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Administrator Guide
Last Updated: 2024-09-20
Record Letter of Credit Draw Downs

Record Letter of Credit Draw Downs

  • Create a bank routing rule for your company.
  • Create a letter of credit for your sponsor with the bank account on the bank routing rule.
  • Create and approve an award with the letter of credit on the award header. Create and approve the billing schedule for the award.
  • Complete and settle expenses for the grant.
  • Create customer invoices for the grant transactions.
  • Configure the
    Letter of Credit Draw Down Event (Default Definition)
     business process and security policy in the Grants Management functional area:
    • To record details from the draw request such as draw request date and confirmation number, add the
      Record Draw Request
       action step before the
      Record Amount Received for Letter of Credit Draw Down
       step.
    • To record payment amounts that are different from draw amounts, add the
      Adjust Amount Received
       action step after the
      Record Amount Received for Letter of Credit Draw Down
       step.
    • To route the
      Adjust Amount Received
       action step to the initiator only:
      • On the business process security policy, configure the security groups on the
        Adjust Amount Received
         action step as the security groups for the
        Record Letter of Credit Draw Down
         initiating action, and add the Initiator user group.
      • On the business process definition, add the Initiator to the security groups on the
        Adjust Amount Received
         action step.
You can record a letter of credit drawdown of claimed award expenses from federal grants, contracts, and cooperative agreements. The drawdown includes expenses for all awards with the same letter of credit for a company or company hierarchy. For multicompany awards, the letter of credit drawdown aggregates all billable expenses for the award across companies.
Before recording the drawdown, you can preview the amounts to draw and export the drawdown lines by accessing the
Pro-Forma Letter of Credit Draw Down
 report.
  1. Access the
    Record Letter of Credit Draw Down
     task.
  2. As you complete the task, consider:
    Option Description
    Company
    Select a company hierarchy if you want to draw down for multiple related companies at once.
    Sponsor
    The sponsor on the letter of credit and the bill-to sponsor on the awards that use the letter of credit.
    Letter of Credit
    You can only select from the letters of credit for
    Sponsor
    .
    Exclude Zero Amount to Draw
    Select this check box to display only drawdown lines with non-zero unpaid billed amounts.
  3. As you review the
    Letter of Credit Draw Down Lines
     tab, consider:
    Option Description
    Draw ID
    The letter of credit draw ID associated with 1 or more billing schedules on the award. Each draw line corresponds to 1 draw ID.
    Workday first groups award lines by award, then by draw ID for each award, even when the draw IDs are shared across multiple awards. For award lines that aren't associated with any draw IDs, Workday groups them into 1 draw line for each award, with a blank draw ID.
    This column doesn't display when none of the awards use a letter of credit draw ID.
    Award Lines
    Award lines that are associated with the draw ID through their billing schedules, or award lines that aren't associated with any draw IDs, for each award.
    Line Amount
    The sum of line amounts on award lines associated with the draw ID by award, or with the award when there's no draw ID. This value is for your information only and won't impact your spend processing.
    Cost-Reimbursable Expense
    The total cost-reimbursable expense for the draw ID by award, or for the award when there's no draw ID. This amount includes the direct spend amount and facilities and administration costs.
    This column only displays when there are cost-reimbursable expenses for awards on the letter of credit.
    Invoiced Amount
    The total amount already invoiced in approved customer invoices and customer invoice adjustments for the draw ID by award, or for the award when there's no draw ID.
    Total Amount Paid
    The total amount paid in previously completed drawdowns for the draw ID by award, or for the award when there's no draw ID.
    A/R Balance
    The difference between the
    Invoiced Amount
     and the
    Total Amount Paid
    .
    Pending Draw
    The total amount still in progress from previous drawdowns for the draw ID by award, or for the award when there's no draw ID.
    Amount to Draw
    Enter the amount you want to draw for the draw ID by each award, or for the award when there's no draw ID. Workday populates this field with the difference between the
    A/R Balance
     and
    Pending Draw
     amounts. The amount you specify can't exceed the
    Billing Limit
     amount.
  4. (Optional) To review the total draw amount for awards on the letter of credit, access the
    Award Totals
     tab.
    As you review the
    Award Totals
     tab, consider:
    Option Description
    Billing Limit
    Workday limits your drawdown amount based on these settings on the award header:
    • Billing Limit Override
      .
    • Authorized Amount
      , when
      Billing Limit Override
       isn't defined.
    The billing limit on the billing schedule, if defined, doesn't apply to letter of credit drawdowns.
  5. (Optional) To review the total draw amount for companies on the letter of credit, access the
    Company Totals
     tab.
The
Letter of Credit Draw Down Event
 business process routes the transaction to these steps:
Step
Details
Review Letter of Credit Draw Down
This step enables the reviewer to enter an amount to draw that's different from the default amount.
Once the reviewer approves this step, you can contact the sponsor and request payment.
Record Draw Request
This step enables you to record the:
  • Date that you submit the draw request on the external payment system.
  • Confirmation number that you receive from the external payment system acknowledging the draw request.
Record Amount Received for Letter of Credit Draw Down
This step enables you to enter the amount and date of payment received.
You can only enter a
Total Amount Received
 that's different from the
Total Amount Drawn
 when the business process definition contains the
Adjust Amount Received
 step after this step.
Adjust Amount Received
This step enables you to adjust the amount received on each award line so that they sum up to the total payment amount received. Workday only routes to this step when the total amount received entered is different from the total amount drawn.
Before you proceed, ensure that the:
  • Total Amount Received
     on the header equals the sum of
    Amount Received
     on all draw lines.
  • Amount to Reallocate
     on the header is equal to zero.
Workday applies payment for the drawdown only after the:
  • Approval
     step.
  • Adjust Amount Received
     step when there's no
    Approval
     step.
  • Record Amount Received for Letter of Credit Draw Down
     step when there's no
    Approval
     or
    Adjust Amount Received
     step.
In payment application, Workday:
  • Creates the corresponding customer payment and customer deposit.
  • Applies the customer payment against the award invoices.
  • Creates the accounting for the drawdown.
You can access the:
  • Letter of Credit Draw
     report to export data for third-party reporting.
  • Schedule Record Letter of Credit Draw Down
     task to schedule future letter of credit drawdowns.
To cancel a letter of credit drawdown event after you submit it, access the
Letter of Credit Draw Down Event
 business process event from My Tasks under
Archive
. From the related actions menu of the
Letter of Credit Draw Down
 on the
Details
 tab, select
Letter of Credit Draw Down
Cancel
. You can only cancel a drawdown event that you initiated.