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Administrator Guide
Last Updated: 2024-09-20
Steps: Set Up Prepaid Billing Using Consolidated Billing Schedules

Steps: Set Up Prepaid Billing Using Consolidated Billing Schedules

Review setup considerations for prepaid billing using consolidated billing schedules.
You can set up prepaid billing using consolidated billing schedules to apply prepayments towards installment and transaction line amounts on a customer contract.
  1. Access the
    Maintain Schedule Types
     task.
    Select the
    Consolidated Billing Schedule
     check box for at least 1 schedule type.
    Security:
    Set Up: Customer Contracts - Templates and Types
     domain in the Customer Contracts and Project Billing functional areas.
  2. (Optional) Access the
    Edit Tenant Setup - Financials
     task.
    As you complete the
    Customer Contracts Options
     section, select the:
    • Require Paid Prepayment Status for Prepaid Billing
       check box to bill transactions against prepayments only after you apply a customer payment to the related installment invoice.
    • Invoice Prepaid Installments with Other Transaction Types
       check box to bill prepaid installments on the same invoice as other installments and transactions when you create customer invoices.
    Security:
    Set Up: Tenant Setup - Financials
     domain in the System functional area.
  3. For the Deferred Revenue ledger account posting rule:
    1. Click
      Edit Posting Rule
      .
    2. Select
      Prepaid Billing
       from the
      Dimension
       and
      Values
       prompts.
  4. In the
    Line Details
     tab of the
    Goods and Services
     grid, select:
    1. Prepaid
       from the
      Line Type
       prompt. Workday automatically selects
      Deferred
       from the
      Revenue Treatment
       prompt.
    2. A project from the
      Billable Project
       prompt.
    The billable project displays on customer invoice lines when you:
    • Select a billable project on prepaid customer contract lines.
    • Create customer invoices or customer invoice proposals.
    1. Select a schedule type that you enabled for consolidated billing from the
      Schedule Type
       prompt.
    2. On the
      Prepaid
       tab:
      1. Select the
        Invoice Prepaid Installments with Other Transaction Types
         check box to bill prepaid installments on the same invoice as other installments and transactions when you create customer invoices.
      2. Map prepaid customer contract lines to installment and transaction type lines on the same billing schedule.
      3. Associate the prepaid mapping to prepaid installments.
  6. Create a prepaid installment invoice. You can only consume against prepaid installments after you invoice them.
  7. Access the task again to consume installment and transaction activities.
    When you create a customer invoice from contracts, Workday:
    • Applies prepayments to billing installments and transactions.
    • Bills prepaid installments on the same invoice as other installments and transactions when you select the
      Invoice Prepaid Installments with Other Transaction Types
       check box.
    • Creates offset lines to consume prepayment installments.
    • Displays the billable project on the customer invoice lines.
  8. Create a revenue recognition schedule for prepaid mapping contract lines that have a revenue treatment of
    Deferred
     or
    Accrued
    .
  9. On the
    Prepaid
     tab:
    • (Optional) Select the
      Exclude from Prepayment
       check box to exclude transactions from prepayment consumption.
    • View and drill down on completed prepaid installments.
  10. (Optional) Access the
    Review Billable Usage-Based Transactions
     task.
    On the
    Prepaid
     tab:
    • (Optional) Select the
      Exclude from Prepayment
       check box to exclude transactions from prepayment consumption.
    • View and drill down on completed prepaid installments.
    Security:
    Process: Usage
     domain in the Customer Contracts and Project Billing functional areas.
  11. Access the
    Create Revenue Recognition Accounting
     task.
    When you use a revenue recognition schedule, create revenue recognition accounting.
    Configure the
    Revenue Recognition Installment Event
     business process and security policy in the Customer Contracts and Project Billing functional areas.