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Administrator Guide
Last Updated: 2024-12-13
Concept: Multiyear Commitments (CAN, USA)

Concept: Multiyear Commitments (CAN, USA)

Multiyear Commitment Processing
When you run commitments, Workday calculates both the base fiscal year and future fiscal years.
Future year commitments post in the ledger associated with the base fiscal year (accounting date), with the budget date indicating the period or subperiod end date.
Workday includes future year commitments in commitment adjustments.
Workday performs budget checking for the budget year that contains the business process event date.
Closing Multiyear Commitments
When you close the base fiscal year, Workday:
  • Liquidates any previously unliquidated commitment transactions for the base fiscal year and future fiscal years.
  • Prevents further commitment adjustments for the year.
Liquidating Multiyear Commitments
When you run the close and liquidation process, Workday:
  • Creates liquidation entries for all previously unliquidated commitments and obligations in the base fiscal year and for all future fiscal years.
  • Liquidates the closed base fiscal year so debit and credit totals are zero.
Liquidations include:
  • Future year transactions.
  • All liquidation journals with a Created status.
When the final pay period of a fiscal year crosses into the next fiscal year, and you have fiscal year proration configured, Workday prorates the obligation and commitment balances:
  • For the current fiscal year, Workday creates a sub-period that begins on the pay period start date and ends on the fiscal year end date.
  • For the following fiscal year, Workday creates a sub-period that begins on the fiscal year start date and ends on the pay period end date.
When you complete payroll for the final full pay period of the current fiscal year, Workday prorates and liquidates the amounts in the first sub-period at the end of the fiscal year.
Liquidation Status Updates
  • During the liquidation process, the liquidation journal status updates to In Progress.
  • A successful liquidation update the liquidation journal status to Posted and the base fiscal year status to Closed.
  • Liquidations in error update the liquidation journal status to Error.
Liquidation Errors
Liquidation errors are commonly caused by missing:
  • Balancing dimensions.
  • Ledger accounts.
  • Ledger periods.
Error Correction
When you encounter an error during closing, correct the problem and then restart the close. To correct:
  • Journals in error, access the
    Fix Operational Journals with Errors
     task.
  • Missing accounts, add the missing account using the
    Create Account Posting Rule Set
     task.
  • Missing open ledger periods, set the base fiscal year status to Open.
  • Payroll commitment adjustments in
    Created
     status, wait until the closing process fully completes.
  • Incomplete final payroll periods for the year (last payroll end date that falls within the fiscal year) wait until the closing process completes. Complete all payroll periods with an end date within the base fiscal year before closing.
Real-Time Budget Check
When you run a business process, such as
Request Compensation Change
, you can run the
Real Time Budget Check
 business process to see any budget impacts on your multiyear commitments.
  • When 1 base fiscal year is open and the business process effective date is within it, Workday checks only that year.
  • When 2 base fiscal years are open, Workday checks only the one that includes the business process effective date.
Future Fiscal Years in Reports
Workday includes future fiscal years in:
  • Commitment reports, such as the
    Payroll Commitments by Company and Fiscal Period
     report.
  • Budget reports.