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Administrator Guide
Last Updated: 2024-03-08
Set Up Revenue Allocation Configurations

Set Up Revenue Allocation Configurations

  • Create sales items.
  • Create fair value price lists.
  • Security:
    Set Up: Revenue - Allocations
     domain in the Customer Contracts and Project Billing functional areas.
You can set up tenant-wide and company-wide configurations to specify how Workday allocates revenue on customer contracts with multiple-element arrangements. When you set up company-wide configurations, you can also specify revenue allocation for sales items and sales item groups. The company-wide configurations override the configurations that you set up for the tenant.
  1. Access the
    Set Up Revenue Allocation Configuration
     task.
  2. As you complete the task, consider:
    Option Description
    Lower Range Percentage
    Enter a percentage to use as a threshold for allocation in relation to the allocation basis.
    When the contract line amount is above or below the fair value extended amount based on the range percentage you specify, then use the lower range as your allocation basis.
    Upper Range Percentage
    Enter a percentage to use as a threshold for allocation in relation to the allocation basis.
    When the contract line amount is above or below the fair value extended amount based on the range percentage you specify, then use the upper range as your allocation basis.
    Allocation Basis
    Select 1 of these options to determine how Workday calculates the relative selling price allocation for each sales item:
    • Fair Value
       - Workday calculates the relative selling price allocation using the actual fair value as the basis for the allocation.
    • Lower Range
       - Workday calculates the relative selling price allocation using the lower range as the basis for the allocation. Workday determines the lower range using the percentage that you specify as the allocation threshold.
    • Midrange
       - Workday calculates the relative selling price allocation using the median value of the
      Contract Line Amount
      ,
      Lower Range
      , and
      Upper Range
      .
    • Upper Range
       - Workday calculates the relative selling price allocation using the upper range as the basis for the allocation. Workday determines the upper range using the percentage that you specify as the allocation threshold.
    Fair Value Price List
    Select a fair value price list that you configure on the
    Maintain Fair Value Price List
     task.
    Allocate Revenue at Summary and Prorate at Line
    Select to prorate revenue allocation using the revenue category on the customer contract lines.
    Do Not Auto-Allocate Revenue
    Select to prevent Workday from automatically calculating the revenue override amount for all customer contract lines.
    The revenue override amount won't update until you click
    Run Allocation
     when you create multiple-element revenue allocation from the related actions menu of the approved customer contract.
    Calculate Fair Value Unit Price upon Submit or Save for Later
    Select this option if you want Workday to calculate the fair value unit price on contract lines when you submit or save a customer contract.
When you add sales items included in the fair value price list on the customer contract line, Workday uses these configurations to allocate revenue.
Create customer contracts with multiple-element arrangements.