Derivation Logic Rules

Ad hoc Expense Workday applies:
Ad hoc Miscellaneous Expense 1. Source worktags.
Ad hoc Time 2. Derivation rules for worktags not already
included. Worker worktags are based on
Expense effective date, while Project worktags are based
Time Block on current moment.
3. Contract line worktags for worktags not on
source or derivation rules.

Ad hoc Supplier Invoice Workday applies:

Miscellaneous Expenses 1. Source worktags.
Supplier Invoice 2. Derivation rules for worktags not already
included.

Example:

Dimension Worktags
Worktag derivation rules Worker: Cost Center
Project: Region

Worker worktags TSerrano 1/1/2019:

• Cost Center: 50000 Office of CFO
• Region: Headquarters Corporate
Change 2/1/2020:
• Cost Center: 32200 R&D Product Management
• Region: USA - Southeast US

Project Cost Center: 36100 - Consulting Service - North

America
Region: USA - Northeast US

Contract line Cost Center: 71200 Field Sales - North America

Dimension Worktags
Region: USA - Central US

Scenario: Time Block on Project for Worker: TSerrano

Transaction Date Worktags

Time Block 1/3/2020 Cost Center: 35000 Program
Management
Region: (not entered)

Revenue Accrual 1/3/2020 Cost Center: 35000 Program

Management
Region: USA - Northeast US

Customer Invoice 2/1/2020 Cost Center: 32200 R&D Product

Management
Region: USA - Northeast US

Billing Schedules and Installments

Workday creates installments based on the scheduled start and end dates, which can differ from the
contract line start and end dates. You can also configure the invoice date to assign, which can differ from
the installment start date.
Workday supports these billing methods for each billing schedule, and you can change methods
throughout the life of the schedule:
• Defined Installment: Define the first and last installment amount for each contract line. Workday spreads
the remaining amount evenly among the other installments. You can't use this billing method on
consolidated billing schedules.
• Spread Even: Define a set number of installments with equal amounts.
• Custom: You control all aspects of the installments.
A billing schedule includes 1 or more installments. Each billing installment:
• Creates a customer invoice.
• Becomes an invoice line.
• Derives attributes from the associated contract line.
Once you generate installments, you can:
• Manually update individual installments.
• Regenerate billing installments automatically after changes to contract amounts. This function only
applies to Spread Even billing methods or Spread Even and Number of Days revenue recognition
methods.
• Update your schedules automatically when you make changes to your contract lines.
• Edit all installments at once when you have a custom schedule.
Workday assigns an Out of Balance status when:
• You don't schedule your contract line installments exactly.
• A custom schedule overbills.
You can create customer invoices from billing installments after you approve the billing schedule.

Create Customer Invoices from Billing Installments

With the Create Customer Invoices from Billing Installments task, you can run this task as needed or
as a scheduled process. This task enables you to:
• Select available billing installments to invoice.
• Mark invoices to submit for automatic approval.
You can:
• Make limited changes to the customer invoice and add more lines.
• Create invoices that reference contract lines when you have invoice adjustments.
Workday reflects any changes to invoice line amounts on the billing installment. The contract line billed
amount reflects all approved invoices.
Related Information
Concepts
Concept: Customer Contracts on page 848
Concept: Revenue Recognition on page 912
Concept: Project Time Entry
Concept: Workday Projects on page 952
Tasks
Steps: Set Up Project Time Entry
Add Billing Rate Rules to Contract Rate Sheets on page 1200
Steps: Set Up Project Pricing and Billing on page 1195

Steps: Recognize Revenue for Percent Complete on page 1237

Reference
Reference: Billing Rate Rule Types for Projects on page 1207

Reference: Contract Line Types for Project Billing

Workday provides these project line types that you can use to create customer contracts for project billing:

Contract Line Type How You Use It Billing Options Revenue Recognition
Fixed Fee Project Set the project value • Installments • Milestones
based on the scope and • Milestones • Percent Complete
product when you create
the contract.
Intercompany Time Set the worker rates Intercompany
between legal entities of transactions
global organizations for
intercompany time.
Project Time and Charge the project • Installments • Milestones
Expense as you incur time and when using a • Transactions
expenses. nonconsolidated
schedule type
enabled for prepaid
• Milestones
• Transactions

Value-Based Project The project value varies • Installments • Installments

based on external • Milestones • Milestones
factors. You bill your
customers on an ad
hoc basis for time and
expenses.

Related Information
Concepts
Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules on page 868
Concept: Project Billing on page 1248
Tasks
Create Customer Contracts on page 839
Reference
Workday 31 What’s New Post: Transfer Pricing

Business Assets

Asset Tracking

Setup Considerations: Asset Tracking

You can use this topic to help make decisions when planning your configuration and use of asset tracking.
It explains:
• Why to set it up.
• How it fits into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is
You can report on assets that you assign to:
• Locations.
• Workers.
• Worktags, such as cost centers.
Example: Security badges.

Business Benefits
Tracking business assets helps you retrieve all your assets when workers leave or move to a different role,
saving you the cost of lost assets.

Use Cases
Business assets tracking specialists can:
• Register assets.
• Copy and edit assets.
• Place assets in service without issuing them to workers or locations.
• Issue assets to workers or locations.
• Transfer assets within a company. Example: you transfer an asset from 1 cost center to another.
• Transfer assets to different companies.
• Remove assets that you no longer track, and on which you haven't recorded any depreciation.
• Fully or partially dispose of expired assets.
• Reinstate disposed assets.

Questions to Consider

Questions Considerations
To which locations do you assign assets? You can use existing locations to track business
assets.

Questions Considerations
What types of assets do you track? You can track tangible and intangible assets by
spend categories.
For more granular reporting, you can also set up:
• Asset classes.
• Asset types.

Which accounting standards or guidelines does You can set up asset tracking with or without asset
your organization follow? accounting:
• Asset tracking enables you to track tangible or
intangible assets according to business use.
• Asset accounting enables you to account
for these assets based on your accounting
practices.

How many asset books do you need? When you enable asset accounting, you can set up
multiple asset books. Tax managers can manage
the nonprimary asset books for tax purposes
without accessing the accounting asset books
or affecting accounting activities. See Setup
Considerations: Asset Books on page 1271.

Recommendations
When you uptake asset tracking without accounting, create 1 spend category per fixed asset and
accumulated depreciation ledger account. This helps reduce future work when you uptake asset
accounting.

Requirements
No impact.

Limitations
No impact.

Tenant Setup
You can access the Edit Tenant Setup - Financials task to:
• Configure the ID sequence generator for business assets.
• Automatically populate the Coordinating Cost Center field from the cost center worktag when you
register assets.

Security

Domains Considerations
Process: Business Assets domain in the Business Perform lifecycle events on assets.
Asset Tracking functional area.
Reports: Business Assets domain in the Business Run reports on business assets.
Asset Tracking functional area.
Self-Service: Business Assets domain in the Workers can see the assets that you've issued to
Business Asset Tracking functional area. them.

Domains Considerations
Set Up: Business Asset Tracking domain in the Set up business asset tracking.
Business Asset Tracking functional area.
Set Up: Spend Categories domain in the Common Set up spend categories.
Financial Management functional area.
View: Business Asset domain in the Business Asset View the details of business assets.
Tracking functional area.
Worker Data: Business Assets domain in the View the business assets that you've issued to
Business Asset Tracking functional area. workers.

Business Processes
The Asset Registration Event business process routes transactions for review and approval.

Reporting
Access Workday Standard Reports and select the Business Assets and Set Up Business Assets report
categories to view details on standard reports for assets.

Integrations
When you uptake asset tracking, you can import the assets that you track outside of Workday with the
Register Assets web service. When you don't use asset accounting, specify an accounting treatment of
Expense on the assets that you import.

Connections and Touchpoints

Steps: Set Up Asset Tracking

Prerequisites
Review setup considerations for Asset Tracking.

Context
You can configure how you register and track business assets.

Steps
1. Configure these business processes and security policies in the Business Asset Tracking functional
area.
• 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
See:
• Steps: Configure Business Process Definitions.
• Edit Business Process Security Policies.
2. (Optional) You can add these steps to these business processes:

Business Process Steps

Receipt • Action step: Review Trackable Receipt Lines.
• Service step: Initiate Asset Registration Events
from Receipt for Purchase Order.
• Service step: Initiate Asset Registration Events
from Receipt for Supplier Contracts.

Requisition Event Action step: Source Goods from Storage.

Supplier Invoice Event • Service step: Register Business Assets from
Invoice.
• Action step: Review Trackable Invoice Lines .

See Edit Business Processes.

3. Create Spend Categories.
Create spend categories to populate on capital assets or expensed items that you track. Enable Track
Items and complete the Asset Tracking section.
4. Set Up Asset Disposal Types on page 1257.
5. Enable Business Asset as a Location Usage on the locations that you populate on assets.
Related Information
Concepts
Concept: Transaction Revalidation on page 53
Tasks
Steps: Set Up Accounting Categories on page 60
Edit Business Processes
Steps: Set Up Asset Accounting on page 1274
Steps: Configure Intangible Business Assets on page 1282
Reference
The Next Level: Business Asset Tracking

Set Up Asset Disposal Types

Prerequisites
Security: Set Up: Business Asset Tracking domain in the Business Asset Tracking functional area.

Context
You can define different ways to dispose of assets. Asset disposal types drive accounting related to the
disposal of goods and enable you to report on disposals by type.

Steps
1. Access the Maintain Asset Disposal Types task.
2. As you complete the task, consider:
Option Description
Asset Disposal Method These Workday-delivered methods drive
accounting for disposals. You can assign the
same method to multiple types for flexibility.
To dispose of expired assets, associate the
Expire method with 1 disposal type.

Fair Market Value as Basis Select this check box to base the donation
amount on the fair market value manually
entered at time of disposal. Workday uses the
donation amount to calculate the gain or loss for
accounting purposes.
Net Book Value as Basis Select this check box to base the donation
amount for an asset on net book value.

Steps: Track Assets

Prerequisites
• Set up asset tracking.

Context
After registering assets, you can track them through their lifecycles. Tracking an asset doesn't affect
accounting activity.
Assets that you register from supplier invoices and purchase order receipt lines can have a negative cost
or a cost of zero.
Note: You can't make changes to assets when other events are in progress.

Steps
1. Register an Asset.
2. (Optional) Select Business Asset > Copy Asset from the related actions menu of an asset.
To reduce the manual entry required when registering an asset, copy the details of an existing asset.
Security: Process: Business Assets domain in the Business Asset Tracking functional area.

3. Select Business Asset > Edit from the related actions menu of an asset.
Edit the asset by:
• Adding attachments.
• Adding or removing components of a discrete composite asset.
• Relating registered assets from the same company together.
• Updating the identification information.
Related assets must be in the same company, and you can't relate disposed assets.
Security: Process: Business Assets domain in the Business Asset Tracking functional area.
4. (Optional) Select Business Asset > Place in Service from the related actions menu of a depreciable
capital asset.
Place the asset in service without issuing it to a worker.
Security: Process: Business Assets domain in the Business Asset Tracking functional area.
5. Access the Issue Assets task.
Issue assets to workers to make them the custodian of company property.
For capital assets, Workday generates accounting to move the asset cost and accumulated
depreciation when the location or worktags change.
Configure the Asset Issue Event business process and security policy in the Business Asset Tracking
functional area.
6. (Optional) Access the Transfer Assets task.
Transfer assets within the same company to different workers, locations, or storage. Transferring assets
is a two-step process. On the first page, you define the filter criteria to use to select assets for transfer.
On the second page, you select the assets to transfer.
For capital assets, Workday transfers the cost of the business asset and creates operational
transactions with accounting.
When filtering assets to transfer, the Spend Category is optional, unless you enable Spend Category
worktags in the Maintain Related Worktag Usage task.
Configure the Asset Transfer Event business process and security policy in the Business Asset
Tracking functional area.
7. (Optional) Select Business Asset > Transfer to Different Company from the related actions menu of
a registered asset.
You can transfer assets without suspended depreciation to a different company.
Both companies must have the same:
• Base currency.
• Company asset books.
• Primary asset book.
• Asset book fiscal schedules.
For capital assets, Workday transfers the cost of the business asset and creates operational
transactions with accounting for both companies.
Configure these business processes and security policies in the Business Asset Tracking functional
area:
• Asset Intercompany Transfer In Event
• Asset Intercompany Transfer Out Event

8. Select Business Asset > Remove Asset from the related actions menu of a registered asset.
Remove assets that you register by mistake. You can't remove assets with lifecycle events except
for issue or transfer. When you remove assets, Workday removes any posted depreciation and cost
tracking activities on the assets. Workday also removes the workers on assets.
Additional conditions apply to remove these assets:

Asset Type Condition

Registered from Supplier Invoice You can remove assets that meet either of these
conditions:
• You haven’t posted any depreciation on the
asset.
• You cancel the supplier invoice.

Registered from Receipt You can remove assets that meet either of these
conditions:
• You haven’t posted any depreciation on the
asset.
• You cancel the receipt.
• For leased assets that you create from a
supplier contract, you cancel the contract.

Discrete Composite You remove all the components of the discrete

composite asset.

Configure the Asset Removal Event business process and security policy in the Business Asset
Accounting and Business Asset Tracking functional areas.

Next Steps
For capitalized assets, your accountant performs asset accounting activities.
Related Information
Tasks
Steps: Dispose Assets on page 1290
Steps: Perform Lifecycle Events for Capital Assets on page 1288

Prerequisites
• Define the Asset Registration Event business process and corresponding security policy.
• (Optional) Automatically register assets or assign accounting information by adding these automated
steps on the Asset Registration Event business process:
• Register Business Asset Automatically
• Assign Asset Accounting Automatically
• Register through a receipt and include the Initiate Register Business Assets from Receipt service step
in the Receipt business process.
• Register through a supplier invoice and include the Initiate Register Business Assets from Invoice
service step in the Supplier Invoice Event business process.
• Initiate registration for supplier contract receipt lines. Add the Initiate Asset Registration Events from
Supplier Contract Receipt service step in the Receipt business process.
Asset registration can be initiated for supplier contract lines you define with Intangible as a default on
the spend category.

Context
To track an asset, register it with a company. You can register assets when you:
• Receive goods directly (not through procurement).
• Create a receipt for procured goods or supplier contract receipt lines.
• Create a supplier invoice for procured goods or supplier contract receipt lines.

Steps
1. Registration methods differ:
• For manual registration, access the Register Assets task.
• For registration through the Receipt business process, click the related Inbox.
• For registration through the Supplier Invoice Event business process, click the related Inbox.
For registration through receipts and supplier invoices, Workday automatically routes the Register
Asset task or the Review Trackable Lines task to the appropriate Inbox. When reviewing trackable
lines, you can register pooled assets as a single asset when they meet the asset pooling rules
requirements. You can also override the asset pooling rules and register each asset individually. Use
the Register Assets task to register similar assets that meet the asset pooling rules requirement.
2. As you complete the task, consider:
Option Description
Company A company with an asset book.
Spend Category The acquired expense item or purchase item that
you want to track as an asset. You can only select
Item
from items that have a tracked spend category.
The spend category, when used in an asset
accounting rule, identifies when the accounting
treatment is other than expense.
Asset Name You can edit or enter information in these fields to
Asset Description reflect how your company tracks this asset.

Asset Identifier You can define these additional attributes to

improve searching and tracking.
Serial Number
Manufacturer

Asset Class Default values are based on the specified spend

category, but you can change them. Workday
Asset Type
uses these attributes for bonus depreciation rules
and external reporting.
Coordinating Cost Center Workday populates the cost center from the
Worktags prompt when it has a cost center
worktag and you enable the functionality in your
tenant.
Select the Auto Populate Coordinating Cost
Center check box in the Business Assets
Options section on the Edit Tenant Setup -
Financials task.

Asset Coordinator Select the worker in possession of this asset.

Acquisition Method Select the method for acquiring the asset, such as
Leased or Purchased.

