Setup Considerations: Ad Hoc Payments
You can use this topic to help make decisions when planning your configuration and use of ad hoc payments. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
In Workday, you can use ad hoc payments to make one-time payments or infrequent payments outside of the standard invoicing and payables processes. Examples include:
- Equity investments.
- Interest payments.
- Internal or foreign exchange transfers.
- Merger and acquisition (M&A) payments.
- Payroll vendor payments.
- Tax payments.
- Wage garnishment payments.
Business Benefits
Ad hoc payments enable you to:
- Make one-time payments without the need for invoice creation and approvals.
- Process time-sensitive payments using ad hoc payment business processes, streamlining the payment approval process.
- Meet your off-cycle payroll requirements for late or adjusted timesheets or missed payments.
Use Cases
You can:
- Create single-use ad hoc payees that automatically inactivate after settlement.
- Set up ad hoc payment templates to create ad hoc payments with common attributes, enabling you to minimize manual errors and streamline ad hoc payment creation.
- Include applicable ad hoc payments in payroll year-end tax reports, such as 1099 MISC and 1099 NEC reports (USA). This enables you to issue complete and accurate tax payment data to 1099 payees and the IRS.
Questions to Consider
Question | Considerations |
|---|---|
How do you secure user access to bank accounts so that users can only create ad hoc payments for certain bank accounts? | You can configure segmented security groups to restrict access to the bank accounts. Only members of the security groups can select the bank accounts allowed for their security level when creating ad hoc payments.
Example: You define security segments with your bank accounts for managers and analysts. The managers can access all bank accounts to initiate ad hoc payments, but the analysts can only select the bank accounts listed in their security segment. |
How do you secure user access to spend categories so that users can only create ad hoc payments for designated spend categories? | You can configure segmented security groups to restrict access to ad hoc payment spend categories and spend category hierarchies. Only members of the security groups can select the spend categories allowed for their security level when creating ad hoc payments.
Example: You restrict the Accounts Payable specialist from creating ad hoc payments for spend categories that you’ve designated for supplier invoices. The specialist can only use specific spend categories to process spend through ad hoc payment transactions. |
How do you configure an ad hoc payee for single-use? | When you create an ad hoc payee, select the Single Use Payee check box to inactivate the payee after its first use.
Workday automatically inactivates single-use ad hoc payees when the ad hoc payments settle. |
How does Workday prevent ad hoc payee settlement information from changing during the ad hoc payment process? | When you submit an ad hoc payment, Workday retains the address and settlement bank account information for an ad hoc payee. Workday locks this information to prevent any updates done to the ad hoc payee from affecting the submitted and approved ad hoc payment.
This helps you to:
|
Recommendations
Functionality | Recommendations |
|---|---|
Custom Validations | If you’re configuring custom validations for ad hoc payments, consider enforcing the same worktag validations that you use on a supplier invoice. The creation of an ad hoc payment is similar to the entry of a supplier invoice. |
Add or Remove Attachments | To add or remove attachments to ad hoc payments in any status, configure domain access to 1 of these related actions:
Example: Add supporting documents on a completed or reconciled ad hoc payment without having to first cancel, unreconcile, and resubmit it for business process approvals. |
Ad Hoc Payment Templates | We recommend that you use an ad hoc payment template to make recurring ad hoc payments with common attributes. Workday automatically populates the values from a predefined template onto new ad hoc payments created using the template. You can make a payment directly from the template using the Create Ad Hoc Payment From Template task.
To create additional templates, you can copy your ad hoc payment template and make adjustments. |
Intercompany Ad Hoc Payments | You can create an ad hoc payment on behalf of intercompanies. You first configure the parent company and its affiliated companies using an intercompany profile.
When you create the ad hoc payment, you enter the paying company in the header section. Workday defaults this company onto the line level, which you can change to its intercompany affiliate defined in the profile. Example: The header company, Global Modern Services Inc., USA, pays an ad hoc payment on behalf of the line level company, Global Modern Services Ltd., Canada. When you settle the ad hoc payment, Workday generates these accounting results:
|
Requirement
Workday requires the settlement bank account information for a payee when you use electronic payment methods for ad hoc payments.
When you don't provide settlement bank account details on a payee profile, you must provide this information when you create an ad hoc payment.
Limitation
Workday doesn't support multiple ad hoc payment lines on an ad hoc payment template. To split payments for different spend categories across multiple lines, you can add the additional lines when you create an ad hoc payment from the template.
Tenant Setup
You can configure security groups of workers to restrict the bank accounts and spend categories they can use to make ad hoc payments. The workers can only select the bank accounts or spend categories allowed for their security level.
Security
These domains in the Banking and Settlement functional area:
Domain | Considerations |
|---|---|
Process: Ad Hoc Payee
| Enables you to create, edit, and view ad hoc payees for ad hoc payments. You can use ad hoc payees for making one-time, ad hoc payments. |
Process: Ad Hoc Payee - Activate/Inactivate
| Enables you to activate or inactivate an ad hoc payee using related actions on the payee. |
Process: Ad Hoc Payment – Add Attachment
Process: Ad Hoc Payment – Add/Change Attachment | Enables you to add or remove attachments for ad hoc payments in any status. Users can access 1 of these related actions on an ad hoc payment:
|
Process: Ad Hoc Payment – Access Worker
Process: Ad Hoc Payment – CORE Process: Ad Hoc Payment (NEW) Process: Ad Hoc Payment – View | Enables you to view, create, and edit ad hoc payments.
