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Administrator Guide
Last Updated: 2026-07-10
Steps: Set Up Asset Accounting

Steps: Set Up Asset Accounting

Set up asset tracking. See Steps: Set Up Asset Tracking.
You can set up asset accounting to track the financial value of assets and record accounting for lifecycle events that you perform on assets. Example: You record depreciation on assets at the end of a fiscal period.
You can configure:
  • Multiple accounting and nonaccounting asset books to register and track your assets differently based on the accounting standards and tax reporting requirements that you comply with.
  • Asset book rules for Workday to populate accounting treatments and depreciation profiles on assets based on their information and asset book. Example: Workday registers an asset as a depreciable asset in 1 book and as an expense in another book.
  • Business asset account posting rules to route the accounting for lifecycle events that you perform on assets.
  • Business processes to customize your amount of manual oversight. Example: You review trackable lines on supplier invoices before Workday registers assets. See Concept: Trackable Line Reviews.
  1. (Optional) Access the
    Edit Tenant Setup - Financials
     task.
    1. To configure the format of IDs that Workday generates for business assets, select or create an ID generator from the
      ID Generator for Business Assets
       prompt in the
      Business Document Sequence IDs
       section.
    2. Complete the
      Business Assets Options
       section:
      Options
      Considerations
      Depreciation Adjustment Options for Post-Acquisition Asset Lifecycle Events
      Select depreciation adjustment options to enable for your tenant. Options that you select display in
      Depreciation Adjustment Option
       prompts on business assets and lifecycle events. Workday always displays the
      Depreciation Convention
       option and you can't disable it.
      Always Go to Review Trackable Lines for Trackable Spend Category
      Select this check box when you:
      • Enable the review of trackable lines.
      • Don't want to bypass the review of trackable lines for a purchase order line that you’ve partially received and determined nontrackable in a previous review.
    Security:
    Set Up: Tenant Setup - Financials
     in the System functional area.
    1. Configure these business processes and security policies:
      • In the Business Asset Accounting functional area:
        • Asset Adjustment Event
        • Asset Assign Accounting Event
        • Asset Cost Adjustment Event
        • Asset Impairment Event
        • Asset Reclassification Event
        • Asset Registration Event
        • Asset Useful Life Update Event
      • In the Business Asset Tracking functional area:
        • Asset Disposal Event
        • Asset Reinstatement Event
    2. To review trackable lines on receipts created from purchase order lines, add
      Review Trackable Receipt Lines
       as an
      Action
       step on the
      Receipt
       business process in the Procurement functional area.
    3. To review trackable lines on supplier invoices created from purchase order lines, add
      Review Trackable Invoice Lines
       as an
      Action
       step on the
      Supplier Invoice Event
       business process in the Supplier Accounts functional area.
  3. Configure these account posting rules:
    • Accumulated Depreciation
    • Business Asset Disposal Donation
    • Business Asset Disposal Gain
    • Business Asset Disposal Loss
    • Business Asset Disposal Sale
    • Depreciation Expense
    • Impairment
    • Spend
  4. (Optional) Configure asset adjustment reasons.
  5. (Optional) Access the
    Maintain Asset Impairment Reasons
     task.
    Configure asset impairment reasons for users to select when impairing assets.
    Security:
    Set Up: Business Asset Accounting
     domain in the Business Asset Accounting functional area.
  6. (Optional) Access the
    Maintain Asset Removal Reasons
     task.
    Configure asset removal reasons for users to select when removing assets.
    Security:
    Set Up: Business Asset Accounting
     domain in the Business Asset Accounting functional area.
  8. Configure a primary accounting asset book for the main accounting standard that you report under. You can add additional nonaccounting asset books for reporting purposes.
  9. (Optional) When you report under multiple accounting standards, configure multibook asset accounting.
    Add accounting asset books for each of the accounting standards that you report under.
  10. Create bonus depreciation rules for capital assets in nonaccounting asset books. Workday applies the bonus depreciation when you place assets in service.
  11. Configure asset pooling rules for Workday to combine identical assets on a receipt or supplier invoice line into a single asset.
  12. (Optional) Load assets that you track in other systems into Workday.