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Administrator Guide
Last Updated: 2024-03-08
Steps: Manage Revenue Categories

Steps: Manage Revenue Categories

Security:
  • Set Up: Basic Revenue Category Worktag
     domain in the Common Financial Management and Worktags functional areas.
  • Set Up: Revenue Categories
     domain in the Common Financial Management functional area.
Create revenue categories to classify the types of goods and services available to sell to customers. You can group similar categories into hierarchies as needed. You can then use the categories to:
  • Create reports.
  • Simplify searches.
  • Route transactions to ledger accounts when the posting rule conditions use categories.
  • Function as worktags.
Example: When you create a journal, you can tag it with a spend category or a revenue category.
  1. Access the
    Create Revenue Category
     task.
    As you complete the task, consider:
    Option Description
    Default Tax Applicability
    Select a tax applicable code that you configure on the
    Maintain Tax Applicability
     task. The tax applicable code displays as the designated value when you create customer invoices using the revenue category. Workday applies the tax applicable code on customer invoices to calculate related taxes based on the tax rates for the customer.
    Spend Category Mapping
    Select to map a revenue category to a spend category for direct intercompany transactions.
    You can only select a revenue category on direct intercompany customer invoices when you map a revenue category to a spend category.
    Classification
    Select Goods or Services to classify revenue categories as either goods or services. Use this for tax reporting and tax defaulting rules.
    Inactive
    When you select this check box, Workday disables this entry from search results, prompt lists, and worktag lists for new transactions.
    Related Worktags
    A revenue category is an object in Workday that you can use as a worktag.
    Set up related worktags for this object using the related worktag types that you configure on the
    Maintain Related Worktag Usage
     task. Workday automatically populates transactions with the values in the
    Default Worktag
     column when you select the object on the transaction.
  2. Access the
    Create Revenue Category Hierarchy
     task.
    Group similar revenue categories into hierarchical groups for reporting purposes and account determination in posting rules.
    You can't delete revenue category hierarchies after you create them, but you can rename obsolete hierarchies to prevent users selecting them by mistake.
You can use revenue categories to:
  • Assign as characteristics to accounting objects. Workday requires that you assign a category to every customer, supplier, item, business asset, and write-off.
  • Write transactions against a category without having to specify items. Example: When you create an invoice, you can write a line and its amount to a general category.