Steps: Set Up Accounting for Inventory

Define the

Inventory Cost Adjustment

business process related to inventory accounting.

Select the

Opt In To Feature

option for the

Support Inventory Site Time Zone for Inventory Accounting Date

feature.

Define worktags for:

Inventory Location
: Assign worktags used in accounting entries for transactions in the inventory location.
Inventory Issue
: Assign worktags to enter on the issue transaction and for debit accounting entries on goods issued.
Inventory Ad-Hoc Put-Away
: Assign worktags to enter on the ad hoc put-away transaction and for credit accounting entries on ad hoc put-aways.

Security:

Set Up: Enable Worktags

domain in the Common Financial Management and Worktags functional areas.

Configure these account posting rules:

Inventory Adjustment
Inventory Cost Adjustment
Inventory Markup
Inventory Markup Expense
Spend

Security:

Set Up: Accounting Rules
domain in the Common Financial Management functional area.
Set Up: Company Accounting
domain in the Common Financial Management functional area.

Select how to account for excess variance:

Option	Description
Excess variance is written off	When the on-hand quantity is less than the invoice quantity, Workday only applies the price difference to the on-hand quantity, and writes off the remainder. To calculate the new average cost, Workday takes the (( Unit Cost Variance multiplied by the Quantity On Hand ) plus the ( On-Hand Quantity multiplied by the Average Unit Cost )) divided by the On-Hand Quantity .
Excess variance is applied to current on-hand quantity	To calculate the new average cost, Workday takes the ( Total Variance plus the ( On-Hand Quantity multiplied by the Average Unit Cost )) divided by the On-Hand Quantity .
Allow Invoice Receipt Accrual Write Off - Final Invoice and Put-away Variance	Select this option to: Perform an additional check for receipt accrual variances. Automatically write off any remaining accrual balances to your configured account after the final invoice submission for the purchase order. Example: Use this option to write off any remaining receipt accrual balances for purchase order (PO) lines that have a change in unit price after any quantity of items are put-away at the original cost of the PO, and an invoice is created after the entire PO is fully put-away. Use the Inventory Cost Adjustment account posting rule to define the general ledger account that captures receipt accrual variances during final invoice posting.

Set the

Inventory Count Default Accounting Date

option. Workday uses this option as the accounting date for the count sheet. Select either the adjustment date or the date that a worker starts the count (

Count Start Date

). When you have an open count transaction, you can't edit these settings. When you select the

Allow Override of Inventory Accounting Date

check box, Workday displays an

Inventory Accounting Date

prompt on inventory count sheets. You can change the accounting date for your cycle count adjustments.

Select the

Allow Intercompany Issue

check box to use issue transactions to move goods between companies and track the associated transfer of cost. When you select this option, a

Requester Company

prompt is configurable on the

Quick Inventory Issue

task.

Security:

Set up: Inventory Accounting

domain in the Inventory functional area.