Option Description
Acquisition Date The document date automatically populates when
the asset source is a purchase order receipt,
supplier contract receipt, or supplier invoice.
To initiate the assign accounting step of the
appropriate business process, the date must be in
the past.
PO Number The source document of the transaction that
initiated the asset registration.
Note: Workday calculates taxes and freight from
the purchase order for assets created from a
receipt without a supplier invoice.

External Contract Number When the business asset originates from a

supplier contract line, Workday populates the
supplier contract number and contract start date
from the contract.
External Contract Start/End Date The start and end dates of the supplier contract
line for this asset. Workday requires contract
dates for supplier contract-based assets.
Cost The cost of the asset at time of acquisition, in
the base currency of the company that the asset
Currency
belongs to. If the asset source document was
Quantity in a foreign currency, Workday brings in the
base currency amount as the asset cost. For
nondiscrete composite assets, the cost is the sum
of the component allocation costs. For pooled
assets, the cost is the total cost of all items in the
asset pool. Quantity displays how many assets
are in an asset pool or how many are being used
as part of a composite asset.
Location The physical place where you store an asset or it
is in use. If capitalizing a project asset, Workday
populates the location from the project when it
has a location worktag.
Worktags Use worktags as keywords to more easily classify
and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.
When you enable optional worktag balancing on
the Maintain Worktag Balancing Configuration
task, Workday fully balances journal lines by
optional balancing worktags. Journal lines
automatically:
• Inherit optional balancing worktags based on
the worktag types selected.
• Generate due to and due from entries to
balance transactions.

Option Description
Leased assets inherit the worktags you entered
on the supplier contract lines.

When you initiate registration from the receipt and supplier invoice events, Workday automatically
populates information from the source document.

Result
The Asset Registration Event business process routes the transaction for review and approval. Once the
asset registration is approved and completed, Workday changes the status for the asset from Pending
Registration to Registered. Workday assigns a business asset ID, enabling you to track it. If the asset
registration is denied or canceled, Workday removes the asset from the asset register, and changes the
status of the asset to Removed. If the receipt and supplier invoice business processes both include a step
that registers an asset, Workday doesn't duplicate registration.
For capital assets, Workday routes the Assign Assets Accounting Information task to the appropriate
inbox. The assign accounting information service step must be in the Asset Registration Event or Supplier
Invoice Event business process definition.
When a manually registered asset doesn't meet custom validation criteria, it generates a critical error.
Select Edit Asset Registration from the related actions menu of the asset to fix the error so that Workday
can complete the asset registration process.

Next Steps
Issue or manually place in service, transfer, dispose, and reinstate to track the asset.
Related Information
Concepts
Concept: Accounting Impact of Asset Lifecycle Events on page 1299
Concept: Pooled Assets on page 1267
Concept: Composite Assets on page 1298
Tasks
Assign Asset Accounting Information on page 1284
Create Lease-Type Supplier Contracts on page 1370
Review Trackable Lines for Assets on page 1293

Register Composite Assets

Prerequisites
• Configure the Asset Registration Event business process and security policy in the Business Asset
Accounting functional area.

Context
Use the Register Composite Asset task to compose discrete and nondiscrete composite assets.
Composite assets consist of different types of assets that you can use together before you place the
assets in service. You can easily track and account for multiple registered assets with a single depreciable
lifespan.

Steps
1. Access the Register Composite Asset task.

2. As you complete the task, consider:

Option Description
Company A company with an asset book.
Spend Category The acquired expense item or purchase item
that you want applied to the composite asset
for tracking. The spend category, when used
in an asset accounting rule, identifies when the
accounting treatment is other than expense.
Item You can only select from tangible items that have
a tracked spend category.
Asset Name You can change the default name and description
Asset Description to reflect how your company tracks this asset.

Asset identifier You can define these additional attributes to

improve searching and tracking.
Serial Number
Manufacturer

Asset Class Defaults to the available values from the

selected spend category, but you can change
Asset Type
them. Workday uses these attributes for bonus
depreciation rules and external reporting.
Coordinating Cost Center Workday populates the cost center from the
Worktags prompt when it has a cost center
worktag and you enable the functionality in your
tenant.
Select the Auto Populate Coordinating Cost
Center check box in the Business Assets
Options section on the Edit Tenant Setup -
Financials task.

Asset Coordinator Select the worker in possession of this asset.

Discrete Component Lifecycles Select to have Workday search for pooled or
single assets that you add as part of the discrete
composite asset. Clear to display search results
listing registered pooled or single assets that you
can add to the nondiscrete composite asset.

Acquisition Date Workday uses the purchase order, receipt,

supplier contract, or supplier invoice date to
initiate the assign accounting step of the Receipt
or Supplier Invoice business processes. If you
change the date, enter an Acquisition Date that
is in the past.
Location Identify the custodial information of where
the asset belongs. Workday populates the
Location from the value you specify during asset
registration.
Worktags Use worktags as keywords to more easily classify
and find transactions. Configure the allowed

Option Description
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.
When you enable optional worktag balancing on
the Maintain Worktag Balancing Configuration
task, Workday fully balances journal lines by
optional balancing worktags. Journal lines
automatically:
• Inherit optional balancing worktags based on
the worktag types selected.
• Generate due to and due from entries to
balance transactions.

3. After you submit, specify the search criteria to find and select the assets you want to use for building the
composite asset.
Workday displays the updated quantity and total value of the composite asset based on the assets you
selected.
4. When you’re finished adding assets to the composite asset, preview and make edits to the composite
asset details.

Result
The Asset Registration Event business process routes the transaction for review and approval. Once
the asset registration is approved and completed, Workday changes the asset status from Pending
Registration to Registered. Workday creates the composite asset with a new asset ID and begins tracking
it as a single asset. If the asset is a discrete composite asset, then each asset has separate lifecycle
events. If the asset is a nondiscrete composite, then each asset shares lifecycle events.

Next Steps
Issue or manually place in service, transfer, dispose, and reinstate to track the asset.
Related Information
Concepts
Concept: Composite Assets on page 1298
Concept: Pooled Assets on page 1267
Tasks
Steps: Perform Lifecycle Events for Capital Assets on page 1288

View Assets

Prerequisites
• Register an asset.
• Configure these security domains in the Business Asset Tracking functional area:
• Process: Business Assets
• View: Business Asset

Context
You can view assets to gain insight into:

• Accounting.
• Custodian activities.
• Depreciation details.
• Lifecycle events.
• Process history.

Steps
1. Access the Find Assets standard report.
When you click the Asset ID, Workday displays the View Business Asset report for the selected
asset.
2. As you review the header information and tabs, consider:
Option Description
General You see the preceding asset ID when you transfer
assets:
• From another company.
• Multiple times.

Custodian You establish custodianship when you register,

issue, transfer, or dispose of the asset.
Cost Detail View cost activity for the original asset acquisition
cost and all asset lifecycle events that impact
asset cost. Also displays net zero cost activity for
issues and transfers when you change location or
worktags.
Lifecycle Click the Event link to drill down to details for
corresponding transactions, including both historic
and in-progress business process events.
Process History Lists events for every action taken on the asset
since its creation.
Note: You can't make changes to assets when
other events are in progress.

3. Workday displays these additional tabs when you enter the related information. As you review these
additional tabs for capital assets, consider:
Option Description
Historical Information Includes information for depreciable capital assets
that you transferred from another platform.
Depreciation later recorded in Workday is
based on the cost less historical accumulated
depreciation and depreciates over the remaining
useful life of the asset. The Depreciation Start
Date on this tab is the date that the depreciation
in Workday starts.
When you view an asset in a nonaccounting
asset book, historical accumulated depreciation
includes historical bonus depreciation from a
previous platform.

Option Description
Books After you assign asset accounting, Workday
displays the Books tab. View a summary of
the depreciation attributes and depreciation
schedules for each book that contains a capital
asset.
To view assets by book, click the asset book
name in the Book View column to display the
View Asset by Book report.

Depreciation Summary View a list of depreciation lines by period.

Workday bases the depreciation or amortization
schedule on the depreciation profile for the
depreciable capital asset.
Note: If the spend category for the trackable
asset is intangible, this tab displays the
amortization schedule.
Workday generates depreciation and amortization
based on the depreciation profile associated with
a depreciable capital asset.
Period zero displays the historical depreciation
on the asset before you register it in Workday.
Example: You register an asset with accumulated
depreciation using the Register Asset EIB.

Depreciation Detail Displays transaction details for each depreciation

line in the Depreciation Summary tab, including
depreciation adjustments by period. Workday
generates depreciation adjustments for lifecycle
events when the date falls within a period where
Workday has already processed depreciation.
Click the Recorded On link to see details about
the transaction that created the depreciation
expense line.

Related Information
Tasks
Steps: Perform Lifecycle Events for Capital Assets on page 1288
Reference
2022R1 What's New Post: Asset Depreciation Reporting and Usability

Adjust an Asset In Service Date

Prerequisites
Configure the Asset Adjust In Service Date Event business process and security policy in the Business
Asset Tracking functional area.

Context
Change the date you place an asset in service.

Steps
1. From the related actions menu of assets that are Issued or In Service, select Adjust Asset In Service
Date.
2. Specify a Proposed in service date.

Result
• Workday reverses depreciation recorded for the period between the initial in-service date and the new
date.
• You can post the adjustment in the current open period or amortized over the remaining useful life of
the asset.

Example
You modified the In Service Start Date on supplier contract lines because you and your supplier updated
line details in your supplier contract. Select Adjust Asset In Service Date from the related actions menu
for the asset to:
• Initiate adjustments for the depreciation and useful life of the asset.
• Accurately reflect changes specified in the supplier contract amendment.

Next Steps
Review depreciation adjustments in the business asset Lifecycle tab.

Concept: Pooled Assets

Pooled assets are groups of similar tangible items that you register and track as a single asset in Workday.
Example: 100 flash drives. Pooling assets is useful for tracking multiple low-value assets and enables you
to keep your asset register clean and maintainable. You can pool assets that you register manually or
assets that Workday registers from lines on receipts or supplier invoices. You can't pool assets that you
create by capitalizing project transactions.
Pooled assets follow the asset book rules, and are subject to the Spend account posting rule. You can
place pooled assets in service, and depreciate a capitalized pooled asset as a single asset. Asset lifecycle
events equally apply to each asset included in the pool.

Automatic and Manual Asset Pooling

You can set up asset pooling rules for Workday to automatically pool assets that meet your criteria.
You can manually pool assets:
• When you review trackable lines on a receipt or supplier invoice.
• When you register assets with the Register Assets task.

Pooled and Composite Assets

You can register:
• Discrete composite assets that consume an entire asset pool.
• Nondiscrete composite assets that consume an asset pool fully or partially.
The pooled assets must meet the criteria for inclusion in a composite asset.
Related Information
Concepts
Concept: Composite Assets on page 1298
Tasks
Set Up Asset Pooling Rules on page 1291

Review Trackable Lines for Assets on page 1293

Steps: Track Assets on page 1257

Reference: Asset Statuses

Workday updates the status of assets as you perform lifecycle events on them.
The same asset can have different statuses in different asset books.

Status Description Example

Pending Registration Workday creates an asset Workday creates an asset from a
through a business process supplier invoice, and:
workflow, and you haven't
• Sets its status to Pending
completed the asset registration.
Registration.
• Creates an inbox item for
the business assets tracking
specialist to complete the
asset registration.

Registered You've configured the Your company purchases a new

depreciation profile on the building. You register the building
asset to place assets in service at the time of purchase, and place
Manually or When Issued and it in service when you obtain a
you either: certificate of occupancy.
• Register the asset manually.
• Complete the asset
registration.

In Service The asset is in service. You can You place heavy machinery in
record depreciation on the asset. service without issuing it to a
worker.
Workday assigns this status to an
asset when you either:
• Place the asset in service
manually.
• Complete the asset
registration or register the
asset manually, when you've
configured its depreciation
profile to place assets in
service Upon Acquisition.
• Resume the asset
depreciation, when the asset
had a status of In Service
before its suspension.
You can only record depreciation
on assets that have a
depreciation profile. You
can’t place expensed or
nondepreciable assets in service.

Issued Workday assigns this status to an You issue a laptop to a worker.

asset when you either:
• Issue it to a worker manually.

Status Description Example

• Resume the asset
depreciation, when the asset
had a status of Issued before
its suspension.
You can issue all types of assets
to a worker. They don't have to
be depreciable. When the asset
is depreciable, you can record
depreciation on the asset.

Disposed You fully dispose of the asset. You fully dispose the remaining
amount on a partially disposed
asset with a status of In Service.
Workday changes the status of
the asset to Disposed.
Removed You remove the asset. You cancel an invoice and
remove the assets that Workday
Restrictions apply to remove an
registered from the invoice.
asset. See Steps: Track Assets
on page 1257.

Out of Service You suspend the asset You suspend the depreciation on
depreciation. a piece of heavy machinery while
you repair it.
Used by Composite The asset is a component of a You register a nondiscrete
nondiscrete composite asset. composite asset composed of
2 component assets. Workday
changes the status of the 2
component assets to Used by
Composite.

Reference: Asset Tracking Event Availability

This table lists asset statuses and their available tracking events.

Status Manually Place Issue Transfer Reinstate Adjust In

in Service Service Date
Pending No No No No No
Registration
Registered Yes Yes Yes No No
In Service No Yes Yes No Yes
Issued No No Yes No Yes
Disposed No No No Yes No
Removed No No No No No
Out of Service No No Yes No No

Related Information
Reference
Workday Community: Business Asset - Lifecycle Event Availability

Troubleshooting: Asset Registration Errors

Can't change acquisition date.

Cause: Workday locks the acquisition date for all assets after you register them.
Solution:

Steps
1. Access 1 of these tasks:
Security: Process: Business Assets domain in the Business Asset Tracking functional area.
• To keep records of the asset for accounting, access the Dispose Assets task.
Configure the Asset Disposal Event business process and security policy in the Business Asset
Tracking functional area.
• To remove the asset and reverse all journal entries for it, access the Remove Asset task from the
related actions menu of the business asset.
Note: If you post depreciation, you might not be able to remove the asset. For example, after the
asset's lifecycle events occur, you won't be able to remove it, so you need to dispose of the asset
instead. After you dispose the asset, use manual journal entries to correct your accounting.
You can remove an asset when you register the asset in error or when there is a canceled receipt or
invoice.
Configure the Asset Removal Event business process and security policy in the Business Asset
Accounting and Business Asset Tracking functional areas.
2. Access the Register Assets task.
Manually reregister the asset with the correct acquisition date.

Can't change place in service date.

Cause: Workday locks the place in service date for:
• All legacy assets.
• Assets that have started depreciation.
Solution:

Asset Accounting

Setup Considerations: Asset Books

You can use this topic to help make decisions when planning your configuration and use of asset books. It
explains:
• Why to set them up.
• How they fit into the rest of Workday.
• Downstream impacts and cross-product interactions.
• Security requirements and business process configurations.
• Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What They Are

Asset books enable you to track and account for business assets.

Business Benefits
• You can set up asset books to populate accounting treatments and depreciation profiles on business
assets automatically, reducing manual data entry.
• You can account and report on the same asset in multiple books, enabling you to meet multiple
accounting standards.

Use Cases
Your organization needs to meet an accounting guideline or standard. You can set up:
• An accounting asset book to track and generate accounting for your business assets.
• Multiple nonaccounting books to track your assets for tax purposes.

Questions to Consider

Questions Considerations
How many asset books do you need to generate To use multiple accounting books, you must first
accounting for? enable multibook asset accounting.
Note: You can't disable multibook asset
accounting after you enable it.
Workday populates the accounting treatment
and depreciation profiles on assets from asset
book rules. Assets can have different depreciation
treatments and profiles by book. You can change
the accounting treatment and depreciation
profile on assets in the primary asset book when
you assign asset accounting information. To
change the cost and depreciation information on
assets in secondary asset books, you can use the
Update Asset Book Configuration web service after
you register assets.
When you migrate from a single asset book to
multiple books, create a manual journal entry to

Questions Considerations
move opening ledger account balances from the
common book code to each adjustment book code.

