Organizations and Worktags

Overview

Workday supports several organization types, but the primary organizational structure for Workday Financial Management is the Company organization. In this chapter, we will begin by focusing on the company organization and then explore other common organization types that you can create and maintain. This includes custom organizations. You may choose to use customer organizations to support your individual business and report requirements.

Workday groups and tracks financial transactions within company organizations. You can also use other organizational structures to represent multiple organization views.

In addition, we will explore the purpose and definition of organization hierarchies. Once you create your organizations and organization hierarchies, these structures may change over time. The reorganization tasks allow you to restructure as your business changes.

Workday also provides another dimension, called worktags, to use when reporting on financial transactions. Additionally, if you need further reporting dimensions, you can use delivered and custom worktags.

Objectives

By the end of this chapter, you will be able to:

Create a company and attach it to an existing company hierarchy via a reorganization.

Set up a company address, a tax ID, and banking details.

Create new cost centers and include them in a newly created cost center hierarchy.

Demonstrate and explain role assignment and inheritance on companies and company hierarchies, as well as cost centers and cost center hierarchies.

Enable custom worktags and configure a custom worktag picklist.

Organizations

Organizations are a basic building block of the Workday application. They allow you to group workers and financial transactions. You can use organizations to:

Aggregate data for reports.

Assign workers to their management and support teams.

Run business processes.

Workday defines and delivers the most common types of organizations. Within each type, you can define organizations to reflect your company's requirements. You can create unlimited numbers of each type of organization and use them for different types of reporting. You can combine some types of organizations in a hierarchy to represent a structure.

Note
: Every instance of any delivered organization type (i.e., company, cost center) is a worktag. You cannot use nonorganizational, delivered worktags and custom worktags as organizations (i.e., customer, revenue category, and spend category).

Organization Types

Workday groups organization types by function: Costing, Hierarchy, HR, Pay, and Custom. Some organization types allow for hierarchies that you can use in reporting.

Costing Organizations

Type	Definition
Company	Companies are organizations within Workday and represent the internal business entities to which Workday posts transactions. Payroll and Workday Financial Management use Company to control accounting and reporting functionality. Company is the level at which you hold a balanced set of books. In most cases, you should set up legal entities as companies, but companies do not have to be legal entities. You can define company at a lower level than legal entity. Use this function when the customer needs to segregate security at a lower level for decentralized processing or other needs. Company is the level, which defines financial accounting details.
Cost Center	Use cost centers to hold financial transactions, budgets as well as workers. Often, cost centers are departments within a legacy system. As a general guideline to defining cost centers, they should have: A manager. A financial impact. A budget. There may be cost centers that do not meet these guidelines. It is important to note that more granular definitions of cost centers may overlap with other worktags and require more effort to administer. For example, if you need to report salary expenses for one or two employees, you can extract reports from payroll accounting instead of setting up a dedicated cost center. It is also important to note that this is how you report and manage costs. It is not how you report and manage your people; Workday provides the supervisory organization for that purpose.
Location	Location represents the physical location of the worker (or business asset), whereas Region represents a geographic area for cost or revenue capture. For example, two sales people might be in the Miami office, but one has responsibility for the US-South region, while the other is responsible for the South America region. In Workday Financial Management, it can be useful to think of the location as the origin of the cost and the region as the destination. Defining the level of granularity of locations is important, as all product lines (Workday HCM, Payroll, and Workday Financial Management) use location. For application deployments, all functional areas should reach consensus as to the level of location granularity. Workday recommends that location be owned (defined, built, and moved) by a single resource obtaining requirements from all product areas. Use Workday Financial Management - Locations to reflect an asset's physical location.
Region	Regions are an optional organizational structure used to reflect the area of responsibility for a worker instead of the work location - which is different than the location hierarchy. For example, a salesperson might work from (is located in) a Miami location, but may be responsible for Sales in the Latin American Region. Note that Workday Student is using Region for the region of student recruitment.
Program	Public sector and higher education organizations are the primary users of programs. Programs typically have long term, if not permanent, high-level purposes. Use Programs to manage items that are larger than Projects and do not have defined start and end dates.
Fund	Fund accounting is unique to the public sector - governments, nonprofits, universities, and schools. It requires separate self-balancing journals to track each fund's revenues and expenditures. Separate funds into fund types and employ restrictions as necessary. You can use funds as a worktag in financial and payroll transactions. Group them into hierarchies for reporting.
Gift	Higher education and nonprofit organizations primarily receive gifts. Common examples include gifts of money as a funding source. A common type of gift is an endowment.
Business Unit	Business Unit defines a line of business or an operating unit. Although you can assign a Business Unit to workers during Assign Organizations, there are some staffing limitations.
Grant	Public sector and higher education organizations are the primary users of grants. Educational, governmental, and nonprofit institutions receive a range of support - grants, contracts, cooperative agreements, and gifts. These awards originate with a variety of sponsors - governmental, corporate, foundations, and private donors. Grants are an entire application you can consider in the scope of your initial design sessions, based on your requirements.
Project	Projects enable you to effectively plan, track, and manage projects and work. A project belongs to one project hierarchy. You can define a resource plan to assign workers to a project on the project or inherited from the project hierarchy. You can use billable projects to bill time, expenses, and supplier invoices to customers. Project scenarios used for project planning purposes and initiatives allow you to align projects with organizational goals.

