Setup Considerations: Multiple Funding Sources

You can use this topic to help make decisions when planning your configuration and use of multiple funding sources. It explains:

Why to set it up.

How it fits into the rest of Workday.

Downstream impacts and cross-product interactions.

Security requirements and business process configurations.

Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is

A funding source is money set aside for a specific purpose that you can use while within limitations or if you meet conditions. You can allocate spend incurred for a project to multiple funding sources with the use of configurable funding source rules.

Business Benefits

You can fund a project with multiple funding sources and prioritize specific funding sources to fund projects costs. This helps you prioritize higher priority restrictive funding while reducing the risk of overallocating spend to a particular funding source, or preventing out of compliance spend with a funding source's limitations.

Use Cases

Multiple funding sources enables you to do these things on a project:

Assign projects to multiple funding sources.

Reclassify project spend using the project worktag to specified funding sources.

Restrict allocation of funds to funding sources using condition rules.

Control the priority of spend allocation to funding sources on a funding source rule.

Track spend that you reclassified to a funding source.

Reduce the risk of over-committing and overspending on a funding source.

Questions to Consider

Questions	Considerations
Do you receive state or governmental funding for projects or programs? Do you have projects that have restrictive requirements? Do you have sponsorships and grants that you can only use for specific purposes?	Public or government funds frequently have stipulations that require you only use those funds for specific purposes, or towards specific expenses. You can use funding source rules and condition rules to track funds based on those stipulations.
How do you want to restrict funds on your funding source?	Workday enables you to restrict access to funds by either spend restrictions or condition rules. You can use spend restrictions to limit funds based on spend categories. You can also use condition rules to limit funds based on indexed journal line attributes.
How do you want to structure your worktags and worktag types?	Multiple funding sources can use worktags configured with the project to identify and reclassify expense transactions to funding sources. When you build your worktag structure, consider if you need these: Awards Cost Centers Grants Projects There's frequently worktag type requirements on the grants that might not be on the funding source. If you don't account for the restrictions on both the funding source and the grant, your facilities and administration expenses might not fully reflect your funding source transaction.

Recommendations

Functionality	Considerations
Funding source rule	Workday recommends that you prioritize your most restrictive funding sources when you configure funding source rules. Workday evaluates funding sources from the top down. When you prioritize a loosely restricted funding source rule, Workday allocates funds from that priority first.
Condition rules	Workday recommends you configure condition rules for your funding source rules. Condition rules add an additional layer of restriction using indexed journal line attributes as filter criteria. Without condition rules, any transaction that uses the correct project worktag can take funds from the funding source.
Spend restrictions	We recommend you configure spend restrictions on your funding source rule. Spend restrictions help you include or exclude spend categories on a funding source, even with a shared project worktag. The restrictions help ensure that a funding source only receives the transactions you want.

Requirements

Before you can use multiple funding sources, you must set up projects and create project hierarchies.

Limitations

You can't create a business process to review and approve the creation of:

Funding sources.

Funding source condition rules.

Funding source rules.

You can only:

Use multiple funding sources with 1 project hierarchy at a time.

Create 1 funding source condition rule per priority line.

Create funding sources for procurement commitment and obligation ledgers.

Tenant Setup

Select a project hierarchy on the

Top Project Hierarchy

prompt in the

Funding Source Options

section of the

Edit Tenant Setup - Financials

task.

You can also select the

Disable Funding Source Reclassifications for WIP Lines

check box. This option prevents Workday from reclassifying work-in-progress transactions when you process a funding source. Disabling reclassifications lowers the processing time and reduces the possibility of incorrectly reclassified transactions.

Select the

Include Commitment Spend

Include Obligation Spend

check boxes for Workday to reclassify procurement commitments and obligations to funding sources.

Security

Configure these security domains in the Financial Accounting functional area:

Domains	Considerations
Process: Funding Sources	Set up to process and reprocess funding sources
Set Up: Funding Sources	Set up to create: Funding sources. Funding source condition rules. Funding source rules.
Set Up: Spend Restrictions	Set up to create spend restrictions.

Configure the Set Up: Grants
domain in the Grant Management functional area if you want to reclassify expense transactions to your grants.

Business Processes

Configure the Funding Source Reclassification Event
business process with an additional approval step to process or reprocess reclassification events for funding sources.

Reporting

Reports	Considerations
Award Spend Restriction Audit Report	Enables you to verify that your transactions apply to the correct grants.
Find Funding Source Reclassification Lines	Enables you to review the reclassification lines on an expense transaction.
View Default Funding Source View Funding Source	The details on a funding source.
View Funding Source Condition Rule	The details on a funding source condition rule. Also helps you find funding source rules that use that condition rule.
View Funding Source Rule	The details on your funding source and funding source priorities.
View Spend Restriction	The configuration of a spend restriction.

Integrations

Web Services	Considerations
Get Default Funding Sources Get Funding Sources	Retrieves funding sources. Enables you to view detailed information across multiple funding sources.
Get Funding Source Condition Rules	Retrieves funding source condition rules assigned to a funding source rule. Enables you to view detailed information on those condition rules.
Get Funding Source Rules	Retrieves funding source rules. Enables you to view detailed information across multiple funding source rules.
Get Spend Restrictions	Retrieves details on spend restrictions. Enables you to view all of your spend restrictions at once.
Put Default Funding Sources	Sets a default funding source for the company.
Put Funding Source Condition Rules	Creates a funding source condition rule on a funding source rule.
Put Funding Sources	Creates a funding source.
Put Funding Source Rules	Creates a funding source rule.
Put Spend Restriction	Creates a spend restriction.

Connections and Touchpoints

Functional Areas	Considerations
Grant Management	A significant source of funding can come from grants, which organizations frequently award with restrictions or stipulations. Multiple funding sources can help you allocate those granted funds, while maintaining the specified restrictions.
Projects	Multiple funding sources can help you set up and maintain your projects. You use funding sources to allocate funds to a project, which determines the amount of available money.
Project Tracking	You can track the transactions tied to a project using worktags. Reclassification of a transaction to a project applies the project worktags and uses any funds the transaction qualifies for.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Concept: Reclassification Journals and Lines

2025R2 Feature Release Note: Multiple Funding Sources for Procurement Commitment and Obligation Ledgers