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Administrator Guide
Last Updated: 2026-03-13
Create Customer Invoice Adjustments

Create Customer Invoice Adjustments

  • You must have a customer invoice that is active.
  • Configure the
    Customer Invoice Event
     business process and security policy in the Customer Accounts functional area.
  • Security:
    Process: Customer Invoice - Core
     domain in the Customer Accounts functional area.
  • (Optional) Set Up Unique Invoice Numbering for a Company. Unique invoice ID enables you to comply with global accounting requirements. If you enable unique invoice IDs for credits, debits, and rebills in your tenant, Workday creates the adjustment with a unique invoice ID.
You can create a customer invoice adjustment to decrease or increase the amount due from a customer. An adjustment is a new transaction with its own document number that is separate from, but linked to, the original invoice.
You can create 1 adjustment and apply it to multiple invoices using the
Perform Customer Invoice
 maintenance task, so long as you don't select
Apply Adjustment Immediately
.
You can also copy an existing invoice adjustment as long as:
  • It's not associated with an award.
  • The customer is active.
You can continue to make changes to the new invoice adjustment until you apply it. You can copy the fields to a new adjustment except:
  • Adjustment Date
  • Apply Adjustment Immediately
     (When you leave it blank on the original adjustment.)
  • Attachments
  • Billing Installment
  • Billing Schedule
  • Currency Overrides
  • Notes
  • Related Invoices
If you're adjusting a billable transaction invoice, you can only create a full credit. You can't create a debit adjustment or a partial credit.
  1. Access the
    Create Customer Invoice Adjustment
     task.
    • If the desired adjustment reason isn’t available in the prompt, create invoice adjustment reasons with the
      Maintain Invoice Adjustment Reasons
       task.
    • You can also access the
      Copy Customer Invoice Adjustment
       task from the related actions menu of an existing customer invoice adjustment.
  2. As you complete the
    Invoice Adjustment Information
     section, consider:
    Option Description
    Bill-From Address
    Ship-From Address
    Workday only displays these prompts when you've enabled bill-from and ship-from address options on the
    Edit Customer Account Options
     task for the invoice adjustment company.
    Workday automatically populates the:
    • Bill-from address when the company's primary address is currently in use for billing.
    • Ship-from address when the company's primary address is currently in use for shipping.
    When you:
    • Remove the company, Workday hides the prompts.
    • Change the company, Workday repopulates the prompts based on the new company configurations.
    • Edit the address that's displayed on the bill-from or ship-from address prompt on the company profile, Workday repopulates the prompts based on the new address.
    Bill-To Customer and Sold-To Customer
    Your selection populates other adjustment information based on the customer definition, such as tax code, payment terms, and payment type.
    Adjustment Date
    Workday uses this date to post the adjustment to the first open ledger period. If Workday doesn't find an open ledger period, we set the adjustment status to
    Error
    .
    Statutory Invoice Type
    Select a country-specific statutory invoice if you use invoice types to categorize your invoices in compliance with local government requirements.
    The field displays only if you've configured a statutory invoice for the company in a specific country.
    Bill-To Address
    Displays when you enter a customer. It automatically populates to the primary business address defined on the tab
    Addresses and Contacts
    Contact Information
     of the customer profile. If you don't define a primary business address, this field remains blank. You can override the default with other options in the prompt, if available.
    Bill-To Contact
    Populates from the default contacts defined on
    Addresses and Contacts
    Customer Contacts
     tab of the customer profile. If you don't define a default bill-to contact, this field remains blank. These contacts are the email recipients for customer invoices. You can override the defaults with other options in the prompt, if available.
    Ship-To Customer
    Ship-To Address
    Displays only if the invoice customer has
    Ship-to Business Connections
     set on the
    Connection Map
     in the customer profile.
    After you select a ship-to customer, the
    Ship-To Address
     prompt displays all shipping addresses defined on the
    Contact Information
     report with an effective date that's on or before the current date.
    Workday applies the
    Ship-To Address
     with the tax rule for the destination country for tax automatically populating. If no address has a shipping usage, the prompt displays the primary business address.
    This feature doesn't apply to sponsors.
    Related Invoices
    Select the customer invoice related to this adjustment. For credit or rebill invoice, Workday displays both the original and rebill invoice. Use the invoice preview to access the originating and rebill invoice.
    Apply Adjustment Immediately
    To apply your adjustment to multiple invoices in bulk, leave this option blank.
    Select if:
    • The adjustment decreases liability.
    • The originating invoice uses the same currency as the adjustment.
    • You use worktag balancing.
    • The adjustment references the original customer invoice.
    Workday applies credit amounts from the invoice adjustment to the matching lines on the original invoice. The credit amount applies only up to the open receivable amount for each line, by matching worktag balancing values within the 2 documents.
  3. As you complete the
    Additional Information
     section, consider:
    Option Description
    Billable Project
    (Optional) Select a billable project related to the company or customer. Workday also automatically populates the
    Billable Project
     field on the invoice line.
    If you leave this field blank, you can associate an invoice with more than 1 project at the invoice line level.
