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Administrator Guide
Last Updated: 2026-05-29
Define Bank Accounts

Define Bank Accounts

  • Define financial institutions.
  • Define the default currency for a company.
  • Configure the
    Bank Account Event
     business process and security policy in the Banking and Settlement functional area.
  • Security:
    Set Up: Bank Entity
     domain in the Banking and Settlement functional area.
Create bank accounts in Workday for all external operational accounts that you perform transactions against. For nonoperational accounts, create an account only if you need to reconcile. These accounts enable you to:
  • Create, make, and receive payments.
  • Reconcile the books.
  • Manage cash.
  1. Access the
    Create Bank Account
     or
    Edit Bank Account
     task.
  2. As you complete the general
    Account Information
     section, consider:
    Option Description
    Phonetic Name
    You can use phonetic names for these bank account fields to include their correct pronunciations in payment files:
    • Organization
    • Name on Account
    • Financial Institution
    • Branch Name
    Displays when:
    • You enable phonetic names on the
      Edit Tenant Setup - Global
       task.
    • Users select the relevant locale and display language in their preferences.
    For
    Name on Account
    and
    Branch Name
    , the preferred language of the bank account country must match the language enabled on the tenant setup.
    Organization
    Selecting a company hierarchy enables you to share the account across its companies. You can change this value if there isn't any account activity.
    Legal Owning Company
    Workday displays this field when you select a company hierarchy as the
    Organization
    .
    You can select a company in the hierarchy as the legal owner of the bank account. Workday uses this company as referential data for the Workday Bank Connectivity product to integrate company hierarchy owned accounts.
    Account Currency
    The currency in which you store funds in the account, and convert funds that you transfer into the account.
    For companies, Workday automatically populates the company currency. For company hierarchies, Workday automatically populates the currency from the consolidation details, if applicable. Otherwise, Workday uses the default currency of the tenant. You can change this value to any currency if there isn't any account activity.
    To use this account for payroll, the account currency must match the company currency.
    Accept All Currencies/Accept These Currencies
    The currencies on the funds that this account can receive.
    Example: You specify the accepted currencies for incoming payments in this field. When you run settlement, Workday processes the incoming payments only in the specific currencies for this account.
    To restrict the currencies allowed on disbursed funds, you can also set up a bank routing rule. See Define Bank Routing Rules.
    Allowed Payment Types
    The payment types used for payroll, supplier, and other payments must match the payment types for the bank accounts.
    Example: If your employees can select
    direct deposit
     as their preferred payment type for payroll payments, the bank account used to make these payments must include the
    direct deposit
     payment type.
    Select
    Manual
     to make off-cycle manual payments from this account.
    You define payment types using the
    Maintain Payment Types
     task.
    Bank Account Security Segment
    A bank account security segment enables a particular security group of workers to use this bank account for creating, editing, and canceling ad hoc payments.
  3. Enter specific
    Account Details
     for the selected
    Country
    :
    Option Description
    Bank Sort Code
    Enter the 6-digit sort code either with or without hyphens. Example: 000000 or 00-00-00. (UK only).
    Account Number
    For the UK, the account number must be 8 digits.
    Roll Number
    (Optional) Required for certain building society or former building society accounts. Most accounts no longer use roll numbers. (UK only)
    Name on Account
    For the UK, a name on account is optional, as bank transfers rely on sort codes and account numbers.
    IBAN
    (Optional) Enter an IBAN number to enable funds to transfer to or from this account across national borders. This field only displays for some countries.
    If the bank statement for the account uses the ISO20022 format, you must specify the IBAN number that's identified in the bank statement file.
    Fraction
    Enter the fraction form of the bank transit number as a backup for the MICR on the check.
    Not used in the UK.
    Formatted MICR
    If you use blank check stock, and your bank requires a different magnetic ink character recognition format (MICR) than the Workday-delivered print layout, enter the appropriate values.
    Workday uses the MICR that you specify in the position that you select on the check print layout.
    Not used in the UK.
    Target Balance
    Record the balance that you want to maintain for this account so that you can store and report on this information.
    Example: The bank moves money to or from the account to meet the target amount. Alternatively, you can target to have a certain balance at the end of each day and move the money yourself.
    Bank Statement Format
    Workday assigns balance, summary, and transaction type codes to bank statement records based on the statement format.
    For bank statements previously imported, recorded, and submitted for reconciliation, you can only select or update the statement format when they're fully reconciled.
    Bank Statement Custom Code Set
    (Optional) Assign a predefined bank statement code set with your own custom account balance, summary, and transaction type codes to the bank account. These codes are for BAI2, BTRS, ISO20022, or nonstandard bank statement formats.
    The tenant-based and bank-reported type codes are available for selection on:
    • Bank statement worktag mappings.
    • Manually entered bank statements.
    • Manual bank statement reconciliations.
    • Bank reconciliation matching rules and first-notice condition rules for automatic and first-notice reconciliations.
  4. Reconcile the balance of the account in Workday against the balance at the financial institution. To reconcile nonoperational accounts, you can use ad hoc bank transactions and templates to record key transaction information.
    As you complete the
    Reconciliation Configuration
     section, consider:
    Option Description
    Advanced Mode
    Select this check box to reconcile bank statement lines to operational transactions based on reconciliation rule sets. Workday automatically creates ad hoc bank transactions for reconciling first-notice items using first-notice rule sets.
    Clear the check box if you're reconciling bank statement lines to operational transactions based on matching amounts and reference numbers only.
    Perform Automatic Bank Reconciliation
    • Selecting
      Manually
       initiates bank statement reconciliation manually for all statements from this account.
    • Selecting
      On Load
       initiates automatic bank statement reconciliation when you load statements from this account into Workday.
