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Administrator Guide
Last Updated: 2023-06-23
Set Up Supplier Contract Types for Lease Accounting

Set Up Supplier Contract Types for Lease Accounting

Security:
Set Up: Supplier Contracts
 domain in the Procurement functional area.
You can select a supplier contract type when you create a supplier contract. The lease supplier contract type determines the account posting rules and ledger accounts Workday records your transaction to. Your configuration helps Workday determine whether to treat your lease-type supplier contracts as:
  • Depreciable capital assets that you must register as business assets.
  • Non-depreciable capital assets.
  1. Access the
    Maintain Supplier Contract Types
     task.
  2. Set up supplier contract types for lease accounting.
    Select the
    Variable Payment
     check box if you want to specify the payment amount and schedule of your lease-type supplier contracts. Workday considers a contract type to have a fixed payment type when you don't select the check box.
    The supplier contract types you set up also determine the alternate lease-type supplier contracts you can create.
    As you complete this task, consider:
    Option Description
    Financial Lease
    Select these check boxes:
    • Financial Lease
    • Receive Contract Lines
    • Scheduled Invoices
    • (Optional)
      Variable Payment
    Operating Lease
    Select these check boxes if you want an accounting method of
    ROU Asset Operating Expense
     or
    Straight Line Expense
    :
    • Operating Lease
    • Scheduled Invoices
    • (Optional)
      Variable Payment
    Select these check boxes for an accounting method of
    ROU Asset Depreciation Expense
    :
    • Operating Lease
    • Receive Contract Lines
    • Scheduled Invoices
    • (Optional)
      Variable Payment
    Short Term Operating Lease
    Select these check boxes for short-term operating leases:
    • Scheduled Invoices
    • Short-Term Operating Lease
    • (Optional)
      Variable Payment
  • Configure book codes for your lease-type supplier contracts if you want to create operating lease contracts and select 2 lease accounting use cases when configuring your tenant.
  • You can select contract types you configure for lease accounting on the
    Create Supplier Contract
     task.