Create a Down Payment Invoice from a Supplier Invoice

Administrator Guide

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 the 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 invoice for goods and services lines from a purchase order that you use 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.

Access the

Create Supplier Down Payment Invoice

task.

Complete the

Invoice Information

section:

Option	Description
Company	The company responsible for the invoice 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 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 down payment invoice from the supplier. You might want to track the date on which your company receives an invoice for reporting purposes or to analyze the amount of time it takes to process a supplier invoice down payment. 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.

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. See Steps: Set Up Payment Purpose Codes.
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. See Steps: Set Up Payment Purpose Codes.
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 uses this value to populate the tax option on down payment invoice lines. You can't enter default tax options when you enable third-party tax. Workday doesn't support third-party tax on down payment invoices. See Concept: Third-Party Tax Service Integrations.
Default Tax Code	Workday populates the default tax code from the supplier profile, and uses this value to populate the tax code on down payment invoice lines. You can select a different value. You can't enter default tax codes when you enable third-party tax. Workday doesn't support third-party tax on down payment invoices. See Concept: Third-Party Tax Service Integrations.
Tax Amount	When you choose to use Workday to calculate tax, Workday displays the sum of the calculated tax amounts from the taxable lines, based on tax codes you specify for each line. To override the tax amount calculated by Workday, you can change values in the Tax by Tax Rate column on the Tax tab. When you choose to enter tax, you can 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.
Update Tax	Click to recalculate tax amounts displayed in the header after you update tax on down payment invoice lines. Workday automatically updates tax when you submit or save for later. Workday disables the button when you enable third-party tax. Workday doesn't support third-party tax on down payment invoices. See Concept: Third-Party Tax Service Integrations.

When you create a supplier invoice down payment 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 an 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).

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: 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 invoice down payments 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 down payment. To set up a designated approver, add the related Supplier Invoice Designated Approver security group to the Supplier Invoice Event business process security policy.

Down Payment Details

, Workday selects the

Down Payment

check box if the invoice is a down payment invoice. This enables you to enter down payment lines.

On the

Down Payment Line

tab, add lines and provide details for down payment lines you select from other business documents.

Option	Description
Spend Category	Select a spend category to apply the down payment line to all items in that category. Note: You can include a spend category with asset tracking on your down payment line. This will display a business asset on the line, however the asset will be excluded from asset registration and no accounting associated to trackable spend categories will be generated.
Ship From	Workday only displays this prompt when you enable bill-from and ship-from address options on the Edit Customer Account Options task for the invoice company. Workday automatically populates the Ship-from address when the company's primary address is currently in use for shipping.
Tax	Enter an optional tax applicability and tax code for the down payment line. On down payment invoices, Workday doesn't support: Withholding tax. Third-party tax.
Down Payment Amount	Enter the down payment amount. This amount is the same as the Extended Amount for a regular supplier invoice.
Memo	Enter an optional memo.
Worktags	You can select a worktag cost center to apply to the down payment line. Note: Grants-related worktags are not supported.

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.

(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.

Use the

Attachments

tab to upload or drag and drop files, such as supplier invoice down payment supporting documents.

Workday supports the file types listed in the

Edit Tenant Setup - System

task for business document attachments.

You can associate supplier invoice down payment attachments with customer invoices for billable transactions. When a supplier invoice down payment is ready to be billed, we prevent you from changing attachments on the supplier invoice down payment.

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

Submit

the supplier down payment invoice 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 supplier invoice 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.