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Administrator Guide
Last Updated: 2024-03-08
Process: Order to Cash Period Close

Process: Order to Cash 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 receiving payments, complete invoicing, and accounting for goods and services.
Your order to cash 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: Order to Cash Period Close in the Use Case Library.
  1. Enter payments.
    Ensure you’ve entered and approved all payments received from customers.
  2. Create deposits for any undeposited payments.
    To find undeposited customer payments:
    1. Access the
      Find Customer Payments
       report.
      Security:
      Process: Customer Invoice Payment
       in the Customer Accounts functional area.
    2. For
      Payment Date On or Before
      , select the period end date of the period you’re closing.
    3. Uncheck
      Include Deposited Payments
       to only display payments that you have not yet deposited.
    4. To create a deposit for each undeposited payment, from the related actions of each payment, select
      Customer Payment
      Create Deposit
      .
      You can also use the related actions of the payment to apply payments to unapplied payments by selecting
      Customer Payment
      Apply
      .
    5. Select the payment for which you want to create the deposit or apply the payment and select
      Submit
       to initiate the approval process.
  3. Apply any unapplied payments.
    To find unapplied payments that have been deposited:
    1. Access the
      Find Customer Payments
       report.
      Security:
      Process: Customer Invoice Payment
       in the Customer Accounts functional area.
    2. For
      Payment Date On or Before
      , select the period end date of the period you’re closing.
    3. For
      Application Status
      , select
      Unapplied
      .
    4. Check
      Include Deposited Payments
       to display payments that you have  deposited.
    5. To apply the unapplied payment, from the related actions of each payment, select
      Customer Payment
      Apply
      .
    6. Select the invoice for which you want to apply the payment and select
      Submit
       to initiate the approval process.
  4. Complete invoicing for the period.
    1. Access the
      Find Customer Invoices for Company
       report.
      Security:
      Reports: Customer Accounts
       in the Customer Accounts functional area.
    2. For
      Invoice Status
      , select:
      1. Draft
      2. Incomplete
      3. In Progress
      4. For
        Invoice Date or Before
        , select the period end date of the period you're closing.
      5. Click
        OK
        .
      Workday displays all invoices that are available to complete.
    3. From the related actions of each invoice that you want to complete, select
      Customer Invoice
      Submit
       to initiate the approval process for these invoices:
      • Draft
      • Incomplete
  5. (Optional) Create customer invoices for billable transactions. If your company is using project billing and usage-based transactions, access the
    Create Customer Invoice for Billable Transactions
     task to create invoices for period end.
    Security:
    • Process: Project Billing - Invoicing
       in the Project Billing functional area.
    • Process: Billing Invoice
       in the Customer Contracts and Project Billing functional areas.
    1. For
      Transaction Date On or Before
      , select the period end date of the period you're closing.
    2. Click
      OK
      .
    3. Review the transactions in the
      Invoices to be Created
       grid and select the specific transactions for which you want to create invoices.
    4. Click
      OK
       to initiate the approval process.
  6. (Optional) Create customer invoices for billing installments. If your company is using a customer contract and billing schedule, access the
    Create Customer Invoice for Billing Installments
     for creating invoices for period end.
    Security:
    • Process: Project Billing - Invoicing
       in the Project Billing functional area.
    • Process: Billing Invoice
       in the Customer Contracts and Project Billing functional areas.
    1. For
      Company
      , enter your company.
    2. For
      Invoice Date or Before
      , select the period end date of the period you're closing.
    3. Click
      OK
      .
    4. In the
      Billing Installments
       grid, select the billing installment that you want to invoice.
    5. Click
      OK
       to initiate the approval process.
  7. (Optional) Create revenue installments for billable transactions.
    If your company is using customer contracts and wants to recognize revenue, access the
    Create Revenue Installments for Billable
     task.
    Security:
    Process: Revenue Schedule - Core
     domain in the Customer Contracts and Project Billing functional areas.
    1. For
      Company
      , select the name of your company.
    2. For
      Transaction Type
      , select 1 of these transaction types:
      • Project Time and Expenses
      • Fixed Fee Project
      • Order Fulfillment
      • Usage-Based
    3. For
      Transaction Date no later than
      , select the period end date of the period you're closing.
    4. Click
      OK
      .
    5. Review and select the lines for which you want to create installments.
    6. Click
      Create or Update Revenue Installments
       to create installments for billable transactions.
