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Documentation
Administrator Guide
Last Updated: 2023-06-23
Steps: Return Customer Payments

Steps: Return Customer Payments

  • Configure the
    Payment Return Event
     business process and security policy in the Banking and Settlement functional area.
  • Security:
    • Process: Ad Hoc Payment Reporting
       domain in the Banking and Settlement functional area.
    • Process: Bank Account Transfer for Settlement - Reporting
       domain in the Banking and Settlement functional area.
    • Process: Customer Invoice Payment
       domain in the Customer Accounts functional area.
    • Process: Customer Refund/Payment
       domain in the Customer Accounts functional area.
    • Process: Settlement
       domain in the Banking and Settlement functional area.
You can return a customer payment that a bank rejects or returns due to various errors such as insufficient funds. Payment returns differ from refunds. You can create a refund only when there’s a credit adjustment or on-account balance for a customer payment.
When you return a payment, Workday automatically unapplies it, and then creates 2 journals entries that reverse the original payments. One entry is for the return and a separate entry to unapply the payment.
You can return:
  • Both unreconciled and reconciled payments.
  • Unreconciled checks and reconciled checks.
  • A payment even when it has a
    Stopped
     status.
When the payment return is unreconciled and you haven't paid the original payment, you can also cancel the return.
  1. Access the
    Find Payments
     report.
  2. Select
    Return
     from the related actions menu of the settled payment that you want to return.
    Enter the return date and code.
  3. (Optional) Access the
    Create Payment Return Statement
     task to return multiple customer payments at once.
    You can only access this task when your payment type is
    Direct Debit
    . The process also requires you to match each payment individually for the return.
  4. (Optional) Access the
    Record Voided Checks
     task to void a related check when the payment isn't reconciled.
When you return a customer payment, Workday sets the
Payment Status
 to
Returned
 and
Application Status
 to
Unapplied
.
The payment returns generate journal entries that reverse the original payments. Once you resolve the issues, you can settle the expense reports and supplier invoices with the payments. For returned ad hoc payments and bank account transfer payments, you must create new payments.
  • To view payment return details, access the
    Find Payment Returns
     report.
  • When you haven't paid the original payments, from the related actions menu of the unreconciled payment return, select
    Cancel
     or
    Unmatch
    . Workday cancels any related accounting entries and the payment status of the original payment changes to
    Complete
    .
  • To view payment reversals as separate line item, access these reports:
    • Cash Receipts
    • Customer Activity Details