Concept: Pay On-Demand Accounting

You can configure accounting for pay on-demand earning and pay on-demand offset deduction either as a direct expense or a payroll advance using these tasks:

Assign Costing Allocation

- specify costing instructions for the Pay On-Demand earning across cost centers, projects, grants, locations, or other costing dimensions.

View Account Posting Rule Set

- edit account posting rules for Payroll Earning
and Payroll Deduction
to direct where pay on-demand transaction journals post to ledger accounts.

You can configure accounting for pay on-demand earning and pay on-demand offset deduction as a payroll advance using the

View Account Posting Rule Set

task. Edit account posting rules for Net Advance
to direct where pay on-demand transaction journals post to ledger accounts.

Direct Expense

When you set up pay on-demand as a direct expense, you can charge the gross, employer taxes, and fringe to the worker’s standard costing assignments. The pay on-demand payments completed in a pay period reduce the associated on-cycle gross.

Payroll Advance

When you set up pay on-demand as an advance, the gross becomes a receivable. You can charge the gross, employer taxes, and fringe to the worker’s standard costing assignments. The associated on-cycle gross reverses the receivable.

When you set up pay on-demand as an advance, the net becomes a receivable. You can charge the net to the worker's standard costing assignments. The associated on cycle net recovery reverses the receivable.

Example

Diana works at the public safety department as a student intern. The gross salary is 2000. Diana makes a pay on-demand request of 200 during the biweekly pay period 2020-08-03 to 2020-08-16.

As a payroll administrator, you can use direct expense or payroll advance method:

Accounting Method	Cost Center	Account Posting Rule	Pay Component	Ledger
Direct Expense	Public Safety	Payroll Earning	Pay On-Demand	6000: Salaries and Wages
	Public Safety	Payroll Deduction	Pay On-Demand Offset	6000: Salaries and Wages
Payroll Advance	Benefits	Payroll Earning	Pay On-Demand	Payroll On-Demand Advance Receivable
	Benefits	Payroll Deduction	Pay On-Demand Offset	Payroll On-Demand Advance Receivable

When you complete payroll for the pay on-demand request for the pay period 2020-08-03 to 2020-08-16, Workday calculates gross-to-net amounts as:

Gross	200
Deductions Tax	50
Net Pay	150
ER Taxes	15

For on-cycle, Workday calculates gross-to-net amounts as:

Gross	2000
Pay On-Demand Offset	200
Deductions Tax	250
Deduction Voluntary	100
Net Pay	1450
ER Taxes	150
ER Benefits	800

As a payroll administrator, you can use the payroll advance method:

Accounting Method	Cost Center	Account Posting Rule	Pay Component	Ledger
Payroll Advance	Benefits	Payroll Earning	Pay On-Demand	Payroll On-Demand Advance Receivable
	Benefits	Payroll Deduction	Pay On-Demand Offset	Payroll On-Demand Advance Receivable

When you complete payroll for the pay on-demand request for the pay period, Workday calculates the net advance as:

Gross	250
Statutory taxes	50
Previous requests	50
Percent to withhold	60
Net Pay	90

For on-cycle, Workday calculates gross-to-net amounts as:

Gross pay	2500
Statutory deductions	550
ER benefits	50
Voluntary deductions	50
Pay On-Demand Recovery	90
Net pay	1760

To view journal entries, drill into the worker's Pay On-Demand
payroll result type and click

Actuals

For direct expense, Workday uses the 6000: Salaries and Wages
ledger account to post the credits and debits.

For payroll advance, Workday uses the Payroll On-Demand Advance Receivable
ledger account to post the credits and debits.

You can:

Run the

Payroll Accounting by Period/Pay Group

report to view all accounting transactions for a specific pay period or pay group.

Access the

Edit Earning and Employee Deduction Cost Allocations

task to edit cost allocations for earnings and deductions.

2023R1 What's New Post: Pay On-Demand

定義員工的成本分配

Set Up Account Posting Rules