Workday HCM Organizations

Type	Definition
Matrix	Matrix organizations contain workers from different supervisory organizations who work together. Each matrix organization has a manager who has a dotted-line relationship to all the members of the Matrix organization. However, the Manager of a worker's supervisory organization retains ultimate authority over the worker.
Supervisory	Supervisory is the primary organization for Workday HCM as it groups workers into a management hierarchy. Jobs, positions, and compensation structures are associated with supervisory organizations. Hire workers into jobs or positions associated with a supervisory organization.
Retiree	Retiree is an organizational structure designed to hold retirees, and provide visibility and management access for retiree administrators and partners.

Pay Organizations

Type	Definition
Pay Group	Pay groups aggregate workers and the rules that govern how Workday calculates their pay. Each worker who receives pay through Workday Payroll must be a member of only one pay group unless you are using multiple jobs functionality.

Miscellaneous Organizations

Type		Definition
Academic Unit	A Workday organization type that represents a unit of your institution. Academic units are the schools, colleges, departments, or other divisions with academic levels. They can recruit prospects, admit students, offer programs of study, offer courses, or administer financial aid. Workday HCM uses academic units for academic appointments and AU function as the organization assignment for Academic Affiliates and Named Professorships.
Committee	Track various types of committees from corporate or department level, to regulatory or special subcommittees.
Custom Organization	All product lines can use custom organizations, so you must be judicious when creating custom organizations. Communicate to all teams when you propose a custom organization so you do not create multiple custom organizations for the same use. Before using a custom organization, ensure you have exhausted the possibility of using any other existing fields and structures in Workday to achieve the same result. Do not create a custom organization for an organization type that already exists. There is no limit to the number of custom organizations you can create. You can only specify 10 custom organization types for use in Workday Financial Management transactions. (i.e., an organization used as a worktag or used in payroll costing) It is important you consider this limit when deploying Workday HCM or Workday Payroll without Workday Financial Management.

Security Policies

As you deploy Workday, you will configure security policies to ensure the appropriate security groups have the right permissions.

Security Groups

Company Administrator:
This user-based security group creates company organizations. No approval authority.

Organization Administrator
: This user-based security group creates and maintains all organization setup data. Examples include organization types and subtypes, cost centers, locations, and regions.

Costing Administrator
: This user-based security group creates cost centers, regions, and custom organizations. No approval authority.

