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Administrator Guide
Last Updated: 2023-06-23
Configure Worktag Balancing Rule Sets for Transaction Journals

Configure Worktag Balancing Rule Sets for Transaction Journals

  • Define a financial balancing rule for each type of financial transaction subject to the rules.
  • Define a payroll balancing rule for each type of payroll transaction subject to the rules.
  • Security:
    Set Up: Worktag Balancing
     domain in the Common Financial Management functional area.
Create a set of rules for how to balance journals by worktag for operational transaction that use balancing rules. Each transaction type can use a different balancing rule.
  1. Access the
    Create/Edit Worktag Balancing Transaction Rule Set
     task.
  2. Enter the rule set details:
    Option Description
    Worktag Type
    You can use only 1 balancing worktag type for all companies in the tenant. Worktag types are groupings of worktags by a business dimension: cost center, business unit, region, fund, and custom organization. Select the type to use to balance journals for transactions subject to this rule set.
    Your selection determines the rules available to assign to transaction types within the rule set. The rule sets for a selected worktag type are available for use when defining the worktag balancing configuration for the same worktag type.
    If the rule set is
    In Use
     as part of your worktag balancing configuration, you can't change the worktag type.
    Default Worktag for Unapplied Customer Payments
    To account for unapplied cash when you deposit a customer payment or put a remaining amount on account, the journal lines must balance by worktag. Workday assigns this default worktag to the journal lines for unapplied deposited payments and on account payments, as well as the corresponding cash entry. When you apply the payment to an invoice, Workday transfers the amount from the default worktag to the invoice receivables distribution worktag. The amount is transferred based on the
    Financial Balancing Rule
     for
    Customer Invoice and Cash Sale
     transactions.
    If you change the default worktag, run a trial balance to check whether you have any unapplied cash from customer payments with the prior worktag value. If there’s an account balance, manually create accounting journals to move the balance from the former worktag to the new one.
    Default Worktag for Fix Operational Journals
    To account for reversal journals generated due to canceling historic transactions, the journals lines must balance by worktag.
    To balance the reversal journals for these historic transactions by worktag and remove them from error status, use the
    Fix Operational Journals With Errors
     task to find them. Select the journals that are missing a balancing worktag and submit them for posting again. For transactions that involve employees (such as payroll), Workday first looks to the employees organization assignment for the balancing worktag to use. If that isn't available, or if the transaction doesn't involve an employee, then Workday assigns the default worktag to the journal lines to balance the journal.
    Workday doesn’t assign a balancing worktag to historic journals in posted status.
    Default Worktag for Facilities and Administration
    To account for expenses generated due to facilities and administration transactions, the journals lines must balance by worktag.
    The credit side of the transaction identifies the account used to record facilities and administration revenue. Which is typically a revenue account.
    If worktag balancing is enabled, the balancing worktag is determined based on the
    Facilities and Administration Expense
     worktag balancing rule.
    Default Worktag for Unapplied Student Payments
    Workday assigns the default worktag to the journal lines for unapplied and on account student payments. When you apply the payment to a student charge, Workday transfers the amount from the default worktag to the student receivables distribution worktag. The amount is transferred based on the
    Financial Balancing Rule
     for
    Student Charge
     transactions.
    Use Default Worktag for Unapplied Student Payments for Award Disbursements
    Select to assign the default worktag for unapplied student payments as the balancing worktag for the on account operational journal lines created by overpayments on student award disbursement payments. When clear, Workday assigns the balancing worktag configured on the associated student award item.
    Default Worktag for Expense Payee Receivable
    When you enable worktag balancing, you must select a balancing default worktag to enable accounting for negative reimbursable expense reports.
    Workday assigns the default worktag to these account posting rules to balance journals for negative reimbursable expense reports:
    • Expense Payee Receivable
    • Credit Card Payable
    Default Worktag for Customer Contract Asset and Liability Reclassification
    When you enable worktag balancing, you must select a balancing default worktag to enable accounting for the reclassification of customer contract assets and liabilities.
    Workday assigns the default worktag to the credit and debit journal lines created by running the task.
  3. As you complete the rules for each worktag balancing transaction type, consider:
    Option Description
    Financial Balancing Rule
    Select a balancing rule for a given transaction or group of transactions. The balancing rule enables the receivables or liability side of the transaction journal to inherit the balancing worktag from the operational transaction side or use a specified worktag.
    Always Inherit
    Leave the rule blank and select this check box to have the offset side of the transaction journal always use the same balancing worktag as the operational transaction side.
    The rule set has a limited number of transaction types because not every transaction uses a balancing rule. Some transactions use other worktag balancing options.
You can use the worktag balancing transaction rule set on the
Maintain Worktag Balancing Configuration
 task as part of your worktag balancing configuration. When Workday generates accounting for operational transactions, it evaluates the balancing option on the rule set to determine which balancing worktag to apply to the offset side of journals.
Review the
View Worktag Balancing Transaction Rule Set
 report to confirm the details of your rule set.
Configure worktag balancing at the tenant level.