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Administrator Guide
Last Updated: 2026-03-13
Steps: Configure Advanced Automatic Application Rules for Customer Payments

Steps: Configure Advanced Automatic Application Rules for Customer Payments

The advanced rules offer additional functionality that the Workday delivered rules don’t, enabling you to create custom rules and rule sets. You can also create conditions that specify exactly how to perform a match to:
  • Apply credit adjustments against invoices.
  • Apply unapplied payments.
  • Apply on-account payments.
  • Process write-offs against invoices.
  • Automatically record customer overpayments.
Example: You can create a condition rule to write off invoices where the
Invoice Amount Due
 is less than 1 USD and over 30 days past due. When you set the
Application Type
 to
Write-Off
 and select this condition rule, Workday finds the matching invoices and writes off the amount due.
Ensure to configure advanced rules in the specified order.
  1. Create or edit the reasons for applying adjustments, payments, or write-offs by accessing the
    Maintain Customer Payment Application Reasons
     task.
    • Security: Set Up: Customer Accounts
       in the Customer Accounts functional area.
    • Security: Set Up: Sponsor Accounts
       in the Grants Management functional area.
  3. Create payment application rules using the reasons and the condition rules that you set up.
  4. Create a rule set for a company by accessing the
    Create Customer Payment Application Rule Set
     task.
    • Security: Set Up: Customer Accounts
       in the Customer Accounts functional area.
    • Security: Set Up: Sponsor Accounts
       in the Grants Management functional area
  5. As you complete the task, consider:
    Option Description
    Rule Set
    You can create many rule sets, but you can use only 1 default rule set.
    Match Referenced Invoice Credits First
    Select this check box to first process credit adjustments that you didn't apply immediately. Make sure that you don't select the
    Auto-Apply Adjustment to Invoice
     check box on the customer invoice adjustment for Workday to pick up these invoices.
    Default Advanced Rule Set Used by Companies
    Workday automatically populates this field with 1 or more companies when you define it as a default rule set on the
    Company
    Edit Customer Payment Application Configuration
     task.
    Allowed Override Rule Set Used by Companies
    Select 1 or more companies that can use the customer payment application rule set as an override rule set.
  6. Configure Workday to use the advanced rule set you've created by accessing the
    Company
    Edit Customer Payment Application Configuration
     task.
    Security: Set Up: Company General
     domain in the Common Financial Management functional are
    • Select the
      Advanced
       check box and a rule set from the
      Customer Payment Application Rule Set
       option.
    To add an applicable option for
    Customer Payment Application Rule Set
    , you must remove the company from
    Allowed Override Rule Set Used by Companies
     first.
When you run the
Auto-Apply Customer Payment
 task, Workday uses the advanced payment application rules you configured to process payments and opens the
View Background Process
 page. The resulting page displays:
  • The status of the payment application and the information about the associated invoices for each rule.
  • Any transactions generated by the rule.