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Administrator Guide
Last Updated: 2026-07-10
Concept: Cash Basis Accounting

Concept: Cash Basis Accounting

There are 3 ways to create cash basis accounting for financial documents and their transactions:
  • Create Cash Basis Accounting
     task.
  • Schedule Cash Basis Accounting
     task.
  • Cash Basis Accounting Event
     business process.
Workday supports cash basis accounting for supplier invoices, supplier invoice adjustments, and customer invoices in
Approved
 status with their payments accounting in
Posted
 status. However, Workday doesn't support for:
  • Partially paid customer and supplier invoices.
  • On-behalf of intercompany supplier and customer invoices and payments.
  • Customer and supplier invoices with multicurrency transactions or payments.
  • Customer and supplier invoices with netting activity.
  • Lease related and down payment related supplier invoices.
  • Supplier invoice adjustments paid through a supplier refund.
  • Supplier invoices with recoverable tax, withholding tax, or tax point dates of payment date.
  • Customer invoices with tax.
  • Customer invoice payment overpayments, payment returns, and payments deposited without application.
  • Customer invoices with unbilled receivables, retention, or deferred revenue.
  • Customer invoice refunds.
  • Customer invoice documents with customer invoice adjustment applications.
  • Supplier invoice payment cancellations where the payment accounting date is in a closed period and the cancel accounting date is in another.
  • Customer invoice payment or deposit cancellations where the payment or deposit accounting date is in a closed period and the cancel accounting date is in another.
  • Sponsor invoices for Grants Billing or student sponsor invoices.
Additionally, Workday doesn’t consider self-assessed tax amounts on supplier invoices.

Cash Basis Processing

When you create the cash basis accounting, Workday gathers all the eligible transactions for the period and company that you specify. Workday then creates a cash basis accounting result that contains all the transactions grouped by supplier or customer. For each grouping, Workday generates 1 cash basis operational journal for all the included documents and aggregates the journal lines. The journal posts to the:
  • Last day of the configured period.
  • Cash basis book code you configured on the
    Edit Tenant Setup - Financials
     task.
Workday doesn't support budget check on cash basis transactions.
In a single period, you can create accounting for a specific company and period more than once to both:
  • Resolve ineligible documents.
  • Include newly eligible documents.
When you generate accounting more than once in a period, Workday:
  • Cancels the previously generated cash basis accounting result and associated journals.
  • Creates a new result with the updated groupings and new journals.
For a given period, you can only have 1 cash basis accounting result per company. This process enables you to report on cash basis journals from the period level.