When do you want to place your assets in service? You can set up your depreciation profiles to
place assets in service:
• Manually or when issued.
• Upon acquisition.
The depreciation schedule is based on the date
when you place an asset in service.
Assets can be in service in some asset books and
not others. Example: An asset is expensed in an
asset book and depreciable in another book.

What roles in your company need access to asset You can assign security roles to domains that
books? provide access to accounting or nonaccounting
books, or both. You can also provide roles such as
tax managers with access to your tax books.
Can you use an existing asset book to create new When you add an asset book to a company with
asset books? assets, you can copy asset information from the
existing book to the new one. The fiscal schedule of
the new asset book should have fiscal periods from
the earliest to the latest effective date for all cost
activities that you copy. The depreciation start date
for an asset is the earliest transaction effective date
for the asset.

Recommendations
• Consolidate asset books across your organization. When you transfer assets between 2 companies, we
recommend that both companies have the same asset books.
• When you account for assets in multiple books, place them in service upon acquisition to maintain the
same date across your depreciation profiles.

Requirements
• Set up spend categories to classify your business assets. Spend categories drive the accounting that
posts the asset to the appropriate ledger account.
• Set up asset book rules to determine which accounting treatment and depreciation profile Workday
applies to a business asset.

Limitations
Workday doesn't enable you to:
• Pool project assets or business assets you create when you capitalize project transactions.
• Track assets with different quantities by book.
• Register assets in secondary books but not in the primary book.

Tenant Setup
Enable asset accounting for multiple books on the Edit Tenant Setup - Financials task and assign book
codes to your asset accounting books.

Security

Domains Considerations
Set Up: Business Asset Accounting in the Business Enables you to maintain asset book rules and
Asset Accounting functional area depreciation profiles.
Set Up: Company Asset Books in the Business Enables you to map asset books to companies.
Asset Accounting functional area
Set Up: Accounting Rules in the Common Financial Enables you to set up account posting rules.
Management functional area
Set Up: Ledger and Book in the Common Financial Enables you to set up book codes and books for
Management functional area asset accounting.
Set Up: Spend Categories in the Common Financial Enables you to maintain spend categories.
Management functional area

Business Processes
No impact.

Reporting

Reports Considerations
Capital Assets without Accounting Information Identify depreciable and nondepreciable capital
Assigned assets without asset accounting assigned. You
have to assign accounting information for Workday
to add assets to a company asset book.
View Asset Books Use to:
• Access asset book rules.
• View all asset books.
• View the companies that use each asset book.

View Company Asset Books Use to:

• Add asset books to a company.
• Update asset books.
• Set up asset book restrictions.

Integrations

Web Services Considerations

Get Asset Book Rules You can use this web service to retrieve asset book
rules through the Enterprise Interface Builder (EIB).
Get Asset Depreciation Schedules You can use this web service to retrieve
depreciation schedules through the EIB.
Get Asset Pooling Rules You can use this web service to retrieve asset
pooling rules through the EIB.
Put Asset Book Rules You can use this web service to update asset book
rules through the EIB.

Web Services Considerations

Put Asset Pooling Rule You can use this web service to update asset
pooling rules through the EIB.
Update Asset Book Configuration You can use this web service to add secondary
asset books or update asset book configuration
details for assets such as:
• Depreciation details by book.
• Cost information by book.

Bulk Import Asset Book Configuration You can use this web service to add secondary
asset books or update asset book configuration
details for assets in bulk.

Connections and Touchpoints

Features Considerations
Account posting rules You can set up account posting rules to direct
where transaction journals post in your company
ledger accounts.
Asset pooling rules You can create rules for assets that you pool into 1.
Bonus depreciation rules You can set up rules to apply bonus depreciation to
assets in your nonaccounting asset books.
Company asset book restrictions You can assign or restrict assets to specific asset
books based on:
• Spend category.
• Supplier contract type.
• Lease accounting method.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your
tenant. Learn more about the Workday Touchpoints Kit on Workday Community.
Related Information
Tasks
Steps: Set Up Asset Accounting for Multiple Books on page 1281
Steps: Set Up Asset Books for a Company on page 1276
Reference
Workday Community: Education, Government, and Nonprofit Multibook Asset Accounting Book Code
Assets

Steps: Set Up Asset Accounting

Prerequisites
Set up asset tracking.
See Steps: Set Up Asset Tracking.

Context
You can configure how Workday generates accounting for business assets.

Steps
1. Configure these business processes and security policies in the Business Asset Accounting functional
area:
• Asset Adjustment Event
• Asset Assign Accounting Event
• Asset Cost Adjustment Event
• Asset Impairment Event
• Asset Reclassification Event
• Asset Registration Event
• Asset Useful Life Update Event
See:
• Steps: Configure Business Process Definitions.
• Edit Business Process Security Policies.
2. Configure the Asset Disposal Event business process and security policy in the Business Asset
Tracking functional area.
3. Set Up Account Posting Rules on page 71.
Configure these account posting rules:
• Accumulated Depreciation
• Business Asset Disposal Donation
• Business Asset Disposal Gain
• Business Asset Disposal Loss
• Business Asset Disposal Sale
• Depreciation Expense
• Impairment
• Spend
4. (Optional) Set Up Asset Adjustment Reasons on page 1276.
5. Create a primary accounting asset book and add it to your company. You can add additional
nonaccounting asset books for reporting purposes.
See Steps: Set Up Asset Books for a Company on page 1276.
6. (Optional) Add additional accounting asset books to report on different accounting standards.
See Steps: Set Up Asset Accounting for Multiple Books on page 1281.
7. Set Up Bonus Depreciation Rules on page 1329.
Create bonus depreciation rules for capital assets in nonaccounting asset books. Workday applies the
bonus depreciation when you place assets in service.
8. Set Up Asset Pooling Rules on page 1291.
Specify when Workday creates a single asset for quantities greater than 1.
9. (Optional) Add existing capital assets to new company asset books.
See Concept: Strategies for Populating New Company Asset Books on Existing Assets on page 1302.

Next Steps
Perform lifecycle events for capital assets.
Related Information
Concepts
Concept: Accounting Impact of Asset Lifecycle Events on page 1299
Tasks
Steps: Perform Lifecycle Events for Capital Assets on page 1288

Steps: Set Up Asset Tracking on page 1255

Reference
2023R2 What's New Post: Custom Depreciation Rate Schedules

Set Up Asset Adjustment Reasons

Prerequisites
Security: Set Up: Business Asset Accounting domain in the Business Asset Accounting functional area.

Context
You can configure the adjustment reasons that users can select when they change rate schedules on
assets. Asset adjustment reasons provide visibility and a better understanding of your rate schedule
changes.

Steps
1. Access the Maintain Asset Adjustment Reasons task.
2. Add new rows for the asset adjustment reasons that you want to track.
3. Access the Maintain Asset Adjustment Types task.
4. On the Adjustment Reasons grid for the Update Rate Schedule adjustment type, add new rows for
your custom adjustment reasons.

Next Steps
To change rate schedules on assets that you place in service, access the Adjust Asset task from the
related actions menu of these assets.
Related Information
Reference
2023R2 What's New Post: Custom Depreciation Rate Schedules

Steps: Set Up Asset Books for a Company

Context
You can set up asset books to populate accounting treatments and depreciation profiles when you register
capital assets. You can set up 2 types of asset books:
• Accounting books for journals and reporting, such as the International Financial Reporting Standards
(IFRS) or U.S. Governmental Accounting Standards Board (GASB).
• Nonaccounting books for reporting purposes, such as federal tax, state tax, alternative minimum tax
(AMT), or adjusted current earnings (ACE).

Steps
1. (Optional) Create Custom Depreciation Rate Schedules on page 1329.
2. Set Up Depreciation Profiles on page 1326.
3. Create Spend Categories.
4. Access the Maintain Asset Books task.
Create asset books with descriptions for your organization. The first time you set up asset books for a
company, create an accounting book to use as the primary book.
Security: Set Up: Business Asset Accounting domain in the Business Asset Accounting functional area.
5. Define Asset Book Rules on page 1280.

6. Access the Add Company Asset Book task.

Add the asset books to your company. Workday automatically populates the Fiscal Schedule with
Standard Corporate Schedule for the primary book.
Security: Set Up: Company Asset Books domain in the Business Asset Accounting functional area.
7. (Optional) Restrict Assets to Company Asset Books on page 1279.
8. (Optional) Access the View Company Asset Books task.
To edit your asset books, click Update Asset Books.
Security: Process: Business Asset Accounting domain in the Business Asset Accounting functional
area.

Result
After you register capital assets and assign accounting information, Workday adds them to each asset
book. Workday populates the accounting treatment and depreciation profile from the asset book rules that
you set up.
When you apply an accounting treatment of Depreciable Capital Asset, Workday generates the
depreciation schedule when you place assets in service.

Add Assets to a Company Asset Book

Prerequisites
• Configure asset accounting.
See Steps: Set Up Asset Accounting.
• Run the Capital Assets without Accounting Information Assigned report to identify depreciable and
nondepreciable capital assets without asset accounting information. Workday doesn't add assets to
company asset books until you assign accounting information to them.
• Set up asset books and add them to companies.
See Steps: Set Up Asset Books for a Company.
• Define Asset Book Rules.
• Set Up Bonus Depreciation Rules.
• Security: These domains in the Business Asset Accounting functional area:
• Process: Business Asset Accounting
• Setup: Company Asset Books

Context
You can copy the asset information from an existing company asset book when you add new asset
books to a company with existing assets. Workday initiates a process to add all assets with accounting
information assigned to the selected company asset book.
The fiscal schedule of the new company asset book should have fiscal periods from the earliest to the
latest effective date for all cost activities that you copy. The depreciation start date for an asset is the
earliest transaction effective date for the asset.
Note: You can copy asset information to a company asset book at any time. When you have a lot of
assets, we recommend that you run the process during off hours.

Steps
1. Access the Add Assets to Company Asset Book task. You can run the task for the whole book, a
specific location, or for only a specific asset.

2. As you complete the Criteria tab, consider:

Option Description
Company Select the company to which you want to add
assets.
Company Asset Book To Add Assets To Workday adds assets to this company asset book
that match the specified criteria including:
• Expensed assets or assets registered with
accounting information assigned but not
placed in service.
• Assets that don't exist in this book yet.
• Assets that don't have a condition that
prevents them from Workday adding them at
this time.

Source Asset Book The source asset book that provides the basis for
the asset cost in the new book. The source asset
book includes historical cost and all cost activities.
If you copy assets from the primary accounting
book, then Workday excludes impairments from
the cost activities making up the asset cost in the
nonaccounting book.
Exclude Assets Disposed Earlier Than Workday adds assets with a disposal date on
or after this date. Workday doesn't add assets
with a disposal date before this date. Workday
automatically populates the first day of the current
fiscal year.
Location (Optional) Select the specific location that you
want to run the job for. Workday copies only the
assets for this location to the new asset book.
Asset ID (Optional) Select the specific asset that you want
to run the job for. Workday copies only this asset
to the new asset book.
Depreciation Accounting Status Define when Workday can or can't create journals
for prior periods by setting the:
• Status of a depreciation expense line for an
asset to Accounted on or before a specific
date.
• Date to record depreciation until the date
indicated on a new depreciation schedule.

Depreciation Information Select to apply the depreciation from the new

asset book rules or from the source asset book.
Bonus Depreciation Select to use:
• Bonus depreciation rules.
• Copy from the source asset book.
• No bonus depreciation if it doesn't apply.

3. In the Schedule tab, set the start date, start time, and time zone for your task.
The job runs only once.

Result
Workday adds assets that meet the specified criteria to the new company asset book.

Next Steps
• Confirm that for the new asset book it's zero in the Assets to Add column. You can run the View
Company Asset Books report to verify the count. The count includes assets disposed of in the current
fiscal year that aren't in this book.
• If a count exists, you have more assets to add before the book is complete. Run the task again, and
also verify that:
• The assets don't have any transactions in process.
• You assigned asset accounting.
• The latest disposal date on disposed assets isn't before the specified date.
• Every fiscal period exists for assets that you depreciate with a depreciation rate basis of Number of
Days.
• Use the Update Depreciation Schedules web service to update the historical information if:
• An asset has historical accumulated depreciation.
• Workday populated the asset depreciation information based on asset book rules.
• Provide a depreciation start date to indicate when depreciation starts in Workday. Historical
accumulated depreciation includes historical bonus depreciation, so you should update historical
bonus depreciation. The depreciable cost in the Workday depreciation schedule excludes historical
accumulated depreciation. The historical accumulated depreciation sums the depreciation on all cost
activities that have a transaction effective date before the depreciation start date.
Related Information
Concepts
Concept: Strategies for Populating New Company Asset Books on Existing Assets on page 1302
Examples
Example: Set Depreciation Accounting Status for Company Asset Books on page 1306

Restrict Assets to Company Asset Books

Prerequisites
Security: Setup: Company Asset Books domain in Business Asset Accounting functional area.

Context
You can assign or restrict assets to specific asset books for a company based on spend category, supplier
contract type, or lease accounting method. Configuring asset restrictions enables you to restrict the cost of
an asset to a specific company asset book.

Steps
1. Access the Maintain Company Asset Book Restrictions task.
2. As you complete the task, consider:
Option Description
Spend Category Select from the categories set up to track items or
the hierarchies that contain at least one trackable
spend category. If you don't see the value that
you want, use the Maintain Spend Categories
task and select Track Items.

Option Description
Supplier Contract Type Specify a supplier contract type.
Lease Accounting Method Workday generates lease accounting transactions
using this value.
Restrict to Company Asset Books Workday restricts assets to this company asset
book.
Primary Company Asset Book Override Workday populates the company primary book if
the primary book of the company is listed in the
Restrict to Company Asset Books prompt.
3. To evaluate whether the in-use restrictions are correct for a company, test them.
a) Click the Test Asset Book Restrictions button.
b) Enter the company, spend category, and lease and contract information as input criteria.
c) Click OK to see the asset book restrictions for the specified company.

Result
You can:
• Specify the company books an asset should include when you initially register the asset.
• Override the primary book of an asset if the company primary book doesn't exist on the asset.
• Complete all lifecycle events on an asset.

Define Asset Book Rules

Prerequisites
• Create Spend Categories.
• Set Up Depreciation Profiles.
• Set up asset books.
• Security: Set Up: Business Asset Accounting domain in the Business Asset Accounting functional area.

Context
You can set up asset book rules to assign an accounting treatment under specific conditions. For
depreciable capital assets, you can also instruct Workday to assign a depreciation profile.
Each asset book has its own set of rules, so an asset can have different accounting treatments and
depreciation profiles in each book.

Steps
1. Access the Maintain Asset Book Rules task.
2. Specify the conditions for a rule.
As you complete the task, consider:
Option Description
Spend Category Select categories or hierarchies with at least 1
trackable spend category. If you don't see the
category that you want, use the Maintain Spend
Categories task and select the Track Items
check box.

Option Description
Company Leave this field blank to apply the rule to all
companies.
If you specify a hierarchy and an Amount
Threshold, all companies in the hierarchy must
use the same base currency.

Company Currency The currency for the Amount Threshold.

Workday converts other currencies to this one
when evaluating business assets.
Amount Threshold Workday compares the amount threshold against
the absolute value of an asset cost. If the cost is
greater than the threshold, Workday triggers the
rule.
Invoice Line Amount Basis If you specify an Amount Threshold, Workday
evaluates assets based on its Unit Cost or
Extended Amount.
3. Specify the accounting treatment and depreciation profile applied to assets that trigger the rule.
4. Place the rules in the Order you want Workday to evaluate them.
5. (Optional) Click Test Asset Book Rules to verify the configuration of your asset book rules.

Result
When you register an asset, Workday automatically checks it against the asset book rules and assigns an
accounting treatment and depreciation profile.
• When no rules exist for a nonprimary asset book, Workday uses the rules of the primary company asset
book.
• When Workday doesn't find any matching rule, Workday applies the Expense accounting treatment.

