Setup Considerations: Settlement

What It Is

Workday Settlement provides a comprehensive platform that enables you to process and manage your payments. Workday generates the associated accounting at the time of settlement and records the entries as your system of record.

Business Benefits

Workday Settlement enables you to manage all incoming and outgoing payments in 1 place across your entire business. This unified infrastructure:

Controls the financial inflows and outflows of your enterprise.

Gives you the analytic data you need to make informed decisions.

Use Cases

You can:

Set up payments by managing your payment types and configuring your check printing options.

Settle inbound electronic payments and outbound payments.

Set up payment integrations to transmit payments to financial institutions and receive payment acknowledgments.

Process payments after settlement by printing checks and canceling payments.

Questions to Consider

Questions	Considerations
What bank accounts do you plan to use?	You can integrate Workday with bank accounts for settlement processing and check printing. To generate payment files for settlement processing, you can: Create 1 or more integration systems for each combination of bank and electronic payment type. Assign multiple integration systems to a single bank account. Example: You want to process payments that are of the same type but in different categories or countries. Use the same integration for each account in the same bank with the same payment type.
What kinds of payments and functions do you want to use your bank accounts for?	You can configure a bank account to use it for multiple payment types. You can also create a bank account for unique functions, such as an account that covers only payroll expenses.
How do you want to route your payments?	You can configure rules to determine which bank accounts the settlement process routes payments through. When a payment doesn't match any rule, Workday uses your default bank account. Bank routing rules only apply to payments involving standard accounts. A company can only have 1 bank routing rule.
Do you want to specify the bank account from which to pay supplier invoices and miscellaneous payment requests directly from the invoice or request?	You can configure bank routing codes and map them to bank accounts in bank routing rules.
How do you want to process payments?	You can assign: A settlement specialist role responsible for processing all operational transactions. Roles based on specific functional areas. Whether you centralize or decentralize your payment processing impacts how you: Configure the Settlement Run Event business process. Segregate your check and advice printing.

Recommendations

To help prevent downstream integration errors, set up bank institution records in Workday. You can store detailed bank information, by country, that workers can select when they create worker and settlement bank accounts.

Use settlement run filters to save time and fit your specific use case.

Automate your recurring settlement and prenote runs to reduce manual effort.

Requirements

No impact.

Limitations

When you cancel a settlement run, you can no longer make changes to it.

Tenant Setup

Use the

Edit Tenant Setup - Financials

task to view and configure tenant-wide options for Workday Settlement.

You can use the task to set ID sequence generators for:

EFT payments.

Settlement runs.

Prenote runs.

You can use the

Settlement and Bank Account Options

section to:

Enable multicurrency settlement runs.

Enable bank account masking for payment elections.

Enable dynamic supplier payment dates.

Disable errors when you enter invalid bank identification codes on payment elections or settlement bank accounts.

Enable errors when you enter IBANs that contain lowercase characters or spaces on payment elections or settlement bank accounts.

Consolidate supplier payments that you pay on behalf of multiple companies to the same supplier into a single payment.

Enable payment purpose codes for ad hoc payments, bank account transfers for settlement, miscellaneous payment requests, and supplier payments.

Security

The Process: Settlement
domain in the Banking and Settlement functional area enables users to settle and report on all payment types. To enable users to settle and report on specific payment types, secure them to these domains:

Domains	Considerations
Process: Ad Hoc Payment Settlement in the Banking and Settlement functional area.	Enables users to settle ad hoc payments and view related reporting.
Process: Bank Account Transfer for Settlement/Settlement in the Banking and Settlement functional area.	Enables users to settle bank account transfers for settlement and view related reporting.
Process: Customer Invoice Payment/Settlement in the Customer Accounts functional area.	Enables users to settle customer direct debit payments and view related reporting.
Process: Customer Refund Settlement in the Customer Accounts functional area.	Enables users to settle customer refund payments and view related reporting.
Process: Expense Report Payment/Settlement in the Expenses functional area.	Enables users to settle expense payments and view related reporting.
Process: Intercompany Payment/Settlement in the Financial Accounting functional area.	Enables users to settle intercompany items and view related reporting.
Process: Miscellaneous Payment Request Settlement in the Miscellaneous Payments functional area.	Enables users to settle miscellaneous payment requests and view related reporting.
Process: Payroll Settlement in the Core Payroll functional area.	Enables users to settle payroll payments and view related reporting.
Process: Pending Student Refund/Settlement in the Student Financials functional area.	Enables users to settle student refunds and view related reporting.
Process: Procurement Card Payment/Settlement in the Procurement functional area.	Enables users to settle procurement card payments and view related reporting.
Process: Schedule Settlement Run in the Banking and Settlement functional area.	Enables users to schedule settlement runs and view related reporting.
Process: Student Payment/Settlement in the Student Financials functional area.	Enables users to settle student payments and view related reporting.
Process: Student Sponsor Refund/Settlement in the Student Financials functional area.	Enables users to settle student sponsor refunds and view related reporting.
Process: Supplier Invoice Payment/Settlement in the Supplier Accounts functional area.	Enables users to settle supplier invoices and view related reporting.

