Month and Year End Processes
Overview
Many of the tasks that you might have run as a month-end batch job in your legacy system occur in real time in Workday. However, there are some processes that are best to run at the month, period, or fiscal year end.
When the procurement cycle is complete for an item or document, mark them as complete by closing all related documents. When the documents close, it will:
- Prevent further actions from occurring against the closed business document.
- Limit the documents displayed in search dialog boxes.
- Prevent further receipts against a purchase order.
- Prevent further invoicing against a purchase order.
- Set the status of the business document to closed.
- Liquidate any remaining commitment or obligation balance.
You can only close a procurement document (requisition, purchase order, or supplier contract) when no pending business process activity occurs.
Tip
: When canceling or closing requisitions, you can optionally include a close reason. Define close reasons in the tenant using the Maintain Procurement Reasons
task. You can also use a custom validation to require close reasons on a transaction.Resource
: Refer to the Workday Administrator Guide for more information on the Procure to Pay Period Close process.Objectives
By the end of this chapter, you will be able to:
- Explain Workday month-end and year-end processes.
- Configure procurement conditional rules.
- Close purchase orders.
- Identify potential issues with supplier contracts.
Procurement Condition Rules
You can use procurement conditional rules to prevent workers from acting against procurement documents in Workday. When the rules configured evaluate true, Workday prevents you from executing the respective action. On documents that meet the procurement conditional rule criteria, the blocked action will not be visible on the document's Related Actions. The document will also not be visible on results tasks.
When you have a conditional rule to prevent receipt for a certain supplier, you will not have purchase orders for that supplier in the
Create Receipts
task. You will not be able to create receipts off the purchase orders of the supplier.You can use any conditional rules with context to the purchase order on procurement conditional rules. If you do not find the field you need when you are creating your conditional rule, you might need to use a calculated field.
Procurement conditional rules will not trigger for web services, unless specified below. If you want to restrict actions from inbound web services, create a custom validation to prevent document submission. You can also work with your Workday integration partner to restrict the data on the inbound file.
Condition Rule Type | Description |
|---|---|
Change Order from POA - Prevent Auto Issue | Blocks automatically issuing a change order created from the Purchase Order Acknowledgment (POA). |
Purchase Order - Prevent ASN | Prevents the creation of advanced ship notices (ASN). Prevents the creation of ASNs using the web services. |
Purchase Order - Prevent Cancel | Prevents the cancel action when the condition rule is true. |
Purchase Order - Prevent Close Line | Blocks the PO's Close Related Action. Prevents selection of POs meeting the condition rule on the Mass Close Procurement Document task. |
Purchase Order - Prevent Close Line for Receiving | Prevents users from closing purchase order lines for receiving. |
Purchase Order - Prevent Copy | Prevents users from copying purchase orders from the Related Actions > Create Purchase Order task. |
Purchase Order - Prevent Edit Without Change Order | Prevents users from editing purchase orders using the Edit Without Change Order task. |
Purchase Order - Prevent Receipts | Prevents receipt creation from the Related Actions > Create Receipt task; does not prevent receipt against receivable supplier contracts. |
Receipt Adjustment - Prevent Cancel | Blocks users from canceling receipt adjustments. |
Receipt - Prevent Cancel | Prevents canceling of receipts from the Related Actions. |
Receipt - Prevent Receipt Adjustments | Prevents creating receipt adjustments. Blocks creating from the Related Actions > Create Receipt Adjustment task. |
Close Purchase Order Lines
After issuing a purchase order, you can choose to close a purchase order line individually to prevent the following:
- Additional receiving
- Invoicing
- Receipt accruals for any remaining quantity not yet received.
To do so, use the document's Related Actions to select Close Lines for Receiving. Once all lines on a purchase order have been closed (not closed for receiving), the entire document closes at the header level.
When closing individual purchase order lines, you can optionally include a close reason. Define close reasons in the tenant using the
Maintain Procurement Reasons
task. You can also use a custom validation to require close reasons on a transaction.Mass Close Procurement Documents
To close multiple documents with similar characteristics, such as documents with the same worktags or supplier, use the
Mass Close Procurement Documents
task. When performing a mass close, initially select from these options:- Request Name
- Company
- Procurement Document Type (e.g., Requisition, Purchase Order, Supplier Contract)
Once you have selected your document type, further options display to refine the documents that you select to close. Once you have entered your selection criteria, a list of qualifying documents display. Then select all documents or individual documents that you would like closed before submitting your request.
Automatically Close Purchase Orders
To enable this functionality, access the
Edit Company Procurement Options
task and select the Automatically Close Purchase Orders checkbox on the Purchase Order tab.Consider the following when configuring this feature:
- Purchase orders close automatically when:
- Fully received, with receipts in Approved status.
