Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2024-05-17
Maintain Companies as Customers or Suppliers

Maintain Companies as Customers or Suppliers

Security:
Set Up: Company Accounting
 domain in the Common Financial Management functional area.
You can configure your companies to operate as customers, suppliers, or both, enabling them to do business with each other through direct intercompany transactions. This arrangement eliminates the need to create separate customer and supplier invoices, saving you time and improving your data integrity.
  1. Access the
    Maintain Companies as Customers or Suppliers
     task.
  2. As you complete the task, consider:
    Option Description
    Operates as Customer
    Operates as Supplier
    Select an existing company to operate as an existing customer or supplier. Companies must:
    • Be part of the same organization or legal entity.
    • Transact in Workday.
    Intercompany transactions can occur based on the mapping of the company as either the customer or supplier:
    • Between 2 companies
    • Between 2 subsidiaries
    • A parent company and a subsidiary
    Copy Worktags
    For companies that operate as customers, select the
    Copy Worktags
     check box to transfer valid supplier invoice worktags from customer invoice lines to supplier invoice lines.
    Copying worktags improves the accuracy of intercompany receipts for invoices that have multiple lines with different balancing worktags.
    Copy Tax Fields
    Workday selects the
    Copy Tax Fields
     check box for companies that operate as customers or both suppliers and customers. Selecting this check box transfers tax codes and withholding tax codes from customer invoice lines to supplier invoice lines. Workday also populates the supplier invoices with the purchase item and spend category tax applicability.
    If you clear this check box, Workday populates the supplier invoice with:
    • All tax codes and withholding tax codes from your advanced tax defaulting rules by country.
    • The tax applicability from the purchase item and spend category or your configured override rules, in that order of priority.
    Copy Attachments
    Select the
    Copy Attachments
     check box to transfer files from your customer invoices to your supplier invoices.
    Default Affiliate
    Select the
    Default Affiliate
     check box to have Workday populate intercompany affiliate worktags on:
    • Customer invoice transactions for companies that operate as suppliers.
    • Supplier invoice transactions for companies that operate as customers.
    • Revenue journal entries for customer invoices.
    • Spend journal entries for supplier invoices.
    After you create intercompany invoices, you can override the value of the default intercompany affiliate worktag directly on the supplier invoice or customer invoice.
    Enable Netting
    Select the
    Enable Netting
     checkbox to have Workday calculate a single net balance payable or receivable for companies that are both a customer and a supplier.
    This process eliminates the workaround of calculating the differences between supplier invoice and customer invoice amounts, simplifies settlement, reduces operation costs, and improves collections risk.
Intercompany supplier invoices use the company ship-to address on the header and lines of the supplier invoice to support tax defaulting at the line level.