Reference: Separate Ledger Accounts for Account Posting Rules

This table includes the common Account Posting Rules (APR) used in revenue transactions and scenarios where Workday recommends creating a separate ledger account for each use case instead of using the original AR ledger account for improved reconciliation.

APR Rule	Ledger Account Type	Operational Transaction	Use Case	APR Debit	APR Credit	Use Instead	Reason
Deferred Revenue	Liability	Customer invoice or adjustment	Record the accumulated deferred revenue so that you can recognize the revenue in the next period.	Receivables	Deferred Revenue	None	No exception scenario.
Receivables	Asset	Customer Payment	Record the value of receivables due from customers in a customer payment.	Cash	Receivables	None	No exception scenario.
Receivables Overpayment	Income	Customer Payment	Record the value of a customer payment with a record of overpayment.	Unapplied On-Account Payments	Receivables Overpayment	A separate Revenue or P&L Account	When you record an overpayment during payment application, the AR ledger will be understated compared to the Receivables Aging reports as the overpayment is not applied to customer balance. Hence, using a separate ledger account will help you reconcile the two.
Receivable Writeoff	Expense	Bad debt write off	Record the value of customer invoice writeoff for unrecoverable balances.	Receivables Writeoff	Receivables	A separate Expense or Revenue Account.	When you write off a small amount during payment application or through an independent write off task, the AR ledger will be overstated compared to the Receivables Aging reports as the same AR ledger account is debited and credited. Hence, using a separate ledger account will help you reconcile the balance sheet.
Revenue	Income	Customer Invoice	Record the sale value of an item in a customer invoice.	Receivables	Revenue	None	No exception scenario.
Transaction Tax	Either: Asset Liability		Record the value of tax on sales transactions in a customer invoice.	Receivables	- Transaction Tax - Revenue	2 separate ledger accounts	Workday uses Transaction tax on Payment in countries or type of businesses where the tax point date is at payment on cash basis. For example, in south of Europe and North Africa, we recommend that you have 2 separate ledger accounts - 1 for pending collected tax and 1 for pending deductible tax.
Unapplied On-Account Payments	Liability	Deposit on-account payments	Record the value of customer payments deposited but not applied to a customer invoice.	Cash	Unapplied On-Account Payments	A separate Liability Account	When you place a payment amount on account, we credit the AR ledger account. However, it’s a liability as it could require a refund in the future. Hence, using a separate ledger account will help you reconcile the ledger account as Workday shows on-account amounts as reductions to a customer balances on the Receivables Aging reports.
Unapplied Recorded Payments	Liability	Customer Deposit	Record the value of customer payments deposited but unapplied so it doesn't display as part of the customer balance.	Cash	Unapplied Recorded Payments	A separate Liability Account	When you record a customer payment but don’t apply it and create a deposit separately, the payment application understate the AR ledger account compared to the Receivables Aging report. Hence, using a separate ledger account will help you reconcile the two.
Unbilled Receivables	- Asset - Liability	No customer invoice is posted but revenue has been recognized. Or, customer invoice is posted before revenue recognition.	Record the value of receivables not yet billed. For example based on percentage of completion when the Customer Contract Asset and Liability Reclassifications task is used. Or, record deferred revenue for a billed invoice. For example, Subscription billing when revenue is recognized at the beginning of the period and billing is done at the end of the period.	Receivables	Unbilled Receivables	A separate Asset clearing Account	Create a separate ledger account when revenue recognition is separate from billing because you can have both deferred and accrued revenue for the same contract in a given period. When you’ve billed but not recognized the revenue, the AR balance on the ledger will be understated while the Receivables Aging reports will show a higher balance because the customer invoice has been issued. When you’ve recognized the revenue but not billed, the AR balance on the ledger will be overstated compared to the Receivables Aging reports because no invoice has been posted.
Undeposited Payments	Asset	On-account payment application	Record the value of an on-account customer payment not yet deposited into a bank account.	Undeposited Payments	Unapplied On-Account Payments	A separate Asset Account	When you apply the customer payment but don’t record the deposit, the AR ledger account balance will be overstated compared to the Aging report as Workday shows the applied amounts as reductions to a customer balances on the Receivables Aging reports. Hence, using a separate ledger account will help you reconcile the two.