Steps: Configure Commitment Accounting for Expenses

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.

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.

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.

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.

Create Ledgers.

Create commitment ledgers to enable the creation of commitments for spend authorization transactions.

Create and open ledger years and ledger periods for processing.

See Steps: Create and Open Ledger Years and Periods.

(Optional) To control your expenses spend against a budget, configure budget checking.

See Steps: Configure Budget Checking for Spend Transactions.

Track commitments and their resulting accounting when you create spend authorizations.