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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Prepaid Billing Using Installment Billing Schedules

Steps: Set Up Prepaid Billing Using Installment Billing Schedules

You can set up prepaid billing using installment billing schedules to track advance payments against future services. Create and track prepayment invoices and Workday automatically offsets billable transaction invoices against the prepayment amount.
  1. Access the
    Maintain Schedule Types
     task.
    Select these check boxes for at least 1 schedule type:
    • Prepaid
    • Billing
    Security:
    Set Up: Customer Contracts - Templates and Types
     domain in the Customer Contracts and Project Billing functional areas.
    1. Create
      Project Time and Expense
       or
      Usage-Based
       customer contract lines.
    2. Select
      Deferred
       from the
      Revenue Treatment
       prompt for the customer contract lines.
    • Select:
      • A schedule type enabled for prepaid billing.
      • Installment
         from the
        Billing Type
         prompt.
      • Custom
         from the
        Billing Method
         prompt.
      • (Optional) the
        Include Tax on Prepaid
         check box to apply tax on the initial prepaid installment and tax your transactions that incur overconsumption.
  4. Workday uses the prepaid amount to offset all future invoices generated from the billable transactions.
  5. Access the
    Create Customer Invoices for Billable Transactions
     task.
    Workday offsets the invoice amount against the prepaid invoices. The offset displays on the customer invoice as a negative invoice line. You can manually adjust this amount, if needed.
    Security:
    • Process: Billing - Invoicing
       domain in the Customer Contracts and Project Billing functional areas.
    • Process: Project Billing - Invoicing
       domain in the Project Billing functional area.
  6. Access the
    View Billing Schedule
     report.
    To review prepayment activity, click the
    Prepayment Reconciliation
     tab. This tab displays all invoices offset against prepaid amounts and remaining prepaid balances.
    Security:
    Process: Billing Schedule - View
     domain in the Customer Contracts and Project Billing functional areas.