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Administrator Guide
Last Updated: 2025-10-03
Create a Non-PO Supplier Invoice

Create a Non-PO Supplier Invoice

  • Configure the
    Supplier Invoice Event
     business process and security policy in the Supplier Accounts functional area.
  • To create non-PO supplier invoices in the Supplier Invoice Workbench, set up Security:
    Process: Supplier Invoice - Invoice Workbench
     domain in the Supplier Accounts functional area.
You can create a supplier invoice that isn't based on a purchase order. These are sometimes referred to as standalone supplier invoices, or non-purchase order transactions. You can enter details about the invoice, the payment terms, and taxes. You might need to record a standalone supplier invoice for utility payments, tax liabilities, and other scenarios.
  1. (Optional) Access the
    Edit Company Accounting Details
     task , and select the
    Supplier Invoice
     option from the
    Allow Accounting by Approval Date
     prompt to use the approval date as the accounting date on your customer invoices and adjustments or to order document sequence numbers by accounting date.
    Security:
    Set Up: Company Accounting
     domain in the Common Financial Management functional area.
  2. Access the
    Create Supplier Invoice
     task.
    Access the
    Supplier Invoice Workbench
     task.
  3. As you complete the
    Invoice Information
     section, consider:
    Option Description
    Company
    Select the company responsible for invoice payments.
    Supplier
    Select from the suppliers that are available for use with the selected company or company hierarchy.
    Remit-To Connection
    If the supplier has a default remit-to connection, it displays in this field. You can update the default as needed.
    Currency
    Defaults to the preferred currency of the supplier if specified on the supplier; otherwise, it's the company currency. You can change the currency to any of the accepted currencies defined for the supplier.
    Invoice Date
    If you've defined payment terms for this supplier, the Invoice Date controls the due date.
    Example: The payment terms are
    Net 30
    . The
    Due Date
     will be 30 days after the invoice date. If the date is in a closed period, Workday posts accounting to the next available period.
    Accounting Date Override
    Enter a datein an open accounting period.
    This field displays when you enable
    Allow Accounting in Arrears
     for
    Supplier Invoice
     on the
    Edit Company Accounting Details
     task. Depending on how you configure the company accounting, Accounting Date Override might be optional or required.
    Example: You provide a service, but don't create the invoice until the next accounting period, so youselect the service date as the accounting override date.
    Control Total Amount
    Enter an amount if you know what the total invoice is and you want to ensure that the computed
    Total Invoice Amount
     matches your expectation.
    Freight Amount
    Other Charges
    Allocate these landing costs from the transaction header back to the lines. Add a spend category that's eligible for allocation of freight and other charges to at least 1 line, as set up on the
    Maintain Spend Categories
     task.
    Example: You purchase a large piece of equipment and have 1 line for the equipment itself and another for installation.
    Landed Costs in Tax
    Select to include the
    Freight Amount
     and
    Other Charges
     amounts in the total tax calculation. To include these amounts you must also:
    • Select a
      Default Tax Option
       of either
      Calculate Self-Assessed Tax
       or
      Calculate Tax Due to Supplier
      .
    • Include 1 or more invoice lines with a
      Spend Category
       configured to allocate freight, other charges, or both.
    • Configure a
      Tax Applicability
       for those lines that is taxable.
    Access the
    Edit Supplier Account Options
     task to select the check box by default when you create invoices for specific companies.
  4. As you complete the
    Terms and Taxes
     section, consider:
    Option Description
    Payment Terms
    You can change the terms.
    Discount Date
    Calculated automatically based on
    Payment Terms
     that have a discount for early payment, and
    Invoice Date
    .
    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.
    Override Payment Type
    Select a payment type if there’s an exception to the terms.
    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 populates:
    • This value from the company accounting details.
    • he tax option at the line from the header, but you can override it at the line level.
    Workday automatically populates
    Default Tax Code
    Workday populates the default tax code from the supplier profile. If the default tax code isn't set up or to override it, select a tax code.