Steps: Set Up Asset Accounting for Multiple Books

Prerequisites
Set up asset accounting.
See Steps: Set Up Asset Accounting.

Context
You can account for a single asset in multiple books to apply different accounting treatments and
depreciation profiles.
Workday uses book codes to track the financial transactions posted for the lifecycle events of these assets.
You can combine the book codes to create reporting books based on your accounting needs.
Note: You can't disable multibook asset accounting after you enable it.

Steps
1. Access the Edit Tenant Setup - Financials task.
In the Business Assets Options section, select the Enable Multibook Asset Accounting check box.
Security: Set Up: Tenant Setup - Financials domain in the System functional area.

2. Access the Maintain Book Codes task.

Create adjustment book codes for each accounting asset book that your company uses.
Security: Set Up: Ledger and Book domain in the Common Financial Management functional area.
3. (Optional) Create a manual journal entry to move the opening asset ledger account balances from the
common book code to each adjustment book code.
See Steps: Process Accounting Journals on page 92.
4. Access the Maintain Books task.
Create reporting books that include your adjustment book codes.
5. Create a Multibook Settlement ledger account and define the account posting rules for it.
See Steps: Create and Organize Ledger Accounts on page 68.
6. Create additional accounting asset books and add them to your company.
Assign a book code to each accounting asset book, including the primary book.
See Steps: Set Up Asset Books for a Company on page 1276.
7. (Optional) Load your assets in the new books with beginning balances.
Migrate your assets to the new books. See Concept: Strategies for Populating New Company Asset
Books on Existing Assets on page 1302.
8. (Optional) Access Workday Standard Reports.
Create before and after reports to reconcile any changes made to an existing Workday installation.
Select the Business Assets and Set Up Business Assets categories to view standard reports for assets.
Security: Custom Report Administration domain in the System functional area.
Related Information
Concepts
Concept: Accounting Impact of Asset Lifecycle Events on page 1299
Tasks
Steps: Set Up Asset Accounting on page 1274

Steps: Configure Intangible Business Assets

Prerequisites
Consider how your organization sets up and depreciates intangible business assets, and configure the
applicable prerequisites:

Action: Configure:
Register assets from supplier contract receipt lines. The Receipt business process definition with the
Initiate Asset Registration Events from Receipt for
Supplier Contracts service step.
Create Inbox tasks for generating installments for The Receipt business process definition with the
supplier invoice schedules created from receipts. Review Schedule for Installment Generation action
step.
The Create Supplier Contract Schedule
Installments for Receipt business process
definition.

Require approvals for In Service date changes to The Asset Adjust In Service Date Event business
assets. process.
Specify the account for recording accrued liability Edit the Business Asset Registration Accrued
for assets registered and sourced from a supplier Liability account posting rule conditions with
contract receipt line. resulting ledger accounts.

Context
Create and amortize intangible assets, such as leases or broadcasting rights, according to the terms you
define in your supplier contract. These high-level steps walk you through the configuration for amortizing
intangible business assets.

Steps
1. Create supplier contract types and check the Scheduled Invoices and Receipt options.
See Steps: Create Supplier Contracts.
Don't include purchase orders in the supplier contract type. If the contract type includes purchase
orders, Workday can't initiate asset registration for intangible business assets.
2. Create spend categories for intangible business assets and check Track Items, Intangible, and other
asset tracking options.
See Create Spend Categories.
You can only create assets with intangible spend categories from supplier contract receipt lines, not
directly from purchase orders or supplier invoices.
3. Define a depreciation profile with Term as the depreciation method for the amortization schedule.
See Set Up Depreciation Profiles on page 1326.
4. Create a supplier contract and define the contract terms.
See Steps: Create Supplier Contracts.
See Create Lease-Type Supplier Contracts on page 1370.
5. Include goods lines in the supplier contract.
a) Select the Spend Category you defined with the Intangible spend category default.
b) Specify the Start Date, End Date, and In Service Date.
Workday uses the In Service Date from supplier contract lines to place assets in service.
See Add or Update Goods and Service Lines on Supplier Contracts.
6. Create a supplier invoice schedule for the supplier contract.
a) Specify the Defined Date for scheduling supplier invoices for the contract.
b) Select Amendment Processing options to regenerate installments automatically and submit
schedules if amendments are processed for the supplier contract.
See Steps: Create Purchase Order Schedules and Installments for Supplier Contracts.
7. Create supplier contract line receipts.
Workday initiates the asset registration event.
8. Register assets:
• Automatically - Workday initiates asset registration from the supplier contract receipt line and sends
notification.
• Manually - Enter supplier contract details in the Register Assets task.
See Register Assets on page 1259.
9. Assign accounting information.
See Assign Asset Accounting Information on page 1284.
10.Record asset amortization expenses.
See Record Asset Depreciation and Amortization Expenses on page 1331.

Result
The supplier contract Assets tab lists assets registered from supplier contract receipt lines. Drill into assets
for the Source Document Line for the related receipt, supplier contract, and supplier contract line details.

Next Steps
• Access the Find Assets report to view business assets details.
See View Assets on page 1264.
• (Optional) Change the date you placed the asset in service after updating supplier contract lines.
See Adjust an Asset In Service Date on page 1266.

Assign Asset Accounting Information

Prerequisites
• Register the asset.
• Configure the Asset Assign Accounting Event business process and security policy in these functional
areas:
• Business Asset Accounting
• Business Asset Tracking

Context
For capital assets with no processed depreciation, you can specify:
• Where the asset belongs.
• The depreciable attributes in the primary book.
• The residual value in the primary book.

Steps
1. Access the Assign Asset Accounting Information step from your Inbox.
Workday creates this Inbox item when the asset accounting rules populate an accounting treatment
other than Expense at the time of registration. When the default accounting treatment is Depreciable
Capital Asset, you can change the depreciation profile and related attributes that Workday populates.
You can also change the accounting treatment, spend category, location, and worktags for the asset.
For leased assets that you register from a supplier contract, you can modify Asset Class, Asset Type,
and the accounting book information.
2. As you complete the Asset Information, consider:
Option Description
Spend Category To change the spend category, first change the
item for the asset. Workday populates the spend
Item
category from the selected item.
When Item is blank, you can select any spend
category.
You can't change the Item or Spend Category
when the asset is from a supplier invoice line
using a purchase item. Use the Reclassify Asset
task to change the Item or Spend Category on
this type of asset.
For leased assets, you can't change the Item or
Spend Category.

Date Acquired The date when you acquire the asset. The
document date automatically populates when
the asset source is a receipt, supplier invoice, or
supplier contract receipt line. It's the start of the

Option Description
useful life of an asset when the date placed in
service option on the depreciation profile is Upon
Acquisition.
3. As you complete the Asset Details, consider:
Option Description
Cost Workday locks the cost after you submit it
for approval and you can't change it until it's
approved.
Note: You have to perform a cost adjustment to
account for additional invoices or receipts.

Accounting Treatment Drives how Workday accounts for an asset. You

typically book expense assets to an income
statement account and capital assets to a balance
sheet account.
Depreciation Profile Drives the Place In Service option and
default values for the Depreciation Method,
Convention, and Useful Life. You can change
these default values independently.
Convention Workday uses the Convention, along with the in-
service date, to determine the depreciation start
date.
Asset Class You can specify these attributes to use for
external reporting, where an asset tax class
Asset Type
or property type is relevant. You can use the
Business Use % attributes in bonus depreciation rules. Workday
populates values based on the specified spend
category. However, the asset class or asset type
you select on the Maintain Asset Shares task
override the values you select here.
Workday displays Asset Class and Asset Type
in the Identification column because they apply
across all company asset books.

Coordinating Cost Center Workday populates the cost center from the
Worktags prompt when it has a cost center
worktag and you enable the functionality in your
tenant.
Select the Auto Populate Coordinating Cost
Center check box in the Business Assets
Options section on the Edit Tenant Setup -
Financials task.

Asset Coordinator Select the worker in possession of this asset.

External Contract Number Workday populates the supplier contract number
and start date from the contract when the
business asset originates from a supplier contract
line.

Option Description
External Contract Start/End Date The start and end dates of the supplier contract
line for this asset. Workday requires contract
dates for supplier contract-based assets.
You can't modify the contract start date. You can
optionally enter or modify the end date of the
supplier contract or adjust the asset in service
date.

Location Identify the custodial information of where the

asset belongs. Workday populates the Location
from the value that you specify during asset
registration.
Worktags Use worktags as keywords to more easily classify
and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.
When you enable optional worktag balancing on
the Maintain Worktag Balancing Configuration
task, Workday fully balances journal lines by
optional balancing worktags. Journal lines
automatically:
• Inherit optional balancing worktags based on
the worktag types selected.
• Generate due to and due from entries to
balance transactions.

Supplier Invoice Line Identify the source of the spend booked to the
ledger.
If the asset registration occurs as part of the
supplier invoice event, Workday automatically
displays this value. If the source of the asset is
the receipt event or manual registration, you can
select the supplier invoice line.

Asset Shares Displays the number of times you're sharing the

asset costs. Click the number to drill down and
view line detail about the shared cost.
4. (Optional) Access the Change Accounting Information task from the related actions menu of a
business asset.
The task is available regardless of the accounting treatment when there are no transfers or processed
depreciation.

Result
Workday populates the accounting information that you enter on the asset in the primary asset book. For
secondary asset books, Workday populates the accounting information from your asset book rules.
When the accounting treatment is depreciable capital, Workday creates a depreciation/amortization
schedule with a depreciation/amortization line for each period.

If you reference a supplier invoice line, Workday creates accounting entries to move the spend booked to
the ledger when both conditions are true:
• The accounting treatment, spend category, location, or worktags on the asset differ from values on the
supplier invoice line.
• The accounting treatment on either the supplier invoice line or asset isn't Expense.
For lease contracts, Workday generates accounting from the supplier invoice.

Next Steps
To change depreciation information on assets in secondary asset books, you can use the Update Asset
Book Configuration web service.
Related Information
Tasks
Register Assets on page 1259
Set Up Shared Costs of Assets on page 1325
Steps: Perform Lifecycle Events for Capital Assets on page 1288

Change Depreciation Accounting Status on an Asset

Prerequisites
Security: Process: Business Asset Accounting in the Business Asset Accounting functional area.

Context
Set the accounting status for depreciation expense lines or clear the accounted status on assets in an
asset accounting book. Setting the accounting status helps you avoid generating accounting journals for
depreciation expense for prior periods.
You can set the depreciation accounting status when:
• Registration and assign asset accounting are complete.
• There is at least 1 asset depreciation schedule that doesn't have expense lines posted.
• The asset doesn't have an In Progress event.

Steps
1. From the related actions menu of an asset, select Business Asset > Change Depreciation
Accounting Status.
The task is available until Workday posts depreciation expense using the Record Depreciation
Amortization Expense task for that asset book.
2. As you complete the task, consider:
Option Description
Restricted to Asset Books Select asset books to set the depreciation
expense status to Accounted.
Set/Clear Accounted Status Select to either set or clear the accounted status.
Depreciation Period On or Before Specify the date that you want the accounting
status to take effect.

Result
Workday sets the deprecation accounting status to Accounted for the selected fiscal periods and asset
books.

Steps: Perform Lifecycle Events for Capital Assets

Prerequisites
Configure asset accounting.

Context
You can apply lifecycle events to capital assets. These lifecycle events don't apply to expensed assets,
which are assets that you capture for tracking purposes only.

Steps
1. Assign or Change Asset Accounting Information.
You can update these attributes for capital assets with no posted depreciation:
• Accounting treatment.
• Cost.
• Depreciation information.
• Custodial information.
2. Reclassify an Asset.
You can reclassify the spend category of a capital asset. You can also change other details such as
asset class, asset type, and useful life, for assets with posted depreciation.
3. Adjust the Cost of an Asset.
You can adjust the acquisition cost after you capture an asset acquisition cost. You can also add tax,
freight, or post-acquisition costs for items such as major repairs.
4. Correct or Adjust Useful Life.
If you initially configure an asset with an incorrect life, you can correct it. When a change occurs in the
estimated useful life of an asset, you can also adjust the useful life.
5. Impair an Asset.
To reflect the current worth of assets when the fair market value falls below the net book value
permanently, you can book impairments.
6. Record Asset Depreciation and Amortization Expense.
You can record depreciation expenses for company assets.
7. You can select dates to suspend and resume depreciation for assets.
See Suspend and Resume Asset Depreciation on page 1333.
8. Transfer assets from 1 company to another.
See Steps: Track Assets on page 1257.
When the Asset Intercompany Transfer In Event business process of the transfer-to company includes
the Review Asset Intercompany Accounting action step, Workday creates an Inbox item for the asset
accountant. The asset accountant can review the accounting attributes for the new asset as part of
the transfer transaction. Otherwise, Workday transfers the asset with the same attributes it had in the
transfer-from company.
9. (Optional) Access the Adjust Asset task from the related actions menu of assets.
You can change rate schedules on assets that you place in service. Workday applies the new rate
schedule starting on the Transaction Effective Date that you select.
Security: Configure the Asset Adjustment Event business process in the Business Asset Accounting
functional area.

10.Dispose of assets with lifecycle events for your company or company hierarchy.
See Steps: Track Assets on page 1257.
The Asset Disposal Event business process includes the Complete Business Asset Accounting step as
a required step.
Workday sends a task to the Inbox of the asset accountant:
• When you dispose of a capital asset.
• When there are proceeds from a sale or a donation for an expensed asset.
The asset accountant can complete the accounting information for the disposal, such as putting
worktags on the gain or loss.
11.Dispose of an Expired Asset.
You can find and dispose of intangible assets that have no residual value and are beyond their useful
life as soon as they expire. If capital assets are no longer in service, you can partially dispose of assets
by cost.

Result
• You can identify and fix a journal error using the Fix Operational Journal With Errors task.
• You can use the Get Asset web service to create an outbound EIB and send asset data to an external
tax depreciation service.
Related Information
Tasks
Steps: Set Up Asset Accounting on page 1274
Set Up Outbound EIB
Register Composite Assets on page 1262
Adjust an Asset In Service Date on page 1266
Reference
2023R2 What's New Post: Custom Depreciation Rate Schedules

Create Asset Shares

Prerequisites
• Security: Configure the Asset Share Event business process and security policy in the Business Asset
Tracking functional area.
• Register the asset.

Context
Asset shares enable you to split asset cost and depreciation across multiple cost centers or other
worktags.

Steps
1. Access the Find Assets report.
2. To generate a list of assets that you want to share, enter the information in the list of prompts and fields.
3. From the related actions menu under the Asset ID column, select Business Asset > Maintain Asset
Shares.
4. Enter either a Share Percent or an Asset Share Amount.
Workday automatically calculates and displays the value into the other field based on the value you
enter. Continue adding rows until all the share percentages total 100 and the value in the Amount to
be Split field is zero.

5. (Optional) Assign worktags to the asset share.

You can assign up to 1 worktag of each type to an asset share. Example: You can assign 1 cost center
and 1 region to an asset share, but you can’t assign 2 cost centers to the same asset share. You can
assign the same worktag to several asset shares.
When you enable optional worktag balancing on the Maintain Worktag Balancing Configuration task,
Workday fully balances journal lines by optional balancing worktags. Journal lines automatically:
• Inherit optional balancing worktags based on the worktag types selected.
• Generate due to and due from entries to balance transactions.

Result
Workday splits the depreciation schedule for the asset according to the shares that you set up. You can
review the depreciation information on the Depreciation Detail tab when you view the asset.

Steps: Dispose Assets

Prerequisites
Set up asset disposal types.

Context
You can dispose assets with lifecycle events for your company or company hierarchy. You can partially
dispose capital assets by cost or percentage, or fully dispose expired assets to take them off your company
books. For business assets capitalized from project assets, Workday makes the original project asset
unavailable for adjustments when any related business assets are:
• Part of a composite asset.
• Partially or fully disposed of.
• Removed from service.
Note: You can't make changes to assets when other events are in progress.

