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Administrator Guide
Configure Payroll Commitment Options

Configure Payroll Commitment Options

Set up payroll commitment rules.
Security:
Set Up: Position Commitment Accounting
 domain in the Core Payroll functional area.
When creating initial payroll commitments, you can use these optional steps to configure:
  • Commitments for multiple base fiscal years.
  • Up to 5 future fiscal years for each base fiscal year.
  • Fiscal year proration options.
All commitments post to the base fiscal year. When you close your current base fiscal year, Workday liquidates all commitments for the base fiscal year and future fiscal years.
When you close commitments for a base fiscal year, Workday creates:
  • Debit entries for transactions that have a future year dimension.
  • Credit entries to balance debit entries, using the rules that you've set up for primary and optional worktag balancing.
  1. Access the
    Edit Company Payroll Commitment Options
     task.
  2. As you complete the task, consider:
    Option Description
    Base Fiscal Year
    Identify the fiscal year in which to post the resulting transactions. The year must be in Open status. Example: Both your prior and new base fiscal years are open as you prepare to close out the prior fiscal year. You select your new fiscal year.
    Future Year Count
    The number of future fiscal year commitments you want to create.
    Future Year Worktag Dimensions
    Select the worktag dimensions that you want to use for future year commitments and obligations. Don't select any if you want to create commitments and obligations for all dimensions.
    Fiscal Year Proration
    Select how to prorate commitments, obligations, and related fringe for periods crossing a fiscal year.
    You can prorate earnings based on:
    • The
      Calculation Proration
       settings on the
      Edit Earning
       task.
    • Your forward accrual setup on the
      Edit Period Schedule
       task.
    Earnings proration applies to any type of earnings established in your payroll commitment rules. Use the
    Create Payroll Commitment Rule
     task to set up rules. Fiscal year proration applies after the earning proration and doesn't override it.
    When you enable Fiscal Year Proration and select the
    Include Payroll Forward Accruals for Budgetary Control
     check box in the
    Edit Tenant Setup – Payroll
     task, Workday automatically includes your configured forward accruals and forward accruals reversals in:
    • Automatic budget creation from commitment data.
    • Budget check reporting.
    • Position budget check.
Workday displays entries for each future fiscal year in the base fiscal year journal.
Set up commitment rules for each future fiscal year.