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Administrator Guide
Last Updated: 2025-09-19
Create Direct Intercompany Netting Transactions During Settlement

Create Direct Intercompany Netting Transactions During Settlement

  • Access the
    Maintain Companies as Customers or Suppliers
     task and select
    Enable Netting
     for all companies that you want to include. You can't net direct intercompany transactions for a company unless you select
    Enable Netting
    .
  • Create intercompany transactions.
When you have companies that issue direct intercompany customer and supplier invoices in the same currency, you can net the total amount and settle all their transactions at once.
You can also create direct intercompany netting transactions in the same or multiple currencies as a stand-alone process by creating direct intercompany netting transaction groups. See Create Direct Intercompany Netting Transaction Groups.
Workday can't net negative amounts, so you must settle as the company that has a net payable amount. You can check which company owes more using the
Intercompany Work Area
 report.
If you're using Auto Record Intercompany receipt, Workday automatically generates a receipt for the intercompany payment. Otherwise, you can create one manually.
  1. Access the
    Create Settlement Run Task
    .
  2. Select the company you want to net for that owes a net payable amount.
  3. Select
    Add
    Intercompany Items
    .
  4. Leave the
    Intercompany Payable/Receivable Transactions
     field blank, to include all transactions needed for netting.
  5. Set the
    Intercompany Invoice Type
     to
    Direct
    .
  6. Select the transactions you want to net.
    Workday displays amounts due to the company you're settling for as positive amounts, and amounts due from the company as negative amounts.
  7. Process the settlement run.
    From the
    Background Process in Progress View
    , you can use the
    Payment Groups
     and
    Intercompany Items
     tabs to review the transactions included in the settlement run.
  8. (Optional) To record an intercompany receipt for the settlement run: access the
    Record Intercompany Receipt
     task, and:
    1. In the
      Company Receiving Payment
       field, enter the company that was owed a net receivable amount in the settlement run.
    2. In the
      Companies making Payments
       field, enter the company that owed a net payable amount in the settlement run.
    3. Set the
      Intercompany Invoice Type
       to
      Direct
      .
    4. Select the intercompany payment from the settlement run.