Customer Invoices

All customers must have one, and only one, customer category. You will also use customer categories when selecting or searching for customers. You can use Customer Category with the receivables account posting rule to determine the accounts receivable ledger account to book.

Customer Groups is an optional grouping functionality used for reporting and searching within your customer base. After creating a customer group, you can assign your customers to the group when creating a new customer or when editing an existing customer. You can include each customer in multiple groups. For example, you can create groups for customer industries, localities, salespersons, or account reps, and the same customer can be in each of those groups.

In Workday, you can create and manage customers. Workday considers customers to be a type of business entity. Thus, you can create new customers from scratch or enable an existing business entity to be a customer, such as a supplier, financial institution, or tax authority. Workday allows you to create and manage customer data and take advantage of instant customer flash profiles for up-to-the-minute information, including: total revenue, most recent sales, and current receivable aging. You can also restrict a customer by companies to improve transaction processing.

Use hierarchies to define parent-child relationships between customers. By defining these relationships, you can generate reports based on parent-child relationships (e.g., rolling up child activity to report on totals for parent). Workday can also support application of a payment from a parent to invoices of a child, and vice versa.

Customer worktags default to customer transactions. Each customer can have multiple worktags. Assigning worktags to a customer will make it easier for you to follow revenue and aid in reporting. Keep in mind, if data is always the same (i.e., same salesperson), then you should use a customer group. If data is usually the same (i.e., customer occasionally falls under another salesperson's results), then you should apply a customer worktag.

Use revenue categories to group similar types of revenue such as sales of products of sales of services. You can also associate these categories with a default tax applicability. Use revenue categories to derive the correct revenue account for account journal. You can specify this in the posting rules for revenue. You can also group Revenue Categories together in a revenue category hierarchy.

Sales items are goods and services that you sell to customers. You can set up the goods and services you use in customer contracts, billing, and sales invoices. Organize sales items in revenue categories and groups to drive both accounting and analysis.

You can categorize sales items in revenue categories, which enable automatic assignment of accounting during transactions. Associate each item with a single revenue category. On a customer invoice, you can either enter a sales item, revenue category, or both.

To provide additional reporting metrics, Workday provides the option of creating sales items groups, which enable you to group sales items together to facilitate searching and reporting. Sales items may belong to more than one sales item group. For example, a laptop could belong to both the Office Supplies and the Laptops and Desktops sales item groups.

Enter a customer invoice to record a sales event and create the resulting receivable accounting. Create customer invoices for the shipment of physical goods, the delivery of a service, or a predefined or contractual billing schedule for an ongoing project, subscription, or membership. Workday automatically creates operational journals for all approved transactions. While creating a customer invoice, you have the choice of creating it for a sales item, which will derive the revenue category. In addition, you can create the invoice without the sales item by entering the revenue category manually to generate the proper accounting.

Like a journal, you can upload a customer invoice through EIB. This feature is particularly useful when you have an external billing system but still want to manage the receivables in Workday.

Once you create a customer invoice, you can create a customer invoice adjustment to decrease or increase the amount owed by a customer. A decrease in the amount owed is a credit note. An increase in the amount owed is a debit note. Workday automatically creates operational journals created for approved transactions.

Use the

Maintain Customer Invoice Type

task to classify invoices for business process condition rules, routing, and searching and reporting on invoices. You can also use it to drive the invoice layout used for the printed invoice.

The contract types that you define enable you to identify, approve, and manage your contracts the way you want. You can capture key information, including contract effective date, contract signed date, billing defaults, billing and revenue recognition notes, and unlimited attachments. You can also put a contract on hold. Workday enables you to create a billing schedule that differs from, and is independent of, the revenue recognition schedule.

Billing uses information from customer contracts to create a customer billing schedule based on the billing installments established in the terms of the agreement. On the appropriate date, each installment creates a customer invoice to route for management approval.

You create revenue recognition schedules for each contract based on contract terms. These schedules identify and drive the accounting for the creation and appropriate amortization of unrecognized revenue. Revenue recognition operates along with, but separate from, billing processing.