Invoicing

Workday Education

Invoicing

Overview

Supplier invoices use information entered directly or from the following:

Purchase order

Receipt

Timesheet

Supplier contract

Customer invoice

Task log reflecting the receipt of physical goods or acknowledgment of services provided

You can create supplier invoices manually from web services or by using optical character recognition (OCR). Regardless of the invoice entry method, editing a supplier invoice uses essentially the same page as creating one.

Objectives

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

Investigate the key elements of supplier invoices.

Create and review invoices to meet various business needs.

Supplier Accounts Configuration

You can use the

Edit Company Accounting Details

task to specify accounting practices for a company. The settings on Company Accounting details are shared across multiple functional areas and include some of the basic accounting settings for your company. Some of the configuration options that heavily affect supplier accounts (accounts payable) are Allow Accounting in Arrears, Accounting Date Requirement, and Procurement Tax option.

If you enable Accounting in Arrears, you can enter an accounting date for customer or supplier invoices and invoice adjustments that differs from the invoice date.

The Accounting Date Requirement specifies the requirement of whether an accounting date or optional on invoices.

Using the Procurement Tax Option, you can specify a default tax option for purchase orders, ad hoc payments, supplier invoices, and supplier invoice adjustments. You can override this tax option when you create or edit the supplier invoice.

Use payment terms to specify unique combinations of due days, discounts, and grace days to determine when you pay your suppliers. Payment terms are shared with accounts receivable and used during settlement.

When you create a supplier invoice, Workday automatically populates the payment terms from the remit-to connection or the supplier, in that order of priority. You can change the value if needed. For an invoice created from the supplier portal or a purchase order, Workday populates the payment terms from the purchase order.

You can use payment types to determine authorized methods:

to pay a supplier.

used during the settlement process.

A payment type is associated with a Workday-defined payment method. You may not create new payment methods. Workday Cash Management and Workday Banking and Settlement also use payment types.

You can optionally use payment handling instructions to sort and group payments created during settlement for a bank account.

When you have configured payment handling instructions, you will notice a field called handling code on the supplier invoice.

Create aging groups for use with the delivered

Supplier Accounts Aging

report used to help manage your outstanding payables and cash flow. Aging groups are often shared with accounts receivable, but you can configure different aging groups per module if needed.

You can use supplier invoice cancel reasons to capture a standard cancellation reason for a supplier invoice or supplier invoice adjustment. You can use these reasons in reporting.

You can create custom external sources of supplier invoices, which are applicable to supplier invoices created using a web service. Workday delivers these sources:

Web services

EDI 810

REST API

You can configure work queue tags and assignment rules to improve AP processing efficiency. Work queue tags can help identify the source and priority of supplier invoices as they are created. For example, you might create a High Priority tag to move invoices to the top of the work queue. You can manually add work queue tags to the supplier invoice or they can be automatically assigned using supplier invoice work queue tag assignment rules.

Work queue tag assignment rules allow you to automatically assign work queue tags to draft invoices using the following criteria:

Work Queue Tag

Payment Terms

Supplier

Supplier Category

Supplier Groups

Purchase Order Invoice

Non-Purchase Order Invoice

Priority Scanning

Processed by OCR

Greater Than Amount

Use supplier invoice assignment rules to assign invoices to individuals. When you configure a worker on an assignment rule, they will populate as the assignee invoices that meet the rule criteria. You can apply supplier invoice assignment rules from top to bottom. We recommend that you put the most specific rules at the top of the grid. The following data points you should consider for assignment rules:

Supplier Name Range Start

Supplier Name Range End

Supplier Group

Supplier Category

Supplier

Company

Work Queue Tags

External Source

Greater Than Amount

You can set up configurable attributes to use as dynamic free-text fields to capture additional information on supplier invoices, invoice adjustments, or supplier invoice requests. You can drive reporting and set up custom validations based on the configurable attributes. When you set up supplier invoice attributes, you can opt in to making them available on transactions at the Company level using the

Edit Supplier Accounts Options

task.

Country-Specific Configuration

You can configure payment purpose codes for electronic settlements for countries with those requirements. Use the

Edit Tenant Setup-Financials

task to enable payment purpose codes. Not every country requires the use of payment purchase codes, and Workday does not deliver standard payment purpose codes.

