Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2026-02-20
Allocate Statement of Work Budgets Using Charge Codes

Allocate Statement of Work Budgets Using Charge Codes

Select the
Enable SOW Budget Allocation
 check box in
Company Settings
. See Set Up Statement of Work Settings.
Statement of work (SOW) managers can use the budget allocation feature to distribute a total SOW budget among specific charge codes. On a SOW's
Charge Codes
 tab, you can set an allocated amount for each code. You must fully allocate the budget on this tab in order for the SOW to become active.
If you use this feature and have also selected the
Enable payment allocation between multiple charge codes for Fixed Price/Milestone Payments
 check box in
Company Settings
, users will only be able to select the charge codes that you set on the SOW's
Charge Codes
 tab when creating or editing a fixed price or milestone payment, and you can’t exceed the set budget. See Set Up Statement of Work Settings.
Note that the budget allocation feature only applies to SOWs that are created after you select the
Enable SOW Budget Calculation
 check box in
Company Settings
. Previously created SOWs aren't impacted.
  1. From the header, select
    Statement of Work
    Statement of Work
    .
  2. Click
    New SOW
     and complete the workflow to create a new SOW.
  3. Select the
    Charge Codes
     tab on the newly created SOW.
  4. Enter the charge code details.
  5. (Optional) Click
    Add Another
     and enter the charge code details until all charge codes have been added.
  6. Enter an
    Allocated Amount
     of the SOW budget to each
    Line Item
    .
If the total budget for the SOW is $15,000, an SOW manager might choose to allocate the budget in this way:
  • Charge Code A can have up to $7,000 approved against it.
  • Charge Code B can have up to $5,000 approved against it.
  • Charge Code C can have up to $3,000 approved against it.
When an SOW manager approves the payment, Workday VNDLY checks the remaining budget on the charge codes selected on the payment. If there are not enough funds left to cover the payment, the approver sees an error, and must either:
  • Select different charge codes to assign to the payment.
  • Create a change order to allocate more funds to the charge codes.