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Administrator Guide
Last Updated: 2026-03-13
Steps: Apply Customer Payments

Steps: Apply Customer Payments

  • Record customer payment.
  • Add reasons for placing the payment on-account.
  • Enable cross-currency customer payments if applicable for the tenant.
  • Define Customer Payment Application Configurations for a company.
  • Configure the
    Customer Payment Application
    business process and security policy in the Customer Accounts functional area. See Edit Business Process Security Policies.
  • Configure these security domains in the Customer Accounts functional area:
    • Set Up: Customer Accounts in the Common Financial Management functional area.
    • Configure these security domains in the Customer Accounts functional area:
    • Process: Cash Sale Payment - View
    • Process: Customer Invoice - View
    • Process: Customer Writeoff - View
After you record a customer payment, you can apply the payment to the appropriate customer invoices, place a certain amount on account, record an overpayment, add attachments and notes. You can't record an overpayment when the payment has an associated customer refund in
Draft
 status. Workday also enables you to:
  • Apply write-offs during the payment application process.
  • Cancel, return, or unapply an applied payment.
  • Search for additional invoices before you apply the payment.
To unapply large volumes of customer payments that are in error, you can use the
Unapply Customer Payment
 web service operation. To view all the transaction history, you can create an advanced custom report using the
Customer Transaction History
 business object.
  1. Access the
    Apply Customer Payment
     task.
    Select the
    Customer Payment
     that you want to apply.
  2. You can complete the relevant fields in the payment header:
    Option Description
    Company
    The company receiving the payment.
    Remit-From Customer
    The customer who sent the payment.
    A payment cannot be applied to invoices without a specified Remit-From Customer.
    Payment Date
    The date the payment was recorded.
    Transaction Date
    Specify the accounting date for the payment application to ensure it posts in the current period. When left blank, Workday defaults to the original Payment Date, which might result in the application being posted to a prior accounting period.
    Included in Deposit
    When there is an associated customer deposit, you can use the related actions menu to view the deposit details.
  3. In the
    Payment Application Options
     section, you can complete the relevant fields:
    Option Description
    Show Selected
    This check box is automatically selected when you have enabled the
    Show Only Matched Invoices when Applying
     option on
    Record Customer Payment
     task.
    The capability helps you filter down when you a large number of invoices.
    When not enabled on the Record Customer Payment task, the check box displays as grey by default and you can't take any action on it.
    Apply to Oldest First
    When you select this check box, Workday sorts the
    Invoices
     grid by
    Due Date
    , listing the oldest invoices first. Workday then selects invoices with amounts that can be paid in full with the
    Payment Amount to Apply
    . When the next invoice amount is greater than the amount remaining to apply, Workday assigns only the remaining amount to pay for that invoice.
    Example: There's a recorded payment of 1000.00 EUR. The oldest invoice for the customer is 600.00 EUR and the next is for 1500.00 EUR. Workday selects both invoices, applies the payment to first invoice in full and remainder to the next invoice. The outstanding 1100.00 EUR on the second invoice remains in the queue of unpaid invoices.
    Recall Last Payment Application
    When you select this check box, Workday automatically selects the applicable invoices in the results.
    Remittance Advice Lines
    Click to view the remittance advice lines from the recording of the customer payment. Workday automatically selects the invoices from the remittance advice and populates their payment amount to assist payment application.
  4. In the
    Amount Information
     section, you can complete these fields:
    Option Description
    Remaining Amount to Apply
    The excess portion of the Total Payment Amount received that has not yet been allocated. To successfully submit the payment application, this amount must be zero.
    Amount to Place On-Account
    When your payment amount is greater than the total amount applied to 1 or more invoices, you can place the overpayment amount on account. To balance and submit the payment, enter an amount that is equal to the
    Remaining Amount to Apply
     value. Workday then updates the
    Remaining Amount to Apply
     to zero, which means your payment is balanced and ready to submit.
    Record Overpayments
    Select this check box when you have a small payment amount values over the payment amount.
  5. On the
    Invoices
     tab, select the invoices for payment application.
    • For consolidated invoices, apply the payment towards invoices for the parent or for the child customers.
