Setup Considerations: Project Billing

What It Is

Project Billing is part of the Workday Professional Services Automation (PSA) solution. Using information from customer contracts and Workday Projects, you can create a comprehensive billing process for client-facing billable projects.

Business Benefits

Project Billing in Workday enables you to:

Bill customers.

Bill within your organization.

Track project revenue.

Project Billing also helps you manage your project financials. Workday helps eliminate reconciliation between applications and foster collaboration between your controller, project managers, and billing specialists.

When used with Customer Accounts and Customer Contracts in Workday, you can manage receivable credit and collection, maintain customer accounts, and automate your billing all at once.

Use Cases

You can combine billable projects with the Workday Revenue and Project Billing solutions, and recognize your revenue:

As invoiced.

Based on completed milestones.

On a deferred basis.

On a percent complete basis.

Through accruals, which enables you to recognize revenue independent from billing.

Questions to Consider

Questions	Considerations
How do you handle varying invoice and tax requirements in different countries?	Understand your specific country and regional billing requirements. Invoice and tax requirements vary from country to country.
What billing methods does your company use?	Workday Project Billing supports these billing methods: Fixed Fee - Installments Fixed Fee - Milestones - Date Fixed Fee - Milestones - Project Prepaid Retainer/Holdback Transactions - Time and Expense
What are your requirements for intercompany transfer pricing?	Workday Project Billing supports these intercompany pricing options: Cost plus Multiparty Transfer Value-based Create standard or custom rate rules for transfer pricing to apply to the intercompany contract.
What billing rates work with Project Billing?	Workday Project Billing supports these billing configurations: Billing rate sheets. Billing rate rules. Custom caps. Project caps for Time and Expense. Tiered rates. Structure your billing around these configurations before applying them to your projects.
What specific billing rate rules does your company need?	Project Billing supports these rate rule configurations: Contract-specific caps. Discounts. Mark-ups. Tiered pricing. Configure these billing rate rules to add them to the contract rate sheet.
What invoice format modifications do you need for Project Billing?	Modifications to invoice formats require Business Intelligence and Reporting Tools (BIRT) enhancements. If BIRT support isn’t in scope, contact your Workday Customer Success Manager for assistance.
What revenue recognition methods do you use?	Workday Project Billing supports these revenue recognition methods: Fixed Fee - Installment and Spread Even Fixed Fee - Percent Complete Milestones Performance-based Retainer/Holdback Transaction - Time and Expense Plan your revenue recognition methods for use with project billing.
Does your project revenue follow the project worktags or worker worktags?	Workday uses these worktag rules: Fixed Fee projects follow the contract worktags designated in the project. To reclassify the fixed fee revenue at the worker level manually, you must first create a custom report. Transaction-based projects for time and expense follow the worker worktags or project worktags.
Does your organization need to integrate your contingent worker time or expenses into Workday for Project Billing?	Contact your Workday Customer Success Manager for assistance.

Recommendations

Workday recommends:

Using project hierarchies and project groups for better budgeting and reporting.

Understanding country or region-specific invoicing requirements.

Requirements

Consider any integration requirements in and out of Workday.

Limitations

Project billing only supports customer contracts for these project-related line types:

Fixed Fee

Prepaid

Time and Expense

Value-based

Tenant Setup

Select the

Only Include Non-Recoverable Tax on Billable Transactions

check box on the

Edit Tenant Setup - Financials

task. This check box excludes recoverable tax from your expense and supplier invoice billable amounts.