Steps
1. Access the Dispose Assets task.
You can dispose:
• Assets with lifecycle events.
• Intangible assets that you register manually or from a supplier contract.
• Leased assets that you register from a supplier contract when they reach their depreciation and
contract end date.
• Leased assets that you register manually.
Configure the Asset Disposal Event business process and security policy in the Business Asset
Tracking functional area.
2. Access the Dispose Expired Assets task.
Dispose fully depreciated assets that have no residual value and are beyond their useful life.

3. (Optional) Select Business Asset > Reinstate from the related actions menu of a disposed asset.
Reinstate a disposed asset to its state before disposal. You can't reinstate partially disposed assets.
For capital assets, Workday generates accounting to:
• Reinstate the accumulated depreciation.
• Reinstate the asset cost.
• Reverse any gain or loss booked for the disposal.
When you have multiple asset books, Workday reverses recaptured bonus depreciation and returns it to
the depreciation schedule.
Configure the Asset Reinstatement Event business process and security policy in the Business Asset
Tracking functional area.

Result
When you dispose of assets, Workday:
• Calculates accumulated depreciation and any gain or loss and creates a journal entry.
• Changes fully disposed assets to Disposed and severs the relationship to workers.
• Leaves partially disposed assets In Service and issued to workers.
• Makes any related capital project assets unavailable for further adjustments.
Related Information
Tasks
Register Assets on page 1259
Steps: Perform Lifecycle Events for Capital Assets on page 1288
Reference
2022R2 What's New Post: Capital Project Asset Quantities

Set Up Asset Pooling Rules

Prerequisites
Security: Setup: Business Asset Accounting domain in the Business Asset Accounting functional area.

Context
You can configure asset pooling rules for Workday to automatically combine identical assets on a receipt
or supplier invoice line into a single asset.
Workday doesn't apply asset pooling rules to:
• Project assets.
• Business assets that you create when you capitalize project transactions.

Steps
1. (Optional) To override asset pooling rules, set up trackable line reviews for assets.
2. Access the Maintain Asset Pooling Rules task.
3. As you complete the task, consider:
Option Description
Company When you select a company hierarchy and
enter a value for Unit Cost Less Than, then all
companies in the hierarchy must have the same
base currency.

Option Description
Spend Category You can only select spend categories with Track
Items enabled.
Items You can select either a spend category or items,
but not both.
Quantity Greater Than Workday pools assets on a receipt or supplier
line when the quantity of items is greater than the
number that you enter.
Unit Cost Threshold When you enter a nonzero amount:
• Workday doesn't pool assets with a unit cost
greater than the amount that you enter.
• The Company Currency for the pooling
rule must be the same as the base company
currency.

Company Currency Workday populates the company currency from

the base currency of the company or company
hierarchy that you select. When the transaction
currency differs from the rule currency, Workday
converts the transaction amount to the currency of
the rule to evaluate the rule.

Result
When you register assets from a receipt or supplier invoice line, Workday:
• Evaluates the asset pooling rules in the order that you specify.
• Pools the assets that meet the criteria of your rules.

Next Steps
You can:
• Run the View Asset Pooling Rules report to review your asset pooling rules.
• Override the asset pooling rules during your review of trackable lines.
• Run the View Business Asset report to review the available quantity, cost, and accounting details for
the pooled asset.
• Register composite assets with the pooled asset.
As long as you haven't processed any depreciation on the pooled asset, you can use the Assign
Business Asset Accounting Information task to update:
• The spend category.
• The accounting treatment.
• Other values for pooled assets.
Related Information
Concepts
Concept: Pooled Assets on page 1267
Concept: Composite Assets on page 1298
Tasks
Register Assets on page 1259
Register Composite Assets on page 1262

Set Up Trackable Line Reviews for Assets

Prerequisites
• Configure the Receipt business process and security policy in the Procurement functional area.
• Configure the Supplier Invoice Event business process and security policy in the Supplier Accounts
functional area.

Context
You can configure when business asset accountants review the trackable lines on receipts or supplier
invoices for assets.

Steps
1. Add 1 or both of these business process steps:
• Review Trackable Receipt Lines action step on the Receipt business process to review and edit
trackable lines on receipts.
• Review Trackable Invoice Lines action step on the Supplier Invoice Event business process to
review and edit trackable lines on supplier invoices.
Note: When you add a review trackable lines step to both Receipt and Supplier Invoice Event, you can
edit the trackable lines only during your first review of the same line.
2. (Optional) Select the Always Go to Review Trackable Lines for Trackable Spend Category check
box on the Edit Tenant Setup - Financials task.
Security: Set Up: Tenant Setup - Financials in the System functional area.

Result
Workday creates an inbox item for business asset accountants to review the receipt or supplier invoices
lines that contain trackable items.
When you create multiple receipts or supplier invoices from the same purchase order line:

First Review Subsequent Reviews

You indicate that the assets are trackable. Workday prompts you to review subsequent lines
from the same purchase order line.
You indicate that the assets aren't trackable. Workday prompts you to review subsequent lines
only when you enable Always Go to Review
Trackable Lines for Trackable Spend Category.

Review Trackable Lines for Assets

Prerequisites
• Set up trackable line reviews for assets.
• Create a receipt or a supplier invoice with at least 1 trackable line, and not tagged to a capital project.
• Configure the Receipt business process and security policy in the Procurement functional area.
• Configure the Supplier Invoice Event business process and security policy in the Supplier Accounts
functional area.

Context
You can edit the receipt or supplier invoice lines that contain trackable items before Workday registers
assets.

Steps
1. Access the Review Trackable Receipt Lines or Review Trackable Invoice Lines step from your Inbox.
2. As you complete the task, consider:
Option Description
Trackable You can clear this check box to prevent Workday
from creating assets.
Pool When a trackable line contains more than 1 item,
you can override the asset pooling rules:
• When you select this check box, Workday
registers 1 pooled asset.
• When you clear this check box, Workday
registers the assets individually.

Accounting Treatment You can override the accounting treatment from

your asset book rules.

Related Information
Concepts
Concept: Pooled Assets on page 1267
Tasks
Register Assets on page 1259
Set Up Asset Pooling Rules on page 1291
Register Composite Assets on page 1262

Reconcile Asset Activity and Ledger Accounts

Prerequisites
• Concept: Asset to Ledger Reconciliation.
• Security: Report Execution domain in the Tenant Non-Configurable functional area.

Context
You can reconcile your asset activity and the accounting posted to your ledger accounts over a time
period.

Steps
1. Access the Asset to Ledger Reconciliation – Accumulated Depreciation report.
2. As you select your report parameters, consider:
Option Description
Company You can select either:
• A company.
• A company hierarchy with consolidation
details.
• A company hierarchy where all the companies
have matching account sets and either
matching fiscal schedules or matching
alternate fiscal schedules.

Option Description
Period, Time Period, and Report Date Option These 3 options work together to filter the activity
in the report.
The Period and Time Period options enable you
to select the time period that you reconcile:
• Select a fiscal period as a reference.
• Select a time period from the reference period.
The Report Date Option enables you to
filter transactions by accounting, creation, or
transaction date. This enables you to locate
variances caused by timing differences, for
instance for lifecycle events where the transaction
and accounting dates are in different periods.
Examples:
• To view transactions with an accounting date
in January 2023, you select:
• The 2023 - Jan option from the Period
prompt.
• The Current Period option from the Time
Period prompt.
• The Accounting Date option from the
Report Date Option prompt.
• To view transactions with a transaction date in
2023, you select:
• The 2023 - Jan option from the Period
prompt.
• The Current Year option from the Time
Period prompt.
• The Transaction Date option from the
Report Date Option prompt.

3. (Optional) Save your report parameters under a Filter Name.

4. Review the nonzero values in the Variance column.
A nonzero variance indicates that there’s a difference over the selected time period between the:
• Depreciation transactions that you record on your assets.
• Journals that you or Workday post to the asset depreciation ledger accounts.
5. To locate and address the cause of nonzero variance, review the values in the other columns.
Drill down on these values to view the details of the transactions in each category for the selected:
• Ledger account.
• Spend category.
• Journal source.
• Time period.

Option Description
Depreciation Expense Line Detail (A) The transactions on assets for which Workday
creates depreciation expense lines.
Examples:

Option Description
• Post-acquisition cost adjustments.
• Changes to the useful life of assets.
• Depreciation that you record on assets.

Accumulated Depreciation Detail (B) The transactions that change the accumulated
depreciation amount on assets.
Example: You partially dispose of an asset on
which you've recorded depreciation.

Total Ledger Depreciation Activity The journals that you or Workday post to asset
depreciation ledger accounts.
Example: Workday creates a journal when you
record depreciation on an asset.

6. Access the Asset to Ledger Reconciliation – Cost report.

7. Review the values in the Total Variance column.
A nonzero variance indicates that there’s a difference over the selected time period between the:
• Cost activity that you record on your assets, with or without journals.
• Journals that you or Workday post to asset ledger accounts, with or without cost activity on the
asset.
8. To locate and address the cause of nonzero variance, review the values in the other columns.
Drill down on these values to view the details of the transactions in each category for the selected:
• Ledger account.
• Spend category.
• Time period.

Option Description
Asset Cost Detail with Journals (A) The asset cost transactions for which Workday
creates journals.
Example: Assets that Workday creates from
supplier invoices, and that you've registered.

Asset Cost Detail without Journals (B) The asset cost transactions for which Workday
doesn't create journals.
Example: Assets that you register manually.
These transactions are more likely to require
reconciliation.

Ledger Detail with Asset Transactions (C) The journals that Workday creates from asset
cost transactions.
Example: Journals that Workday creates from
supplier invoices.

Ledger Detail without Asset Transactions (D) The manual journals that you create on asset
ledger accounts.
These journals are more likely to require
reconciliation.

Example
You run the Asset to Ledger Reconciliation - Accumulated Depreciation report for:

Field Value
Period October of the current year
Time Period Current Period
Report Date Option Transaction Date

You find variance of -246.89 USD for the ledger account 17000:Accumulated Depreciation and the spend
category Hardware - Servers. You review the amounts in the other columns and find:
• A depreciation expense line detail of 246.89 USD.
• A total ledger depreciation activity of -493.89 USD.
You drill down on the value in the Total Ledger Depreciation Activity column and find 2 journal lines for
the same asset with an accounting date in October.
You run the Asset to Ledger Reconciliation - Accumulated Depreciation report again for:

Field Value
Period October of the current year
Time Period Current Period
Report Date Option Accounting Date

The variance for the ledger account 17000:Accumulated Depreciation and the spend category Hardware -
Servers is zero.
When you drill down on the value in the Depreciation Expense Line Detail (A) column, you find 2
depreciation lines for the same asset: 1 in September and 1 in October. From the drill-down report, you
navigate to the supplier invoice from which you've registered the asset. You find that you created the
supplier invoice in October and backdated it in September. You had already closed the ledger period for
September, so Workday posted the depreciation in October.

Concept: Asset to Ledger Reconciliation

Workday provides these composite reports, which you can customize for your specific reporting
requirements:
• Asset to Ledger Reconciliation – Accumulated Depreciation.
• Asset to Ledger Reconciliation – Cost.
We recommend that you run these reports periodically to locate and reconcile:
• Asset transactions that Workday doesn't automatically post to the ledger account, for which you need to
create manual journals. Example: You register an asset manually.
• Ledger transactions that Workday doesn't record on the asset, for which you need to create asset
adjustments. Example: During your implementation of Workday, you convert your existing assets. You
create a manual journal for the historical accumulated depreciation on your asset.
• Timing differences. Example: You place an asset in service in January without registering the asset
in Workday. In February, after you close the fiscal period for January, you receive the invoice for the
asset. You backdate the asset registration to January. Workday posts the depreciation for the asset in
the closest open fiscal period, which is February.
Related Information
Reference
2022R2 What's New Post: Business Asset Reporting

Concept: Composite Assets

You can group disparate, related assets into a composite asset. Each of the assets in the composite
becomes a component asset.
You can register 2 types of composite assets:
• Discrete composite assets contain asset components that maintain their own costs, depreciation, and
lifecycle events. Workday tracks separate lifecycle events for these assets.
• Nondiscrete composite assets contain asset components that maintain the same costs, depreciation,
and lifecycle events. Workday tracks the same lifecycle event for these assets. Also, each asset that is
part of a nondiscrete composite asset exists in reference only.
Example: You might want to use a camera, lens, and tripod together. You can register all 3 assets as 1
composite asset. Workday populates the acquisition method of composite assets with Composed.
Composite assets can include assets that you register individually and partial quantities from pooled
assets.
Example: You might want to pool, register, and track 5 laptops as a single pooled asset. You can create
a composite asset using 3 of the laptops from the pooled asset. Then you can add 2 monitors, 2 docking
stations, 1 mouse, and 1 keyboard as components of the composite asset. You can continue to pool and
track the remaining 2 laptops as a single asset.
Discrete and nondiscrete assets might have any of these attributes:

Attributes Discrete Composite Assets Nondiscrete Composite Assets

Accounting Treatment Nondepreciable capital. Expense, depreciable, or
nondepreciable capital.
Spend Category and Items Trackable and tangible. Trackable and tangible.
Derived asset cost Zero. Sum of the allocation costs for all
assets.

Assets must meet these criteria before you can group them in composite assets:

Component Asset Criteria Discrete Composite Assets Nondiscrete Composite Assets

Accounting information Not required to have accounting You've assigned accounting to
assigned. the asset.
Accounting treatment Depreciable, nondepreciable, or Depreciable or nondepreciable.
expense.
Quantity available before The composite asset consumes Doesn’t have to equal the
registration the entire available quantity. available quantity.
Residual value Can have a residual value. Can't have a residual value.
Status Any status except Removed, Must be in Registered status.
Disposed, Pending Registration,
or Used by Composite.
Total cost after composite asset Workday doesn't update the cost Workday updates the cost of
registration of the component asset. the component asset based on
how much you allocate to the
composite asset.

Additionally, these assets:

• Must be tangible.

• Can't be composite assets.

• Must be trackable.
• Can't be leased assets.
• Can't already be in use in a composite asset.
• Can't have an event in progress.
• Must have the same asset books as the composite asset.
• Must have a company that matches the company of the asset you're registering or composing.
• Can't be used to capitalize a project transaction.
Related Information
Concepts
Concept: Pooled Assets on page 1267
Tasks
Register Composite Assets on page 1262
Review Trackable Lines for Assets on page 1293
Steps: Set Up Asset Tracking on page 1255

Concept: Accounting Impact of Asset Lifecycle Events

Depending on the asset lifecycle event and the specifics of that transaction, Workday creates accounting to
move spend or adjust depreciation for catchup.

Assign/Change Asset Accounting or Adjust Asset Cost

For asset lifecycle events where you assign or change accounting or adjust cost, Workday creates
accounting entries when all of these conditions are true:
• The asset cost activity is linked to a supplier invoice.
• The accounting treatment on the supplier invoice line or asset isn't Expense.
• The accounting treatment, spend category, worktags, or location on the supplier invoice line is different
than on the asset.
These accounting entries move spend booked by the supplier invoice.
Note: Workday applies depreciation over the remaining useful life of the asset when you adjust the
acquisition cost on assets with historical depreciation.

