Setup Considerations: Customer Payments

What It Is

When you receive a payment from a customer, you can record the payment to reduce their outstanding balance.

This process enables you to apply the payment to specific invoices, ensuring that the customer's balance is up to date.

Business Benefits

The Customer Payments functionality helps you:

Track and process payments efficiently.

Keep your financial records accurate and up to date.

Easily monitor your outstanding accounts receivable.

Use Cases

When you receive a customer payment, Workday enables you to:

Record, apply, and deposit the payment.

Automatically apply payments.

Write off, discount, or place an amount on the customer account.

Record customer refunds and overpayments.

Unapply and cancel customer payments.

Process the payment on behalf of other companies.

When you record customer payments, you can:

Create a combined deposit for payments recorded manually.

Record zero-amount payments without remittance.

Process on-behalf-of payments, where the company on the payment is different from the company on the invoice.

Record a payment in a different currency than the invoice. You can also override the default currency on a transaction based on your currency rate configuration.

Process a payment that is less than, equal to, or greater than the invoice's total amount due.

Add remittance details to the payment and use various remittance advice types to reference a specific invoice. Example: Invoice number.

Add attachments and notes to the payment.

Mark the payment as

Ready to Auto-Apply

to process it in automatic payment application jobs.

Have a remit-from customer on the payment header that’s different from the bill-to customer on the invoice.

Exclude invoices on hold from payment application.

Display only invoices that match the remittance advice on the payment.

Use various payment types on the payment header.

When you apply customer payments, you can also:

Search for and add more invoices to the application.

Display only invoices that match the remittance details during the application process when you configure the

Show Only Matched Invoices when Applying

option.

Process intercompany transactions when you create a separate deposit.

Put a discount on the invoice.

Write off an invoice.

Process cross-currency payments, converting the invoice to the payment currency. You can also set a different transaction payment date for these payments.

Record overpayments for the remaining amount on account.

Recall the last application option for a payment application that was applied and then unapplied.

Questions to Consider

Question	Considerations
What happens if you cancel or unapply a customer payment?	When you cancel a customer payment, Workday changes the payment status to Canceled and reverses the payment application. When you unapply a customer payment, Workday reverses the previous applications. If a refund is associated with the payment, you must cancel the refund first before you can unapply the payment.
What is the difference between a combined and separate deposit?	Combined Deposit : When you create a combined deposit for a regular payment, Workday processes the deposit and the payment as a single transaction. When you cancel the deposit, Workday also cancels the payment. You can’t save the payment until the application is complete. Separate Deposit : You can only apply on-behalf-of payments after you create a separate deposit. Canceling a separate deposit does not cancel the associated payment.
How does the payment date and the transaction date behave?	Payment Date : The date the payment was issued by the customer. Transaction Date : The date when the payment is applied. The transaction date defaults to the payment date. You can select any other date, but payments and invoices must have dates on or before the transaction date.

Recommendations

Add attachments or notes when you're recording a payment.

Use customer payment auto-applications and cash application insights to expedite your payment application process.

View information on open invoices and on-account payments in aging reports.

Limitations

You can't apply customer payments to the invoices that are:

Canceled.

In progress.

In the draft status.

Paid.

Tenant Setup

No impact.

Security

Domains	Considerations
Configure these subdomains for Process: Customer Payments (Parent Domain) in the Customer Accounts functional area: Process: Customer Deposit Process: Customer Deposit - Add/Change Attachment Process: Customer Invoice Payment Process: Customer Payment Auto-Application	Enable you to access customer payment processing tasks and view payment reporting.
Process: Customer Invoice Payment/Settlement in the Customer Accounts functional area	Enables you to process customer direct debit payments and view related reporting.
Set Up: Customer Accounts in the Customer Accounts functional area.	Enables you to set up payment terms and payment application rules and conditions.

Business Processes

Business Processes	Considerations
Customer Payment Event	To enable approvals for customer payments, you can add the Customer Payment Event business process step to the existing customer invoice business process.
Customer Payment Application Event	Workday cancels all associated payments when you cancel an invoice.

Reporting

You can use these Workday-delivered reports to view customer payment data:

Reports	Considerations
Customer Activity Details Customer Activity Summary	Enable you to view customer payment details and summary.
Customer Balance Details Customer Balance Summary	Include customer payment information.
Customer Payment Application Reasons	Provides reasons to apply payments.
Customer Payment Detail	Provides details on customer payments.
Find Customer Payments	Enables you to view customer payment information per company.
Receivables Aging Summary by Financial Aging for Accounting	Enables you to view customer payment amounts.
View Customer Payment Application Condition Rule	Enables you to view customer payment application condition rules.
View Customer Payment Application Rule	Enables you to view customer payment application rules.
View Customer Payment Application Rule Types	Enables you to view customer payment application rule types.
View Customer Payment for Invoices	Enables you to view customer payment information.

You can use the

Customer Payment

report data source in custom reports to view details for customer payments.

Integrations

Web Services	Considerations
Cancel Customer Payment	Use to cancel the single instance of the customer payment when it has an associated Reference ID.
Get Customer Payment Application Condition Rules Put Customer Payment Application Condition Rule	Use to create, update, or retrieve customer payment application condition rules.
Get Customer Payment Application Rule Sets Put Customer Payment Application Rule Set	Use to create, update, or retrieve customer payment application rule sets.
Get Customer Payment Application Rules Put Customer Payment Application Rule	Use to create, update, or retrieve customer payment application rules.
Get Customer Payment Auto-Application Configuration Put Customer Payment Auto-Application Configuration	Use to update or retrieve customer payment auto-application configurations.
Get Customer Payments Put Customer Payment	Use to record, update, or retrieve customer payments to apply against customer invoices.
Get Remit-From Customer Lookup Mapping Table Put Remit-From Customer Lookup Mapping Table	Use to add, update, or retrieve lookup mapping tables and the values associated with the tables for your remit-from customers or sponsors.
Put Customer Payment On-Account Reason	Use to add or update the on-account reason and description for a customer payment.
Unapply Customer Payment	Use to unapply customer payments.

Connections and Touchpoints

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.