Security

Domains	Considerations
Process: Billing Schedule - Attachments in the Customer Contracts and Project Billing functional areas. Process: Billing Schedule - Core in the Customer Contracts and Project Billing functional areas.	Create and manage billing schedules for customer contracts.
Process: Billing Schedule - View in the Customer Contracts and Project Billing functional areas.	View billing schedules and installments for customer contracts.
Process: Customer Contract - Core in the Customer Contracts and Project Billing functional areas.	Manage customer contracts.
Process: Invoice Proposal - Prepaid Installment	Access the Create Progress Bill options on the Create Customer Invoice Proposal task.
Process: Project Billing - Core in the Project Billing functional area.	Manage project billing transactions.
Process: Project Billing - Invoice Proposal in the Project Billing functional area. Process: Billing - Invoice Proposal and Process: Invoice Proposal - Prepaid Installment in the Customer Contracts and Project Billing functional areas. Process: Project Billing - Core in the Project Billing functional area, or Manage: Billable Projects in the Projects functional area.	Manage customer invoice proposals.
Process: Project Billing - Invoicing in the Project Billing functional area. Process: Billing - Invoicing in the Customer Contracts and Project Billing functional areas.	Create customer invoices for billing installments, transactions, and consolidated billing.
Process: Revenue Schedule - Core in the Customer Contracts and Project Billing functional areas.	Create revenue recognition schedules for customer contracts.
Process: Revenue Schedule - View in the Customer Contracts and Project Billing functional areas.	View revenue recognition schedules and installments for customer contracts.
Set Up: Customer Contracts - Templates and Types in the Customer Contracts and Project Billing functional areas.	Create templates for billing and revenue recognition schedules.
Set Up: Customer Milestones in the Customer Contracts and Project Billing functional areas.	Manage date milestones for customers on: Billing schedules. Revenue recognition schedules.
Set Up: Milestone Types in the Customer Contracts and Project Billing functional areas.	Maintain and view milestone types.

As you enable security groups, consider:

Security Groups	Considerations
Revenue specialist and customer contract specialist	Set up customer contracts.
Accounts Payable specialist	Create supplier invoices for costs associated with the project.
Project manager	Review and approve billable transactions for a project.
Billing specialist	Generate customer invoices.
Revenue accountant	Manage accounting and related reporting.

As you assign security roles for the project billing and customer contracts domains, consider:

Security Roles	Considerations
Assign roles to workers at the project and project hierarchy level.	You can assign roles at the project or project hierarchy level. Projects within these hierarchies inherit the assignments and reducing security maintenance.
Assign roles to workers at the company and company hierarchy level.	You can assign roles at the company or company hierarchy level. Projects within these hierarchies inherit the assignments and reducing security maintenance.

Business Processes

Business Processes	Considerations
Ad Hoc Project Transaction Event	Create and approve ad hoc transactions on projects.
Billing Schedule Event	Create, review, and approve billing schedules.
Contract Rate Sheet Event	Create and approve contract rate sheets.
Customer Contract Amendment Event	Create and approve customer contract amendments.
Customer Contract Asset and Liability Reclassification Journal Event	Create and approve journals for customer contract asset and liability reclassifications.
Customer Contract Event	Create and approve customer contracts.
Customer Invoice Proposal Event	Create, review, and approve customer invoice proposals.
Deferred Cost Installment Event	Create and approve deferred cost installments.
Project Transaction Adjustment Event	Create and approve project transaction adjustments.
Revenue Recognition Installment Event	Create and approve revenue recognition installments.
Revenue Recognition Schedule Event	Create and approve revenue recognition schedules.

Reporting

You can use projects standard reports and tasks to build your Project Billing dashboard.

Integrations

Web Services	Considerations
Get Ad Hoc Project Transactions	Retrieves all ad hoc project transactions.
Get Contract Rate Sheets	Retrieves all contract rate sheets.
Get Project Billing Rate Sheets	Retrieves all rate sheets for project billing.
Get Worker Billing Rates	Retrieves all worker billing rates.
Import Worker Billing Rate	Adds or updates worker billing rates.
Put Ad Hoc Project Transaction	Adds or updates ad hoc project transactions.
Put Contract Rate Sheet	Adds or updates contract rate sheets.
Put Project Billing Rate Sheet	Adds or updates rate sheets for project billing.

Connections and Touchpoints

Project Billing interacts with these other areas in Workday:

Feature	Considerations
Customer Accounts	Approved project time and expenses for invoicing flow from Project Billing.
Customer Contracts	Prepaid and billing schedules, and project and usage-based billing rate sheets flow to Project Billing.
Projects	Billable project time and expense and billable supplier invoices flow to Project Billing.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.