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Administrator Guide
Last Updated: 2026-06-12
Create Investment Pools

Create Investment Pools

Security:
Set Up: Endowments
 domain in Endowment Accounting functional area.
Investment pools track the pool shares for the gift and capture investment activity. The pool also specifies how often you set a payout rate and distribute the payout.
  1. Access the
    Create Investment Pool
    task.
  2. As you complete the
    Investment Pool Information
     section, consider:
    Option Description
    Company
    The primary company for the investment pool. Workday uses this company for recording investment statement activity.
    Optional Balancing Worktags
    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.
    Workday balances the accounting entries for the investment statement activities using the optional balancing worktags from the investment pool.
    Gift Companies
    For multicompany investment pools, select additional companies for which you can create gifts. These companies share the same account set and currency as the investment pool company. The primary company and related gift companies all own shares in a common endowment pool.
  3. As you complete the
    Income Distribution Configuration
     section, consider:
    Option Description
    Payout Rate Frequency
    Select the frequency that you can specify a payout rate. Workday prorates the payout rate across the periods defined in your payout frequency.
    Payout Frequency
    The
    Payout Frequency
     must be equal to, or more frequent than, the
    Payout Rate Frequency
    . Example: You can set your payout rate annually, and set your payout frequency to quarterly or monthly (period).
    Minimum Holding Period
    Specify the number of periods preceding the payout period that you must purchase gift units to be eligible for payout.
    Workday calculates a hold period end date to determine:
    • The date to calculate the reinvestment price.
    • Whether to include shares in the pool payout and catch-up distribution.
    • If a valuation exists up to that date to run a payout.
    Workday derives the hold period end date by calculating:
    Pool Payout Date
     –
    Minimum Holding Requirement
    .
  4. As you complete the
    Net Asset Accounting Configuration
     section, consider:
    This section only displays if you enable net asset accounting for your tenant.
    Option Description
    Revenue Category
    The revenue category worktag drives the accounting behavior for recording the revenue from investment pool transfers and sales:
    • Investment Pool Transfer
      : When you transfer gift units, Workday uses the revenue account posting rule to post the transaction amount to the revenue ledger account for both gifts.
    • Investment Pool Sale
      : When you sell gift units, Workday uses the revenue account posting rule to post the transaction amount and the gain or loss entries to the revenue ledger account. Workday calculates a gain or loss from the difference between the fair market value and book value of the gift at the time of sale.
Create an investment profile for each set of related investments in your endowment pool.