Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2024-09-20
Concept: Automatic Assignment of Transaction Tax IDs on Invoices

Concept: Automatic Assignment of Transaction Tax IDs on Invoices

When you create a customer invoice or supplier invoice, Workday attempts to assign transaction tax IDs automatically on the document header. Workday determines which tax ID to apply based on these entities on the documents:
  • Companies.
  • Customers.
  • Suppliers.

Default Assignment of Tax IDs

Workday determines which tax ID to assign from 1 of these sources, in this order of precedence:
  1. Any exception rules you configure.
  2. The transaction tax ID of the country of the tax code on the document.
  3. The transaction tax ID of the country of the primary address.
  4. The primary tax ID.
Example:
You create a customer invoice for a customer in France using a UK tax code of standard 20%. You haven’t configured any exception rules that apply to this transaction. The customer is not registered for VAT in the UK, so they have no transaction tax ID in the UK. Therefore, Workday uses the primary address of the customer to determine which transaction tax ID to assign on the invoice. In this case, the primary address is in France, where the customer is VAT-registered and has a transaction tax ID, so Workday assigns the transaction tax ID for France as the customer transaction tax ID on the invoice.

Assignment of Tax IDs When Address-Level Tax Information is Enabled

When you've configured your tenant to record address-level tax information for entities, Workday also considers address-level tax information in the order of precedence:
  1. Any exception rules you configure.
  2. The address-level transaction tax ID assigned to the shipping address or primary address.
  3. The country-level transaction tax ID assigned to the shipping address or primary address.
  4. The transaction tax ID of the country of the tax code on the document.
  5. The transaction tax ID of the country of the primary address.
  6. The primary tax ID.
Example:
One of your suppliers has addresses in several states in India. You’ve enabled address-level tax details on the
Edit Tenant Setup - Financials
 task, and updated the supplier information to record the relevant GSTIN for each address, depending on the state.
You haven’t configured any exception rules that apply to this transaction, so when you create a supplier invoice for this supplier, Workday uses the address-level tax information for the shipping address to determine which GSTIN to assign as the supplier transaction tax ID on the invoice.