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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Lease Accounting

Steps: Set Up Lease Accounting

Set up security for lease accounting.
You can configure lease accounting to calculate and then generate lease accounting transactions. You can then report on the transactions as part of your financial statements.
  1. Access the
    Edit Tenant Setup - Financials
     task.
    Select the
    Lease Accounting
     option in the
    Lease Accounting
     section and select the use cases that apply.
    Select
    Enable Tax Point Date Configuration for Transaction Taxes
     if you want to configure the tax point date type for transaction tax codes.
  4. Set up book code configurations when you select 2 or more options for lease accounting on the
    Edit Tenant Setup - Financials
     task.
  5. (Optional) Configure asset accounting.
    Configure asset accounting if you want to create these types of lease-type supplier contracts:
    • Financial leases.
    • Operating leases that use the ROU asset depreciation expense accounting method.
  7. Access the
    Edit Account Set
     task.
    Configure ledger accounts for lease accounting that map:
    • Financial or operating lease liabilities to the
      Liability
       ledger account type.
    • Lease expenses to the
      Expense
       ledger account type.
    • Interest expenses to the
      Expense
       ledger account type.
    • Financial and operating lease ROU assets to the
      Asset
       ledger account type.
    Workday recommends you set up accounts for specific transaction types. Examples:
    • Financial Lease Liability
    • Operating Lease Liability
    • Lease Expense
    • Leased Laptops
    • Interest Expense - Lease
    Security:
    Set Up: Accounts
     domain in the Common Financial Management functional area.
  9. Access the
    Maintain Journal Source Mapping to Operational Transactions
     task.
    Configure these operational transactions for lease accounting:
    • Initial Recognition of Lease Journal Entry Source
      .
    • Expense Recognition Journal Entry Source
      .
    Configure the
    Initial Recognition Adjustment of Lease Journal Entry Source
     operational transaction to create amendments to lease-type supplier contracts.
    Security:
    Set Up: Journal Source
     domain in the Common Financial Management functional area.
  10. (Optional) Access the
    Maintain Supplier Contract Lease Amendment Types
     task.
    Create amendment types that you want to use for amendments to your lease-type supplier contracts.
    Security:
    Set Up: Supplier Contracts
     domain in the Supplier Contracts functional area.
  11. (Optional) Access the
    Maintain Worktag Usage
     report.
    On
    Accounting Journal
    , include these worktag types:
    • Supplier Contract
    • Alternate Supplier Contract
    Security:
    Set Up: Enable Worktags
     domain in these functional areas:
    • Common Financial Management
    • Worktags
  12. (Optional) Access the
    Schedule Automatic Receipt of Contract Lines for Leases
     task.
    Workday recommends that you schedule automatic receipt of contract lines when you use these lease-type supplier contracts:
    • Financial leases.
    • Operating leases that use the ROU asset depreciation expense accounting method.
    Workday only creates receipts for contract start dates that are on or before the configured processing date. After receiving the contract lines, you must register the asset before Workday generates a correlating business asset and depreciation schedule.
    Security:
    Process: Supplier Contract - Receipt
     domain in the Supplier Contracts functional area.