Account Posting Rules

Workday Education

Workday can automatically determine the credits and debits from business operations, and will automatically create operational journals behind the scenes for operational transactions. Operational journals use account posting rules to determine which ledger account to use for a specific operational journal. You edit these rules to specify the conditions and the ledger accounts to instruct Workday where to post debits and credits.

A vertical flowchart charts the accounting process flow from operational transactions through posting rules to the final ledger.

Workday automates the accounting resulting from business operations. Workday creates journals behind the scenes for operational transactions, and uses posting rules to interpret the business events into debits and credits and accounts. Operational journals use account posting rules to determine which ledger account to use for a specific operational journal. Each posting rule is for a specific operational transaction. Edit these rules to specify the conditions and the ledger accounts to instruct Workday where to post debits and credits.

When you build posting rules, you can assign the rule to a default ledger account or create conditions that transactions must meet to post to a specified account. If no conditions match, then Workday posts the transaction to the rule's Default Ledger Account. If there is no default ledger account and a transaction does not meet any of the conditions, Workday flags the operational journal as having an error.

The payables posting rule configuration screen shows the checked control account warning option and the default accounts payable ledger.

Conditions

Define Posting Rule Conditions to have Workday evaluate and post transactions' journals to specific ledger accounts based on whether the transaction meets select criteria.

For each condition, you select from a predefined list of dimensions that make sense for the transaction type. For certain dimensions, such as various types of groups and accounting categories, you are able to select from a list of values that you have defined.

Workday treats dimensions as an AND and values as an OR.

dimensions and values in a condition screen shot

An example of the Revenue posting rule shows you can create a rule condition that requires any transaction with a revenue category of Interest Income to post to the Interest Income account.

Screenshot of the Posting Rule Conditions table maps the Consulting Services ledger account to specific Company and Revenue Category dimensions.

Place posting rule conditions in order from most to least restrictive by using the Evaluation Order. Workday evaluates conditions from the top down, posting transactions to the ledger account associated with the first matching condition that it finds.

Example/Scenario/Business Case
: You post to Account A based on a combination of a specific instance of a company and specific instance of a cost center. You post to Account B based on the same instance of a company, the same instance of a cost center, and
an instance of a region. Place the latter, more restrictive condition first, otherwise, Workday posts journals for matching transactions to Account A, which would be the first match the Account Posting Rules find.

Multi-Purpose Rules

Posting Rule	Description	Journal Source
Cash	The cash posting rule identifies the cash account to use to record transactions impacting cash. Typically an asset account.	Customer Invoice Payment
Intercompany Payables	The intercompany payables posting rule identifies the account used to record the amounts due to another company. Typically a liability account.
Intercompany Receivables	The intercompany receivables posting rule identifies the account used to record the amounts due from another company. Typically an asset account.
Interworktag Payables	The interworktag payables posting rule identifies the account used to record the amounts due to another Balancing Worktag. Typically a liability account.
Interworktag Receivables	The interworktag receivables posting rule identifies the account used to record the amounts due from another Balancing Worktag. Typically an asset account.
Investment in Pool	The investment in pool posting rule identifies the account used to store a gift's book value. Workday will use it for pool share purchases and sales.
Investment Pool Activity	The investment pool activity posting rule identifies the account where Workday stores the FMV of an investment pool.
Realized Currency Gain	The realized currency gain posting rule identifies the account used to record the gain calculated when posting a multicurrency transaction that results in a realized gain. Typically a revenue account.
Realized Currency Loss	The realized currency loss posting rule identifies the account used to record the loss calculated when posting a multicurrency transaction that results in a realized loss. Typically an expense account.
Retained Earnings	The retained earnings posting rule identifies the account used to record the earnings retained by the company. Typically an equity account.
Transaction Tax	The sales tax posting rule identifies the account used to record tax on sales and purchase transactions. Depending on whether you collect or pay the tax, and if paying they are recoverable or not, it may be a liability, asset, or expense account.
Transaction Tax on Payment	The transaction tax on payment posting rule identifies the account used to record tax on the payment of sales and purchase transactions. Depending on whether you collect or pay the tax, and if paying they are recoverable or not, it may be a liability, asset, or expense account.
Translation Gain	The translation gain posting rule identifies the account used to display the gain calculated when creating a report that includes multicurrency translation. Typically an equity account.
Translation Loss	The translation loss posting rule identifies the account used to display the loss calculated when creating a report that includes multicurrency translation. Typically an equity account.
Unrealized Currency Gain	The unrealized currency gain posting rule identifies the account used to display the gain calculated when running a report that includes multicurrency revaluation. Typically an equity account or revenue account depending upon local GAAP.
Unrealized Currency Loss	The unrealized currency loss posting rule identifies the account used to display the loss calculated when running a report that includes multicurrency revaluation. Typically an equity account or expense account depending upon local GAAP.