Leased Assets
To generate lease accounting entries when you create supplier contracts, you must:
• Use trackable spend categories.
• Map ledger accounts to obligation, liability, or expense ledger account types for financial or operating
leases.
• Set up account posting rules and posting rule conditions for liability, multibook settlement, and spend
account posting rule types.
Example: When you create lease contracts using the Financial Lease or Operating Lease contract types,
Workday posts these accounting entries:

Lease Type Transaction Journal Entries

Financial Supplier Invoice Debit Accrued Liability (Financial/
Capital Lease Obligation)
Debit Interest
Credit Payables

Lease Type Transaction Journal Entries

Asset Registration Debit Spend
Credit Accrued Liability

Depreciation Expense Debit Depreciation Expense

Credit Accumulated Depreciation

Operating Supplier Invoice Debit Spend

Credit Payables

Supplier Payment Debit Payables

Credit Cash

Asset Registration Not applicable

Dispose of Assets
The disposal type that you select when you dispose of assets drives the accounting. Each disposal type
maps to a disposal method of either:
• Discard
• Donation
• Sale
These tables list the accounting entries for each accounting treatment and disposal method.
• Depreciable Capital Asset or Non-depreciable Capital Asset accounting treatment:

Disposal Method Journal Entries Considerations

Discard Credit Spend There's no disposal loss for fully
depreciated assets.
Debit Accumulated Depreciation
Debit Asset Disposal Loss

Donation Credit Spend For disposal types that use a

basis of fair market value:
Debit Accumulated Depreciation
• When the fair market value
Debit Asset Disposal Donation is greater than the net book
Debit Asset Disposal Loss or value, the result is a gain.
Credit Asset Disposal Gain • When the fair market value is
less than the net book value,
the result is a loss.
• When the fair market value is
equal to the net book value,
the result is no gain or loss.
For disposal types that use a
basis of net book value, the result
is no gain or loss

Sale Credit Spend When the sale price is greater

than the net book value, the result
Debit Accumulated Depreciation
is a gain.
Debit Asset Disposal Sale

Disposal Method Journal Entries Considerations

Debit Asset Disposal Loss or When the sale price is less than
Credit Asset Disposal Gain the net book value, the result is a
loss.
When the sale price is equal to
the net book value, the result is
no gain or loss.

• Expense accounting treatment:

Disposal Method Journal Entries Considerations

Discard No accounting
Donation Debit Asset Disposal Donation The accounting entry amount is
the fair market value of the asset
Credit Asset Disposal Gain
at disposal.
There's no accounting for
disposal types that use a basis of
net book value.

Sale Debit Asset Disposal Sale The accounting entry amount is

the sale price.
Credit Asset Disposal Gain

In addition, asset disposals can have these accounting impacts:

• Workday records depreciation first and records depreciation expense and accumulated depreciation up
to the disposal date.
• When you have multiple books, you can specify the amount of bonus depreciation to recapture in books
where Workday records bonus depreciation.
• For partial disposals, Workday applies the specified percentage to the total current cost of the asset
(which includes adjusted costs) in each asset book. If you specify a cost, Workday calculates the
percentage using the current cost in the primary asset book. The remaining cost of the asset continues
to depreciate for the remaining life of the asset.
A partial disposal factor adjusts bonus depreciation and the residual value of the asset in all asset
books. Workday also uses the factor if the cost of the asset differs across the asset books. To view how
partial disposals affect the accumulated depreciation for assets, you can access the Depreciation
Summary tab on the View Business Asset report.

Transfer or Issue Assets

For asset transfer and issue lifecycle events, Workday creates accounting to move spend and accumulated
depreciation when all these conditions are true:
• The accounting treatment of the asset isn't Expense.
• There's a change to the worktags, location, or company of the asset.
If you move an asset and there's unposted depreciation for the preceding location, Workday automatically
posts it so that the ledger reflects the correct accumulated depreciation balance. When you've already
posted depreciation belonging to the new location or worktags, Workday creates depreciation adjustments
to move depreciation expenses to the new location or worktags.

Depreciation Adjustments for Catchup Depreciation

For all lifecycle events on depreciable capital assets, Workday creates depreciation adjustments for
periods on or after the transaction effective date that already have posted depreciation when you change
either:
• The company, location, spend category, or worktags. These depreciation adjustments move the
depreciation expense between location and worktags so the net impact to depreciation expense is zero.
• The cost. These depreciation adjustments record the difference between the posted depreciation and
the depreciation that should have been posted for cost activities.
You can access the View Business Asset report to view specific depreciation adjustments on the
Depreciation Detail tab.

Accounting Dates
Workday only posts accounting in open ledger periods. When the period for an accounting date is closed,
Workday posts in the next open period. Example: You register an asset from a supplier invoice with an
invoice date in a closed ledger period. Workday registers the asset with:
• A transaction effective date as the asset acquisition date.
• An accounting date in the next open period.
For lifecycle events without accounting impact, Workday uses the transaction date as the accounting
date, even when the ledger period is closed. Example: You register an asset manually with an acquisition
date in a closed ledger period. Workday registers the asset with both a transaction effective date and an
accounting date as the asset acquisition date.
Related Information
Tasks
Adjust an Asset In Service Date on page 1266
Steps: Perform Lifecycle Events for Capital Assets on page 1288
Steps: Track Assets on page 1257

Concept: Strategies for Populating New Company Asset Books on Existing Assets
When you add a new company asset book, Workday recommends that you migrate your existing assets to
the new book. Alternatively, you can add your assets to the new book.

Migrating Assets to a New Asset Book

When you migrate assets to a new asset book, Workday loads the assets in the new book with beginning
balances. Workday doesn't copy the historical transactions on the assets, eliminating the need for manual
adjustments on historical transactions that don't apply to the new book.
To migrate assets to a new asset book, load your assets with an inbound EIB for the Update Asset Book
Configuration web service.
Note: When you need to load a high volume of assets, you can use the asynchronous Bulk Import Asset
Book Configuration web service.
With this method, you can specify:
• The beginning cost balances for the assets in the new book, such as:
• Original acquisition cost.
• Residual value.
• Fair market value.

• The depreciation information for the assets in the new book, such as:
• Depreciation start date.
• Remaining useful life.
• Accumulated depreciation.
• Year to date depreciation.
Workday doesn't create accounting for the beginning cost and accumulated depreciation balances. You
can create manual journals to load the beginning cost and accumulated depreciation balances to their
respective ledger accounts.
Workday applies the worktags and shares from the latest lifecycle event on an asset to the new book.

Adding Assets to a New Asset Book

Workday recommends that you only add assets to the new asset book when:
• You need to produce reports on the historical transactions on the assets in the new book.
• The current and the new book are similar, reducing the need for manual adjustments.
To add assets to a new asset book, access the Add Assets to Company Asset Book task.
After you've added your assets to the new book:
• Identify the accounting differences between the assets in the new book and in the existing book.
• Create manual adjustments to reconcile differences such as:
• Cost.
• Residual value.
• Accumulated depreciation.
• Useful life.
Related Information
Tasks
Add Assets to a Company Asset Book on page 1277
Reference
2022R2 What’s New Post: Data Migration for Secondary Asset Books
Examples
Example: Migrate Assets to a Secondary Asset Book on page 1314

Reference: Asset Statuses

Workday updates the status of assets as you perform lifecycle events on them.
The same asset can have different statuses in different asset books.

Status Description Example

Registered You've configured the Your company purchases a new

depreciation profile on the building. You register the building
asset to place assets in service at the time of purchase, and place

Status Description Example

Manually or When Issued and it in service when you obtain a
you either: certificate of occupancy.
• Register the asset manually.
• Complete the asset
registration.

Issued Workday assigns this status to an You issue a laptop to a worker.

asset when you either:
• Issue it to a worker manually.
• Resume the asset
depreciation, when the asset
had a status of Issued before
its suspension.
You can issue all types of assets
to a worker. They don't have to
be depreciable. When the asset
is depreciable, you can record
depreciation on the asset.

Status Description Example

Reference: Asset Lifecycle Event Availability

This table lists asset lifecycle events and their availability based on asset status.

Lifecycle Pending Registered In Service Issued Disposed Removed Out of

Event Registration Service
Assign No Yes Yes Yes No No No
Asset
Accounting
Information
Change No Yes Yes Yes No No No
Asset
Accounting
Information
Record No No Yes Yes No No No
Depreciation

Reference: Dispose of, Remove, or Delete Assets

Workday recommends that you dispose of assets that you no longer track in your accounting records.
When you register assets by mistake, you can remove them. In restricted use cases, you might want to
permanently delete all assets from a company asset book. You can still find assets that you dispose of,
remove, or delete from an asset book with the Find Assets report.

Action Considerations Accounting

Dispose of Assets You can dispose of assets that When you fully dispose of
you no longer track in your assets, Workday generates
accounting records. Example: accounting based on the asset
You sell an asset. disposal method. See Concept:
Accounting Impact of Asset
See Steps: Dispose Assets.
Lifecycle Events.
Remove Business Assets You can remove assets that Workday removes any posted
you register by mistake, when depreciation and cost tracking
they meet the conditions for activities on the assets. Workday
removal. See Steps: Track also removes the workers on
Assets. When you create assets assets.
from project capitalization, you
For business assets that you
have to remove all the business
create when you capitalize project
assets that you create from the
assets, Workday moves the
same project asset. See Concept:
Project Assets.

Action Considerations Accounting

Example: You remove an asset uncapitalized cost back to the
that you created from a canceled project assets.
supplier invoice.

Delete Assets from Company This restricted action deletes all Workday doesn't remove
Asset Books assets from a nonaccounting or operational journals. To remove
secondary accounting book. spend lines from ledger accounts,
create manual journals.
You might need to delete all
assets from an asset book:
• When you implement
Workday. Example: You
delete all assets that you
migrated from your legacy
system to fix an issue with the
migration.
• To remove asset books from a
company.
Note: You can't undo this action.
When you delete all assets
from an asset book, Workday
permanently deletes their asset
book configuration. Assets that
you add back with the Add
Assets to Company Asset
Book task might not be in the
same state they were in before
you deleted them.
To request that we temporarily
enable this task for your tenant,
contact your Customer Success
Manager.

Example: Set Depreciation Accounting Status for Company Asset Books

This example illustrates how to control when Workday can or can't create journals for prior periods.

Context
As an assets accountant, you need to set the status of a depreciation expense line for an asset to
Accounted on or before a specific date. Specifying a date helps you avoid creating journals for prior
periods when you set the accounting status for depreciation expense lines.

Prerequisites
• Register the asset.
• Configure asset accounting.
• Security: These domains in the Business Asset Accounting functional area:
• Process: Business Asset Accounting
• Setup: Company Asset Books

Steps
1. Access the Add Assets to Company Asset Book task.
2. On the Criteria tab, enter these values:

Field Value
Company GMS USA
Company Asset Books to Add Assets to Statutory
Source Asset Book Accounting
Exclude Assets Disposed Earlier Than Workday automatically populates the first day of
the current fiscal year.
Location Blank
Asset ID Blank
Depreciation Information Copy from Source Asset Book
Depreciation Accounting Status Date until the depreciation period status of the
asset is set to Accounted. Workday doesn't
create journal entries for individual depreciation
periods until the specified date.
Date to record depreciation until the depreciation
period status of the asset is set to Posted.
Workday creates journal entries for individual
depreciation periods until the specified date.

Bonus Depreciation Copy from Source Asset Book

3. Click OK.

Result
Workday adds the new asset book and updates the accounting status for depreciation expense lines to
Accounted until the date specified.
Related Information
Tasks
Add Assets to a Company Asset Book on page 1277

Example: Asset Roll Forward Composite Report

This example illustrates how to create a custom report that uses a matrix subreport to enable dynamic
reporting.

Context
As an asset accountant, you want to view the cost and accumulated depreciation of assets for a given
reporting period. You want your report to:
• Group assets by Spend Category.
• Display columns that summarize changes in asset cost and accumulated depreciation.
• Create a pivot table from the journal source.
• Enable you to drill down to view the details for reported amounts.
• Calculate the summary for preceding and current reporting periods.

Note: Filters and data are specific to your Workday tenant and might be different from the suggested
values in this example. Use these values as guidance.

Prerequisites
• Security: These domains in the Financial Accounting functional area:
• Reports: Financial Accounting
• Reports: Organization Financial Reporting
• Security: These domains in the System functional area:
• Custom Report Creation
• Manage: All Custom Reports

Steps
1. Access the Create Custom Report task and enter these values:

Field Value
Report Name Enter a unique name for your custom matrix
subreport.
Report Type Matrix
Data Source Journal Lines for Financial Reporting
2. Select the Optimized for Performance check box.
3. Click OK.
4. From the Data Source Filter prompt, select Journal Lines for Company and Reporting Time Period.
5. In the Matrix tab, add this row to the Row Grouping grid:

Group by Field Sort Rows

Spend Category as Worktag Row total - Descending
6. Add this row to the Column Grouping (Optional) grid:

Group by Field Sort Columns

Journal Source Column total - Descending
7. Add this row to the Define the Field(s) to Summarize grid:

Summarization Type Summarization Field Format

Sum Translated Debit Minus Credit #,##0.00
Amount
8. Click the Drill Down tab.
9. In the Group By Fields section, select the Sort Dimensions Alphabetically check box.
10.At the Fields That Can Be Summarized prompt, select Specific Fields.
11.Add this row to the Drillable Fields grid:

Field Label Override Sort

Journal Journal Total - Descending

12.Add these rows to the Detail Data grid:

Order Field Column Heading Format

Override
1 Ledger Account
2 Accounting Date
3 Spend Category as
Worktag
4 Journal Source Transaction
5 Translated Debit Debit Amount #,##0.00
Amount
6 Translation Currency Currency
7 Worktags
13.Add these rows to the Sort grid:

Order Field Sort Direction

1 Ledger Account Alphabetical - Ascending
2 Accounting Date Alphabetical - Ascending
14.Click the Filter tab and add these rows to the Filter on Instances grid:

Order And/Or Field Operator Comparison Comparison

Type Value
1 And Ledger exact match Value specified Asset
Account Type with the in this filter
selection list
2 And Spend is not empty
Category as
Worktag
3 And Journal Source in the selection Prompt the Default prompt
list user for the
value
15.Click the Prompts tab.
16.Select the Populate Undefined Prompt Defaults check box.
Workday populates the Prompt Defaults grid, then clears the check box.
17.Select the Display Prompt Values in Subtitle check box.
18.Verify these rows in the Prompt Defaults grid:

Order Field Prompt Label for Default Required Do Not

Qualifier Prompt Type Prompt at
Runtime
1 Company No default Checked Unchecked
value
2 Ledger No default Checked Unchecked
value

Order Field Prompt Label for Default Required Do Not

Qualifier Prompt Type Prompt at
Runtime
3 Period No default Checked Unchecked
value
4 Time Period Reporting No default Checked Unchecked
Interval value
5 Book Accounting No default Unchecked Unchecked
Book value
6 Amount No default Checked Unchecked
Type value
7 Report No default Unchecked Checked
Effective value
Date
8 Plan No default Unchecked Checked
Structure value
9 Calculate No default Unchecked Checked
Translation value
Gain or Loss
10 Calculate No default Unchecked Checked
Current Year value
Retained
Earnings
11 Eliminations No default Unchecked Checked
Only value
12 Ledger No default Unchecked Checked
Accounts value
and
Summaries
13 Perform No default Unchecked Checked
Intercompany value
Eliminations
14 Perform No default Unchecked Checked
Interworktag value
Eliminations
15 Balancing No default Unchecked Checked
Worktags value
16 Journal Default No default Checked Unchecked
Source Prompt value
17 Account No default Checked Unchecked
Translation value
Rule Set
18 Translation No default Checked Unchecked
Currency value
19.Click OK, then Done.

20.Access the Create Custom Report task and enter these values:

Field Value
Report Name Enter a unique name for your Asset Roll Forward
Composite Report.
Report Type Composite
21.Add this row to the Business Object Enabled for Filtering and Grouping grid:

Business Object Hierarchy Structure

Spend Category
22.Click OK.
23.From the related actions menu of column C1, select Define > Control Field.
24.Enter these values:

Field Value
Column Name Spend Category
Business Object Spend Category
25.Click OK.
26.From the related actions menu of column C2, select Define > Data.
27.Enter these values:

Field Value
Column Name Assets Beginning Balance
Sub Report Name Select the custom matrix subreport you previously
created. Workday populates the Map Sub Report
Prompts grid with the prompt values you defined
in the subreport.
28.Specify these rows in the Map Sub Report Prompts grid:

Prompt Field Value Type Value

Amount Type Specify Value Beginning Balance
Journal Source Specify Value • Asset Adjustment
• Asset Disposal
• Asset Impairment
• Asset Reclassification
• Asset Transfer
• Asset Intercompany Transfer
• Supplier Invoice

29.From the Field to Aggregate prompt, select Sum of Translated Debit Minus Credit Amount.
30.Click OK.
31.Starting with column C3, repeat steps 26 to 30. Use the table below as reference for the Column Name
and Map Sub Report Prompts.