Finance Administrator
: This user-based security group creates and maintains all financial setup data, regardless of organization. Examples include financial institutions, financial accounting data, ledgers, journal sources, account control rules, fiscal schedules, items, and taxes. No approval authority.

Bank Administrator
: This user-based security group creates and maintains all bank setup data, regardless of organization. Examples include bank, branch, and bank account maintenance. No approval authority.

Settlement Administrator
: This user-based security group creates and maintains all settlement setup data, regardless of organization. Examples include financial institutions, bank accounts, payment types, bank routing rules, and bank reconciliation. No approval authority.

Domains

A domain is a predefined set of related securable items (reports, tasks, instance sets, report fields, data sources, and so on). Workday predefines domains and customers cannot modify them. This chapter will cover the following domains:

Topic	Functional Area	Domain
Companies	Organizations and Roles	Create: Company
Cost Centers	Organizations and Roles	Create: Cost Center
Custom Organizations	Organizations and Roles	Create: Custom Organization
Custom Worktags	Common Workday Financial Management	Set Up: Maintain Custom Worktags
Banking & Settlement	Banking and Settlement	Process: Banking Reports: Banking Set Up: Bank Entity

Business Processes

Bank Account Event

Reorganization

You need a reorganization event when creating organizations, such as companies, cost centers, and supervisory organizations. A reorganization event enables you to group reorganization activities into an event for tracking and auditing. Workday applies a common effective date to the reorganization activities and you can view and manage those activities in delivered reports and queries.

There are a few things to consider before you group your reorganization activities.

Logical Relationships
: Only group logically related activities within a reorganization event. Avoid grouping unrelated tasks or breaking apart activities that are part of a single, coherent event.

Effective Date
: Only bring together activities in a reorganization that you can logically represent as taking place at the same time. This is because the effective date of a reorganization event becomes the effective date of the changes collected in the reorganization.

Staffing Activities
: If you perform staffing activities, such as Move Workers or Assign Workers, periodically, and these changes are not related to larger structural changes to an organization, consider creating separate reorganization events by period with an effective date equal to the beginning of each period.

Note
: In Workday, you must create a reorganization event not only when you create a new organization, but also when you reorganize an existing company or other organizational entities. This is because all activities relating to an organization, including the initial creation task, are part of an organization's history and must have a reorganization name to track in the system.

Fundamental Characteristics and Structural Aspects

The different organizations share some fundamental characteristics and structural aspects.

Term	Definition
Availability Date*	The availability date for the organization. The date when the organization becomes visible and available in prompts.
Name*	Name of the organization. Requirements of a name depend on the type of organization. Pay attention to search capabilities when naming organizations. Try to avoid abbreviations (e.g., "Finance/Accounting" is easier to search for than "Fin/Acct.").
Code	Optional field you can use as an additional identification field. Workday recommends the code be a way to identify the organization. The Reference ID used in integrations should match the organization code. For example, the cost center organization code might be the cost center number, and the Integration ID > Ref ID should be the same number.
Subtype	User-defined field. Can create hierarchies and is reportable.
Visibility*	When determining who can view an organization, Workday prioritizes organization visibility over the access rights of the worker's role-based security group. Visibility also controls whether workers can access the organization details or only the organization header.
External URL	Allows you to identify a URL associated with the organization.
Roles	Assignable roles dictate the security tasks and involvement in business processes.

*Required fields

Subtypes

Organizations can have organization subtypes such division or department. You define each organization subtype (managed with the

Maintain Organization Subtypes

task) for your specific needs. All organization subtypes are tenanted data.

If you have the business need to do so, you can also set up and enforce the hierarchy of your organization subtypes.