Customer Accounts and Revenue Rules

Posting Rule	Description	Journal Source
Deferred Revenue	The deferred revenue posting rule identifies the account used to record the amount for goods and services billed but whose revenue is recognized later. Typically a liability account.
Discounts Given	The discounts given posting rule identifies the account used to record discounts given to a customer when accepting payment. Typically an expense account or contra income account.
Receivables	The receivables posting rule identifies the receivables account used to record customer payments due. Typically an asset account.
Receivables Write-off	The receivables write off posting rule identifies the account used to record customer write offs taken. Typically an expense account.
Revenue	The revenue posting rule identifies the account used to record the sale of an item. Typically an income account.
Unapplied On-Account Payments	The unapplied on-account payments posting rule identifies the account used to record customer payments that are on account. Typically a liability account.
Unapplied Recorded Payments	The unapplied recorded payments posting rule identifies the account used to record customer payments that are recorded but not yet applied, so they do not appear as part of the customer account balance yet. Typically a liability account.
Unbilled Receivables	The unbilled receivables rule identifies the account used to record the value of receivables before billing. Typically an asset account.
Undeposited Payments	The undeposited payments posting rule identifies the account used to record customer payments that have not yet been deposited into a bank account. Typically an asset account.

Supplier Accounts and Spend Rules

Posting Rule	Description	Journal Source
Discounts Taken	The discounts taken posting rule identifies the account used to record discounts taken when paying a supplier. Typically an income account or contra expense account.
Payables	The payables posting rule identifies the payables account used to record supplier payments due. Typically a liability account.
Prepaid Spend	The prepaid spend posting rule identifies the account used to record any expense prepaid to the supplier for an item. Typically an asset account.
Receipt Accrual	The receipt accrual posting rule identifies the account used to record the accrual for approved receipts that have not been invoiced by the supplier yet. Typically a liability account.
Spend	The spend posting rule identifies the account used to record the purchase of an item. Typically an asset account or expense account.
Spend Commitment	The spend commitment account posting rule identifies the account used to record the reservation for a spend commitment. Typically an equity account.
Spend Obligation	The spend obligation posting rule identifies the account used to record the reservation for a spend obligation. Typically an equity account.
Withholding Tax Payable	The withholding tax payable posting rule identifies the account used to record Withholding tax deducted at the moment of supplier invoice payment. Depending on your needs, you may select different ledger accounts for different tax codes.
Work in Progress	The work in progress posting rule identifies the accounts used to record the costs of in progress projects. Typically an asset account.

Business Asset Rules

Posting Rule	Description	Journal Source
Accumulated Depreciation	The accumulated depreciation posting rule identifies the contra account used to record depreciation. Typically an asset account.
Business Asset Accrued Liability	The business asset accrued liability posting rule identifies the control account used to record the accrued liability on registration of an asset sourced from a contract receipt. Typically a liability account.
Business Asset Disposal Donation	The business asset disposal donation posting rule identifies the account used to record the donation of a disposed asset. Typically an expense account.
Business Asset Disposal Gain	The business asset disposal gain posting rule identifies the account used to record the gain on a disposal of an asset. Typically an income account.
Business Asset Disposal Loss	The business asset disposal loss posting rule identifies the account used to record the loss on a disposal of an asset. Typically an expense account.
Business Asset Disposal Sale	The business asset disposal sale posting rule identifies the account used to record the consideration received (typically cash or a receivable) for the sale of a disposed asset. Typically an asset account.
Business Asset multi-book Settlement	The business asset multi-book settlement transactions are sourced in common book and have destinations in specific book codes. Typically an asset account.
Depreciation Expense	The depreciation expense posting rule identifies the account used to record depreciation. Typically an expense account.
Impairment	The impairment posting rule identifies the expense account used to record asset impairment.

