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Administrator Guide
Last Updated: 2026-09-18
Set Up Tax Declaration Netting

Set Up Tax Declaration Netting

  • Review setup considerations for tax declaration netting.
  • For VAT groups that you use in tax declarations to net, configure a primary company using the
    Assign Companies to VAT or GST Group
     task.
You can configure:
  • The ledger accounts to use as tax declaration netting control accounts.
  • The automatic initiation of tax declaration netting transactions when you approve tax declarations.
  • Approval workflows for tax declaration netting transactions.
  • How to group tax declaration netting lines.
  1. Configure these account posting rules:
    • Tax Declaration Netting Payables
    • Tax Declaration Netting Receivables
  2. (Optional) Configure the
    Tax Declaration Event
     business process definition and security policy in the Common Financial Management functional area.
    To automatically create netting transactions when you approve tax declarations:
    1. Set the tax declaration approval step as the completion step.
    2. Configure the
      Initiate Tax Declaration Netting Transaction Creation
       service step.
    In case of errors, we leave the tax declaration netting transaction in
    Draft
     status. You must resolve any issues and submit it manually. Example: When you approve a replacement for a tax declaration that already has a netting transaction, Workday creates the new netting transaction in
    Draft
     status. You must cancel the previous netting transaction and manually submit the new one.
  3. (Optional) Configure the
    Tax Declaration Netting Event
     business process definition and security policy in the Financial Accounting functional area.
  4. (Optional) Access the
    Edit Tenant Setup - Financials
     task.
    1. (Optional) Select or create an ID generator from the
      ID Generator for Tax Declaration Netting Transaction
       prompt in the
      Business Document Sequence IDs
       section.
    2. (Optional) In the
      Tax Options
       section, select the
      Enable Tax Declaration Netting Transaction Grouping by Worktags
       check box.
    Security:
    Set Up: Tenant Setup - Financials
     domain in the System functional area.
  5. (Optional) Access the
    Edit Company ID Definitions
     task.
    To override the default ID generator for a company, select an ID generator from the
    ID Generator for Tax Declaration Netting Transaction
     prompt on the
    Company Specific Settings
     tab.
    Security:
    Set Up: Company General
     domain in the Common Financial Management functional area.
  6. (Optional) Access the
    Maintain Period Close Activity Groups
     task.
    Update the
    Tax Declaration Netting Transaction
     period close activity group.
    Security:
    Set Up: Period Close
     domain in the Common Financial Management functional area.
  • Approve tax declarations.
  • If you haven't configured the automatic initiation of tax declaration netting transactions, create tax declaration netting transactions using the
    Create Tax Declaration Netting Transaction
     task.