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Administrator Guide
Last Updated: 2023-06-23
Reference: Period End Revenue Accounting Reclassification Calculations

Reference: Period End Revenue Accounting Reclassification Calculations

Closed Installments and Transactions in Period End Revenue Accounting Calculations

To include closed:
  • Billable transactions in the total billed amount calculation, use the
    Put Ad Hoc Project Transaction
     and
    Put Usage Based Transaction
     web services.
  • Billing installments in the total billed amount calculation, use the
    Submit Billing Schedule
     web service.
  • Revenue recognition installments in the total revenue recognized amount calculation, select the
    Include Closed Revenue Recognition Installments in Period-End Revenue Accounting
     check box on the
    Edit Tenant Setup - Financials
     task.

Carve In and Carve Out Reclassification Calculations

Revenue Treatment
Criteria
Calculation
Accrued
Customer contract lines have revenue allocation.
Workday creates an operational journal that:
  • Debits the Unbilled Receivables ledger account for negative amounts.
  • Credits the Unbilled Receivables ledger account for positive amounts.
Deferred
Customer contract lines have revenue allocation.
Workday creates an operational journal that:
  • Debits the Deferred Revenue ledger account for negative amounts.
  • Credits the Deferred Revenue ledger account for positive amounts.

Customer Contract Foreign Currency Reclassification Calculations

Revenue Treatment
Criteria
Calculation
Accrued
 and
Deferred
Billing and revenue recognition have discrepancies in base currency amounts due to foreign currency conversion rates.
When you enable realized gain or loss as the offset account posting rule in the foreign currency adjustment rules, Workday creates an operational journal that:
  • Debits the Realized Currency Loss ledger account for negative amounts.
  • Credits the Realized Currency Gain ledger account for positive amounts.
When you enable revenue as the offset account posting rule in the foreign currency adjustment rules, Workday creates an operational journal that:
  • Debits the Revenue ledger account for negative amounts.
  • Credits the Revenue ledger account for positive amounts.

Customer Contract Asset and Liability Reclassification Calculations

Revenue Treatment
Criteria
Calculation
Accrued
Billed amount is greater than recognized revenue amount.
Workday:
  1. Subtracts the total recognized revenue amount from the total billed amount.
  2. Creates an operational journal using the difference to debit the Unbilled Receivables ledger account and credit the Deferred Revenue ledger account.
  3. Creates a reversal operational journal that credits the Unbilled Receivables ledger account and debits the Deferred Revenue ledger account in the next period.
Accrued
Recognized revenue amount is greater than billed amount.
No reclassification occurs.
Deferred
Billed amount is greater than recognized revenue amount.
No reclassification occurs.
Deferred
Recognized revenue amount is greater than billed amount.
Workday:
  1. Subtracts the total billed amount from the total recognized revenue amount.
  2. Creates an operational journal using the difference to debit the Unbilled Receivables ledger account and credit the Deferred Revenue ledger account.
  3. Creates a reversal operational journal that credits the Unbilled Receivables ledger account and debits the Deferred Revenue ledger account in the next period.
Accrued
 and
Deferred
Workday:
  1. Calculates reclassification for all
    Accrued
     contract lines.
  2. Calculates reclassification for all
    Deferred
     contract lines.
  3. Calculates the total from steps 1 and 2.
  4. Creates an operational journal using the total to debit the Unbilled Receivables ledger account and credit the Deferred Revenue ledger account.
  5. Creates a reversal operational journal that credits the Unbilled Receivables ledger account and debits the Deferred Revenue ledger account in the next period.