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Administrator Guide
Last Updated: 2023-06-23
Create Bank Fee Service Contracts

Create Bank Fee Service Contracts

Security:
Process: Bank Fee Service Contract
 domain in the Cash Management functional area.
Create a service contract that contains bank-specific service codes and contractual pricing for the financial institution. You can attach supporting documents for the banking service fees such as your contract agreement.
  1. Access the
    Create Bank Fee Service Contract
     task.
  2. As you complete the
    Service Contract Lines
     tab, consider:
    Option Description
    Bank Service Code
    Select a bank service code to add to the service contract. If the bank service code isn't available, you can create the service code directly from the service contract. Bank service codes identify specific charges and associated charges on analysis statements.
    Pricing Type
    Select a pricing structure that the bank uses for calculating service fees:
    • Fixed
      : A fixed cost for each occurrence of the service.
    • Flat
      : A one time, flat fee that doesn't change on volume.
    • Tiered
      : A volume driven pricing structure where the cost of the individual services decreases as the next pricing tier is reached.
    • Threshold
      : A volume driven pricing structure where the cost of the service decreases for all instances of the service as thresholds are reached.
    Base Fee
    (Optional) The fee charged in addition to the unit price of the banking service.
    Minimum Fee
    Maximum Fee
    (Optional) The minimum and maximum service fee amounts the bank charges per billing period irrespective of usage.
    Example: For the 123 bank service code, your bank charges a maximum fee of 50.00 and has a unit cost of 5.00. Your service volume for this period is 30. You're only charged the maximum fee of 50.00 instead of the actual 150.00.
Workday compares the expected charges defined in your service contract against your actual bank fee charges on the bank fee statement. You can use the
Bank Fee Variance Analysis
 report to view the results.
Your negotiated service fees for stopped payments use tiered and threshold pricing types. These examples show the cost breakdown by number of requests in a given billing period for the pricing types.
With tiered pricing, the first 3 stopped payment requests cost $60.00, the next tier of requests costs $600.00, and the last tier reached costs an additional price. The stopped payment costs accumulate as the service volume increases:
Minimum and Maximum Number of Stopped Payments
Tier Price
Actual Requests
1 to 50
$20.00
3
51 to 100
$10.00
60
101 or more
$5.00
300
Total Cost: $2160.00
With threshold pricing, as soon as the service volume reaches a threshold of 101, all existing and future stop payment requests have the same $5.00 unit price:
Number of Stopped Payments
Threshold Price
Actual Requests
50
$20.00
100
$10.00
101 or more
$5.00
300
Total Cost: $1500.00
Manually enter or upload your bank fee statements.