Column Column Name Prompt Field Value Type Value

C3 Acquisition Amount Type Specify Value Beginning Balance

Column Column Name Prompt Field Value Type Value

C3 Acquisition Journal Source Specify Value Supplier Invoice
C4 Adjustment Amount Type Specify Value Activity
C4 Adjustment Journal Source Specify Value Asset Adjustment
C5 Impairment Amount Type Specify Value Activity
C5 Impairment Journal Source Specify Value Asset Impairment
C6 Reclassification Amount Type Specify Value Activity
C6 Reclassification Journal Source Specify Value Asset
Reclassification
C7 Transfer Amount Type Specify Value Activity
C7 Transfer Journal Source Specify Value • Asset Transfer
• Asset
Intercompany
Transfer

C8 Disposal Amount Type Specify Value Activity

C8 Disposal Journal Source Specify Value Supplier Invoice
C9 Asset Ending Amount Type Specify Value Ending Balance
Balance
C9 Asset Ending Journal Source Specify Value • Asset
Balance Adjustment
• Asset Disposal
• Asset
Impairment
• Asset
Reclassification
• Asset Transfer
• Asset
Intercompany
Transfer
• Supplier
Invoice

C10 Depreciation Amount Type Specify Value Beginning Balance

Beginning Balance
C10 Depreciation Journal Source Specify Value • Depreciation
Beginning Balance • Depreciation
Adjustment

C11 Depreciation Amount Type Specify Value Activity

C11 Depreciation Journal Source Specify Value Depreciation
C12 Depreciation Amount Type Specify Value Activity
Adjustment
C12 Depreciation Journal Source Specify Value Depreciation
Adjustment Adjustment

Column Column Name Prompt Field Value Type Value

C13 Depreciation Amount Type Specify Value Ending Balance
Ending Balance
C13 Depreciation Journal Source Specify Value • Depreciation
Ending Balance • Depreciation
Adjustment

32.Click the gear icon to access the Edit Composite Report Settings task.
33.Click the Prompts tab.
34.In the Runtime Date Prompts section, enter:

Field Value
Effective Date Use date and time at runtime
Entry Date Use date and time at runtime
35.Select the Populate Undefined Prompt Defaults check box.
Workday populates the Prompt Defaults grid, then clears the check box.
36.Verify these values in the Prompt Defaults grid:

Order Field Label for Default Type Required No Not

Prompt Prompt at
Runtime
1 Company No default Checked Unchecked
value
2 Ledger No default Checked Unchecked
value
3 Book Accounting No default Unchecked Unchecked
Books value
4 Time Period Reporting No default Checked Unchecked
Interval value
5 Period No default Checked Unchecked
value
6 Amount Type No default Checked Unchecked
value
7 Translation No default Checked Unchecked
Currency value
8 Account No default Checked Unchecked
Translation value
Rule Set
37.Click OK.
38.From the related actions menu of row R1, select Define > Combine Data.
39.Enter a name in the Row Name field.
40.Click OK.
41.From the related actions menu of row R2, select Define > Calculation.

42.Enter these values:

Field Value
Row Name Total
Calculation Type Sum
Rows R1 (Combine Data row)
Style Decimal Number 2 Places
43.Click OK.
44.Click Run.
45.To create your report, select values from the required prompts.

Result
The asset roll forward report:
• Accesses the journal line as its primary object.
• Uses reporting time periods as relative time spans.
• Includes journal lines that are in Posted or Pro Forma status.
• Excludes journal lines that are in Canceled, Error, or Draft status.
After you create your report definition, you can share it with organization members that have the
appropriate security level.
Related Information
Tasks
Steps: Create Composite Reports

Example: Migrate Assets to a Secondary Asset Book

This example illustrates how to migrate assets to a secondary asset book with an EIB spreadsheet.

Context
Your company is implementing multibook asset accounting. You want to add all your assets in the
Accounting book that don't have a status of Disposed to a new IFRS book.

Prerequisites
In this example, we assume that you've already:
• Set up multibook accounting for your company.
• Added the IFRS book to your company.
• Changed the Integration Reference ID of the IFRS asset book to ASSET_BOOK_IFRS.

Steps
1. Set up an inbound EIB for the Update Asset Book Configuration web service.
See Example: Set Up an Update Asset Book Configuration EIB on page 1315.
2. Download a template spreadsheet that contains the assets that you want to migrate, in the format
required for the Update Asset Book Configuration EIB.
See Example: Download an Update Asset Book Configuration Spreadsheet Template with Data on
page 1316.

3. Update the assets in the spreadsheet and load them with the Update Asset Book Configuration EIB.
For all the assets that you want to upload, specify:
• The Add Only field as Y.
• The Asset Book field as ASSET_BOOK_IFRS.
See Example: Load Assets in Secondary Asset Books with an EIB on page 1317.

Next Steps
You can create manual journals to load the beginning cost and accumulated depreciation balances to their
respective ledger accounts.
Related Information
Concepts
Concept: Strategies for Populating New Company Asset Books on Existing Assets on page 1302
Reference
2022R2 What’s New Post: Data Migration for Secondary Asset Books

Example: Set Up an Update Asset Book Configuration EIB

This example illustrates how to set up an EIB for the Update Asset Book Configuration web service.

Context
You've added a new IFRS asset book to your company. To migrate asset data to the new asset book, you
set up an inbound EIB with the Update Asset Book Configuration web service.

Prerequisites
Security:
• Integration Build domain in the Integration functional area.
• Integration Process domain in the Integration functional area.
• Put access to Process: Non-Accounting Asset Books domain in the Business Asset Accounting
functional area.

Steps
1. Access the Create EIB task.
2. Enter Update Asset Book Configuration EIB in the Name field.
3. Select the Inbound option.
4. Click OK.
5. Enter or review these values in the General Settings page:

Field Value
Name Update Asset Book Configuration EIB
ID UpdateAssetBookConfigurationEIB
6. Click Next.
7. Enter or review these values in the Get Data page:

Field Value
Retrieval Method Attach File at Launch
File Type Web Service Spreadsheet Template

Field Value
Web Service Operation Update Asset Book Configuration
8. Click Next.
9. Review these values in the Transform page:

Field Value
Transformation Type Template Model
Template Model from Web Service Operation Update Asset Book Configuration
10.Click Next.
11.Review these values in the Deliver page:

Field Value
Delivery Method Workday Web Service Operation
Template Model from Web Service Operation Update Asset Book Configuration (Web Service)
12.Click Next.
13.Click OK on the Review and Submit page.

Result
You can find the new Update Asset Book Configuration EIB integration system with the View Integration
System report.

Next Steps
Download a spreadsheet template with data.
Related Information
Tasks
Set Up Inbound EIB

Example: Download an Update Asset Book Configuration Spreadsheet Template with

Data
This example illustrates how to download an Update Asset Book Configuration spreadsheet template with
data.

Context
Your company is implementing multibook asset accounting. You want to prepare a spreadsheet that you
can use to migrate your existing assets to the new IFRS asset book. You download a spreadsheet:
• With all your assets in the Accounting book that don't have a status of Disposed.
• In the format expected by the Update Asset Book Configuration EIB.

Prerequisites
• You have an asset book named Accounting that contains the assets you want to migrate.
• You've created an inbound EIB for the Update Asset Book Configuration web service and named it
Update Asset Book Configuration EIB.

• Security: These domains in the Integration functional area:

• Integration Configure
• Integration Event
• Integrations: EIBs

Steps
1. Access the View Integration System report.
2. Enter Update Asset Book Configuration EIB in the Integration System prompt.
3. Click OK.
4. From the related actions menu of the integration system, select Template Model > Edit.
5. Click the Edit Template with Data Options button on the Edit Template Model page.
6. Select the Condition Rule Filter option on the Edit Generate Spreadsheet Template with Data
Options page.
7. Add 2 rows to the Rules Conditions grid with these values:

And/Or Source External Relational Comparison Type Comparison

Field or Operator Value
Condition Rule
And Asset Book in the selection list Value specified in Accounting
this filter
And Status not in the selection Value specified in Disposed
list this filter
8. Click Generate Spreadsheet Template with Data.
9. Select the Generate Spreadsheet with Data check box.
10.Click Submit.
11.Click Refresh in the View Background Process page until the process completes.

Result
1 file displays in the Output Files tab.

Next Steps
Download the output file and:
• Verify that it contains all the assets that you want to add to the new IFRS asset book.
• Update the information in the spreadsheet.
• Load the assets with the Update Asset Book Configuration EIB.
Related Information
Tasks
Generate EIB Spreadsheet Template

Example: Load Assets in Secondary Asset Books with an EIB

This example illustrates how to load assets in a secondary asset book with an Update Asset Book
Configuration EIB.

Context
Your company is implementing multibook asset accounting. You've downloaded an EIB spreadsheet with
the assets that you want to migrate. You now update the spreadsheet and upload it in the EIB.

Prerequisites
You've downloaded an EIB spreadsheet with all the assets in the Accounting book that don't have a status
of Disposed.
The Integration Reference ID of the asset book where you want to migrate the assets is
ASSET_BOOK_IFRS.
Security:
• Integrations: EIBs domain in the Integration functional area.
• Integration Event domain in the Integration functional area.
• Put access to Process: Non-Accounting Asset Books domain in the Business Asset Accounting
functional area.

Steps
1. Update the EIB spreadsheet:
• Remove all the assets that you don't want to migrate.
• For all the remaining rows, update the values in these columns:

Add Only Asset Book

Y ASSET_BOOK_IFRS
2. Review the values in the other fields, and update them as necessary, such as:
• Depreciation Start Date
• Original Acquisition Cost
• Residual Value
• Fair Market Value
• Remaining Useful Life
• Accumulated Depreciation
• Year to Date Depreciation
3. Create a trial run to check your spreadsheet against validation errors:
a) Access the View Integration System report.
b) Enter Update Asset Book Configuration EIB in the Integration System prompt.
c) Click OK.
d) From the related actions menu of the integration system, select Integration > Launch / Schedule.
e) Review these values in the Launch / Schedule Integration page:

Field Value
Integration Update Asset Book Configuration EIB
Run Frequency Run Now
f) Click OK.
g) Review or enter these values in the Integration Criteria grid on the Schedule an Integration page:

Provider Field Value Type Value

Book Configuration
(Web Service)
h)Drop your spreadsheet in the Attachment section of the Create Integration Attachment page.
i)Click OK.
j)Click OK on the Schedule an Integration page.
k)Click Refresh in the View Background Process page until the process completes.
l)If you see a failure report in the Output Files tab, review and change the data in your spreadsheet
to resolve the issues.
4. When you've run an error-free trial run, load the spreadsheet data with the EIB:
a) Access the View Integration System report.
b) Enter Update Asset Book Configuration EIB in the Integration System prompt.
c) Click OK.
d) From the related actions menu of the integration system, select Integration > Launch / Schedule.
e) Review these values in the Launch / Schedule Integration page:

Field Value
Integration Update Asset Book Configuration EIB
Run Frequency Run Now
f) Click OK.
g) Review or enter these values in the Integration Criteria grid on the Schedule an Integration page:

Provider Field Value Type Value

(Attachment) Integration Attachment Specify Value Create an Integration
Update Asset Book Attachment
Configuration (Web
Service)
(Workday Web Validate Only Load Specify Value Clear the check box.
Service) Update Asset
Book Configuration
(Web Service)
h) Drop your spreadsheet in the Attachment section of the Create Integration Attachment page.
i) Click OK.
j) Click OK on the Schedule an Integration page.
k) Click Refresh in the View Background Process page until the process completes.

Result
You can access the Find Assets report for a selection of the business assets you migrated. When you drill
down on the asset to view the business asset details:
• Access the Cost Detail tab and review the new row for the IFRS book.
• Access the Books tab on the View Business Assets page and review the new row for the IFRS book.
• From the Books tab, drill into the new IFRS book configuration. Review these fields on the General
Information section of the View Asset Depreciation Schedule page:
• Asset Cost
• Fair Market Value
• Residual Value

• When you specified depreciation information, access the Historical Information tab and review these
columns for the IFRS book:
• Depreciation Start Date
• Remaining Useful Life
• Accumulated Depreciation
• YTD Depreciation
Related Information
Tasks
Launch EIB Spreadsheet Upload

Asset Maintenance

Adjust Asset Costs

Prerequisites
Configure the Asset Cost Adjustment Event business process and security policy in the Business Asset
Accounting functional area.

Context
You can adjust the acquisition or post-acquisition cost of an asset by changing the:
• Total acquisition cost.
• Quantity of assets.
• Current residual value.
Based on the adjustment date, Workday:
• Generates accounting in your accounting asset book.
• Creates a depreciation adjustment transaction for each ledger period.
• Records the difference between the booked depreciation and the projected catchup depreciation.
When you approve or deny a post-acquisition cost adjustment to an asset you capitalized from a project
transaction, Workday applies the decision to all the assets you created from the same capitalization.
Note: You can't make changes to assets when other events are in progress.

Steps
1. From the related actions menu of a registered capital asset, select 1 of these tasks:
• Business Asset > Adjust Acquisition Cost.
• Business Asset > Adjust Post Acquisition Cost.
2. As you complete the fields on the Asset Details grid, consider:
Option Description
Transaction Effective Date When you adjust acquisition costs, Workday uses
the Acquisition Date as the transaction effective
date.
When you adjust post-acquisition costs, you can
enter any date during the life of the asset.

Supplier Invoice Line When you adjust the asset cost to reflect a
change to the amount on a supplier invoice line,

Option Description
select the supplier invoice line that creates the
asset.
When you select a supplier invoice line, you can
enter an adjustment of up to:
• The amount from the quantity split, when the
selected supplier invoice line creates the asset
from a quantity split.
• The entire amount of the supplier invoice line,
when none of the quantity splits on the supplier
invoice line create the asset.
Workday generates accounting to move the
spend from the spend category, location, and
worktags on the supplier invoice to the asset
when they differ. When you remove the link to
the supplier invoice line, Workday cancels the
operational journal.

3. (Optional) On the Asset Books grid, clear the asset books where you don't want to record the cost
adjustment.
Related Information
Concepts
Concept: Accounting Impact of Asset Lifecycle Events on page 1299
Tasks
Steps: Perform Lifecycle Events for Capital Assets on page 1288
Reference
2022R2 What's New Post: Capital Project Asset Quantities

Steps: Correct or Adjust Useful Life

Prerequisites
Configure the Asset Useful Life Update Event business process and security policy in the Business Asset
Accounting functional area.

Context
You can correct the useful life of an asset if:
• You capitalize an asset with incorrect life.
• There's a change in its estimated useful life.
Note: You can't make changes to assets when other events are in progress.

Steps
1. Select Business Asset > Correct Useful Life from the related actions menu of a registered capital
asset.
Enter the correct useful life. The transaction effective date is the acquisition date and you can't change
it.

2. (Optional) Select Business Asset > Adjust Useful Life from the related actions menu of a registered
capital asset.
Change the default transaction effective date. For depreciable assets, this date and the depreciation
convention of the asset determines the first date Workday recalculates depreciation lines for the revised
useful life.
You can propose a new depreciation end date for assets on a supplier contract with a spend category
of Intangible. The depreciation end date is the:
• End date of a contract when the asset source is a supplier contract line receipt.
• Last active date in the depreciation schedule when you manually register the asset from a supplier
contract.

