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Administrator Guide
Last Updated: 2026-05-29
Create a Down Payment Invoice from a Purchase Order

Create a Down Payment Invoice from a Purchase Order

  • Configure the account posting rule:
    Down Payment for Supplier
    .
  • Configure the
    Supplier Invoice Event
     business process and security policy in the Supplier Accounts functional area.
  • If you intend to enable worktag balancing for your tenant, first post any open or inflight transactions to avoid any accounting impact. Note that you can’t add balancing worktags to transactions created before enabling this feature, only those created after. For optional balancing worktags, if transactions that are in progress no longer balance after you enable this feature, create adjusting journal entries. See Configure Worktag Balancing for the Tenant .
  • (Optional) Create a custom settlement filter for down payment invoices by selecting the
    Down Payment
     check box on the
    Create Settlement Run Custom Filter
     task.
  • (Optional) Update existing custom validations, custom reports, and business process steps to include or exclude down payment invoices.
Create a down payment for a purchase order for goods and services lines that you haven't used in a supplier invoice.
You can create non-taxable down payment invoices when worktag balancing is enabled in your tenant. When you process these down payment invoices and apply them to supplier invoices, Workday ensures the resulting operational and financial journals are appropriately balanced across different worktag dimensions. See 2026R1 Feature Release Note: Worktag Balancing for Supplier Invoice Down Payments.
  1. Access
    View Purchase Order
     and open the purchase order for which you want to create a down payment invoice.
  2. From the purchase order's related actions, select
    Down Payment
    Create
     to access the
    Create Supplier Down Payment Invoice
     task.
  3. Complete the
    Invoice Information
     section:
    Option Description
    Company
    The company responsible for the purchase order down payment.
    To invoice a supplier that is different than the purchase order supplier, select the company that has
    Allow Different Invoicing and Purchasing Supplier
     checked.
    Supplier
    Select the supplier for the down payment invoice. Workday displays only on hold or active suppliers that are available for use with the selected company or company hierarchy.
    To create a down payment invoice for a supplier that is different than the purchase order supplier, select the supplier that has
    Invoice Any Supplier
     checked.
    Remit To Connection
    Create supplier connections to remit invoices and payments to different supplier addresses, email addresses, and settlement bank accounts.
    Currency
    Workday automatically populates this field with the supplier currency, or the company currency, in that order of priority. You can change it to any of the accepted currencies defined for the supplier.
    For a down payment invoice created from the supplier portal or a purchase order, we populate the
    Currency
     from the purchase order.
    Invoice Date
    Enter the date on which you create the down payment invoice. If this supplier has defined payment terms, then the invoice date controls the due date.
    Example: If the payment terms are
    Net 30
    , the
    Due Date
     field is 30 days after the invoice date for the down payment. If the date falls within a closed period, Workday posts accounting to the next available period.
    Invoice Received Date
    Enter the date on which your company receives the purchase order from the supplier.
    You might want to track the date on which your company receives a purchase order for reporting purposes or to analyze the amount of time it takes to process a purchase order. The invoice received date provides a measurement of the efficiency in the organization, based on how long it takes from the time the invoice arrives until it's posted.
    Control Total Amount
    Enter an amount if you know what the total down payment invoice is and you want to ensure that the computed
    Total Invoice Amount
     matches your expectation.
  4. Complete the
    Terms and Taxes
     section:
    Option Description
    Payment Terms
    Specify the payment terms that you agreed to with your supplier.
    Discount Date
    Calculated automatically based on
    Payment Terms
     with a discount for early payment, and
    Invoice Date
    .
    Due Date
    Calculated automatically.
    Due Date Override
    Select a different due date if there’s an exception to the terms.
    Separate Payment
    Select to pay the invoice separately during a settlement run. You can populate this check box on all invoices for a supplier by selecting the
    Always Separate Payments
     check box in the supplier payment details or default remit-to connection.
    Default Payment Type
    If you select
    Credit Card
    , you can select the credit card of a worker from the
    Credit Card
     prompt.
    Override Payment Type
    Select a different payment type for the supplier.
    Reference Type
    If you select an international reference type, enter a
    Reference Number
     of up to 140 characters.
    Originating Country Payment Purpose
    Select a payment purpose code if the country sending this invoice payment requires a purpose code. This field displays when you enable Payment Purpose Codes on the
    Edit Tenant Setup - Financials
     task.
    Receiving Country Payment Purpose
    Select a payment purpose code if the country receiving this invoice payment requires a purpose code. This field displays when you enable Payment Purpose Codes on the
    Edit Tenant Setup - Financials
     task.
    Bank Routing Code
    Select a bank routing code mapped to a bank account from which to settle payments for your invoice.
    To enable the prompt, you must configure at least 1 bank routing rule that uses an active bank routing code. See Set Up Bank Routing Codes.
    Default Tax Option
    Workday automatically populates this value from the company accounting details.
    Workday automatically populates the tax option at the line from the header, but you can override it at the line level.
    To enable tax defaulting rules for invoices created from supplier invoice requests, enable company tax options for supplier invoice request invoices at the tenant level.
    • When the supplier invoice request doesn't specify taxes and the company default is the
      Calculate Tax Due to Supplier
       or
      Calculate Self-Assessed Tax
       option, Workday populates these fields at the supplier invoice line:
      • Tax Applicability
      • Tax Code
      • Tax Option
      • Tax Recoverability
    • When the supplier invoice request specifies taxes, Workday:
      • Populates the
        Enter Tax Due to Supplier
         option.
      • Doesn't populate the tax fields at the invoice line.
    Default Tax Code
    Workday automatically populates the default tax code from the supplier profile. If the supplier profile doesn't have a defined tax code or to override it, select a tax code.
    Workday automatically populates the tax code at the line from the header, but you can override it at the line level.
