Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules
You can use this topic to help make decisions when planning your configuration and use of prepaid billing using consolidated billing schedules. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
Prepaid billing using consolidated billing schedules enables you to apply prepayments toward installment and transaction line amounts on a customer contract.
Business Benefits
Prepaid billing using consolidated billing schedules provides greater flexibility in meeting billing requirements by enabling you to:
- Define the consumption of prepaid balances.
- Distribute prepayments to multiple customer contract lines at once.
Use Cases
Use consolidated billing schedules for prepaid billing when your company needs to:
- Map multiple customer contract lines to 1 prepayment.
- Associate installment and transaction customer contract lines to the same prepayment.
- Specify various revenue treatments on prepaid mapping contract lines.
Questions to Consider
Questions | Considerations |
|---|---|
Which line types on customer contracts can you use to consume prepaid installments? | You can use installment and transaction lines on a customer contract to consume prepaid installments. |
Which revenue treatments can you use for your prepaid mapping contract lines? | You can use any revenue treatment for your prepaid mapping contract lines without creating a revenue recognition schedule.
When your prepaid mapping contract lines use:
|
Recommendations
To direct payments to a specific account, you can configure
Prepaid Billing
as a dimension and value for the Deferred Revenue ledger account posting rule.Requirements
You must:
- Create a customer contract with at least 1 prepaid line type.
- Create a billing schedule with a schedule type enabled for consolidated billing.
- Map prepaid customer contract lines to installment and transaction lines on the same billing schedule. Then, associate the prepaid mapping to prepaid installments.
- Create a consolidated customer invoice to invoice the prepaid installment.
- Create a consolidated customer invoice to consume installment and transaction activities.
When you update a consolidated billing schedule using the
Submit Billing Schedule
web service, include existing prepaid installments in the request to ensure that Workday doesn't remove them.Limitations
You can't:
- Cancel consolidated billing schedules with prepayment balances.
- Consume against a prepaid installment until you invoice the installment when you configure Workday to require a paid prepayment status for prepaid billing.
- Include transaction tax on prepaid billing when you use a consolidated schedule.
Tenant Setup
Enable tenant-wide configurations for prepaid billing in the
Customer Contracts Options
section on the Edit Tenant Setup - Financials
task.Security
Domains | Considerations |
|---|---|
Manage: Billable Projects in the Projects functional area.
Process: Project Billing - Core in the Project Billing functional area. |
|
Process: Billing - Invoicing in the Customer Contracts and Project Billing functional areas.
Process: Project Billing - Invoicing in the Project Billing functional area. |
|
Process: Billing Schedule - Core in the Customer Contracts and Project Billing functional areas. | Create consolidated billing schedules with prepaid mapping. |
Process: Revenue Schedule - Core in the Customer Contracts and Project Billing functional areas. | Create revenue recognition schedules for prepaid mapping contract lines with an Accrued or Deferred revenue treatment. |
Set Up: Accounting Rules in the Common Financial Management functional area.
Set Up: Payroll - Company Specific (Accounting) in the Core Payroll functional area. | Configure Prepaid Billing as a dimension and value for the Deferred Revenue ledger account posting rule. |
Set Up: Customer Contracts - Templates and Types in the Customer Contracts and Project Billing functional areas. | Create a billing schedule type enabled for consolidated billing. |
Set Up: Tenant Setup - Financials in the System functional area. | Enable Workday to bill:
|
Business Processes
Business Processes | Considerations |
|---|---|
Billing Schedule Event
| Create and approve consolidated billing schedules with prepaid mapping. |
Customer Contract Event
| Create and approve customer contracts with prepaid line types. |
Revenue Recognition Installment Event
| Create and approve revenue recognition accounting when you create a revenue recognition schedule. |
Revenue Recognition Schedule Event
| Create and approve revenue recognition schedules for prepaid mapping contract lines with an Accrued or Deferred revenue treatment. |
Reporting
No impact.
Integrations
You can use these web services to cancel, retrieve, update, and submit prepaid billing for installments and transactions:
- Cancel Billing Schedule
- Cancel Customer Invoice
- Get Billing Schedules
- Put Customer Contract Template
- Put Tenant Setup - Financials
- Submit Billing Schedule
- Submit Customer Contract
- Submit Customer Contract Amendment
- Submit Customer Invoice
Connections and Touchpoints
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.