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Administrator Guide
Last Updated: 2025-02-21
Steps: Set Up On-Behalf Intercompany Transactions

Steps: Set Up On-Behalf Intercompany Transactions

Security:
Set Up Company Accounting
 in the Common Financial Management functional area.
On-behalf intercompany enables you to process payments and invoices in place of the company that provides the goods and services. When you configure your intercompany profiles and relationships, you can record, initiate, and settle on-behalf intercompany activities.
For a use case related to this topic, see Use Case: Set Up On-Behalf Intercompany Transactionsin the Use Case Library.
  1. Configure bank accounts for all affiliated companies that use intercompany transactions. We use these accounts for both intercompany settlements and receipts. You need bank accounts for all participants on an intercompany transaction to create intercompany receipts.
  3. Configure these account posting rules:
    • Intercompany Payables
    • Intercompany Receivables
    Workday also recommends you configure additional account posting rules based on the transaction types you need. Common posting rules include:
    • Cash
    • Spend
    • Revenue
    • Transaction Tax
  4. You can use customer payment application rules to change how Workday processes payments. By default, Workday uses the customer payment application rules associated with the company receiving the payment.
    When you need to write off the balances on customer invoices, we use the rules of the company on the customer invoice.
  5. (Optional) Edit Business Processes.
    Workday uses intercompany business process steps when you add a company on the line of the transaction that differs from the header company. We recommend that you add these business process steps:
    • Initiate Accounting Journal Intercompany Event
       step to Accounting Journal Event.
    • Initiate Customer Invoice Intercompany Event
       step to Customer Invoice Event.
    • Initiate Supplier Invoice Intercompany Event
       step to Supplier Invoice Event.
    Configure these additional business processes:
    • Record Intercompany Receipt Event
    • Settlement Run Event
You can create on-behalf intercompany transactions.