Concept: Payroll Third-Party Payments Accounting

Workday generates payroll third-party payment journals after you process payroll third-party payments during a settlement run. Workday displays the journal on the

Payroll Third-Party Payment

tab on a worker's payroll result.

Workday creates a singular journal or an aggregated journal based on how you configure the

Always Separate Payments

check box on the deduction recipient:

When selected, Workday creates a singular journal that includes the payment to the deduction recipient for a worker.

When cleared, Workday creates an aggregated journal that includes all associated payments for that deduction recipient in 1 journal and 1 payment.

You can filter the

Find Journals

and

Find Journal Lines

reports for payroll third-party payments by using the

Journal Source

filter and selecting

Payroll Third-Party Payments

In the payroll third-party payment journals, realized gain displays in the

Ledger Credit Amount

column and realized loss displays in the

Ledger Debit Amount

column.

You can close the ledger period for payroll third-party payments when a journal posts. You can't close the ledger period if the payroll result status is In Progress.

You can use the

Fix Operational Journal with Errors

task on payroll third-party payments journals, if necessary.

Supported Functionality

When configured, the payroll third-party payments journals supports these accounting functions:

Cancel Payments

Escheatment

Intercompany Accounting

Journal Summarization

Operational Journal Reversals

Return Payments

Worktag Balancing - Workday supports inherited and specified worktag balancing for both primary and optional worktags when you generate payroll third-party payments with realized gain/loss.

Multi-currency scenarios - You can enter conversion rates for multi-currency scenarios using the

Maintain Currency Conversion Rates

task. In addition, you can use the

FRE Currency Conversion Rates

report to view the current rates.

Note

: Multi-currency scenarios are not supported with intercompany accounting.

Account Posting Rules

You can find Deduction Recipient as a Dimension on:

Payroll Deduction account posting rules.

Payroll Expenses account posting rules.

Journal Summarization configuration.

This is useful when you have configured multiple deduction recipients and want to allocate each to different accounts.

To allocate all Payroll Third-Party Payment journals to an account, regardless of deduction recipient,use the

Payroll Journal Source

Dimension, with

Payroll Third-Party Payment

as an associated value. You can do so when editing these account posting rules:

Payroll Deduction

Payroll Earnings

Payroll Expense

Fringe Benefit Expense

Fringe Benefit Recovery

Cash Account Posting Rules

For more information, see Set Up Account Posting Rules.

Steps: Set Up Payroll Accounting

Setup Considerations: Payroll Accounting

2024R1 What's New Post: Payroll Third-Party Payments