Visibility

An organization's visibility determines who can view the organization. Visibility options include:

Visibility	Definition
Everyone	Anyone can access this organization. This setup is common.
Role Assignees	Only a worker assigned to a role in the organization can view the organization. Workers can only view subordinate organizations if they inherit their role in the subordinate organization. If you are no longer the role assignee, the organization is no longer visible to you. This is true even if the role's role-based security group has access rights of "Applies to Current Organization and All Subordinates." Example : Use this option before a planned reorganization becomes effective. At the end of the reorganization, you can change the visibility of the organization to everyone.
Role Assignees and Members	Only members and workers assigned to a role can view the organization.
Role Assignees of Current and Superiors	Only workers assigned to a role in the organization or a superior organization can view the organization. Workers who can view the organization can also view all subordinate organizations.

Assignable Roles

Assignable roles dictate the security tasks and involvement in business processes. Assignable roles reside in each type of organization (e.g., Company, Supervisory, Custom). Use roles in business processes to assign tasks, either by inheritance from a superior organization, by specific assignment to an organization, or by default. These role assignments and the security groups they are linked to are critical for business process routing and notifications.

Assign roles to a position created by Workday HCM. By default each organization has an owner assigned to the position that displays the position of the user who created the organization. You can assign other roles based on which type of organization you are creating. For example, you might assign the Accounting Manager role to the Chief Financial Officer position or the Senior Accountant. If a worker occupies this position, the assignment will also indicate the worker.

Workday restricts some role types to a single assignment, such as Company Costing Manager or Cost Center Manager, while you can assign other roles to multiple positions.

Membership

Workers can reside in several organization types. You must hire them into a supervisory organization, but they can also be part of a:

Company,

Cost center,

Region, or

Custom organization.

The organizations that a worker is a member of default onto transactions that the worker creates for themselves, such as, timesheets, purchase requisitions, and expense reports.

Company Organizations

Companies are organizations within Workday that represent the internal business entities within your enterprise. In Workday Financial Management, companies are the primary organization for all business processes.

For each company created in Workday, you will be able to:

Record business transactions.

Produce financial statements.

Create other statutory reports.

Note
: For Organization Name, Workday recommends using the official legal name for the company name. You can configure a phonetic name for a company or business entity in both a local language and in English to comply with local government regulations. For example, in Japan, Company Name must be in Kanji for government documents. Workday will display both the Japanese company phonetic name and Kanji name.

You can also specify a base currency for each company, which enables you to use multiple currencies across your Workday deployment. Companies can post transactions in a foreign currency, which Workday also records in their base currency at the rate stored in Workday.

It is important to use the correct currency. After you enter the first transaction for a company, you cannot change the base currency. If you enter an incorrect currency, you will need to inactivate your company and create a new one with the correct currency.

Tip
: If you deploy Workday HCM, or Workday HCM and Workday Payroll first, then companies will already exist in the Workday HCM deployment. Verify that the company is based on the legal entity name and the correct company base currency during setup.

Company ID Definitions

A company ID definition specifies how Workday constructs and formats the IDs it generates for various objects. ID definitions enable you to specify a combination of text, date, and sequence numbers for Workday to use to generate these IDs. When you use the [seq] variable in an ID definition, the ID definition becomes a sequence generator that identifies each worker, position, or incident with a unique number. You can create as many ID definitions as you need and then select which ones to use for items such as invoices, orders, receipts, employees, beneficiaries, and more.

Using your own ID definitions is optional. If you do not specify an ID definition, Workday generates its own internal ID codes.

Single Legal Entity Relationships

In Workday, you can create the single legal entity intercompany relationship to produce financial and managerial reports by the legal entity and its related nonlegal entity companies. You can report on each company in the single legal entity relationship individually or create consolidated financial statements for a company hierarchy. The consolidated financial statements can include the legal entity and any related nonlegal entities.

You can establish a one-to-many relationship between one designated managing company as a legal entity and all related nonlegal entity companies that roll up to it. Configure this relationship using the Create Company Relationship task. All companies in the single legal entity intercompany relationship make up the single legal entity company structure. You can still separate sensitive data within legal entity and related nonlegal entity companies.