  8. (Optional) Create revenue installments for percent complete based schedules.
    If your company is using Percent Complete Revenue Schedules and wants to recognize revenue on a project as it progresses, access the
    Review Percent Complete for Revenue
     task.
    1. For
      Company
       or
      Project/Project Hierarchy
       select your criteria.
    2. For
      Transaction End Date
      , select the end date of the period you're closing.
    3. For
      Percent Complete Status
      , select
      Approved
      .
    4. For
      Percent Complete Method
      , select
      Hours
       or
      Cost
      .
    5. Click
      OK
      .
    6. Review and select the lines for which you want to create installments.
    7. Click
      Create Revenue Installments for Billable Transactions
       to create installments for Transaction Type of
      Fixed Fee Project
      .
  9. Create accounting to recognize revenue.
    After creating installments, recognize revenue by generating accounting.
    1. Access the
      Create Revenue Recognition Accounting
       task.
      Security:
      Revenue Recognition Installment Event
       in the Customer Contracts and Project Billing functional areas.
    2. For
      Company
      , select the name of your company.
    3. For
      Accounting Date On or Before
      , select the period end date of the period you're closing.
    4. Click
      OK
      .
    5. Select the installments for which you want to generate revenue recognition accounting and click
      OK
      .
    6. Click
      OK
       to start the process.
    7. Click
      Refresh
       to complete the process.
    8. View the accounting generated by the process by selecting
      Revenue Recognition Installment
      View Accounting
       from the related actions menu of the installment.
  10. Configure Workday to manage your period end accounting by debiting or crediting your
    Deferred Revenue
     and
    Unbilled Receivables
     ledger accounts.
  11. Create Carve In and Carve Out Adjustment Journals.
    Configure Workday to manage your period end accounting for Multiple Element Arrangements. You can create carve in/carve out adjustment journals to reclassify deferred and accrued revenue balances.
    1. Access the
      Create Carve In/Carve Out Adjustment Journal
       task.
      Security: Configure the
      Carve In Carve Out Journal Event
       business process and security policy in the Customer Contracts and Project Billing functional areas.
    2. For
      Company
      , select the contract Header company.
    3. For
      Year
      , select the posting year for the contract-to date amounts and operational journals.
    4. For
      Period
      , select the posting period for the contract-to date amounts and operational journals.
    5. Click
      OK
      .
    6. Review the journal lines and click
      OK
       to create Carve In/Carve Out adjustment journals.
      Workday will automatically calculate and post the necessary journal entries to reclassify deferred revenue among the contract lines.
  12. Create Foreign Currency Adjustment Journals.
    When there are billing and revenue recognition discrepancies due to timing and conversion rates, you can create foreign currency adjustment journals to calculate the difference. Workday will automatically calculate and post the necessary journal entries to account for exchange gain/loss.
    1. Access the
      Create Customer Contract Foreign Currency Adjustment Journal
       task.
      Security: Configure the
      Carve In Carve Out Journal Event
       business process and security policy in the Customer Contracts and Project Billing functional areas.
    2. For
      Company
      , select the contract Header company.
    3. For
      Year
      , select the posting year for the contract-to date amounts and operational journals.
    4. For
      Period
      , select the posting period for the contract-to date amounts and operational journals.
    5. For
      Foreign Currency Adjustment Rule
      , select a currency adjustment rule to specify worktags and ledger accounts to credit or debit for the realized currency gain or loss.
    6. Click
      OK
      .
    7. Review the contract lines and click
      OK
       to create a Customer Contract Foreign Currency Adjustment Journal for the contract lines.
      Workday will automatically calculate and post the necessary journal entries to account for exchange gain or loss .
  13. Close activity groups for customer accounts.
    For more information, see Concept: Ledger Close Activity Groups.
  14. Reconcile receivables to the ledger.
    Use 1 or all of these Workday - delivered reports or custom reports that you've created to reconcile your receivables to the ledger balance:
    • Receivables to Customer Balances Reconciliation
       .
      Use this report to view differences between receivable ledger accounts and operational balances for customer accounts.
      Security:
      Reports: Financial Accounting
       in the Financial Accounting functional area.
    • Receivables to Customer Balances Reconciliation Exception Summary
      Use this report to view summarized receivable exceptions that result from open items, timing differences, and accounting journals posted to control accounts.
      Security:
      Reports: Financial Accounting
       in the Financial Accounting functional area.