Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2024-09-20
Configure Transaction Tax Rules for Worktags

Configure Transaction Tax Rules for Worktags

  • Create transaction tax rules for countries.
  • Create groups for transaction tax items.
  • Create transaction tax rules for items.
  • Create tax applicability.
  • Security:
    Set Up: Tax
     domain in the Common Financial Management functional area.
You can define tax defaulting rules using worktags on document lines to automate the selection of:
  • Tax codes.
  • Tax applicability.
  • Tax recoverability.
  • Tax options.
Workday populates these tax attributes at the line level on supplier invoices, purchase orders, and ad hoc payments.
Example: Your healthcare company buys a large number of bandages from a supplier. The supplier invoices the bandages to your company, and your company distributes them to 3 different cost centers: one for a hospital, one for a pharmacy, and another for a medical center. The supplier configures worktag rules for the cost centers to populate the correct tax details on these supplier invoice lines:
  • Zero-rated VAT for the hospital.
  • A standard 20 percent VAT for the medical center.
  • A specific tax recoverability percentage for the pharmacy.
  1. Access the
    Create Transaction Tax Rule for Worktags
     task.
  2. As you complete the task, consider:
    Option Description
    Order
    The order of the worktag rules is very important. Workday evaluates rules from the top down and from the most general to the most specific. Place the most general rule first in the list and the most specific rule last in the list.
    Worktags
    Select a worktag to apply the rule to that worktag only.
    The
    Worktag
     is available for selection only when you specify a
    Tax Item Group
    . When you select a tax item group, Workday applies the worktag rule to all items in that item group.
    Tax Applicability Override
    Select the tax applicability to use on transaction lines for this rule. This value overrides other tax applicabilities that Workday automatically populates on revenue or spend transactions.
    Tax Code Override
    Select the tax code to use on transaction lines for this rule. This value overrides the tax code specified in a tax rule for a country that references this rule.
    Tax Point Date Type Override
    Select a tax point date type to override the default on spend transaction lines for this rule.
    Transaction Date
     is invalid on spend transaction lines. When you select
    Transaction Date
    , Workday instead populates the
    Invoice/Adjustment Date
     or, when VAT on payment is enabled for the company, the
    Payment Date
    .
    When you select
    Goods/Services Delivery Date
    , Workday doesn't populate this date on supplier invoices created using web services. Since a tax point date is required for
    Goods/Services Delivery Date
    , and invoices created using web services can be approved automatically, Workday doesn't populate the
    Goods/Services Delivery Date
     to prevent the creation of bad data.
    Tax Recoverability Override
    Select the tax recoverability to use on transaction lines for
    Tax Code Override
     tax rates. This rule overrides other tax recoverabilities that Workday automatically populates on spend transactions.
    Tax Option Override
    Select the tax option to use on specific tax rates for transaction lines. This rule overrides other tax options that Workday automatically populates on spend transactions.
After you create your worktags tax rules, you can:
  • Assign the new worktags tax rules to a transaction tax rule for items.
  • Assign the transaction tax rule for items to a transaction tax rule for a country.