Result
Workday creates catchup depreciation adjustments for applicable useful life changes when:
• Ledger periods have processed depreciation.
• Depreciation expenses should be a different amount.
If the asset is in multiple company asset books, you can restrict the change to one or more company asset
books using Restricted to Books. When you don't select a company, Workday applies the change to
every company asset book.
Note: Workday posts depreciation adjustment transactions to the ledger for the primary company asset
book only. It doesn't impact depreciation in nonprimary asset books.
Related Information
Concepts
Concept: Accounting Impact of Asset Lifecycle Events on page 1299
Tasks
Steps: Perform Lifecycle Events for Capital Assets on page 1288

Impair Assets

Prerequisites
• Set up asset impairment reasons.
• Configure the Asset Impairment Event business process and security policy in the Business Asset
Accounting functional area.

Context
When the fair market value of an asset falls permanently below its net book value, you can impair the asset
to:
• Reflect the current market value of the asset.
• Reduce the value of the asset on the balance sheet.
• Account for the asset impairment expense while the asset is still in use. The impairment expense is the
nonrecoverable difference between the carrying amount and the fair market value of the asset.
You can't impair leased assets that you register from a supplier contract.
Note: You can't make changes to assets when other events are in progress.

Steps
1. From the related actions menu of the asset, select Business Asset > Impair.

2. As you complete the Asset Details grid, consider:

Option Description
Impairment Amount in Primary Book Currency When you enter an impairment amount, Workday:
• Converts the impairment amount to a
percentage of the asset cost in the primary
book.
• Uses the impairment percentage to populate
the Impairment Amount in each asset book
on the Asset Books grid.
When the asset has different costs in different
asset books, the impairment amount varies by
asset book.

Impairment Percentage When you enter an impairment percentage,

Workday:
• Populates the Impairment Amount
in Primary Book Currency with the
corresponding impairment amount in the
primary book.
• Uses the impairment percentage to populate
the Impairment Amount in each asset book
on the Asset Books grid.

Transaction Effective Date You can't impair suspended assets. For assets
that you've suspended, enter a date that's after
you resume depreciation.
3. (Optional) On the Asset Books grid, clear the asset books where you don't want to record an
impairment.
4. (Optional) On the Asset Books grid, override the New Market Value in each asset book.

Result
You can access the View Business Asset report to verify the new asset cost. The transaction displays the
impairment amount as negative on the Cost Detail tab.
Workday creates depreciation adjustment transactions for impairments when:
• Ledger periods have processed depreciation.
• The impairment changes the depreciation expense amount.
Related Information
Tasks
Steps: Perform Lifecycle Events for Capital Assets on page 1288

Reclassify Assets

Prerequisites
• Register the asset.
• Assign accounting information to the asset.
• Post depreciation for the asset.
• Configure the Asset Reclassification Event business process and security policy in the Business Asset
Accounting functional area.

Context
You can reclassify the spend category for capital assets if it isn't:
• Fully disposed.
• An impaired asset.
Note: You can't make changes to assets when other events are in progress.

Steps
1. Select Business Asset > Reclassify from the related actions menu of a business asset.
2. As you complete the task, consider:
Option Description
Transaction Effective Date The date the reclassification occurs. Enter a date
that's:
• Within a ledger period.
• Before the current date.
• After the Last Transaction Date.

Item If the asset is an item, first change the item for the
asset. The selected item automatically populates
Spend Category the spend category. You can select any spend
category if the Item field is empty.
You can change the Item, Asset Class, and
Asset Type without changing the spend category.
Use worktags as keywords to more easily classify
and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.

Asset Class The spend category configuration automatically

populates the asset class when you change the
spend category. You can override this value,
but the value you select on the Maintain Asset
Shares task will override any value entered here.
Asset Type The spend category configuration automatically
populates the asset type when you change the
spend category. You can override this value,
but the value you select on the Maintain Asset
Shares task will override any value entered here.
Useful Life Specify a Proposed Useful Life for the asset.
You can specify a different useful life for each
asset book. Workday automatically populates
the value from the asset book rules based on the
spend category in the primary and secondary
accounting books. You can't change the useful life
of fully depreciated assets in a book.

Option Description
Shares Displays the number of times you share the asset
costs. Click the number to drill down and view line
detail about the shared cost.

Result
Workday debits the new spend category and credits the old spend category in the primary accounting
book. If the depreciation for an asset has posted, Workday reverses the depreciation from the old category
and posts the depreciation to the new category.
In the new spend category, Workday calculates depreciation from the depreciation start date of the
reclassify event. Workday derives the depreciation start date from the transaction effective date and the
depreciation convention. If you modified the useful life, Workday recalculates the depreciation based on the
new value.
Related Information
Tasks
Assign Asset Accounting Information on page 1284
Register Assets on page 1259

Set Up Shared Costs of Assets

Prerequisites
• Register an asset.
• Configure the Asset Share Event business process and security policy in the Business Asset Tracking
functional area.

Context
You can set up registered assets to share costs. You can't share the cost of assets that are:
• Components of a nondiscrete composite asset.
• Discrete composite assets.
• Disposed or removed.
Note: You can't make changes to assets when other events are in progress.

Steps
1. Access the Maintain Asset Shares task from the related actions menu of an asset.
2. As you complete the task, consider:
Option Description
Amount Split Equal to the sum of the Asset Share Amount
values for all share lines.
Amount to be Split The total asset cost. The amount changes as you
add rows and enter the Share Percent or Asset
Share Amount. The final Amount to be Split
value must be zero.
Share Percent When you adjust the asset cost or accounting,
Workday uses the percentage to determine the
amounts to apply to each line of the shared asset.

Option Description
Asset Share Amount Displays the shared amount for each line. The
sum of all lines is equal to the Amount Split
value.
Asset Class You can select the same Asset Class or Asset
Type on more than 1 row.
Asset Type
The Asset Class or Asset Type you select
overrides your previous selections.

Worktags Use worktags as keywords to more easily classify

and find transactions. Configure the allowed
worktag types on the Maintain Worktag Usage
task. When you select a worktag type that
has related worktags, Workday automatically
populates transactions with the related worktag
values.
When you Submit, Workday validates that you
have selected allowed or required values based
on your related worktag configuration.

Next Steps
Review shared asset line splits to determine accounting cost sharing and the share of costs related to
lifecycle events. Select the Asset Shares link on the View Business Asset or View Asset by Book tasks.
Create custom reports for the single asset and drill down to view the shared cost details. You can report
by:
• Asset cost.
• Asset class.
• Asset type.
Related Information
Tasks
View Assets on page 1264

Depreciation

Set Up Depreciation Profiles

Prerequisites
Security: Set Up: Business Asset Accounting domain in the Business Asset Accounting functional area.

Context
You can set up depreciation profiles to configure how Workday creates depreciation schedules when you
place depreciable capital assets in service.

Steps
1. Access the Create Depreciation Profile task.

2. As you complete the task, consider:

Option Description
Depreciation Method Workday only displays the options relevant to
the depreciation method that you select. See
Reference: Depreciation Methods on page 1336.
Depreciation Percent Enter the annual depreciation percentage that
Workday applies to the asset cost or net book
value for these depreciation methods:
• Declining Balance
• Declining Balance with switch to Straight Line
Example: For the double declining balance
method, enter 200.

Depreciation Threshold When you select the Declining Balance method,

enter a depreciation limit that is greater than zero
and less than the cost of the asset. When the net
book value of the asset falls under Depreciation
Threshold + Residual Value, Workday fully
depreciates the asset.
Rate Schedule When you select the Rate Schedule Depreciation
method, you can create or select a rate schedule
for the depreciation profile.
Note: You can only use rate schedules with a
depreciation convention of Current Period and a
depreciation rate basis of Periods.

Depreciation Rate Basis Select whether you want to calculate the

depreciation expense by periods or by days.
Example: When you select the Straight Line
depreciation method:
• With a Depreciation Rate Basis of Number of
Days, the period depreciation amount varies
with the number of days in each period.
• With a Depreciation Rate Basis of Periods,
the depreciation amount is the same for all the
periods, with possible rounding differences.

Useful Life (Periods) Enter the number of periods over which the asset
is in use and depreciates. You can enter a useful
life with these depreciation methods:
• Straight Line
• Declining Balance with switch to Straight Line
• Sum of Years Digits
When you select the Rate Schedule depreciation
method, Workday populates this field from the
rate schedule. To change the useful life on the
depreciation profile, update the rate schedule.

Place In Service Based On Select Manually or When Issued to place the

asset in service with 1 of these tasks:
• The Issue Assets task.

Option Description
• The Issue to a Worker task from the related
actions menu on the asset.
• The Place In Service task from the related
actions menu on the asset.
Select Upon Acquisition for Workday to place the
asset in service:
• When you register the asset manually using
the Register Assets task.
• When Workday registers assets from a service
step on the Receipt and Supplier Invoice Event
business processes.
• When you register assets from a supplier
contract line.
With multibook asset accounting, Workday
recommends that you use the same Place in
Service date for all the depreciation profiles,
preferably upon acquisition.

Depreciation Convention The Depreciation Convention that you select

impacts:
• The depreciation start date.
• The depreciation amount for the first and last
periods of the asset useful life.
See Reference: Depreciation Conventions on
page 1339.

In Use Workday selects this check box when at least 1

asset book rule uses this depreciation profile.
Inactive Depreciation Profile Select this check box to prevent users from
accidentally selecting this depreciation profile.
You can't deactivate depreciation profiles that are
in use.
When you complete the Assign Asset Accounting
Information business process step on assets
before deactivating depreciation profiles, you can
still register these assets.

Next Steps
• Create at least 1 asset book rule for Workday to populate your depreciation profile when you assign
accounting information to assets.
• Run the Find Depreciation Profile report to review your depreciation profiles.
• Access the Edit Depreciation Profile task to maintain, deactivate, or reactivate depreciation profiles.
Related Information
Tasks
Adjust an Asset In Service Date on page 1266
Assign Asset Accounting Information on page 1284

Examples
Example: Add Asset Details to Preview Depreciation Schedule on page 1340

Create Custom Depreciation Rate Schedules

Prerequisites
Security: Set Up: Business Asset Accounting domain in the Business Asset Accounting functional area.

Context
Rate schedules enable you to define custom depreciation percentages for each period that assets
depreciate.

Steps
1. Access the Create Rate Schedule task.
2. As you complete the task, consider:
Option Description
Usage Count Shows how many depreciation profiles and asset
book configurations use this rate schedule. You
can delete or edit rate schedules only when they
have a Usage Count of zero.
Currency for Depreciable Basis Determines the decimal precision for the sample
depreciation expense lines.
Depreciable Basis Workday uses this amount to calculate the
sample depreciation expense lines.
3. As you add rows for your depreciation period ranges, consider:
Option Description
Depreciation Percentage for Range Enter the total depreciation percentage between
the From Period and the To Period.
Periodic Rate Illustrates the percentage of depreciation for 1
period based on the information that you enter.
Sample Depreciation Expense Illustrates the depreciation expense for 1 period
based on the information that you enter. This
informational field doesn't reflect lifecycle events
that you perform on assets.

Next Steps
To populate rate schedules on assets, create new depreciation profiles with a depreciation method of Rate
Schedule and update your asset book rules.
Related Information
Reference
2023R2 What's New Post: Custom Depreciation Rate Schedules

Set Up Bonus Depreciation Rules

Prerequisites
• Set up asset books.

• Set up asset classes.

• Set up asset types.
• Security: Set Up: Business Asset Accounting domain in the Business Asset Accounting functional area.

Context
You can set up bonus depreciation rules on your nonaccounting asset books.

Steps
1. Access the Maintain Bonus Depreciation Rules task.
2. As you complete the task, consider:
Option Description
Asset Book You can define bonus depreciation rules only on
nonaccounting books.
Company Select the company or hierarchy to which the
rule applies. Leave empty for the rule to apply to
assets in all your companies.
Acquisition Date You can restrict the bonus depreciation rule to
assets that you acquire between a From and a To
date.
When you only enter a From date, Workday
evaluates all the assets with an acquisition date
on or after that date.
When you only enter a To date, Workday
evaluates all the assets with an acquisition date
on or before that date.

In Service Date You can restrict the bonus depreciation rule to

assets that you place in service between a From
and a To date.
When you only enter a From date, Workday
evaluates all the assets that you placed in service
on or after that date.
When you only enter a To date, Workday
evaluates all the assets that you placed in service
on or before that date.

Asset Class Select the asset classes or types to which the

bonus depreciation percentage applies. Leave
Asset Type
empty for the rule to apply to the assets in all
asset classes and asset types.
Location You can only select hierarchies with at least 1
location that has asset usage. Leave empty for
the rule to apply to the assets in all locations.
Default Bonus Depreciation Percent The percentage of bonus depreciation that
Workday applies to the assets matching the rule
criteria. You can leave the percent as 0 when you
explicitly want to set up a rule where no bonus
depreciation applies.

Option Description
Minimum Days for Recapture This value is informational only. You can use this
value:
• In the asset disposal business process
definition, in a condition rule.
• As an indication on when you might want to
recapture bonus depreciation for assets that
you dispose before the minimum number of
days.
• In custom reports.

3. (Optional) Order the rules from most to least restrictive.

4. (Optional) Click Test Bonus Depreciation Rules to view how Workday evaluates the bonus
depreciation rules on sample asset information.

Result
When you place an asset in service, Workday evaluates the rules in the order that you define to determine
the percentage of bonus depreciation. Workday stops evaluating rules on the first match. If an asset
doesn't match any of your bonus depreciation rules, Workday applies a bonus depreciation of zero percent.
You can view the bonus depreciation amount on the Depreciation Detail tab on the View Business Asset
page.

Record Asset Depreciation and Amortization Expenses

Prerequisites
Security: Process: Business Asset Accounting domain in the Business Asset Accounting functional area.

Context
You can schedule Workday to record depreciation and amortization expenses for company assets once or
recurringly.

Steps
1. Access the Record Depreciation Amortization Expense task.
2. Select a Run Frequency.
The run frequency controls the Schedule tab, where you can configure how often Workday records
depreciation and amortization expenses.
Workday selects all unprocessed depreciation and amortization lines up to and including the period
when the task runs.
3. Enter a Request Name.
Workday displays the request name in reports.
4. As you complete the Record Depreciation Amortization Expense tab, consider:
Option Description
Company You can run the task for company hierarchies
where all companies have the same fiscal
schedule.

Option Description
Depreciation When you select both the Depreciation
and Amortization check boxes, Workday
Amortization
records them on the same schedule.
Posting Date Displays when you select the Run Now or Run
Once in the Future run frequency.
Select a date in an open ledger period.
When calculating year-to-date depreciation,
Workday deems depreciation expenses effective
as of the last day of the period you post them
in. Example: You record depreciation expenses
with a posting date of December 10:
• On December 14, the Depreciation Recorded
Year to Date field on the Accounting tab of
assets doesn’t include the December 10
depreciation expense.
• On December 31, the Depreciation Recorded
Year to Date field on the Accounting tab of
assets includes the December 10 depreciation
expense.

Posting Date Option Displays when you select a recurring run

frequency.
Workday determines the accounting date for a
given depreciation run based on the Posting
Date Option that you select:
• When you select Current Period, Workday
posts the depreciation or amortization expense
on the last day of the period when the task
runs.
• When you select Previous Period, Workday
posts the depreciation or amortization expense
on the last day of the period before the task
runs.
When the task runs during a closed period,
Workday posts the depreciation or amortization
expense on the last day of the next open period.

Asset ID When you can't find an asset, make sure that:

• The asset has accounting information
assigned.
• The asset has depreciation or amortization
expenses to post based on the posting date.
• The spend category on the asset has an
associated depreciation profile.
• The Process History tab on the View
Business Asset report doesn't display other
events in progress.

Run Preview Displays when you select the Run Now or Run
Once in the Future run frequency.

Option Description
This check box enables you to verify the details
of depreciation or amortization expenses before
Workday records them.
The preview might take several seconds to load.

5. As you complete the Schedule tab, consider:

Option Description
Catch Up Behavior Workday uses this field to determine how many

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