Concept: Set Up Project Billing Configurations

You can configure required fields for Workday to populate when you transfer or split nonlabor project transactions. Workday creates an accounting adjustment when you transfer or split paid nonlabor project transactions on the

Manage Project Billing Transactions

and

Transfer Project Transactions

tasks. Nonlabor project transactions include expense reports and supplier invoices. When you modify paid expense reports or supplier invoices, Workday uses the Spend account posting rule to create an accounting adjustment. You can configure an:

Accounting adjustment date.
Accounting adjustment reason.

Workday uses the accounting adjustment date to determine which date to use for the journal adjustment. All accounting adjustments require an accounting adjustment reason.

When you transfer:

A paid nonlabor billable project transaction, you can view the new project worktag on the
Accounting Adjustment
tab of the associated supplier invoice or expense report.
An unpaid nonlabor billable project transaction, you can view the new project worktag directly on the source transaction line.

When you require a:

Transfer reason, select a reason on the
Manage Project Billing Transactions
task for each nonlabor billable transaction that you transfer.
Comment on time entry changes using the
Time Entry
tab on the
Edit Time Entry Template
task, select a time block comment on the
Manage Project Billing Transactions
task. Workday requires a time block comment for each time billable transaction that you transfer. Enabling this option also impacts updates made to time blocks.

When you require a transfer reason, configure transfer reasons and set 1 transfer reason as default. Workday only uses transfer reasons for reporting purposes.

You can enable or clear the

Revenue Offset for Invoiced Billable Transactions

check box at any time. When you:

Enable the check box and accrue revenue, Workday doesn't reset the revenue accrual status for billable transactions or create offset installments upon invoicing.
Clear the check box, Workday evaluates the worktag derivation rules for the billable transaction upon invoicing. If there's a change to the worktag on the billable transaction, Workday updates the revenue accrual status and creates an offset revenue installment.

Example: On the

Worktag Rule Configuration

tab of the project hierarchy, you configure revenue to follow the worker. You accrue revenue on 11/15/2022 and the cost center for the worker is 123. On 12/20/2022, you transfer the worker to cost center 124. You invoice the customer on 12/31/2022.

Revenue Offset for Invoiced Billable Transactions Check Box Enabled	Revenue Offset for Invoiced Billable Transactions Check Box Cleared
Revenue installment accounting on 11/15/2022 for cost center 123: Unbilled Receivables 1000 Revenue 1000	Revenue installment accounting on 11/15/2022 for cost center 123: Unbilled Receivables 1000 Revenue 1000
Upon invoicing on 12/31/2022: No accounting	Upon invoicing on 12/31/2022 for cost center 123: Revenue 1000 Unbilled Receivables 1000
	Upon invoicing on 12/31/2022 for cost center 124: Unbilled Receivables 1000 Revenue 1000

You can use the

Enable Deferred Billable Project Costs Accounting

check box to generate operational journals for billable expense reports and supplier invoices when you recognize revenue. Workday uses the Spend account posting rule to create operational journals. For the Spend account posting rule, you can configure the resulting ledger account to use an accounting treatment of:

Cost of Sales
to post to a cost or an income statement ledger account.
Deferred Project Cost
to post to an asset or a balance sheet ledger account.

Example: You select the

Enable Deferred Billable Project Costs Accounting

check box and configure the resulting ledger account in the Spend account posting rule:

Resulting Ledger Account	Dimension	Values
Work in Progress	Accounting Treatment	Deferred Project Cost
Cost of Sales	Accounting Treatment	Cost of Sales

You create a supplier invoice line with a billable project worktag for $100 and view the resulting accounting:

Ledger Account	Debit Amount	Credit Amount
Work in Progress	100.00 USD	0.00 USD
Accounts Payable	0.00 USD	100.00 USD

You create a revenue installment and view the resulting accounting:

Ledger Account	Debit Amount	Credit Amount
Deferred Revenue: Product and Sales	100.00 USD	0.00 USD
Revenue	0.00 USD	100.00 USD

You create revenue recognition accounting for an accrued or deferred revenue treatment, and you approve a customer invoice for an invoice revenue treatment. Workday automatically creates this secondary operational journal:

Ledger Account	Debit Amount	Credit Amount
Cost of Sales	100.00 USD	0.00 USD
Work in Progress	0.00 USD	100.00 USD

Once you enable deferred billable project costs accounting, you can't disable it.

