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Administrator Guide
Last Updated: 2024-03-08
Steps: Configure Customer Contracts

Steps: Configure Customer Contracts

Customer contracts enable you to capture the details of customer sales agreements. These details include sales items or projects, important dates, payment schedules, milestones, and retention. Workday uses the details that you specify to calculate billing and determine revenue recognition. You can configure each step of the contract lifecycle from draft to completion, and you can route customer contracts for automatic approval. Workday can also integrate data from third-party vendors to support contract management.
  1. Configure the business processes and security policies for the Customer Contracts and Project Billing functional areas.
  2. Edit Business Processes.
    Make changes as needed to these business processes:
    • Billing Schedule Event
    • Carve In Carve Out or Foreign Currency Adjustment Journal Event
    • Contract Rate Sheet Event
    • Customer Contract Alternate Event
    • Customer Contract Amendment Event
    • Customer Contract Asset and Liability Reclassification Journal Event
    • Customer Contract Event
    • Deferred Cost Installment Event
    • Percent Complete Project Event
    • Project Transaction Adjustment Event
    • Revenue Recognition Installment Event
    • Revenue Recognition Schedule Event
  3. Create an ID definition that Workday can use to assign sequence numbers to new customer contracts.
  4. Access the
    Edit Tenant Setup - Financials
     task.
    • In the
      Business Document Sequence IDs
       section, select the ID definition that you created from the
      ID Generator for Customer Contracts
       prompt.
    • In the
      Customer Contracts Options
       section, configure your tenant-wide settings for customer contracts.
    Security:
    Set Up: Tenant Setup - Financials
     domain in the System functional area.
  5. Access the
    Maintain Customer Contract Types
     task.
    (Optional) To link your contracts, enable
    Linked Contract
     for at least 1 contract type.
    Security:
    Set Up: Customer Contracts - Templates and Types
     domain in the Customer Contracts and Project Billing functional areas.
  9. Access the
    Maintain Schedule Types
     task.
    (Optional) To use a consolidated billing schedule, enable
    Consolidated Billing Schedule
     for at least 1 schedule type.
    Security:
    Set Up: Customer Contracts - Templates and Types
     domain in the Customer Contracts and Project Billing functional areas.
  10. Create a billing schedule for the customer contract.
    (Optional) To withhold a percentage of the customer invoice, click
    Edit Retention Terms
    .
  12. (Optional) Access the
    Maintain Journal Sources
     task.
    Security:
    • Set Up: Journal Source
       domain in the Common Financial Management functional area.
    • Set Up: Payroll - Company Specific (Accounting)
       domain in the Core Payroll functional area.
  13. Configure these account posting rules:
    • Deferred Revenue
    • Revenue
    • Unbilled Receivables
  14. Create customer contract templates.