Business Processes

Business Processes	Considerations
Outsourced Payment Release Event	Enables you to send checks to an outsourced check printing service.
Payment Printing Event	Enables you to generate positive pay files that correspond to printed checks.
Payment Release Event	Enables you to trigger the payment for electronic payment methods.
Print Checks Task	Enables you to print hard-copies of payslips and checks.
Remittance Release Event	Enables you to create and email remittance files.
Settlement Run Event	Enables you to settle payments. Workday delivers the default definition of this business process minimally configured. You can add steps, such as approvals.

Reporting

Reports or Dashboards	Considerations
Find Payments report	Use this report to find payments for settlement.
Find Settlement Runs report	Use this report to find and report on settlement runs.
Find Settlement Setup Rule report	Use this report to find the settlement setup associated with a specified bank account or shared between multiple bank accounts.
Settlement dashboard	Use this dashboard to view and track information on end-to-end settlement processing. You can configure this dashboard with worklets to access tasks and reports for: Check and advice printing. Payment returns. Prenote payments. Settlement runs.
Settlement Work Area report	Use this report to create, schedule, and find settlement runs.

These report data sources provide settlement data:

Bank Account Transfers for Settlement

Open Items for Settlement

Settlement Runs

Integrations

Workday provides many web services for common settlement inputs and configurations. Consider these web services when configuring Workday Settlement:

Cancel Payment Return

Import Bank Institution Record Branches

Import Payment Acknowledgement Message

Get Bank Routing Rules

Get Payment Purpose Code

Put Bank Routing Rule

Put Direct Debit Mandate

Put Miscellaneous Payee

Put Miscellaneous Payee Category

Put Miscellaneous Payment Request Category

Put Outsourced Bank Provider

Put Payment Acknowledgement Message

Put Payment Integration

Put Payment Purpose Code

Put Payment Type

Put Settlement Run Custom Filter

Submit Payment Return

Workday supports integrations with these electronic payment service providers and protocols:

Automated Clearing House (ACH)

Bankers' Automated Clearing Services (BACS)

ISO 20022

Zengin

You can also create a Payment Connector integration that exports payment data from Workday to a bank or payment processor.

Workday recommends that you use enhanced performance integration templates when available.

Connections and Touchpoints

Functional Areas	Considerations
Cash	Users secured to the associated domain can settle ad hoc payments.
Customer Accounts	Users secured to the associated domain can settle: Customer invoices. Customer payments. Customer refunds. The settlement process groups all eligible direct debit invoices and adjustments for the same company, payee, and payment type into a single payment. Grouping is also applicable to credit card invoices and adjustments. When you select the Customer Invoices check box on the Overview Payment Details profile group of the customer profile, the settlement process creates separate payments for invoices, except when you process: A credit card invoice and 1 or more invoice credit adjustments. A direct debit invoice and 1 or more invoice credit adjustments that have a printed direct debit mandate pre-notification.
Expenses	Users secured to the associated domain can settle: Cash advances. Expense credit card transactions. Expense reports.
Financial Accounting	Users secured to the associated domain can settle intercompany items. When you complete a settlement run, Workday generates accounting entries and sends them to Workday Financial Accounting.
Miscellaneous Payment Requests	Users secured to the associated domain can settle miscellaneous payment requests.
Payroll	Users secured to the associated domain can settle: Pay group exceptions. Pay groups. You can configure check print layouts to manage paychecks and advices. To ensure accurate payroll payments, configure bank accounts with specific payroll usage types.
Procurement	Users secured to the associated domain can verify and settle procurement card transactions.
Student	Users secured to the associated domain can settle: Student payments. Student refunds. Student sponsor refunds.
Supplier Accounts	Users secured to the associated domain can settle supplier invoices. The settlement process combines all invoices for a supplier into a single payment. If you select the Always Separate Payments check box when you define the supplier, the process settles the invoices for that supplier as separate payments.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.