The single legal entity company structure is different from a multilevel company hierarchy because:

Workday treats all companies in the single legal entity relationship as a single company.

The length of single legal entity relationships specified by tax year.

Workday relates the companies through Tax ID. The Tax ID must equal the Tax ID of the legal entity to which it belongs and the tax ID must be in the grid.

tax ids screen shot

Note
: Workday requires Tax IDs for financial transactions. Workday uses transaction Tax ID on purchase orders and customer invoices. The Primary Tax ID indicates the main tax ID when managing multiple IDs. Settlement uses the primary tax ID for payment information.

Bank Setup

The Workday banking tools allow you to create financial institutions, branches for those institutions, and the bank accounts that your company uses. You can create both depository and source bank accounts. Account transfers, voided check recordings, and reporting give you further control of your cash.

Type	Explanation
Financial Institution	Define the business entities holding the bank accounts your company uses to receive and make payments. (e.g., Bank of America)
Bank Account	Create or update an account to capture the attributes of a financial account with which you bank. These accounts enable you to perform various financial activities in Workday, including: Create, make, and receive payments. Reconcile bank statements. Manage cash. You can create accounts in Workday for all external operational accounts against which you perform operational transactions. For nonoperational accounts, create an account only if you need the ability to reconcile.
Lockbox	When companies use a lockbox, their lockbox provider checks the lockbox on a regular basis. The provider deposits the payments to the bank account associated to that lockbox. If your organization uses a lockbox to receive customer payments, you may enter your lockbox contact information. Workday will print it on customer invoices, advising customers where they can send their payments.

Before setting up banks and other financial institutions, you must define:

Companies and company hierarchies.

Payment types.

It is also a recommended approach to define the following and associate with bank accounts:

Preferred currencies.

Check printing layout.

Bank reconciliation rule sets.

First notice rule sets.

Create Bank Routing Rule

Establish a routing rule for each company to automatically control which bank accounts the settlement process uses to route payments that you initiate in Workday.

For example, you might route payments coming in for customer invoices paid by direct debit so that you deposit payments into the correct bank account.

Workday supports these categories of payment: ad hoc, customer, customer refunds, expense, intercompany, payroll on-cycle and off-cycle, and supplier.

For each condition of the bank routing rule, you specify the characteristics of the payment or the worker paid that determines the bank account with which to make or receive payments. When you run the settlement process, it evaluates the conditions of a company's bank routing rule from the top down. The process associates the payment with the first applicable bank account for which it finds a match. If the settlement process does not find a match, it uses the default bank account that you specify.

Bank routing rules apply only to payments involving standard bank accounts. You cannot define bank routing rules for petty cash accounts.

Use the

View Bank Routing Rule

report to view, by company, the rule that routes payments to or from specific bank accounts. You can edit the rule from the rule's Related Actions.

Note
: When creating a settlement run, Workday will use the company's bank routing rule to determine which bank account to use.

Organization Hierarchies

Workday uses organization hierarchies for reporting purposes to reflect different organizational rollups. Hierarchies also support security. You can change how you roll up organizations at any point and can have multiple views (hierarchies) of your data. Hierarchical organization types support inheritance of organizational roles down the hierarchy.

Diagram showing North America branching off to four North American companies.

Organization hierarchies do not store transactions; Workday assigns transactions only to organizations. Based on the example above, you could record financial transactions directly to Training. However, you could not record a financial transaction to Education Services. Costs assigned to Training automatically roll up to Education Services.

Cost center hierarchies store cost centers, company hierarchies store companies, and regional hierarchies store regions.

Note
: The Hierarchy Owner of a hierarchy or Organization Administrator can assign included organizations to the hierarchy.