    Matching Rule Set
    Select a matching rule set to reconcile bank statement lines to operational transactions. Workday uses the rules for matching:
    • One bank statement line to 1 reconcilable item
    • One bank statement line to many reconcilable items
    • Many bank statement lines to 1 reconcilable item
    • Many bank statement lines to many reconcilable items
    • One or more bank statement lines to 1 or more suggested items
    Bank Reconciliation Rule Set - Do Not Use
    We recommend that you use matching rule sets instead of selecting a bank reconciliation rule set. See Copy Bank Reconciliation Rule Sets to Matching Rule Sets.
    Select a rule set to reconcile bank statement lines to operational transactions. Workday uses the rules for matching:
    • One bank statement line to 1 reconcilable item
    • One bank statement line to 1 or more suggested items
    During a bank statement reconciliation, Workday runs the matching rule sets
    before
     the bank reconciliation rule sets. Any duplicate bank reconciliation rules are ignored.
    Inactive for Automatic Bank Reconciliation
    When you select this check box, Workday excludes the bank account from automatic reconciliation with bank reconciliation rule sets.
    This option doesn’t impact the automatic reconciliation of bank accounts that you reconcile using matching rule sets.
    Perform First Notice Item Reconciliation
    Valid values are:
    • After Auto-Reconciliation Completes
      : Automatically initiates first-notice reconciliation for the bank account after all other automatic reconciliation is complete.
    • Manually
      : Select to initiate first-notice reconciliation manually.
    First Notice Item Rule Set
    Select the rule set to use for creating ad hoc transactions to reconcile with first-notice items, such as service or transaction fees generated from this account.
    Customer Payment Rule Set
    Select an active rule set to copy the unreconciled bank statement lines to the remittance advice of the customer payment.
    When the AR Specialist processes the customer payment rule sets, Workday records a customer payment and a deposit and automatically reconciles the deposit.
    Group Customer Payments into a Deposit
    Group Student Electronic Payment into a Deposit
    Select to collect electronic payments initiated by Workday as credit card or direct debit payments into a single deposit, and reconcile these deposits as a single item.
    Group Electronic Payments for Reconciliation
    Select to collect outgoing electronic payments made by EFT or direct deposit into a single reconciliation group. Workday generates the electronic payment reconciliation group (EPRG) at time of settlement and reconciles this group as a single item.
    Submit Reconciled Statements Automatically
    Select to submit automatically reconciled bank statements. Workday sends the statements for approval as soon as all lines and first-notice items are reconciled.
    Default Bank Statement Beginning Balance
    Select to automatically populate the beginning balances on imported bank statements when they don't provide this value. Workday calculates the beginning balance using the ending balance from the last noncancelled bank statement for the account.
    Beginning balances are required on all bank statements for reconciliation.
  5. (Optional) In the
    Worktag Mapping Configuration
     section, select a
    Bank Statement Worktag Rule Set
     to associate with the bank account. Workday uses the bank statement worktag override rule set to assign specific worktags on bank statement lines for the account.
  6. In the
    Bank Account Usage
     section, define the purpose for using the account.
    You can set up a bank account to make both supplier and expense payments, and receive customer payments. You can also create a bank account for unique functions, such as an account that covers only payroll expenses.
    Define 1 bank account that includes all uses to serve as the default account for your bank routing rule.
    As you complete the section, consider:
    Option Description
    Primary Account Usage
    Select the primary types of payment to use for this bank account. Example: Select
    Ad Hoc Payment
     to use this account to pay bank fees using ad hoc payments.
    Allow Additional Usage
    Select to make the bank account available for any additional types of payment that you might need to process.
  7. As you complete the
    Check Options
     section (not used for the UK), consider:
    Option Description
    Enable Positive Pay
    Select to send an electronic file to the financial institution containing details for checks issued from this account. Workday compares a check presented for payment to the list of checks in the electronic file. If 1 or more elements of the check don't match the electronic file, the bank can withhold payment.
    Before you can activate positive pay, you must build an integration to the financial institution using the Workday Enterprise Interface Builder (EIB). You can then trigger the integration from the
    Payment Printing Event
     business process definition.
    Last Check Number Used
    The first check in the sequence begins with the last check number +1.
    Unless there's a break or gap in the sequence of checks, you only need to define the starting sequence when you first create the account. If there's a break in the check sequence, restart the sequence by entering the new sequence starting number - 1.
    Check Print Layout
    Override the default check printing layout for your production tenant with a layout specific to this account.
    If you haven't set up a default print layout and assigned a check print layout to the bank account, Workday defaults to the delivered business form layout.
Workday routes the new bank account to the next business process participant for review and approval.
You can use the bank accounts that you create to:
  • Set up routing rules.
  • Record and deposit customer payments.
  • Create ad hoc bank transactions.
  • Make manual payments.
  • Record cash sales.
  • Outsource check printing and banking.
Creating Rules Based On Payment Types
Create these integration rules to manage EFT and direct deposit payments:
  • Rule 1: Specifies the integration system to use for routing
    Direct Deposit
     payments.
  • Rule 2: Specifies the integration system to use for routing
    EFT
     payments.
The condition rule for direct deposit payments has highest priority in the
Settlement Setup
 grid, followed by the condition rule for EFT payments. The first payment processed by the settlement engine is an EFT payment. Workday tries to match the payment with the first rule in the grid. When this rule doesn't return a match, Workday evaluates the payment against the second rule. In this case, Workday:
  • Recognizes that the rule applies to EFT payment types.
  • Records a match.
  • Uses the integration system associated with the second rule.
When defining an integration system, consider:
  • Unspecified criteria means that you're including everything.
  • A payment must meet all of the conditions defined in a row of the
    Settlement Setup
     grid to produce a positive match.
  • Define the most granular rule first and work down to the broadest rules.