Concept: Payment Purpose Codes

Payment purpose codes enable you to configure standardized codes that indicate the nature or purpose of financial transactions, helping you to comply with bank or local regulatory reporting requirements.

You can configure different payment purpose codes for originating and receiving countries.

Purpose Codes on Payments

You can select originating and receiving country payment purpose codes on:

Ad hoc payments.

Bank account transfers for settlement.

Miscellaneous payment requests.

Supplier invoices.

Supplier invoice adjustments.

When you settle these transactions, Workday includes the selected payment purpose codes on the corresponding payment.

You can override the payment purpose codes at the time of settlement by accessing 1 of these tasks from the settlement run:

Edit Payments

Manage Payments

When you manually override payment purpose codes on supplier payments at the time of settlement, Workday retains the original code on the source invoice or adjustment.

Ad Hoc Payments and Bank Account Transfers for Settlement Templates

To reduce manual entry, you can configure payment purpose codes on:

Ad hoc payment templates.

Bank account transfer for settlement templates.

Default Codes for Suppliers and Supplier Remit-To Connections

You can configure default payment purpose codes on suppliers and supplier remit-to connections that Workday populates on supplier invoices and supplier invoice adjustments.

When you select a supplier on an invoice or adjustment, Workday populates the default remit-to connection, if defined for the supplier, and evaluates the originating and receiving country payment purpose codes independently based on this hierarchy:

Remit-To Connection and Supplier	Resulting Purpose Code
A remit-to connection with a default purpose code.	The purpose code on the remit-to connection.
Either: No remit-to connection. No default purpose code on the remit-to connection.	The purpose code on the supplier.
No default purpose code on either remit-to connection or supplier.	None.

When you change the supplier or remit-to connection on a transaction, Workday:

Removes the purpose codes from the transaction, including purpose codes that you select or override manually.

Populates new purpose codes based on the new selection and defaulting hierarchy.

When you:

Copy an invoice or convert an invoice to an invoice adjustment, Workday populates the fields based on the original document regardless of default purpose codes.

Convert a purchase order, receipt, or customer contract installment to a supplier invoice, Workday uses the default purpose codes for initial invoice generation.

Inactivate a default payment purpose code configured on a supplier or remit-to connection, Workday no longer populates the code when creating or editing a supplier invoice or invoice adjustment.

Payment Integrations

When you use the WPN – ISO 20022 V3 (Enhanced Performance) integration template, you can map the

Payment Purpose Code

integration attribute to output payment purpose code information in these sections:

Instructions for Debtor Agent

Regulatory Reporting

Unstructured Remittance