Reference: Transaction Tax Business Objects
To report on taxes for different use cases, Workday saves transaction tax details and
amounts in various business objects. This table details how Workday calculates
transaction taxes by business object:
Business Object | Description |
|---|---|
Taxable Document | Workday calculates the total tax on a taxable document. Example:
Total transaction tax on a supplier invoice. For ad hoc bank
withdrawals and expense reports, which are tax-inclusive, Workday
calculates how much of the total amount is tax. For
tax-exclusive documents, Workday adds tax to the extended
amount. |
Taxable Document Line | Workday calculates the transaction and recoverable tax on the lines
of taxable documents. |
Tax Rate Application (TRA) | On taxable documents, Workday creates 1 TRA business object per
combination of tax:
Workday consolidates the tax amounts at the TRA level to create
tax accounting for tax documents. Example: You create a
supplier invoice with 4 lines that share the same tax attributes.
Workday creates 1 TRA for the supplier invoice. |
Payment Tax Rate Application (PTRA) | Workday creates 1 PTRA business object for each payment that you
apply to an invoice. PTRAs enable you to report on taxes at the time of
payment. |
Line Tax Rate Application (LTRA) | Workday distributes the tax amounts of the TRA business objects to
the transaction lines and creates 1 LTRA business object per transaction
line. LTRAs enable you to report to tax authorities that have different
reporting requirements based on spend categories or items. |
Manual Journal Tax Rate Application | On manual journals, Workday saves the tax amounts that you enter
for accounting and reporting purposes. |