    Reference Type
    Select a reference type based on the country requirement of where you conduct business.
    Workday displays this field dynamically when the address of the company and the bill-to-address of the customer are both in 1 of these countries:
    • Boleto Bancário (Brazil)
    • BPAY (Australia)
    • ESR (Switzerland)
    • FIK-nummer (Denmark)
    • KID-nummer (Norway)
    • OCR-nummer (Sweden)
    • OGM-VCS (Belgium)
    • Viitenumber (Estonia)
    • Viitenumero (Finland)
    Reference Number
    When you select an international reference type, you must enter a supporting
    Reference Number
    .
    Due Date
    Workday automatically calculates this date based on the invoice date and payment terms. You can override the date by entering a new one in the
    Due Date Override
     field.
    Document Link
    If you store supporting documents or images in an external repository, then enter the URL to that location. Once you save the transaction, Workday displays the URL as a live hyperlink to the image. Approvers can reference this document before approving the transaction.
    Workday validates the link to ensure that it has a valid Uniform Resource Identifier (URI) pattern, as defined by your security administrator. This process provides additional security to help avoid malicious content in external links.
    You can add valid uniform resource identifier (URI) by selecting
    Customer Invoice Document Link Type
     on the
    Maintain External Link Validation
     task. If the location of the external content changes, you must update the URL in Workday.
  4. As you complete
    Amount Information
     section, consider:
    Option Description
    Currency
    Currency in which the adjustment bills and the payment is due.
    If you've specified one, the default comes from the currency of the customer; otherwise, it's the company currency. You can change the currency to any of the accepted currencies defined for the customer.
    Default Tax Code
    Displays when you don't configure a third-party tax integration for the invoice company.
    You can select a tax code for Workday to populate on invoice lines. You can also override the default tax code that Workday populates from your tax configuration and invoice information.
    On invoices with no ship-to customer, Workday automatically populates the tax code from the bill-to customer.
    When you select a ship-to customer and address, Workday applies the tax code from the default transaction tax rule for the destination country.
    You can configure exception rules to override the default selection for companies and customers on customer invoices.
    Tax Amount
    The total tax amount for the customer invoice, either calculated by Workday or imported from a third-party tax service integration.
    Tax Service Name
    Displays when you configure a third-party tax service integration with the nonreporting option for the invoice company. See Concept: Third-Party Tax Service Integrations.
    Less Withholding Amount
    Calculates when the
    Withholding Tax Code
     has a
    Realization Point
     of
    Invoice
    .
  5. As you complete the
    Adjustment Lines
     grid, consider:
    Option Description
    Company
    If you enable intercompany transactions, you can select more than 1 option.
    Sales Item
    Your selection populates other line details from the sales item definition, such as, unit price, and tax applicability.
    Workday automatically populates up to 5 recommendations for sales items on the
    Recommended
     prompt filter when you enable machine learning recommendations for
    Sales Item
     on the
    Maintain Machine Learning Prompt Recommendations
     task.
    Commodity Code
    To display options on this prompt, first configure commodity code types and add commodity codes. See Steps: Create Commodity Codes.
    You can select only 1 active code per commodity code type.
    Unit Price
    If the currency for the sales item and adjustment differs, Workday automatically converts this value to the currency of the adjustment.
    Workday uses the current currency conversion rate as defined for the default currency rate type, which is part of the tenant setup.
    Extended Amount
    Enter a positive number.
    For sales items that enable bulk pricing, Workday calculates the extended amount as: (Unit Price x Quantity)/UOM Priced at Quantities.
    Ship-From Address
    Workday displays this prompt when you've enabled bill-from and ship-from address options on the
    Edit Customer Account Options
     task for the invoice adjustment company.
    Workday automatically populates the ship-from address when the primary address of the adjustment line company is currently in use for shipping.
    When you:
    • Select the same company in the
      Invoice Adjustment Information
       section and in
      Adjustment Lines
      , Workday populates the same ship-from address.
    • Remove the ship-from address from the
      Invoice Adjustment Information
       section, Workday populates a blank
      Ship-From Address
      prompt for every new adjustment line that you add.
    • Remove the company from
      Adjustment Lines
      , Workday hides the prompt.
    • Change the adjustment line company, Workday repopulates the prompt based on the new company configurations.
    Ship-To Customer
    Ship-To Address
    You can change the shipping customer and shipping address to any ship-to connection that you configure for this customer profile in the
    Connection Map
    . If you configure segmented security, only users that have access to the customer domain can view the ship-to customers and addresses.
    If you reference a
    Contract Line
     on the invoice line, Workday clears the ship-to customer and address from that line.
    This feature doesn't apply to sponsors.
    Tax Applicability
    Indicates whether the invoice line is taxable or not. When you configure tax applicability as part of a tax rule for a sales item, Workday automatically populates this field. When there's no applicability associated with the item, Workday applies the tax rule for the destination country. If you haven't configured the tax rules for a sales item and country, Workday automatically populates the tax applicability from the sales item or revenue category.
    When you enable third-party tax for the invoice company, Workday populates the tax applicability when the integration runs.