You can use invoice types for regulatory reporting. When you create an invoice type, you must specify the country, and you can have one country only for each invoice type. You can use invoice types on expense reports, supplier invoices, and customer invoices.

Gapless sequencing enables you to create and assign sequential gapless invoice numbers in one or more ledger year or ledger period for a company. This number displays in place of the standard invoice number on both customer and supplier invoices. You can sequence the numbers by:

Approval date of a customer invoice.

Posting the date of a supplier invoice.

Accounting date.

You might need to configure gapless sequencing if your company bills or pays invoices in a country that requires a gapless sequence number on invoices. Possibly required for auditing purposes.

Supplier Invoices and Adjustments

Supplier invoices use data that you enter or default from a purchase order, receipt, timesheet, task log, supplier contract, or customer invoice. Invoices reflect the receipt of goods or acknowledge services provided, unless you pay for them in advance.

You can create a supplier invoice adjustment to increase or decrease the amount due to a supplier. An adjustment is a new transaction with its own document number that is separate from, but linked to, the original invoice. Adjustments are similar to debit memos and credit memos.

The following are some ways in which supplier invoices can generate:

Without Purchase Order

From Purchase Order

From Receipts

From Timesheets

From Task Logs

From Supplier Contracts

From Supplier Contract Invoice Schedules

From Supplier Invoice Request

You can specify invoice adjustment reasons, which are standard codes for why you need to adjust a supplier invoice. These codes can be used in business process routing, custom validations, and reporting.

Task	Description
Cancel	Cancel unpaid invoices and invoice adjustments.
Change	Change a submitted unpaid invoice or adjustment.
Correct	Finance Administrators can correct the supplier invoice after submission.
Approve, Enrich, Revise	Route the supplier invoice for approval by adding an approval step to the Supplier Invoice Event business process. Enable supplier invoice changes during the approval step.
Hold	Make the invoice unavailable for payment.
Rescind	Restore all Workday data to the state that it was in before you created the invoice.

Supplier invoicing business processes include:

Supplier Invoice Event

Supplier Accounts Match Event

Supplier Accounts Match Exception Override Event

Supplier Invoice Request

You can route supplier invoices to security groups using role-based security based on cost center, company, spend category, supplier, and other worktags. You can also route supplier invoices for approval through the management chain of a supervisory organization. This feature streamlines and simplifies the supplier invoice approval process and eliminates the need to create multiple roles to approve the invoice. Once submitted, supplier invoices route through the

Supplier Invoice Event

business process.

Creating Supplier Invoices

You can create invoices using business document Related Actions. When you create a supplier invoice from a purchase order or supplier contract, Workday copies the document lines into invoice lines. You can also create a non-PO or non-contract invoice using the

Create Supplier Invoice

task. You can import invoices into Workday by using the Submit Supplier Invoice workbench.

Accounts payable processors can also use the Supplier Invoice workbench to create supplier invoices from existing business documents such as purchase orders and supplier contracts. Users can also add more invoice lines to invoices generated from the Supplier Invoice workbench.

Copying purchase orders or timesheet data into an invoice using the Supplier Invoice workbench manually creates invoices.

Users outside of accounts payable can use supplier invoice requests to request payment for goods and services. Upon approval, the invoice request converts to a supplier invoice, which then routes through the

Supplier Invoice Event

business process. Supplier contacts can also create supplier invoice requests for non-purchase order payments using the supplier portal.

The Supplier Invoice Work Area helps you to track and manage supplier invoices in a single place.

The Manager Overview tab displays team performance. You can add or change parameters to evaluate progress by company, assignee, and date range.

The Email Ingestion tab displays the emails ingested by your tenant for supplier invoicing.

The Upload and Scan tab displays attachments loaded into Workday for Supplier Invoice Automation (OCR).

The My Work Queue tab displays draft invoices assigned to you and provides you with actions to take for one or multiple supplier invoices.

Edit, Override POs, Override Contracts, and Edit Notes on an invoice.

If there is an attachment for an invoice, you will be able to open it from the grid.

The Pending Approval tab displays in progress supplier invoices that you have submitted and are waiting for approval.

