Concept: Accounting and Netting Transactions

Netting transactions enable you to net the amount payable and amount receivable on supplier and customer invoices and adjustments. Workday generates accounting for the transaction amount and creates reversals of accounts payables and accounts receivables.

We display a simultaneous summary at the header while you create the transaction:

Field	Description
Net Payable and Net Receivable	The difference between the Total Payable and Total Receivable amounts.
Total Payable	The total amount to net from supplier invoices.
Total Receivable	The total amount to net on customer invoices.
Transaction Amount	The netting transaction amount, that displays as total debits/credits in the journal entry.

When a netting transaction is in progress or in draft status:

We record the netting rule and invoice eligibility rule applicable when you submit or save for later.

You can't select the invoices on a settlement run. You can settle the remaining balance on the invoices after approving the netting transaction.

When you submit or save for later a netting transaction, we lock down the selected invoices to prevent them from being available:

For another netting transaction.

For a settlement run.

To cancel or change.

When you approve a netting transaction:

We mark the supplier or customer invoice or invoice adjustment as paid or partially paid accordingly.

We generate accounting for the transaction amount and create reversals of accounts payables and receivables ledgers of the supplier and customer invoices respectively.

Where the exchange rate differs from the exchange rate for the invoice (at creation), the difference creates a realized exchange gain or loss journal entry.

We populate and display the

Accounting Date

on the

View Accounting for Netting Transaction

report.

In tenants with balancing worktags configured, we generate the corresponding accounting entries. You can specify the balancing worktag in the netting rule. Workday creates due to and due from entries for the balancing worktags in the netting transaction journal.

We don’t display the Adjust Accounting related action on supplier invoice documents included in a netting transaction that is fully or partially paid.

When you cancel a netting transaction, we:

Revert the payment status on the supplier and customer invoice documents.

Reverse the accounting entries on the same ledger period as long as the period is open. If the ledger period closed, we reverse the accounting entries in the next open period.

Populate and display the

Cancel Accounting Date

on the

View Netting Transaction

report.

Release the supplier or customer invoices and invoice adjustments selected. You can then include the invoices in another netting transaction or settlement run.

We hide suppliers with Segmented Security configured. However, you can select the netting rule related to the supplier or search for the invoices, and create a netting transaction.