    Workday populates the tax code at the line level from the header, but you can override it.
    Default Withholding Tax Code
    Workday populates the default withholding tax code from the supplier profile. If the default withholding tax code isn't set up or to override it, select a withholding tax code.
    Workdaypopulates the withholding 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.
    Withholding Tax Amount
    Workday calculates the withholding tax from the invoice lines when tax amounts have a realization point at invoice time.
    This total doesn't include tax amounts that have a realization point at time of payment. To override this calculated amount, you can change calculated tax by tax rate on the
    Tax
     tab.
    Update Tax
    Click to recalculate the tax displayed in the header when you update tax on an invoice line.
    Workday also recalculates the header tax automatically when you submit or save for later.
  5. Enter details in 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.
    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 receive the supplier document, enter its reference number.
    Example: If the supplier provided a supplier invoice, enter its invoice number.
    Duplicate validation is automatically enabled for this field. To validate against your own conditions, you can disable this option using the
    Edit 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.
    Supplier Contract
    Select a contract if the company and supplier on the contract match the invoice. Workday subtracts the invoice amountfrom the remaining contract balance after the supplier invoice is approved.
    Document Link
    If you store your document images in an external repository, enter the URL for thatlocation instead of including the image as a file attachment.Workday displays the image, or the URL as a link to the image. Each link must begin with a valid URL patternas defined by your security administrator.
    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.
  6. As you complete the
    Invoice Lines
     tab, consider:
    Option Description
    Company
    Defaults to the company to which the supplier invoice belongs. If the company allows intercompany transactions, you can select from the options included in its intercompany profile.
    Item
    For new lines, select the item.
    Spend Category
    The spend category links items to corresponding accounting posting rules and provides additional details for reporting. If you select an item, Workday populates the spend category assigned to the item and you can't change it.
    The spend category for the invoice line requires the
    Supplier Invoice
     spend category usage type.
    Tax Applicability
    If the line is taxable select its recoverability. You can use tax applicability to filter transactions in reporting. Workday populates the options from the item-specific tax rule based on ship-to address, first by purchase item and then by spend category. If there's no match, it automatically populates from the purchase item. Otherwise, it automatically populates from the spend category.
    Tax Code
    If the item is taxable, the code populates from the
    Default Tax Code
     on the header, which you can override.
    To set up defaulttax codes, use the
    Create Transaction Tax Rule for Country
     task.
    Withholding Tax Code
    The codepopulates from the
    Default Withholding Tax Code
     on the header, which you can override.
    Tax Point Date Type
    Select the type of tax point date for the invoice line and specify a tax point date if the type is
    Goods/Service Delivery Date
    . Workday populates tax point date type with
    Invoice/Adjustment Date
     unless you select the
    VAT on Payment
    check box for a company. If you select the
    VAT on Payment
     check box on the
    Edit Company Tax Details
     task, Workday sets the tax point date type as
    Payment Date
    .
    Tax Point Date
    When you select
    Goods/Service Delivery Date
     for the tax point date type, you must enter a tax point date.
    Tax Recoverability
    Workday automatically populates the recoverable percentage on the transaction line based on the specified tax applicability and tax code. You can override this selection. When you specify the tax recoverability, Workday applies the recoverable percentage and the allocation method to the tax amount for tax rates within a tax code.
    Use the
    Maintain Tax Recoverabilities
     task to specify the tax recoverability of multiple tax rates for each tax code.
    Tax Option
    Select
    Calculate Self-Assessed Tax
     when suppliers or payees don't charge tax. This option enables you to post your tax liability to a separate ledger account. Otherwise, select
    Calculate Tax Due to Supplier
     to post the tax payment made to the supplier or payee.
    Quantity
    • For goods lines, enter the number of items.
    • For service lines, Workday sets the quantity to zero.
    Unit Cost
    Based on the selected item. If the currency for the
    Item
     and invoice differ, Workdayconverts this value to the invoice
    Currency
    . Workday uses the current currency conversion rate between the 2 currencies as defined for the default currency rate type (which is part of tenant setup).
