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Administrator Guide
Last Updated: 2026-04-03
Create Manual Settlement Runs

Create Manual Settlement Runs

  • Create the unpaid open items and pending payments to settle.
  • To settle customer refund payments, opt in to
    Customer Refunds Optimization
     on the
    Maintain Feature Opt-Ins
     report.
  • Set up an intercompany profile in Workday for settling intercompany items.
  • Security:
    Process: Settlement
     domain in the Banking and Settlement functional area or 1 or more of these domains:
    • Process: Ad Hoc Payment Settlement
       domain in the Banking and Settlement functional area.
    • Process: Bank Account Transfer for Settlement/Settlement
       domain in the Banking and Settlement functional area.
    • Process: Customer Invoice Payment/Settlement
       domain in the Customer Accounts functional area.
    • Process: Customer Refund Settlement
       domain in the Customer Accounts functional area.
    • Process: Expense Report Payment/Settlement
       domain in the Expenses functional area.
    • Process: Intercompany Payment/Settlement
       domain in the Financial Accounting functional area.
    • Process: Miscellaneous Payment Request Settlement
       domain in the Miscellaneous Payments functional area.
    • Process: Payroll Settlement
       domain in the Core Payroll functional area.
    • Process: Payroll Third-Party Payments Settlement
       domain in the Core Payroll functional area.
    • Process: Pending Student Refund/Settlement
       domain in the Student Financials functional area.
    • Process: Procurement Card Payment/Settlement
       domain in the Procurement functional area.
    • Process: Student Payment/Settlement
       domain in the Student Financials functional area.
    • Process: Student Sponsor Refund/Settlement
       domain in the Student Financials functional area.
    • Process: Supplier Invoice Payment/Settlement
       domain in the Supplier Accounts functional area.
You can create, edit, preview, and process settlement runs to settle unpaid open items and pending payments. Workday interacts with banks to send outbound payments and receive inbound payments.
  1. Access the
    Create Settlement Run
     task.
    As an alternative, you can settle a one-off payment from the related actions menu of an unpaid open item or pending payment. Workday creates a draft settlement run with the one-off payment.
  2. As you complete the task, consider:
    Option Description
    Currency
    This currency value can differ from the bank account currency, but the bank accounts in the bank routing rule must accept it.
    To select multiple or all currencies, you must enable multicurrency settlement runs in the
    Edit Tenant Setup – Financials
     task. You can select multiple currencies when searching for items or payments to add to the settlement run. Workday settles the payments using the currency of each transaction.
    Display Currency
    For single currency settlement runs, the display currency is the settlement run currency.
    Workday displays the settlement run inbound or outbound payment total in this currency for informational purposes, while settling payments using the currency of the transaction. You can change the default company currency to another currency that is associated with the company bank account.
    Auto Select Filters
    Workday includes all unpaid open items and pending payments that meet the settlement filter criteria for:
    • Organization
    • Currency
    • Run date
    You can add or remove selections from the settlement run as necessary before you process the run. For the United Kingdom, the settlement run date is the BACS processing date.
    Include Payments on Behalf of Other Companies
    Select to settle payment requests from other companies for these payments categories and make payments on behalf of other companies:
    • Cash advance payments
    • Expense credit card transactions
    • Expense reports
    • Miscellaneous payment requests
    • Supplier invoices
    Available companies are based on your intercompany profile. This option is unavailable if you're settling payments for a company hierarchy.
    If you specified on-behalf of other companies in a custom filter, select this check box as well.
    Exclude Negative Payments
    Select to exclude negative payments, such as unapplied credit adjustments, from processing in the settlement run.
    Workday groups all negative payments by company, payment category, and currency in a single row and marked as excluded in the
    View Settlement Run
     task.
    When you select this check box, Workday:
    • Excludes payroll reversal results from the settlement run.
    • Reverses taxes exactly as they were originally calculated and excludes them from the settlement run.
    Dynamic Supplier Payment Date
    Select the supplier payment date that you want to use for the settlement run.
    • When the supplier invoice discount date is in the past, Workday uses the supplier invoice due date as the payment date.
    • When the supplier invoice due date is in the past, Workday uses the settlement run date as the payment date.
    A settlement run can have supplier payments with different payment dates. The bank executes supplier payments based on the payment date, not the date when you send the payment file.
    Workday also groups supplier credit adjustments based on the payment date value you selected. You can select the
    Apply Supplier Credit Adjustments to First Payment Due
    check box on the
    Edit Tenant Setup - Financials
    task to automatically apply supplier invoice credit adjustments to the invoice payments during settlement. Workday nets pending credit memos against supplier invoices irrespective of their due dates.
    Workday immediately creates a draft settlement run with an auto-generated ID based on your tenant setup.
  3. Click
    Add
     to search for and select the unpaid open items and pending payments to include in the settlement run.
  4. Preview the payments that you've included in the settlement run.
    The
    Summary
     and other views display the payments to be generated. Workday combines payments for documents such as expense reports and supplier invoices, if applicable.
    If necessary, edit the details of the payment:
    • Click
      Edit
       to edit item details, such as the bank account, supplier payment dates, payment type, or to add a memo. You can remove open items from the payment.
    • Click
      Manage Payments
       to edit payment details, or remove payments from the settlement run. You can't remove payroll payments from pay groups.
    • Click
      Manage Exceptions
       to edit payments with exceptions such as a bank account that doesn't support a certain payment type. You can also remove payments with the exceptions.
  5. To view the selected items, click
    View Items
    .
    If your expense report payments include zero dollar expense reports, you can click
    Manage Zero Reimbursement
     to remove them from the settlement run.
  6. To settle payments for the unpaid open items and pending payments included in the run, click
    Process
    .
Workday launches the
Settlement Run Event
 business process and settles its unpaid open items and pending payments.
If you've configured remittance integration, Workday processes the file during the settlement run.
Once the settlement engine completes the payments, it generates the accounting entries associated with each payment and sends them to Workday financial accounting. If the ledger periods for the settlement run date are closed or in
Close in Progress
 status, payments are posted to the first available open ledger period. If an open ledger period isn't available, the status for the payment journal changes to
Error
.
After launching the settlement run, you can:
  • Approve the settlement run event.
  • For electronic payments:
    • Approve the payment release.
    • Complete and approve any additional
      Payment Release Event
       business process steps.
    • Upload payment acknowledgements for payments that have an
      Awaiting Acknowledgement
       payment status.
    • Verify that you delivered the payment integration files correctly.
  • For payments by check:
    • Complete the print checks tasks in
      My Tasks
       to initiate check printing when ready.
    • Complete and approve any additional
      Print Checks Task
       and
      Payment Printing Event
       business process steps.
To edit a draft settlement run, use the
Find Settlement Runs
 report. If necessary, change the
Settlement Run Name
 or
Payment Date
. The payment date is the date of the settlement that displays on checks and advices for payments included in the run. For electronic payments, the payment date is the date that you process the settlement run.