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Administrator Guide
Last Updated: 2026-10-16
Set Up Award Costs Processing Rules

Set Up Award Costs Processing Rules

  • Review setup considerations for:
    • Object class mapping.
    • Award costs processing.
  • Security:
    Set Up: Grants Management
     domain in the Grants Management functional area.
For awards with cost reimbursable and fixed amount award lines, you can use award cost processing rules to determine:
  • When to generate award costs.
  • How to manage facilities and administration (F&A) costs that fall outside the award line dates.
  • How to override the spend category and object class for F&A transactions.
  1. From the related actions menu of a company, select
    Company
    Edit Award Costs Processing Rules
    .
  2. As you complete the task, consider:
    Option Description
    Award Costs Generation
    With every spend that you tag with a grant worktag, Workday generates the applicable F&A costs and recognizes revenue for the entire award costs (direct + F&A) automatically. You can select whether you want Workday to process the award costs when you complete the business process of the spend transaction, or when you settle the spend transaction.
    To enable Enhanced Award Costs Processing, you must select
    Generate Award Costs at Business Process Completion
    .
    Regardless of which option you select, you must still settle all settleable spend transactions before you can bill the sponsor.
    Workday plans to retire the
    Generate Award Costs at Settlement
     option in a future release.
    Ignore Award Line Dates for Award Costs
    Select this option to generate award cost processing for expenditures that fall outside the dates on your award lines.
    When you settle these spend transactions, Workday sets the billing status on the cost reimbursable lines to
    Pending Award Line Date Review
    . You can't bill these cost reimbursable lines to sponsors until you either:
    When your spend budget date falls outside 2 award line dates for the same grant, Workday processes the spend on the award line with the closer date. When both award line dates are an equal number of days from the budget date, Workday selects the award line with the earlier date. Workday recommends that you not have gaps between award lines that share the same grant.
    Workday recommends that you reprocess award costs when you change your award costs processing rule to ignore award line dates.
    Override Spend Category for Facilities and Administration to
    Select a spend category to override the spend category inherited from the source spend transaction.
    When you select a spend category worktag, affiliate companies inherit the override worktag. You can change the selection on the affiliate companies.
    Override Object Class for Facilities and Administration to
    Select an object class to override the object class inherited from the source spend transaction.
    When you select an object class worktag, affiliate companies inherit the override worktag. You can change the selection on the affiliate companies.
    Even when you select a different object class and/or spend category to classify your F&A on the award cost processing rules, Workday continues to use object classes in the object class mapping to evaluate F&A eligibility for the source transaction. See Steps: Map Spend Categories or Pay Components to Sponsor Expenditure Categories for how to map spend categories to object classes.
Workday creates new accounting journals when you:
  • Incur an award-related spend that qualifies for F&A costs generation.
  • Make changes to an award that impact F&A rates.
  • Run the
    Reprocess Award Costs
     task.
The new accounting journals reflect the override spend category and object class worktags you specify for facilities and administration.