Access to the Process: Ad Hoc Payment – Access Worker domain enables you to select employees as payees when you create or edit an ad hoc payment. In the Payee drop-down list, you can enter the name of the employee in the Search field.This domain also enables you to use employees as payees in ad hoc payment web services. |
Process: Ad Hoc Payment Settlement
| Enables you to settle ad hoc payments and view related reporting. You can also print checks directly using the Print Check related action on an ad hoc payment. |
Process: Ad Hoc Payment Reporting
| Enables you to use these reports:
The domain also provides access to report data sources and filters to use for custom ad hoc payment reports. |
Set Up: Ad Hoc Payment Template
| Enables you to create templates to simplify the process of creating multiple ad hoc payments with common attributes. |
Business Processes
You can configure these business processes to review and approve ad hoc payments and templates:
- Ad Hoc Payment Event
- Ad Hoc Payment Template
Reporting
Report | Considerations |
|---|---|
Find Ad Hoc Payment Templates
| Use this report to search for and review your ad hoc payment templates. You can use related actions to:
|
Find Payments
| Filter by the Ad Hoc Payment payment category to search for all ad hoc payments applicable to your organization. |
View Ad Hoc Payee
| Displays details for all ad hoc payees created for your organization. You can also activate or inactivate ad hoc payees using related actions on an ad hoc payee. |
View Ad Hoc Payment Spend Category Security Segment
| Displays security segments with the spend categories and spend category hierarchies available for workers to use when creating ad hoc payments. |
1099 Data Audit - Ad Hoc Payments with 1099 Payees and non-1099 Spend Categories
| Displays ad hoc payment lines for 1099 payees with non-1099 spend categories (USA). To include the payees and their applicable payments in year-end tax reports, map 1099 form categories to the spend categories and hierarchies.
Workday tracks and classifies all other 1099 payee payments as uncategorized. |
1099 Data Audit – Ad Hoc Payments with 1099 Spend Categories and non-1099 Payees
| Displays ad hoc payment lines with 1099 spend categories for non-1099 payees. To include the ad hoc payments and their applicable payees in year-end tax reports, assign the 1099 MISC or 1099 NEC tax authority form type to the payees. |
We suggest using these report data sources and filters to build custom reports:
Report Data Source or Filter | Considerations |
|---|---|
Ad Hoc Payees data source | Displays the ad hoc payees for your organization. |
Ad Hoc Payments data source | Displays the ad hoc payments for your organization. It prompts you for the companies or company hierarchies to filter the results. |
Ad Hoc Payment Lines data source | Displays the ad hoc payment lines for your organization. It prompts you for the companies or company hierarchies to filter the results. |
Ad Hoc Payment Template data source | Displays the ad hoc payment templates for your organization. It prompts you for the company, financial accounts, and reporting currency to filter the results. |
Bank Account for Ad Hoc Payment Template data source filter | The list of financial accounts used to filter ad hoc payment templates. |
Company for Ad Hoc Payment Template data source filter | The list of companies used to filter ad hoc payment templates. |
Currency for Ad Hoc Payment Template data source filter | The list of currencies used to filter ad hoc payment templates. |
Integrations
You can use these web services to mass import, create, or update ad hoc payments, templates, and ad hoc payees:
Web Service | Considerations |
|---|---|
Get Ad Hoc Payees
| Retrieves ad hoc payees from Workday using your specified criteria. You can then export the payees to third-party systems. |
Put Ad Hoc Payee
| Imports and creates ad hoc payees to use for ad hoc payments. |
Get Ad Hoc Payments
| Retrieves ad hoc payments from Workday using your specified criteria. You can then export the payments to third-party systems. |
Submit Ad Hoc Payment
| Adds or updates an ad hoc payment. Then, submits the change event through the Ad Hoc Payment Event business process for review and approval. |
Cancel Ad Hoc Payment
| Mass cancel ad hoc payments from Workday or non-Workday systems. |
Correct Ad Hoc Payment
| Mass correct ad hoc payments. |
Get Ad Hoc Payment Templates
| Retrieves ad hoc payment templates from Workday using your specified criteria. You can then export the templates to third-party systems. |
Put Ad Hoc Payment Template
| Imports and creates ad hoc payment templates. |
Submit Ad Hoc Payment Template
| Adds or updates an ad hoc payment template. Then, submit the change event through the Ad Hoc Payment Template business process for review and approval. |
Submit Ad Hoc Payment from Template
| Creates an ad hoc payment using an ad hoc payment template. Then, submits it to the Ad Hoc Payment Event business process. |
Connections and Touchpoints
You can create ad hoc payments to pay:
- Contingent workers
- Customers
- Employees
- Suppliers
- Tax authorities
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.