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Administrator Guide
Last Updated: 2024-09-20
Steps: Set Up Cash Basis Accounting

Steps: Set Up Cash Basis Accounting

You can supplement the full accrual financial accounting method in Workday with cash basis accounting, enabling you to record multiple basis of accounting for supported customer invoices and supplier invoices.
  1. Set up accrual and cash basis books and book codes.
    For any books that use the blank book code as part of your journal sequencing configuration, add the accrual book code in the
    Includes Book Codes
     prompt.
  2. Access the
    Edit Tenant Setup - Financials
     report.
    In the
    Cash Basis Accounting
     section, select a book code for both:
    • Book Code for Cash Basis Accounting
    • Book Code for Accrual Accounting
    Security:
    Set Up: Tenant Setup - Financials
     domain in the System functional area.
  3. Access the
    Maintain Journal Source Mapping to Operational Transactions
     task.
    Map these journal sources to their operational transaction:
    • Cash Basis for Supplier Journal Entry Source
       to
      Cash Basis Accounting for Supplier
      .
    • Cash Basis for Customer Journal Entry Source
       to
      Cash Basis for Customer
      .
    Security:
    Set Up: Journal Source
     domain in the Common Financial Management functional area.
  4. Create a new group or edit an existing group to add
    Cash Basis Transaction
     as a
    Valid Operational Transaction Types for Period Close
    .
  5. Edit Business Processes.
    Configure the
    Cash Basis Accounting Event
     business process and security policy in the Financial Accounting functional area.
    Workday doesn't support the
    Action
     step on the
    Cash Basis Accounting Event
     business process.
  6. Create an inbound EIB based on the
    Import Accounting Journal
     web service operation to establish balances in the cash basis accounting book code.
    Configure the
    Accounting Journal Event
     business process and security policy in the Financial Accounting Functional area.
  7. Create an inbound EIB based on the
    Import Accounting Journal
     web service operation to reclassify balances from the blank book code to the accrual accounting book code.
    Configure the
    Accounting Journal Event
     business process and security policy in the Financial Accounting Functional area.
  8. When you use book codes in budget plan structures, ensure your plan structure doesn't include the cash basis accounting book code.
You can generate cash basis and modified accrual basis financial statements.
To change the configured
Book Code for Accrual Accounting
, you must first settle and record receipt for all open intercompany items.