Cost Center Organizations

Use cost centers to hold financial transactions, budgets, and workers. Often, cost centers are departments within a legacy system. As a general guideline to defining cost centers, they should have:

A manager

A financial impact

A budget

Use cost centers to track financial transactions from both spend and revenue, as well as Workday HCM transactions with a financial impact, such as hiring or terminations. Assign employees and contingent workers to a cost center when hired. You can roll up cost centers into cost center hierarchies, which can only store cost centers for reporting purposes.

Location Organizations

In Workday, you can create locations and location hierarchies. Location hierarchies enable you to define a location with a multilevel structure. You can use locations anywhere in Workday, but they are best suited for accurately tracking business asset and work space locations of workers.

For example, to track business assets, you could create a location hierarchy like this example:

Country > State or Region > City > Site > Building > Storage Room > Storage Bin

For work spaces, the location hierarchy could be:

Business Site > Building > Floor > Department > Cubicle > Workstation

Tip
: Consider the granularity of locations for both workers and assets. Also, carefully consider location naming. You will use the name for external communication.

Supervisory Organizations

Supervisory organizations group workers into a management hierarchy to show a reporting structure of who reports to whom. A supervisory organization can be a business unit, department, group, or project. Jobs, positions, and compensation structures are associated with supervisory organizations, and you hire every worker into jobs or positions associated with a supervisory organization. You can create and insert supervisory organizations into a hierarchy as a single action. There is no separate action to create a supervisory hierarchy.

Tip:
In a "Workday Financial Management first" deployment, you will need to configure minimal Workday HCM tasks with a mock supervisory organization. You will load a subset of workers that will complete data entry, approval, or data analysis of financial data. The "Workday Financial Management first" approach is not feasible for self-service features like expense reports, requisitions, or timesheets, which requires you to set up every worker in Workday.

Worktags

Workday provides an innovative way to capture and report financial information called worktags. Traditional accounting systems capture expenses, revenue, and more with accounting string elements. Worktags provide the ability to capture information that is not contained within the traditional accounting string such as customer and product.

A worktag is a keyword or label representing a business dimension of an enterprise. Workday uses worktags to associate business events and objects with enterprise business dimensions to organize, search, aggregate, and report on system data. Worktags enable you to mark events (transactions) and business objects to make their business purposes clear and classify their common relationships. This gives you a multidimensional view of your business that you can act upon. You can find information easier, filter searches to focus results, and analyze information in aggregated and summarized reporting. You can assign worktags to any line item that generates a financial update (e.g., journal entry lines, supplier invoice lines).

For example, many photo tagging systems use something similar. If I take a picture of a mountain in Montana, I can tag the photo with those keywords to find the picture later.

photo of a mountain scene

Worktag Types

Workday creates most worktags automatically. That is, when you create the corresponding Workday object, Workday automatically creates a worktag for it. For example, when you create a supplier, the supplier's name becomes a worktag for use in transactions. Workday delivers the following worktag types that you can use to tag your business transactions and supporting data:

Delivered Organizations
: Track financial transactions and group people.

Delivered Worktags
: Numerous predefined types and values with preset transaction availability.

Custom Worktags
: Fifteen delivered worktags with configurable names and values. Each custom worktag associates the worktag usage with Financial, HR, Payroll, or Time Tracking transactions or data.

Custom Organization Worktags
: Custom organizations are user-defined labels for specific areas of your business that you would like to group and create reporting for. A custom organization is a worktag by definition, to use on financial transactions. You can associate workers with customer organizations, default them into transactions based on membership, and use them to route transactions to specific people based on role. You can create an unlimited number of custom organizations, but you can identify only 10 as "Use as Financial Worktag" (i.e., made available for use in financial transactions).

Basic Worktags
: Define basic worktags if the Workday full feature is out of scope. For example, define the basic worktag Supplier for tracking contingent workers if you have not deployed supplier accounts. Currently the only basic worktags that are available are: Customers, Grants, Gifts, Projects, Supplier, and Sales Item.