    For service lines, the unit cost is always zero.
    Extended Amount
    • For goods lines,
      Quantity
       times
      Unit Cost
      . If you change the
      Extended Amount
      , Workday recalculates the
      Unit Cost
      . If you change the
      Unit Cost
      , Workday recalculates the
      Extended Amount
      .
    • For service lines, Workday populates the
      Extended Amount
       automatically. You can modify the
      Amount to Invoice
       as needed.
    Worktags
    Use worktags as keywords to more easily classify and find transactions. Configure the allowed worktag types on the
    Maintain Worktag Usage
     task. When you select a worktag type that has related worktags, Workday automatically populates transactions with the related worktag values.
    Billable
    Displays when the invoice line includes a billable project worktag. Select when the line or split is billable to the project.
    This check box doesn't impact accounting if you include it as a dimension in account posting rule conditions.
    Prepaid
    Select to prepay this line.
    Workday automatically checks
    Has Prepaid Line(s)
     in the
    Prepaid Details
     tab after you select prepaid lines.
    Spend categories for prepaid lines must be either:
    • Nontrackable.
    • Trackable with the
      Expense
       accounting treatment.
    When tax isn't allocated on a prepaid line, it isn't included in the prepaid accounting in related invoices. Instead, it uses the
    Transaction Tax
     account posting rule.
    Splits
    Click to split lines by
    Amount
     or
    Quantity
    . You can then specify the amounts or quantities for the split, enter a memo, and select specific worktags for each line split.
    You can split service lines by amount only.
  7. Use the
    Tax
     tab to review the tax codes and their applicability as specified on the invoice lines.
    If several lines share the tax, this tab consolidates them and totals the amount with this tax.
  8. To set up prepaid supplier spend, access the
    Prepaid Details
     tab and select a
    Prepaid Amortization Type
    :
    Option Description
    Manual
    Select to manually amortize the prepaid spend amortization on a future date. Optionally enter the
    Expected Amortization Date
    .
    You can use the
    Expected Amortization Date
     for reporting and to create custom alerts, but Workday doesn't validate against this date.
    Manual prepaid amortization type payments must be settled and paid before you can amortize spend.
    Schedule
    Specify to define a schedule for amortizing prepaid spend from installments on a prepaid supplier invoice amortization schedule.
  9. Use the
    Attachments
     tab to upload or drag and drop files, such as supplier invoice supporting documents.
    Workday supports the file types listed in the
    Edit Tenant Setup - System
     task for business document attachments.
  10. Click
    Submit
    .
    Workday creates the supplier invoice when you submit or save. The invoice number displays toward the top.
  • 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 before they approve it.
  • When you view the transaction:
    • Line Details
       display the accounting distribution of any landed cost amounts allocated from the header to the lines and the total
      Gross Amount
       (net extended amount plus allocated tax, freight, and other charges). Workday uses the gross amount for:
      • Debit entry of spend accounting.
      • Receipt accruals.
      • Budget checking of spend transactions.
      • Default acquisition cost during asset registration.
    • The
      Tax
       tab displays the recoverable percent and distribution of recoverable and nonrecoverable tax amounts based on the:
      • Tax applicability.
      • Tax code.
      • Taxable amount.
  • Workday automatically creates operational journals in the company currency for approved transactions. If the transaction and company currencies differ, Workday converts the amounts to the company currency.
  • When the
    Supplier Invoice Event
     business process completes, Workday processes accounting for supplier invoices:
    • Non-prepaid lines use the
      Spend
       account posting rule.
    • Prepaid lines use the
      Prepaid Spend
       account posting rule.
  • Use the
    Find Supplier Invoices
     report to access and update existing invoices that you save or submit.
If you selected
Schedule
 as the prepaid amortization type, access
Create Prepaid Spend Amortization Schedule
 from the related actions menu of the supplier invoice to create the schedule and generate spend amortization installments.