Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2026-03-13
Create Customer Payment Application Rule

Create Customer Payment Application Rule

  • Security: Set Up: Customer Accounts
     in the Customer Accounts functional area.
  • Security: Set Up: Sponsor Accounts
     in the Grants Management functional area.
  • Create payment application reasons.
  • Create condition rules to set the criteria for identifying invoices eligible for automatic application.
You can create custom rules by configuring the payment application reason, the condition rules, and other parameters to retrieve specific invoices.
  1. Access the
    Create Customer Payment Application Rule
     task.
  2. As you complete this task, consider:
    Option Description
    Payment Application Reason
    Select a reason that you've configured to identify the rule Workday uses for payment application.
    You can use the
    Customer Payment Auto Application By Reasons
     report to view your payment applications by the payment application reason.
    When you share the same application reason across different payment application rules, Workday groups the various applications under that 1 reason.
    Application Type
    Select a type of application with this rule.
    • Invoice Credit
      : Applies credit adjustments to invoices.
    • On-account Payment
      : Applies payments to invoices with a payment application status of
      Applied with On Account
      .
    • Overpayment
      : Automatically records customer overpayments in the auto-apply process.
    • Unapplied Payment
      : Applies payments to invoices with a payment application status of
      Unapplied
      .
    • Write-Off
      : Creates bad debt write-off.
    Workday determines the transactions to process by using a combination of
    Application Type
     and
    Condition Rule
    .
    When you select the application type of
    Overpayment
    , configure a condition rule containing a report field for either:
    • On-Account Remaining Amount
    • On-Account Remaining Amount in Base Currency
    Overpayment Reason
    Select a reason which describes the purpose of the overpayment.
    This prompt is only available when you select the
    Overpayment
     application type.
    Apply Worktag Mapping Rules
    Select the check box when you:
    • Enabled primary worktag balancing, or primary or additional worktags in your tenant.
    • Configured receivables overpayment mapping rules on the
      Maintain Receivables Worktag Mapping Rules
       task.
    Allow Application for Different Customers
    Select this check box to enable Workday to apply a payment where the
    Remit-From Customer
     doesn't match the
    Bill-To Customer
     on the invoice.
    Allow Application for Different Company Invoices
    Select this check box to process on-behalf-of payments that have different companies on the customer payment header and the customer invoice header.
    You can use this check box only when you've enabled one of these options:
    • Limit to Referenced Invoices
      .
    • Create On-Account Document for Overapplied Invoice
    • Remittance Advice Type
      .
    • A
      Condition Rule
       that contains a report field used on the customer payment remittance.
    Create On-Account Document for Overapplied Invoice
    Select this check box to create an advanced customer payment application rule to process customer payments with remittance advice containing overapplied invoices.
    This check box displays when:
    • Application Type is Unapplied Payment
    • At least 1 of the these settings is true:
      • The
        Limit to Referenced Invoices
         check box is selected.
      • The
        Remittance Advice Type
         is set to
        Invoice Number
        .
      • A
        Condition Rule
         prompt is set to
        Referenced Invoices or Customer Payment Remittance Advice Type
         with the comparison value of
        Invoice Number
        .
    Leave Application as Draft
    Select this check box if you want to review the payment applications performed by the payment rule before submitting them manually.
    Limit to Referenced Invoices
    Select this check box if you want auto-application to match only against the referenced invoices on the remittance advice.
    • When you don't select the check box, auto application process tries to match the payment against all open invoices.
    • This option is available only when the application rule type is either
      On-Account Payment
       or
      Unapplied Payment
      .
    • When this flag is set,
      Condition Rule
       becomes optional, and the
      Remittance Detail Match Conditions
       section becomes disabled.
    • When you select this check box, Workday processes customer payments referencing a consolidated invoice instance in the
      Invoice
       column in the
      Remittance Advice
       grid.
    Put Remaining Balance On Account
    Select this check box when the payment amount that you apply is less than the payment total and you want to place the remaining amount on account.
    Put Unapplied Payments Fully On Account
    Select this check box to place the entire recorded payment amount on account.
    Condition Rule
    Select a rule that you've created to retrieve specific invoices for automatic payment processing.
    Workday determines the transactions to process by using a combination of
    Condition Rule
     and
    Application Type
    .
    Remittance Detail Match Conditions section
    This option is available only when the
    Application Type
     is either
    On-Account Payment
     or
    Unapplied Payment
    .
    • Remittance Advice Type
      : Use this option to match payments to invoices by a
      PO Number
      ,
      Invoice Number
      , a
      Reference Number
      , or process payments referencing the
      Consolidated Invoice
       number entered in the
      Other Remittance Information
       section in the
      Remittance Advice
       grid. When there’s no remittance advice, Workday ignores this rule.
    • Match by Amount to Pay for Remittance Detail Matching Rule
      : Use this option for auto-apply to match a payment to an invoice where the amount to pay on the remittance line equals the invoice amount due. When the payment amount isn't sufficient to fully pay the invoice, Workday pays the invoice partially. You can use this option along with
      Remittance Advice Type
      , or by itself.
Workday finds invoices that match the rules you've created.
You can now create a rule set for a company by adding these rules in the desired order.