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Administrator Guide
Last Updated: 2024-08-09
Create Lease-Type Supplier Contracts

Create Lease-Type Supplier Contracts

  • Create fiscal periods that span the length of the contracts.
  • Configure the
    Supplier Contract Event
     business process and security policy in the Supplier Contracts functional area.
You can configure lease-type supplier contracts to set up schedules and installments for lease transactions, enabling you to fulfill statutory reporting requirements. For depreciable capital assets, you must also fully receive receipt lines for approved lease-type supplier contracts to register and assign accounting to your leased assets. You can receive receipt lines for:
  • Financial lease contracts.
  • Operating lease contracts that use the ROU asset depreciation expense accounting method.
  1. Access the
    Create Supplier Contract
     task.
  2. As you complete the task, consider:
    Option Description
    Prepaid Lease Payment
    Workday doesn't include the prepaid lease payment when calculating the present value of future cash payments. Workday instead includes prepaid lease payments in your ROU asset value when the contract type is:
    • Financial lease.
    • Operating lease and doesn't use the straight line expense accounting method.
    First Payment Installment Date
    Provide the first date of regular payments on your variable payment lease-type supplier contract. Providing a date helps support variance in payment dates when you combine multiple prepaid lease payment installments into 1 payment.
    Additional Payment
    Select this check box to add another payment line on the
    Payment Information
     grid when Workday doesn't generate enough payments to reflect your actual payment schedule.
  3. As you complete the
    Goods Lines
     section, consider:
    Option Description
    Company
    Select a company with an active intercompany profile associated with the header company if you want to create a multicompany lease-type supplier contract.
    Percentage
    If you have multiple goods lines, you can provide a percentage between 1 and 99. Workday automatically calculates the
    Extended Amount
     and
    Unit Cost
     using the percentage.
    For multicompany contracts, Workday distributes these payment transactions by percentage between all initial recognition entries:
    • Initial direct costs.
    • Lessor incentives.
    • Prepaid lease payments.
    Unit Residual Value
    Workday uses the amount that you enter to calculate the lowest possible value of your amortized assets.
    Tax Point Date Type
    Select 1 of these options to configure when Workday records your VAT receivable:
    • Invoice/Adjustment
    • Invoice/Adjustment Received Date
    • Payment Date
When you create lease-type supplier contracts for asset accounting, you must also:
  • Receive all contract lines by creating a receipt from the related actions menu of approved contracts.
  • Configure the
    Asset Registration Event
     business process to register leased assets and assign accounting.