    Tax Amount
    If you selected to calculate tax, Workday displays the sum of the calculated tax amounts from the taxable lines, based on tax code you specify for each line. To override this calculated amount, you can change calculated tax by tax rate on the
    Tax
     tab.
    If you select to enter tax due to the supplier, enter the tax amount for the transaction. You must have at least 1 line with a tax applicability that is taxable and enabled for allocation.
    The tax allocated to the lines is only the nonrecoverable amount for the transaction and doesn't always add up to this header amount.
    If you enter a negative value, Workday allocates the tax amount to a negative or zero-cost line.
    Update Tax
    Select
    Update Tax
     if you update tax on an invoice line and want to recalculate the tax displayed in the header.
    If you update taxes on an invoice line, Workday automatically recalculates the header tax when you submit or save for later.
    If you use a third-party tax service integration, Workday hides the field to support tracking and reporting on third-party tax calculations. You can set up a third-party service integration on the
    Edit Company Tax Details
     task.
    When you create a down payment invoice from a purchase order or supplier contract, the invoice header amounts for landed cost equal the uninvoiced amounts from the purchase order or supplier contract.
    When you create a down payment invoice from a receipt, the invoice header amounts for landed cost equal the sum of allocations from received purchase order or supplier contract lines. Workday prorates the amounts based on receipt quantity or amount (including over-receiving).
  5. Complete the
    Invoice Reference Information
     section:
    Option Description
    Ship-To Address
    Workday uses this address when evaluating tax rules to determine tax code and tax applicability overrides for the transaction lines.
    Handling Code
    Select a payment handling code for this invoice, such as
    Hold Payment for Pickup
     or
    Overnight Payment
    . This field displays when you configure payment handling instructions.
    On Hold
    Select to hold payment on this invoice.
    Supplier Document Received
    Select if the supplier provided an invoice or other relevant document.
    Supplier's Invoice Number
    If you've received the supplier document, enter its reference number.
    Example: If the supplier provided a supplier invoice, enter the invoice number from the supplier document.
    By default Workday delivers duplicate validation enabled for this field. To validate against your own conditions, you can disable this option using the
    Tenant Setup - Financials
     task and then use the
    Maintain Custom Validations
     task to establish your own condition rules for supplier invoices.
    External PO Number
    If you use a procurement system other than Workday, enter the purchase order number.
    Referenced Invoices
    Select existing invoices to create a header-level reference.
    Statutory Invoice Type
    If you use invoice types to categorize your supplier invoices in compliance with government requirements, select an invoice type.
    Document Link
    If you store your document images in an external repository, enter the URL to that image location instead of including the image as a file attachment. Once saved, Workday displays the URL as a live link to the image. Each link must begin with one of the valid URL patterns as defined by your security administrator, or Workday doesn’t allow the link.
    Memo
    When you print a check for payment of this supplier invoice, the value that you enter here prints in the
    Memo
     field of the check. Select the
    Use Invoice Memo
     option in
    Default Supplier Payment Memo
     for the supplier.
    Use the
    Create Supplier
     or
    Create Supplier Change
     task to configure the invoice memo. If more than 1 invoice for the check to the supplier has a memo, Workday concatenates the memos on the check.
    Approver
    Select a designated approver to review and approve the supplier invoice.
    To set up a designated approver, add the related Supplier Invoice Designated Approver security group to the
    Supplier Invoice Event
     business process security policy.
  6. In
    Down Payment Details
    , click the
    Down Payment
     check box to enter down payment lines.
  7. On the
    Down Payment Line
     tab, add lines and provide details for lines you select from other business documents.
  8. Use the
    Tax
     tab to review a summary of all the tax codes and their applicability as specified on the invoice lines.
    If several lines share the same tax, this tab consolidates them and totals the amount with this tax.
  9. (Optional) As you complete the
    Currency Rate
     tab, consider:
    For foreign currency invoices, you can make adjustments to achieve a different conversion rate. Any changes you make on the
    Currency Rate
     tab register in the
    Effective Currency Rate
     field, that displays the rate used for accounting to convert installment amounts to ledger currency. Any overrides that you enter trigger the selection of the
    Rate Override
     check box.
    Option Description
    Currency Rate Type Override
    Select an option to override the default rate type used to look up the exchange rate.
    Currency Rate Date Override
    Select a date to override the default rate date used to look up the exchange rate.
    Currency Rate Manual Override
    Enter a currency rate to override the exchange rate or provide a rate when a default rate isn't available.
    Defaults
    This section displays the tenant default currency rate based on the invoice date.
  10. Use the
    Attachments
     tab to upload or drag and drop files, such as purchase order down payment supporting documents.
    Workday supports the file types listed in the
    Edit Tenant Setup - System
     task for business document attachments.
    You can associate purchase order down payment attachments with customer invoices for billable transactions.
  11. Use the
    Work Queue Information
     tab to add
    Work Queue Tags
    ,
    Work Queue Notes
    , and other details that will display for the invoice in the
    Supplier Invoice Work Area
     report.
    To view the
    Work Queue Information
     tab, configure these security domains:
    • Process: Supplier Invoice Work Queue
    • Manage: Supplier Invoice Work Queue
  12. Submit
     the purchase order down payment for approval.
Workday initiates the
Supplier Invoice Event
 business process for review and approval. If the business process definition includes an approval step, reviewers can modify the purchase order down payment before they approve it.
  • To view the list of Workday-provided reports and their descriptions, access
    Workday Standard Reports
     report, and select the
    Supplier Accounts
     option.
  • To pay approved down payment invoices, suppliers must be in active status.
  • Settle the approved down payment invoices. The settlement process creates and settles the invoiced payments. When the process completes, Workday updates the accounting entries for each payment.