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Administrator Guide
Last Updated: 2023-09-08
Steps: Configure Derivation Rules for Billable Supplier Invoices

Steps: Configure Derivation Rules for Billable Supplier Invoices

Create a billable:
  • Project.
  • Supplier invoice associated with a company that's different from the project company.
You can configure revenue company derivation rules to post accounting for billable supplier invoices using the project company or the supplier invoice line company. Workday posts accounting for billable supplier invoices using the supplier invoice line company when you don't configure derivation rules. When you create a billable supplier invoice associated with a company that's different from the project company, Workday creates on-behalf-of intercompany transactions.
  1. Select 1 of these options from the
    Revenue Company is from
     prompt:
    • Project
       to post revenue for billable supplier invoices using the company on the project.
    • Supplier Invoice Line
       to post revenue for billable supplier invoices using the company on the supplier invoice line.
  2. The company on the customer contract must be the same as the company on the project.
  3. When the line type on the customer contract line is
    Project Time and Expense
    , create a transaction billing schedule. The company on the billing schedule must be the same as the company on the project.
    Select
    Transaction
     from the
    Billing Type
     prompt.
  4. When the customer contract has different line types that you want to include on 1 billing schedule, create a consolidated billing schedule. The company on the billing schedule must be the same as the company on the project.
    Select a schedule type enabled for consolidated billing from the
    Schedule Type
     prompt.
  5. When the revenue treatment on the customer contract line is
    Accrued
     or
    Deferred
    , create a revenue recognition schedule. The company on the revenue recognition schedule must be the same as the company on the project.
    Select:
    • Transaction
       from the
      Revenue Recognition Method
       prompt.
    • The
      Independent Revenue Processing
       check box.
  6. (Optional) Access the
    Create Customer Invoices for Billable Transactions
     task.
    When you use a transaction billing schedule, create customer invoices for billable transactions.
    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.
  7. When you use a consolidated billing schedule, create customer invoices from contracts.
  8. When the revenue treatment on the customer contract line is
    Accrued
     or
    Deferred
    , create revenue installments for billable transactions.
  9. (Optional) Access the
    Create Revenue Recognition Accounting
     task.
    When the revenue treatment on the customer contract line is
    Accrued
     or
    Deferred
    , create revenue recognition accounting.
    Configure the
    Revenue Recognition Installment Event
     business process and security policy in the Customer Contracts and Project Billing functional areas.
When the revenue treatment on the customer contract line is:
  • Invoice
    , Workday posts accounting at the time of invoicing. Workday posts revenue accounting for the customer invoice lines using the company derivation rules that you configure for billable supplier invoices. When the company on the customer invoice line is different from the company on the header, Workday creates intercompany accounting.
  • Accrued
     or
    Deferred
    , Workday posts accounting at the time of revenue recognition accounting. Workday posts revenue accounting for the installment lines using the company derivation rules that you configure for billable supplier invoices. When the company on the installment line of the revenue recognition schedule is different from the company on the header, Workday creates intercompany accounting.