You can configure Workday to automatically recalculate transactions when there's a change to the associated:

Billing schedule.
Billing rate sheet.
Contract rate sheet.
Customer contract.
Standard rate sheet.

When you enable the

Automatically Recalculate Transactions

check box, you can specify which transaction billing statuses Workday recalculates.

When you don't automatically recalculate transactions, Workday populates the

Recalculate

column on the

Manage Project Billing Transactions

task to identify the billable projects and transactions that might require recalculation. You can also create custom reports to view billable projects and transactions that might require recalculation.

You can configure Workday to apply a new billing status to billable project transactions when you deny, cancel, or credit adjust an invoice. When you schedule invoicing to occur, you can update the

Reset Invoiced Transactions to Billing Status

prompt to

Awaiting Review

to re-evaluate transactions upon invoice cancellation.

You can configure Workday to display the billing transactions grid either with tabs that group related fields together, or with all fields in one view, using the

Hide Separate Tabs in Transaction Grid

option. The option is unchecked by default.

You can use the

Transaction Types for Adjustment

option to configure which transaction types users are allowed to mass modify. By default, all 4 transaction types are selected — Expense, Misc Expense, Supplier Invoice, and Time — and at least 1 transaction type must be selected. Note that you can't deselect all 4 transaction types; if you want to disable all mass modifications, you can use the

Configure Optional Fields

task to hide the

Summary: Mass Submit Button

in the

Manage Project Billing Transactions

functional area.

This configuration applies tenant-wide, and affects all users' ability to mass modify transaction types throughout all views in the Manage Project Billing Transactions and Customer Invoice Proposal workflows.

You can configure Workday to enable custom validations for customer invoice proposals, using the

Enable Custom Validations for Customer Invoice Proposals

option. By default, this option is enabled, meaning that custom validations created in the

Maintain Custom Validations

report for the

customer invoice

context also apply to customer invoice proposals.

Custom validations for fields on these tabs in the

View Customer Invoice Proposal

report are supported:

Invoice Header
Invoice Lines
Attachments

For example, if you configure a custom validation to require that the

Invoice Date

be within a specified range for customer invoices, that range also applies to the

Invoice Date

field for customer invoice proposals.

To maintain or create custom validations for fields on the

Project Transactions

tab, use the

Project Billing Transaction Details

context in the

Maintain Custom Validations

report.

When creating a custom validation, you can use the

Is Document a Customer Invoice Proposal

report field in a condition rule to specify that you want a validation to apply only to customer invoices or customer invoice proposals.

If you want validations to apply only to customer invoices, create a condition rule with these values:

And/Or
:
And
Source External Field or Conditional Rule
:
Is Document a Customer Invoice Proposal
Relational Operator
:
not equal to
Comparison Type
:
Value specified in this filter
Comparison Value
: Select the check box.

If you want validations to apply only to customer invoice proposals, create a condition rule with the same values as for customer invoices, except:

Relational Operator
:
equal to

You can configure Workday to prevent users from deleting worker time blocks:

Based on the billing status of the time blocks (Billed, Billing In Progress, Ready To Bill, Awaiting Review, Do Not Bill, On Hold). For example, you may want to prevent the deletion of time blocks after they have been billed or when billing is in progress, to avoid creating offset time entries in billing.
That have already had their revenue recognized or scheduled.
After the project that the time blocks belong to has ended.

Worker time blocks that meet one or more of the selected criteria are prevented from being deleted.