Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2026-01-09
Create Ad Hoc Payments

Create Ad Hoc Payments

  • Configure the bank account to enable ad hoc payments.
  • Configure the
    Ad Hoc Payment Event
     business process and security policy in the Banking and Settlement functional area.
  • Security: These domains in the Banking and Settlement functional area:
    • Process: Ad Hoc Payment (NEW)
    • Process: Ad Hoc Payment – Access Worker
    • Process: Ad Hoc Payment – Add Attachment
    • Process: Ad Hoc Payment – Add/Change Attachment
    • Process: Ad Hoc Payment – CORE
    • Process: Ad Hoc Payment – View
    • Process: Ad Hoc Payee
You can create ad hoc payments to make one-time payments, such as tax payments and payroll payments to workers. You can create these payments for multiple types of payees including ad hoc payees.
  1. Access 1 of these tasks:
    • Create Ad Hoc Payment
    • Create Ad Hoc Payment from Template
  2. As you complete the
    Ad Hoc Payment Information
     section, consider:
    Option Description
    Currency
    The default is the payee currency. If there isn't a default currency assigned to the payee, Workday uses the bank account currency.
    If the payee is a supplier, the currency must be one the supplier accepts.
    Eliminate Foreign Exchange Gain or Loss
    Select to exclude realized foreign exchange gain or loss from ad hoc payments.
    Example: You override the currency conversion rate with a bank rate. The difference between the 2 values creates a realized exchange gain or loss journal entry.
    With this option, Workday eliminates this additional journal entry line and applies the difference to the expense or revenue journal entry.
    Default Tax Option
    Automatically populates from the company accounting details.
    Workday automatically populates the tax option at the line from the header, but you can override it at the line level.
    Ship-To Address
    Workday uses this address when evaluating tax rules to determine tax code and tax applicability overrides for the transaction lines.
    Default Tax Code
    Automatically populates from the supplier. If you don't define the default tax code or to override it, select a tax code.
    The header tax code automatically populates to procurement document lines, which you can override.
    Payment Date
    The date that determines when the financial institution processes the payment.
    Example: If you need the bank to process a payment for the supplier on Friday, then enter Friday as the payment date. Start a settlement run on Wednesday to send the payment file to the bank a few days ahead of time. In Workday, the settlement run date is Wednesday and the payment date is Friday.
    Handling Code
    Select how you want to handle the ad hoc payment.
    You can use this attribute to:
    • Group payments in settlement runs.
    • Organize check and advice payments in batch files for printing.
    • Report on ad hoc payments in custom reports.
  3. As you complete the
    Payment Details
     section, consider:
    Option Description
    Tax Amount
    If you selected to calculate tax, Workday displays the sum of the calculated tax amounts from the taxable lines, based on tax code you specify for each line. To override this calculated amount, you can change calculated tax by tax rate on the
    Tax
     tab.
    If you select to enter tax due to the supplier, enter the tax amount for the transaction. You must have at least 1 line with a tax applicability that is taxable and enabled for allocation.
    The tax allocated to the lines is only the nonrecoverable amount for the transaction and doesn't always add up to this header amount.
    If you enter a negative value, Workday allocates the tax amount to a negative or zero-cost line.
    Freight Amount
    Other Charges
    Allocate these landing costs from the transaction header back to the lines. Add a spend category that's eligible for allocation of freight and other charges to at least 1 line, as set up on the
    Maintain Spend Categories
     task.
    Example: You purchase a large piece of equipment and have 1 line for the equipment itself and another for installation.
    Document Link
    Workday displays this field when you select
    Ad Hoc Payment Document Link
     on the
    Maintain External Link Validation
     task.
    If you store supporting documents or images in an external repository, then enter the URL to that location. Once you save the transaction, Workday displays the URL as a live hyperlink to the image. Approvers can reference this document before approving the transaction.
    Workday validates the link to ensure that it has a valid Uniform Resource Identifier (URI) pattern, as defined on the
    Maintain External Link Validation
     task. This process provides additional security to help avoid malicious content in external links.
    If the location of the external content changes, update the URL in Workday.
    Originating Country Payment Purpose
    Receiving Country Payment Purpose
    Select payment purpose codes that identify the purpose of the payment, as required by banks or local regulatory requirements in the originating or receiving country.
    Workday displays these fields when you enable payment purpose codes using the
    Edit Tenant Setup - Financials
     task.
    Tax Payment
    Select this check box when you're making a payment to a tax authority so that Workday prepares the ACH file properly for the bank integration.
    For United Kingdom, select this check box to prepare a file for BACS in Standard 18 format.
  4. As you complete the
    Lines
     tab, enter payment details:
    Option Description
    Spend Category
    The spend category links items to corresponding account posting rules and provides additional details for reporting. If you select an item, Workday automatically populates the one assigned to the item, which you can't modify.
    Tax Applicability
    Indicates whether the line is taxable and, if taxable, its recoverability. You can use tax applicability to filter transactions in reporting. It automatically populates from the item-specific tax rule based on ship-to address, first by purchase item and then by spend category. If there's no match, it automatically populates from the purchase item. Otherwise, it automatically populates from the spend category.
    Tax Code
    If taxable, the code automatically populates from the
    Default Tax Code
     on the header, which you can override.
    Tax Recoverability
    Workday automatically populates the recoverable percentage on the transaction line based on the specified tax applicability and tax code. When you change the tax recoverability, Workday applies the recoverable percentage and allocation method to the tax amount for tax rates within the tax code.
    Use the
    Maintain Tax Recoverabilities
     task to specify the tax recoverability of multiple tax rates for each tax code.
    Tax Option
    Select
    Calculate Self-Assessed Tax
     when suppliers or payees don't charge tax. This option enables you to post your tax liability to a separate ledger account. Otherwise, select
    Calculate Tax Due to Supplier
     to post the tax payment made to the supplier or payee.
    Extended Amount
    Quantity
     multiplied by the
    Unit Cost
     for a selected item. If you change the calculated value, Workday recalculates the unit cost.
  5. (Optional) If you update tax on an ad hoc payment line, click
    Update Tax
     to recalculate the tax amount displayed in the header. Workday automatically recalculates the header tax when you submit or save for later.
  6. (Optional) Enter bank account information on the
    Settlement Bank Account
     tab.
    You can only enter settlement bank information when you select the
    New Ad Hoc Payee
     option. When you pay an existing payee electronically, Workday uses a settlement bank account already configured for the payee based on the payment type and currency.
When you view the transaction:
  • The
    Line Details
     tab displays the accounting distribution of any landed cost amounts allocated from the header to the lines and the total gross amount. The total gross amount is the net extended amount plus allocated tax, freight, and other charges. Workday uses the total gross amount for:
    • Debit entry of spend accounting.
    • Receipt accruals.
    • Default acquisition cost during asset registration.
  • The
    Tax
     tab displays the recoverable percent and distribution of recoverable and nonrecoverable tax amounts based on the:
    • Tax applicability.
    • Tax code.
    • Taxable amount.
Run the
Find Payments
 report and filter by the
Ad Hoc Payment
 payment category to review all ad hoc payments applicable to your organization. The report filters ad hoc payments by:
  • Company.
  • Ad hoc payment payee or payer.
  • Ad hoc payment status.
  • Ad hoc payment transaction date.