Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2026-03-13
Set Up Tax Reconciliation

Set Up Tax Reconciliation

  • Set up transaction taxes. See Steps: Set Up Transaction Taxes.
  • Create taxable transactions. Example: Supplier invoices.
  • Security:
    Process: Tax Reconciliation Activity Initial Balance
     domain in the Financial Accounting functional area.
You can enable tax reconciliation by generating tax reconciliation initial balances:
  • For a company or company hierarchy.
  • Starting from an initial period.
You only need to generate initial balances once for a company. If you choose to regenerate initial balances, you also need to regenerate beginning balances for every subsequent period.
  1. Access the
    Generate Tax Reconciliation Initial Balances
     task.
  2. Complete the task:
    Option Description
    Company
    Select a company or company hierarchy.
    Period
    Select an initial period:
    • After September 2025.
    • With previous taxable transactions with tax.
  3. Confirm that the process completes.
Workday generates tax reconciliation initial balances as a starting point for reconciliation. These balances sum transaction tax details for all taxable transactions that you've created for the company up until the initial period, grouped by:
  • Company.
  • Ledger account.
  • Alternate ledger account when applicable.
  • Tax rate.
  • Transaction currency.
From that period onward, Workday also automatically generates:
  • Tax reconciliation activities when you post accounting to tax ledger accounts, linking tax details on taxable transactions to their corresponding journal lines.
  • Period beginning balances for the next period when you close fiscal periods subsequent to the initial period.
Workday doesn't retroactively generate tax reconciliation activities for taxable transactions that you create before September 2025.
You can run the
Tax Reconciliation Initial Balances
 report to review expected tax initial balances and adjusted ledger activity before the start of the initial period for tax reconciliation.
If you've already reconciled the general ledger manually and know your expected initial balances, you can also:
  • Edit initial balances by selecting
    Tax Reconciliation Activity
    Edit
     from the related actions menu of initial balances on the
    Find Tax Reconciliation Initial Balances
     report.
  • Delete initial balances by selecting
    Tax Reconciliation Activity
    Delete
     from the related actions menu of initial balances on the
    Find Tax Reconciliation Initial Balances
     report.