Steps: Setup Customer Payments

Set up bank accounts for deposits and settlements

Define payment types, such as Direct Debit, Check.

Configure account posting rules to define how customer payment transactions create accounting entries.

Configure these business processes to manage the workflow, approvals, and notifications for payment-related events:

Customer Payment Application Event

Customer Deposit Event

Customer Refund Event

Set up integrations for electronic processing

Configure the Customer Payment Application
business process and security policy in the Customer Accounts functional area. See Edit Business Process Security Policies.

To ensure that payments are recorded, applied, and reconciled correctly, configure several core components.

(Optional) Access the

Maintain Receivables Reasons

task.

Add reasons for placing the payment on-account. Ensure that at least 1 reason is active.

When you don't define on-account reasons, the

On-Account Reason

and

On-Account Description

fields won't be visible when you place a payment on-account during payment application.

For a customer payment that's already applied with a portion of the amount placed on-account, you can access the

Add/change On-Account Reason

task from the related actions menu of the customer payment to add a reason.

For bulk updates, you can use the Put On-Account Reason
web service operation.

Security: Set Up: Customer Accounts
in the Common Financial Management functional area.

(Optional) Access the

Edit Tenant Setup - Financials

task.

To apply cross-currency customer payments using the currency rate from the payment date by default, select the

Use Payment Date Currency Rate for Cross-Currency Payments

check box in the

Customer Account Options

section.

Submit draft cross-currency payment applications and complete pending approval requests for cross-currency payments before you opt in.

When you opt in but specify a currency override rate for your cross-currency application, Workday uses the currency override rate to calculate the payment amount in the invoice currency.

When you unapply a payment with processed payment applications before the opt-in, Workday reverses previous applications and uses the currency rate and amounts calculated at payment application date.

When you have a payment with processed payment applications before and after the opt-in:

Workday reverses payment applications processed before the opt-in and uses the currency rate and amounts calculated at payment application date.

Workday reverses payment applications processed after the opt-in and uses the currency rate and amounts calculated at payment date.

(Optional) Access the

Edit Customer Payment Application Configuration

task.

Security: Set Up: Company General
in the Common Financial Management functional area.

Configure these various options to automate certain payment processes for a company.

Option	Description
Auto Application Settings section
Advanced	Select the check box to configure Workday to use the advanced rule set you've created for automatic payment application.
Customer Payment Application Rule Set	Select the payment application rule you want to use when you run the Auto-Apply Customer Payment task.
Do Not Apply Payment to Invoices on Hold	Select this check box to prevent Workday from displaying invoices that are currently on hold in the Apply Customer Payments grid. re under review or dispute.
Manual Application Settings section
Configure Preselected Invoices	Select 1 of these options from the prompt to determine how Workday will process customer invoices: Do Not Preselect Invoices : Workday doesn't select invoices that were previously selected. Note : To search through a large volume of open invoices, select this option. Preselect Remittance Advice Invoices and Previously Unapplied Invoices : Workday preselect all invoices that were previously selected, including those that were manually selected. Preselect Remittance Advice Invoices Only : Workday preselects only invoices identified on the remittance grid of the payment.
Calculate Prompt Payment from Net Invoice Amount	Select the check box to populate a payment discount based on the net invoice amount instead of the amount due during payment application
On-Account Application Settings section
Enable On-Account at Invoice	Select the check box to enable creating on-account documents (OAD) when the payment received is more than the invoice amount. To create OAD through an automatic application process, make sure to select the Create On-Account Document for Overapplied Invoice check box in your customer payment application rules. See Create Customer Payment Rule Set.

You can start processing customer payments.