    • Workday doesn't support on-behalf-of payments and write-offs that include invoices with term discount.
  6. As you enter the payment information for each invoice line, consider:
    Option Description
    Amount Due
    The amount specified on the invoice.
    Payment Amount
    Apply a full or partial amount of the recorded payment towards the selected invoice. For partial amounts, put the remaining balance on-account.
    When you apply zero-amount customer payments, ensure that the customer invoices and credit adjustments that you select net to 0.
    On-Account Amount
    Enter a remaining amount for the invoice line.
    Workday records this amount as a credit that you can apply to future invoices or refund to the customer.
    Discount Amount
    When you apply the payment within the discount date from the customer invoice, Workday applies the discount based on the payment amount applied, not the invoice balance. You set the discount terms on the customer invoice in the
    Payment Terms
     field.
    Workday applies discount amounts as part of the payment application process. Discount amounts aren't part of the payment amount itself, and display in a separate field on reports.
    Write-Off Lines
    Click the write-off value and specify the amount. You can also:
    • Add a memo and attachments to the write-off.
    • Select a default write-off reason.
    • Split the write-off amount by write-off reason and balancing worktag if your tenant has worktag balancing enabled.
    Workday updates the journal line accounting to reflect the debit and credit amounts to the correct ledger accounts.
    Amount Due Remaining
    Workday updates this value dynamically when any of these amounts change:
    • Amount Due
    • Discount Amount
    • Payment Amount
    • Write-Off Amount
    On the Overpayments tab:
    • Specify the Receivables Overpayment Reason, overpayment amount, and worktags.
    • This displays when you select the check box for Record Overpayments.
  7. To search through large volume of open invoices, click
    Search for Invoices
    .
    You can continue to search and add invoices multiple times. Each time you search, Workday saves the previous changes including payment amounts, discount amounts, and write-offs.
  8. (Optional) From the related actions menu of the customer payment, select
    Apply Update Remittance Advice
    .
    • When you receive a customer payment without any remittance advice, you can first add the
      Remittance Advice Type
       and associated details in the
      Remittance Advice
       grid for multiple invoices.
    • Ensure to add a separate row for each remittance advice type.
    • Workday prevents you from updating the remittance advice type when the customer payment is already applied, placed on-account, canceled, or returned.
    • You can also use the
      Put Customer Payment
       web service operation for large volume of updates. Ensure to specify the
      Remittance Advice Type
       with identical instance ID as the invoice. Set the
      Ready to Auto-Apply
       flag to true and ensure that
      Amount to Pay
       isn't greater than the payment.
    Security:
    Process: Customer Invoice Payment
     in the Customer Accounts functional area.
After you submit the payment, Workday:
  • Workday initiates the
    Customer Payment Application Event
     business process to route the payment for approvals, and then creates the operational journal lines.
  • If you save the application for later, Workday saves the payment in
    Draft
     status, and doesn't generate any operational journal lines. For zero-amount payments, Workday creates a fully applied customer payment in
    Complete
     status.
  • When
    On-Account for Invoices
     is enabled for a company and the excess payment amount is placed on-account, Workday generates a Customer On-Account Document that you can access on the
    View Customer Payment for Invoices
     report.
  • For intercompany transactions:
    • Workday automatically populates the intercompany affiliate between the 2 companies for the generated journal lines. You can view the intercompany accounting details under the
      Payment Application
      View Accounting
      Intercompany
       tab of the customer transaction.
    • Create a settlement run to transfer the payment and to clear the intercompany payable and receivable entries.
  • You can unapply and edit customer payments to update the:
    • Invoice currency and remit-from customer for payments that were previously
      Fully Applied
      .
    • Invoice currency for payments that were previously
      Applied with On Account
      .
  • When the
    On-Account for Invoices
     is enabled for a company and an On Account Document (OAD) exists, you can:
    • Access the
      Receivables Aging Detail Standard Report
      to view the open OAD details.
    • Include the OAD in
      Customer Statements
       to communicate the balance with the customers.
    • Use the OAD to apply as payment for the future invoices of the same customer and company.