Delivered Worktags

Workday delivers many worktags types that you can use to tag your business transactions and supporting data. For each of these delivered worktag types, Workday presets selection. However, you can modify the usage.

For a complete list of delivered worktags, visit Workday Community.

Note
:

* Organization is available as a worktag. You can use these organizations as worktags, but worktags cannot use them as organizations.

**Earning and Deduction (pay components) are mutually exclusive.

***Project, Project Phase, and Project Task are mutually exclusive.

Most worktag types are automatic. That is, when you create the corresponding Workday object, Workday automatically creates a worktag for it. These worktag types have some noteworthy differences:

Cost centers and regions appear in all transactions where you can select a worktag.

Workday creates custom organization worktags automatically only if you created the custom organization type with Financial Usage selected in the

Maintain Organization Types

task. Workday allots each tenant up to 10 custom organizations as a financial worktag.

Workday allots each tenant up to 15 custom worktags. Manually define and enable custom worktags. The steps in the next section describe how to create custom worktags.

Custom Worktags

Custom worktags are configurable worktags that give you a view into a critical dimension of your business not already covered by delivered worktag types. You can define up to 15 custom worktag types, which are available in financial, HR, payroll, and time tracking transactions.

Each worktag type has a set of valid values. For example, assume you define a Loan worktag type with valid values of Loan 1 and Loan 2. These values are available to distinguish between loans for someone who has more than one loan, or to associate a loan with its repayment, accumulations, and balances.

The custom worktag types and their values are available from prompts when workers use worktags in business transactions and supporting data definitions.

As you determine the custom worktag, consider the following items:

Item	Description
Worktag Usage	Select at least one area that you want the custom worktag type to be available for in transactions and supporting data. To include worktags in payroll journal entries, you must select both Financial and Payroll usages.
Current Count	The number of custom worktag values currently defined for this worktag.
Custom Worktag Limit	The maximum number of worktag values that Workday allows for a custom worktag.

You can use the

Custom Worktag Values

report to review custom worktag values and identify the number of transactions processed with each worktag value. Custom worktags do not have any security assigned, cannot have a hierarchy, and cannot have Worker members.

Basic Worktags

Basic worktags provide a quick and easy way to create basic definitions for customers, projects, sales items, and suppliers. Use basic worktags when you need worktags in Workday HCM, payroll, Workday Financial Management, and spend, but do not need the complexity of their full-featured definitions. For example, you may want to tag a contingent worker contract with a supplier name without having to fully define the supplier.

The lack of complexity of basic worktags also simplifies setup. You can convert from basic to full-featured versions at any time.

Currently, you can create basic worktags for customers, gifts, grants, projects, sales items, and suppliers.

You can select basic worktags for:

All financial transactions, including requisitions, spend authorizations, and expense reports.

Project timesheets (except a basic project).

Contingent worker contracts (basic supplier only).

Payroll input by worker (basic project only).

You can convert basic versions of customers, suppliers, sales items, projects, grants, and gifts that you use as basic worktags to their full-featured definitions. You might do so, for example, if you are using contingent workers in Workday HCM and then decide to deploy Workday Financial Management. Reports return both basic and full-feature worktags.

Worktag Assignment

Workday sets most worktags automatically based on transactional context. For example, when you create a supplier, the supplier name becomes a worktag. There are several ways to associate worktags with a transaction or supporting data:

Built-in Worktags
: Worktags that are so essential to the transaction or supporting data that they are separate fields. For example, the supplier name or spend category on a supplier invoice are built-in worktags.

Defaulted Worktags
: Worktags that Workday automatically assigns to specific transactions based on the worker creating the transaction. For example, an expense report for a worker automatically includes that worker's organization worktags. You can remove them as necessary.

User-entered Worktags
: Ones that you select from a list of worktag types relevant to the transaction or supporting data.

