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Administrator Guide
Last Updated: 2025-10-31
Concept: Facilities and Administration for Awards

Concept: Facilities and Administration for Awards

When you spend against a cost reimbursable award line, Workday generates the facilities and administration (F&A) costs and revenue for the spends automatically. You can use the award costs processing rule and F&A configurations to determine the calculation and accounting for F&A. There are criteria that must be met for Workday to generate F&A on a spend.
You can configure fixed amount award lines to calculate F&A costs, but you won't be able to bill the sponsor for F&A revenue on fixed amount award lines.

Award Costs Processing

You can configure award costs processing rules for your company to specify:
  • When to generate F&A and revenue recognition operational journals for your award spending. Workday recommends that you generate the journals at the business process completion of the original spend.
  • Whether to calculate F&A and revenue recognition for award spending that occurs outside of the award line dates.
  • The spend category and object class to use when you want to record F&A costs separately from the direct costs.
To configure the award costs processing rule, access the
Company
Edit Award Costs Processing Rules
 task from the related actions menu of a company.

F&A Configurations

Workday calculates the F&A costs of a spend based on these configurations, which you directly or indirectly associate with a cost reimbursable or fixed amount award line on the award:
  • Basis Limit
  • Basis Type
  • Cost Basis Type
  • Cost Rate Type
  • Exceptions
  • Rate Agreement
  • Waived Expense Allocation Profile

Criteria for Calculating F&A

For Workday to calculate F&A for a spend against an award line, verify that:
  • The source transaction either has a sponsored fund, or the F&A revenue allocation profile has cost-share enabled. When cost-share is enabled and fund is not sponsored, Workday generates the F&A accounting but not the revenue recognition for the spend transaction.
  • The source transaction has a grant worktag.
  • You approve the spend transaction.
  • The grant on the award line is active.
  • The award status is
    Approved
    .
  • The award line status is
    Active
    .
  • There's an F&A rate agreement on the award line.
  • When an award has multiple versions, an F&A rate agreement exists on all versions of the award.
  • There's an object class set on the award line.
  • There's a revenue allocation profile on the award line.
  • You map the spend category or spend category hierarchy to an object class.
  • The F&A basis type on the award line contains the object class of the spend.
  • When the spend is on a non-Workday delivered journal source, you configure the journal as an accounting source and enable the journal for processing award costs.
  • You configure a non-Workday delivered manual journal source as an expense source.
  • You configure the account posting rules for F&A expense and revenue.
  • The payroll journal contains the
    Object Class
     dimension.