    Tax Code
    Workday populates the tax code value from an invoice header. You can override a value manually, or by selecting:
    • Sales Item
       that has a tax code.
    • Ship-To Customer
       and
      Ship-To Address
       on the invoice line. These fields display only if the bill-to customer has
      Ship-to Business Connections
       configured on the
      Connection Map
       in the customer profile.
    If you don't have the
    Connection Map
     or transaction tax rules for country configured, Workday automatically populates the tax code from the
    Bill-To Customer
    .
    When you enable third-party tax for the invoice company, Workday populates the tax code when the integration runs.
    Withholding Tax Code
    You can select from tax codes that have realization points of
    Invoice
     or
    Customer Invoice Self Withholding
    . Workday automatically populates this field when you configure withholding tax codes on these rules:
    • Withholding Tax Rule for Country
    • Withholding Tax Rule for Item
    When you enable third-party withholding tax for the invoice company, Workday populates the withholding tax code when the integration runs.
    You can't select a withholding tax code when you configure a third-party tax integration with the nonreporting option for the invoice company. See Concept: Third-Party Tax Service Integrations.
    Tax Point Date Type
    Select the type of tax point date for the invoice line. Workday requires the tax point date type when you specify a
    Transaction Tax Code
     on an invoice line.
    • This field displays only if you’ve selected
      Enable Tax Point Date Configuration for Transaction Taxes
       check box on the
      Edit Tenant Setup - Financials
       task in your tenant.
    • Workday automatically populates tax point date type with
      Invoice/Adjustment Date
       and uses regular transaction tax.
    • When you select the
      VAT on Payment
       check box on the
      Edit Company Tax Details task
      , Workday automatically:
      • Sets the tax point date type to
        Payment Date
        .
      • Uses transaction tax on payments.
    Tax Point Date
    Enter a tax point date to determine the tax period of the transaction.
    This field displays when you select
    Goods/Service Delivery Date
     as the tax point date type.
    Worktags
    Add worktags to the invoice line to:
    • Make it easier to find.
    • Make its business purpose clear.
    • Assist multidimensional reporting.
    Related worktags automatically populate from data selected on the invoice. When related worktags of the same type exist on both sales items and revenue categories, the 1 from the sales item takes precedence because it's more specific. The latest default for a worktag type overrides any preceding value.
  6. (Optional) Verify the information on the
    Tax
     tab.
    The tab displays a transaction tax grid that contains information about tax codes along with associated tax rates. You'll also see a withholding tax grid if you entered a withholding tax code in the adjustment line. A
    Company Tax ID
     and
    Customer Tax ID
     also displays on this tab, if configured during customer setup.
  7. (Optional) Access the
    Currency Rate
     tab. As you complete it, consider:
    For foreign currency invoices, you can make adjustments to achieve the desired conversion rate. Any changes you make to the settings on the
    Currency Rate
     tab are reflected in the
    Effective Currency Rate
     field. The value in this field is the historic rate used by revenue recognition accounting to convert installment amounts to ledger currency. Any overrides trigger the selection of the
    Rate Override
     check box.
    Option Description
    Currency Rate Type Override
    Override the rate type used to look up the exchange rate.
    Currency Rate Date Override
    Override the date used to look up the exchange rate.
    Currency Rate Manual Override
    Enter a currency rate to override the exchange rate, or provide a rate when a default rate isn't available.
    Defaults
    This section displays the default currency rate defined in your tenant. It's based on the invoice date.
  8. (Optional) Access the
    Payment Schedule
     tab to create payment schedules for the invoice based on percentages or fixed amounts.
    Workday only activates this tab when you opt in to the
    Enable Multiple Due Dates on Customer Invoices
     setting on the
    Edit Customer Account Options
     task.
Workday launches the
Customer Invoice Event
 business process.
If this customer invoice adjustment is an
On Behalf of
 intercompany transaction, Workday also launches the
Customer Invoice Intercompany Event
 business process.
If you created a credit memo, you can apply the amount across multiple invoices, including other customers' invoices, in the
Perform Customer Invoice Maintenance
 task. Don't select the
Auto-Apply Adjustment to Invoice
 check box. Workday prevents overapplication of credit memos.
After invoice adjustment completes:
  • Workday creates operational journals in the company currency for approved transactions. When the transaction and company currencies differ, Workday converts the amounts.
  • You can cancel a customer invoice adjustment when:
    • You haven't applied the payment.
    • You've canceled the applied payment.
    • You don't have the adjustment included in a customer refund in
      Draft
       status.
  • You can't access the
    Cancel Customer Invoice Adjustment
     task from the related actions menu when a customer invoice adjustment has a revenue recognition schedule attached. To do so, you'll first need to cancel the revenue recognition schedule, and the schedule must be in a
    Draft
     status.
  • You can settle the unpaid credit card and direct debit invoice adjustments. The settlement process creates and settles the invoiced adjustments. When the process completes, Workday updates the accounting entries for each payment.
  • You can access the
    Edit Customer Invoice Layout Rule
     task and select the
    Remove Adjustment Prefix
     check box to remove the hard-coded prefix from the filename of the printed invoice adjustment.