Credit Card and Expense Report Rules

Posting Rule	Description	Journal Source
Credit Card Payable	The credit card accrual posting rule identifies the account used to record worker expenses recorded on an expense report that have been charged to a company credit card with corporate liability. Typically a liability account.
Expenses Advance	The expenses advance posting rule identifies the account used to record expenses advances paid out to workers, and requiring a future offsetting expense report or repayment. Typically an asset account.
Expenses Payable	The expenses payable posting rule identifies the payables account used to record expense payments due. Typically a liability account.
Expenses Payable to Supplier	The expenses payable to supplier posting rule identifies the account used to record an expense report payable to a supplier as opposed to a worker. Typically a liability account.

Payroll Rules

Posting Rule	Description	Journal Source
Payroll Commitment	The payroll commitment posting rule identifies the account used to record the reservation for a vacant position's compensation. Typically an equity account.
Payroll Deduction	The payroll deduction posting rule identifies the account used to record the deductions portion of Gross-to-Net payroll as well as deductions not impacting net pay. Typically a liability account.
Payroll Earnings	The payroll earnings posting rule identifies the account used to record the earnings portion of Gross-to-Net payroll. Typically an expense account.
Payroll Expense	The payroll expense posting rule identifies the account used to record the payroll expenses not impacting net pay. Typically an expense account.
Payroll Forward Accrual	The payroll forward accrual posting rule identifies the account used to offset the accrual of earnings and employer paid expenses that occurs when a pay period spans financial reporting periods. Typically a liability account.
Payroll Net Pay	The payroll net pay posting rule identifies the payables account used to record the net accumulation of Gross-to-Net payroll due to the employee. Typically a liability account.
Payroll Obligation	The payroll obligation posting rule identifies the account used to record the reservation for a filled position's compensation. Typically an equity account.

Facilities and Administration, Fringe Benefit, Labor Cost and Inventory Rules

Posting Rule	Description	Journal Source
Facilities and Administration Cost Expense	The facilities and administration cost expense posting rule identifies the account used to record facilities and administration expenses. Typically an expense account.
Facilities and Administration Cost Revenue	The facilities and administration cost revenue posting rule identifies the account used to record facilities and administration revenue. Typically a revenue account.
Fringe Benefit Commitment	The fringe benefit commitment posting rule identifies the account used to record the reservation for a vacant position's fringe benefits. Typically an equity account.
Fringe Benefit Expense	The fringe benefit expense posting rule identifies the account used to record fringe benefit charges to a worker's organization. Typically an expense account.
Fringe Benefit Obligation	The fringe benefit obligation posting rule identifies the account used to record the reservation for a filled position's fringe benefits. Typically an equity account.
Fringe Benefit Recovery	The fringe benefit recovery posting rule identifies the account used to record the recovery of fringe benefits. Typically a revenue account.
Inventory Adjustment	The Inventory Adjustment posting rule identifies the account to be charged with the change in inventory value when an adjustment is made to on-hand quantities. Typically an adjustment expense account
Inventory Cost Adjustment	The Inventory Cost Adjustment posting rule identifies the account to be used when a manual cost adjustment is done or when invoice price variance is to be written off. Typically an expense account.
Inventory Markup	The Inventory Markup posting rule identifies the account to be used by the sending entity when a markup is added on issued inventory. Typically an expense offset account.
Inventory Markup Expense	The Inventory Markup Expense posting rule identifies the account to be used in the receiving site for the item markup charged by the source inventory site.
Labor Cost Capitalization	The labor cost capitalization posting rule identifies the accounts used to record the capitalization of labor costs. Typically a contra-expense account.
Pool Holding	The pool holding rule identifies the account used for activity awaiting action in a pool.