Process: Procure to Pay Period Close

Review the Period Close Product Flow to familiarize yourself with the period close process.

This topic provides guidelines you can consider to facilitate your period end close process and how you would like to handle open documents related to requisitions, purchase orders, supplier contracts and supplier invoices.

Your procure-to-pay process checklist might consist of different tasks. Consider these guidelines as an example for your period close activities. For a use case related to this topic, see Use Case: Procure to Pay Period Close in the Use Case Library.

(Optional) Consider reviewing your open requisitions using the

Requisitions Pending Approval

Sourcing

report from your wdsetup tenant and decide what you want to do with them. You can either:

Source them into purchase orders.

Close the requisitions that you no longer need. See Steps: Mass Close Procurement Documents.

Keep them open.

Access the

Mass Close Procurement Documents

task.

Mass close any outstanding requisitions that you won’t issue as purchase orders.

Security: Procurement Document Mass Action Event
business process and security in the Procurement functional area.

(Optional) Access the

Requisitions Pending Approval or Sourcing

report in your wdsetup tenant.

Locate all requisitions that you haven't sourced.

For more information, see Procurement Reports.

(Optional) Consider reviewing your purchase orders and change orders to decide what you want to do with them. You can either:

Keep them open.

Approve and issue any outstanding purchase orders or change orders.

To issue outstanding purchase orders, access the

Find Purchase Orders

report.

Review purchase orders with a status of In Progress
or Draft
and change their statuses to Approved
so you can issue them.

See Reference: Purchase Order Statuses.

Issue Purchase Orders.

Issue those purchase orders for which you'd like to create receipts and supplier invoices.

Create Change Orders.

Create change orders for issued purchase orders.

Access the

Mass Close Procurement Documents

task.

Mass close any outstanding purchase orders that you’ll never receive.

Security: Procurement Document Mass Action Event
business process and security in the Procurement functional area.

For more information, see Steps: Mass Close Procurement Documents.

If you have enabled

Automatically Close Purchase Orders

on the

Edit Company Procurement Options

task, Workday will close open or issued purchase orders when they are:

Fully received, with receipts in Approved
status.

Fully paid.

See also Reference: Company Procurement Options.

(Optional) Access the

Supplier Contracts Needing Attention

report in your wdsetup tenant.

This report displays all contracts expiring in the next month and contracts with less than 10% remaining balance.

You can select to either:

Create an amendment to extend the contract.

Copy the contract to a new contract.

Close the contract.

Security: Process: Supplier Contract - Reporting
domain in the Procurement functional area.

Review and accrue any open supplier invoices.

Access 1 or all of these reports:

Find Supplier Invoices

: Process invoices in Draft
or In Progress
status.

Security: These domains in the Supplier Accounts functional area:

Reports: Supplier Accounts

Process: Supplier Invoice - Reporting

Supplier Open Items

: Pay any partially paid or unpaid invoices.

Security: Reports: Supplier Accounts
in the Supplier Accounts functional area.

(Optional)

Unapproved Supplier Invoice Line Accrual

in your wdsetup tenant.

Use the report to create a reversing manual journal entry at the end of each period to accrue properly supplier invoices.

Security: Reports: Supplier Accounts
in the Supplier Accounts functional area.

For more information, see Supplier Invoice Accrual Dashboard and Reports.

(Optional) Register Assets.

Register and capitalize the assets and place them in service before you record depreciation. Placing them in service will accurately state your assets and depreciation expenses.

Record Asset Depreciation and Amortization Expenses.

Create a schedule to record depreciation and amortization expenses for company assets.

Do 1 or both of these:

Create Amortization Schedules for Prepaid Purchase Orders.

Create Amortization Schedules and Installments for Prepaid Supplier Invoices.

You amortize prepaid invoices and related installments for the period to decrease prepaid liability by debiting expense accounts.

Create Receipt Accruals.

Create period-end accruals for approved uninvoiced receipts for goods and services.

This will create receipt accruals for purchase orders that are not consignment, inventory, or bill only.

(Optional) Create Manual Settlement Runs.

Pay and settle all applicable supplier invoices.

For more information, see Concept: Settlement Processing.

Access the

Fix Operational Journals With Errors

task.

Correct any operational journal errors not posted to the current period.

Security: Process: Audits and Corrections
domain in the Financial Accounting functional area.

For more information, see Troubleshooting: Financial Journals.

Change the Status of Ledger Periods.

Close activity groups for procurement, suppliers, and ad hoc payments.

For more information, see Concept: Ledger Close Activity Groups.

(Optional) Run Revaluation.

For multicurrency organizations, revalue foreign currency journal amounts based on your rules for the period.

Reconcile payables to the ledger.

Use 1 or all of these reports to reconcile your payables to the ledger balance:

Payables Aging

Security: Reports: Supplier Accounts
domain in the Supplier Accounts functional area.

Payables to Supplier Balances Reconciliation

Security: Reports: Financial Accounting
domain in the Financial Accounting functional area.

Payables to Supplier Balances Reconciliation - Composite

report.

Workday recommends you use this report for reconciling higher volumes of payables to supplier balances.

Security: Process: Payables to Supplier Reconciliation Initial Balance
in the Financial Accounting functional area.

Before you run the report, perform these actions:

Run Generate Payables to Supplier Reconciliation Initial Balances to generate initial balances up to the current period or any other period.

Ensure you completely close fiscal periods for all functional areas. Close In Progress
status or closing just supplier accounts is not sufficient. If you open a prior period and make adjustments that impact payables, Workday won't capture those adjustments in the report.

Payables to Supplier Balances Reconciliation Exception Summary

Security: Reports: Financial Accounting
domain in the Financial Accounting functional area.

Trial Balance

for the Payables ledger account.

Security: Reports: Financial Accounting
domain in the Financial Accounting functional area.

Complete bank reconciliation.

Reconcile bank statements against your cash transactions.

Reconcile a Bank Statement Automatically or Reconcile Multiple Bank Statements Automatically.

Access the

Book to Bank Summary - Uncleared Bank Statement Lines

report.

Check for unreconciled lines.

Security: Process: Bank Statement-Reporting
domain in the Banking and Settlement functional area.

Reconcile a Bank Statement Manually.

Manually reconcile any remaining unreconciled lines.

For more information, see:

Steps: Use Bank Account Reconciliation.

Reconcile First-Notice Items on a Bank Statement.

Bank Reconciliation Product Flow.

Access 1 or both of these reports to reconcile cash to bank balances.

Book to Bank Summary Report

Book to Bank By Bank Account Currency Report

Security: Report Execution
domain in the Tenant Non-Configurable functional area.

For more information, see:

Reference: Book-to-Bank Reports.

Reference: Bank Account Reconciliation Reports.

Reconcile cash transactions to ledger account.

Use these reports to reconcile your cash transactions to your ledger accounts.

Cash to Bank Reconciliation Composite

report to reconcile cash operational transactions to the ledger account in ledger currency.

Cash to Bank Reconciliation in Bank Currency

report to reconcile cash operational transactions to the ledger account in bank currency.

Security: Report Execution
domain in the Tenant Non-Configurable functional area.

Steps: Mass Close Procurement Documents.

During year-end closing, roll forward commitment and obligation journals to the first date of the next open period.

This is a year-end task and not a period-end task.

Access the

Create Ledger

task and select the

Roll Journals Forward for Procurement

check boxes for the

Create Commitments

and

Create Obligations

grids.

Security: Set Up: Ledger and Book
domain in the Common Financial Management functional area.

Concept: Close

Concept: To Do Step

Concept: Checklist Step

The Next Level: Period Close