- Fully paid.
- It does not retroactively close fully received and fully paid purchase orders before you enable the functionality.
- You can clear the checkbox. Workday stops closing purchase orders.
- Workday does not reopen closed purchase orders automatically when the status of a related document changes, e.g., when a paid invoice changes to unpaid.
Reopen Purchase Order Lines
If you inadvertently close the wrong purchase order line, you can use the purchase order's Related Actions to access the
Reopen Closed Lines
task. When you reopen a purchase order line and use commitment accounting, the remaining obligations restore. This task is not available on a purchase order until a line closes.If you close the wrong purchase order line for receiving, use the purchase order's Related Actions and select the
Reopen Lines for Receiving
task. Reopening a closed purchase order line does not automatically reopen a line for receiving if closed previously. This task is not available on a purchase order until the line closes for receiving.Reopen Documents
You can use a procurement document's Related Actions to reopen it. To reopen multiple documents with similar characteristics, such as documents with the same worktags or supplier, use the
Mass Reopen Procurement Documents
task. When performing a mass reopening, you must initially select from these options:- Request Name
- Company or Company Hierarchy
- Procurement Document Type (e.g., Purchase Order, Requisition, Supplier Contract)
Once you have selected your document type, further options display to refine the documents that you select to open.
Supplier Contract Needing Attention
The
Supplier Contracts Needing Attention
report displays all contracts expiring in the next month, as well as contracts with less than 10 percent remaining balance. Workday recommends reviewing this report as part of your period-end and year-end processes. From this report, you can use Related Actions to either:- Create an amendment to extend a contract.
- Copy the contract to a new contract.
- Close a contract.
Create Amortization Schedules and Installments
Set up prepaid spend in your tenant, and make sure you have created schedules and installments for any open business documents for the month. You can amortize prepaid invoices and related installments for the period to decrease prepaid liability by debiting expense accounts and more using the following tasks:
- Create Prepaid Spend Amortization
- Generate Prepaid Spend Amortization Schedule
- Customize Prepaid Spend Amortization Installments
- Submit Prepaid Spend Amorization Schedule
- Schedule Prepaid Spend Amortization Installments
- Create Prepaid Spend Amortization Schedule (New)
- Create Purchase Order Amortization Schedule
- Create Prepaid Spend Amortization for Installment
Unapproved Supplier Invoice Line Accrual
Use the
Unapproved Supplier Invoice Line Accrual
report to identify and create a reversing manual journal entry at the end of each period to accrue unapproved invoices properly.The report includes supplier invoices not included in these statuses: Approved, Canceled, and Denied. At runtime, you can determine the invoice status to include in the report. Workday defaults to this status to In Progress.
The report will only include supplier invoices with an Unmanaged supplier invoice spend type. Anything under the managed spend type is accrued through the delivered
Create Receipt Accrual
task.Procurement Document Roll Forward
To roll remaining procurement commitments and obligations forward to the next fiscal year, you can group procurement documents in roll-forward requests.
During year-end closing, roll forward commitment and obligation journals to the first date of the next open period. Both the period you are rolling forward from and the period you are rolling forward to must be open for your roll-forward to process correctly. When rolling forward, you will need to specify a budget date and accounting date for your document.
When you roll forward, the entire document moves to the next year, not the individual lines. The entire encumbrance and obligations ledger should sit at zero once all roll forwards complete.
Payables Aging
Run payables aging for each supplier and view the payable amounts for the different aging categories in the aging group, as well as any pending payments and the total amount. For each aging category amount, you can drill down to notice a list of transactions, including type, transaction number, dates, aging days, original amount, payments applied, and balance.
Consider the following when cancelling:
- When you cancel a supplier invoice, invoice adjustment, payment, or payment return created in a past closed period, or you return a payment made in a past closed period.
- The cancellation and return event will not affect the output of payables aging reports for the closed periods.
You can use one or all of these reports to reconcile your payables to the ledger balance:
- Payables Aging
- Payables to Supplier Balances Reconciliation
- Payables to Supplier Balances Reconciliation Exception Summary
- Trial Balance for the Payables ledger account
- Payables to Supplier Balances Reconciliation - Composite
Additional Month-End Close Tasks
The additional month-end close tasks related to the procure to pay process but not necessarily handled by the Procurement or Accounts Payable (AP) teams. For example, changing the status of ledger period, registering assets, revaluing for multi-currency organizations, and reconciling bank statements. Workday delivers a month-end business process that helps these teams coordinate period close.