The Supplier Invoice Cycle Times tab helps track turnover days and cycle times for supplier invoices.

By default, the filters on the In Progress and Pending Approval tabs default to invoices where the logged in user is the invoice assignee. You can use the search button to adjust the filters for these views to include other assignees and adjust additional filters on the tab.

Machine Learning (ML) for Supplier Accounts

You can configure optical character recognition (OCR) to enable Workday to scan and create supplier invoices directly from uploaded images. Once a scan is complete and an invoice generates, workers can edit the invoice from the work queue and submit it for approval.

You can use email ingestion to enable a Workday tenant to receive inbound supplier account emails from specific email domains. Workday automatically scans the email for invoices using OCR. If an invoice can generate from a scan, it will display in My Work Queue for the AP processor to submit for approval.

Supplier invoice automation and supplier invoice ingestion use machine learning. You might need to take additional steps to enable these features based on the organization's subscription service agreement.

You can also configure Workday to suggest worktags on supplier invoices and supplier invoice requests. Worktag recommendations are available for cost center, location, spend category, and region. Requirements exist to configure these worktags as primary on the supplier invoice in the

Maintain Worktag Usage

task. To turn on machine learning recommendations in your tenant, you must have 3,000 manually entered and approved invoices.

Prepaid Supplier Spend

Workday supports supplier invoice prepayment. You can process and account for prepaid invoices and their related amortization without the need to use external spreadsheets and manual journal entries.

The prepaid option is available on purchase order lines and brought onto the supplier invoice lines by "flipping" the PO to an invoice. You can update the prepaid flag on PO invoices and add it to non-PO invoices as well.

When you mark a supplier invoice line as prepaid, you are allowing the invoice to pay the supplier when the settlement runs. You will amortize the payment later. And, you can set up a schedule to amortize your payments directly in Workday, or you can manually amortize the invoice from the invoice's Related Actions.

Recurring Supplier Invoices

Recurring supplier invoices enable users to set up recurring payments on an interval time frame. Recurring supplier invoices are a two-part process: setting up the supplier invoice template and then scheduling the invoice creation. Users can, alternatively, use a supplier contract with scheduled invoices to create a supplier invoice schedule.

Supplier Refunds

In Workday, you can process supplier refunds against supplier invoice adjustments. Doing so will clear negative balances due to a supplier. To process a supplier refund against a supplier invoice adjustment, the adjustment should be approved and unpaid. Supplier refunds do not support intercompany transactions.

Invoice Netting

When you have a third party that is both a customer and supplier in Workday, you can offset the customer and supplier invoice balances using invoice netting. This enables you to simplify settlements with the third party by calculating an overall net balance payable or receivable.

Tax Only Supplier Invoices

Tax-only supplier invoices enable you to track and pay taxes to suppliers or tax authorities configured as suppliers. Workday processes tax-only supplier invoice lines as tax-only lines and excludes accounting for spend in the extended amounts.

You can create tax-only supplier invoices when:

The original supplier invoice that you received omitted tax charges.

A supplier sends a supplementary invoice with the tax-only (VAT) amount.

You import goods or services and need to pay the tax-only (VAT) amount directly to a tax authority.

Workday enables you to link the tax-only invoice to the original supplier invoice but not to other procurement business documents. You can create a negative invoice for tax adjustments and reporting. Tax-only invoices use the tax declaration and reporting framework.

Supplier Down Payment

Supplier down payment invoices enable you to record down payment supplier invoices and apply the amount to future invoices and pay supplier net balances. Down payment invoices use the same operational transactions, business processes, and document sequences as supplier invoices. Workday calculates and tracks down payment invoices and payments on the header level. Down payments invoices can be partial or total. You can initiate down payment invoices from a purchase order, or you can create a standalone supplier invoice. Workday does not amortize down payment invoices.

Payment Terms

If the Supplier has Payment Terms Based on Invoice Received Date enabled, then the payment date terms will be based on the invoice received date. If the invoice received date is less than the invoice date, the invoice date is used to calculate the payment and discount terms. If you do not populate an invoice received date on the invoice, the invoice due date will be based on the invoice date, regardless of whether you have opted in to the feature on the supplier.