Related Worktags
: When you set up certain objects, such as custom organizations, customers, and cost centers, you can associate worktags with them. When used in transactions, any worktags associated with the object will automatically carry forward onto the transaction. For example, if you create a customer invoice and that customer has a cost center, that cost center automatically becomes a worktag for the invoice. Related worktags are currently available on the following objects: cost centers, customers, custom organizations, gifts, grants, programs, projects, procurement items, regions, revenue categories, sales items, spend categories, and sponsors.

create customer invoice screen shot

Worktag Related or Defaulted

You can configure some worktags to populate on a transaction automatically by using related or defaulted worktags. Related and defaulted worktags are similar in how they function, but there is one main difference: you manually tie related worktags to another worktag. For example, on the Cost Center organization worktag, you can relate a specific region worktag. When you select the cost center as a worktag on a transaction, Workday automatically populates the worktags field with the cost center and the related Region worktags.

Defaulted worktags are similar to related worktags but are only applicable to organization assignments for a worker. For example, on Teresa Serrano's initial profile view, notice that her location is New York.

user profile screen shot highlighting location

Looking at her organization assignments, notice the GMS (USA) company, 51100 Finance Mgmt - Corp Acctg cost center, and Headquarters - Corporate region.

user profile screen shot highlighting organizations

When Teresa creates an expense report (or purchase requisition, timesheet, etc.), her organization assignment worktags will default onto these transactions.

expense report screen shot highlighting company and cost center

Worktag Precedence

Worktag precedence affects both related and default worktags. Worktag precedence rule is "the last one in wins." That means that if you create a customer invoice and the customer has a Western USA region worktag, that region automatically becomes a worktag for the invoice. If you select the Solar Energy project as another related worktag, and it has a different region, its worktags default into the invoice as well. The region will reflect the one on Solar Energy because it was the latest in.

However, in certain conditions you can specify how you would like Workday to handle the worktag precedence. Using the

Maintain Worktag Type Precedence

task, you can configure how related worktags default into transactions. Doing so affects worktags when they come from a worker's assigned organization or from transactions that you load through web services. This task allows you to place the worktag types in their order of precedence for defaulting.

maintain worktag type precedences

Inactive Worktags

Inactivating a worktag value does not change any historical data or affect previous transactions, only transactions dated on or after the date you inactivate it.

For worktags you use in Workday Financial Management reports and business documents, worktag values that are inactive do not display in worktag prompts. You still have the flexibility to search for inactive worktags and use them as needed.

To restrict workers from using inactive worktag values, you can create custom validations and business process condition rules to check for transactions with inactive worktag values.

Custom Organizations

You can use custom organizations to group workers or financial transactions into logical constructs not defined by Workday-provided organization types.

Use custom organizations as worktags if you have the following requirements:

1. Assign worktags to workers so that they default onto financial transactions like expense reports and project timesheets.

2. Assign roles to worktags for business process approval and reporting.

3. Create worktag hierarchies for navigation as well as validation logic and condition rules.

Important
: If the above requirements are unnecessary, use custom worktags instead.

Note
: You cannot use custom organizations for all payroll transactions, only for allocating payroll costs.

Use the

Maintain Organization Types

task to define custom organization types. You can configure a custom organization to be a worktag in financial transactions, and then assign a worker to the custom organization in organization assignment. The custom organization then defaults as a worktag into transactions that involve the worker. Custom organizations cannot roll up Workday-provided organization types.

Custom Organization Setup Steps

Maintain Organization Subtypes

Maintain Organization Types (Organization)

*Maintain Organization Types (Organization Hierarchy)

Create Custom Organization

*Create Custom Organization (Hierarchy)

*Assign Included Organizations to Hierarchy

* If applicable

Custom Worktag vs Custom Organization

Custom Worktags	Custom Organization
Limit of 15 (shared)	Unlimited (10 mapped to financial dimensions)
Description only	Assign default value to worker.
No role assignment	Assign roles
No hierarchies	Hierarchies allowed