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Administrator Guide
Last Updated: 2026-04-03
Create Netting Transactions

Create Netting Transactions

  • Configure the
    Netting Transaction Event
     business process and security policy in the Supplier Accounts and Customer Accounts functional areas.
  • Create Invoice Eligibility Rules for netting transactions.
  • Configure Netting Rules.
  • Configure these domain security policies on 1 or both functional areas according to your business needs:
    • Security:
      Process: Netting Transaction
       domain in the Supplier Accounts and Customer Accounts functional areas.
    • Security:
      Set Up: Netting Rules
       domain in the Common Financial Management functional area.
You can't use this capability to net direct intercompany transactions, instead see Create Direct Intercompany Netting Transactions During Settlement.
You can use netting transactions to net the amount payable and amount receivable on these documents:
  • Customer invoice
  • Customer invoice adjustment
  • Supplier invoice
  • Supplier invoice adjustment
Invoices and adjustments are eligible to net based on the netting rules and invoice eligibility rules configured. Both rules apply to customers and suppliers on a company or company hierarchy. Workday displays invoices:
  • With negative and positive balances.
  • Based on the days you configure on the
    # of Days Invoices are Open Before Netting
     field on the invoice eligibility rule. From the field, we populate and lock down the
    Invoice Date On or Before
     field on the transaction.
Workday excludes these from netting:
  • Finance charge invoices.
  • Invoices from suppliers marked for 1099 MISC reporting.
  • Zero balance invoices.
  1. Access the
    Create Netting Transaction
     task.
  2. Complete the task:
    Option Description
    Currency
    Workday populates this field from
    Company
    . You can also view and net invoices in a different currency.
    You can process netting transactions when the invoice currency is different from the ledger currency. For a valid netting transaction, both supplier invoices and customer invoices selected must be in the same currency.
    Netting Rule
    Select the
    Netting Rule
     that you want to apply to the transaction.
    Transaction Date
    Enter a transaction date that's on or after the invoice date.
    Balancing Worktag
    (Optional) For tenants with
    Balancing Worktag
     configured:
    • Select the
      Balancing Worktag
       on the netting rule to calculate interworktag balancing entries when you net customer and supplier invoices that have different balancing worktags.
    • Select the
      Optional Balancing Worktag
       on the netting rule to calculate interworktag balancing entries.
    Supplier Invoices
     and
    Customer Invoices
     tabs
    From the tabs, select the invoices or adjustments that you want to net.
    Selecting an invoice doesn't guarantee netting.
    You can net invoices based on the:
    • Available total supplier invoice amount and customer invoice amount.
    • The invoice eligibility rules. By default, Workday nets oldest invoices first based on invoice date, but you can instead net by smallest invoice amounts due first.
  3. Click
    Submit
    .
After you approve a netting transaction, Workday generates accounting that reverses the accounts payable and accounts receivable balances of the individual supplier invoices and customer invoices.
  • Settle any balance due left on the invoices after you netted.
  • Print a netting statement.
  • Send a netting statement along with the payment remittance information to the supplier.