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Administrator Guide
Last Updated: 2023-06-23
Steps: Apply Customer Payments

Steps: Apply Customer Payments

  • Record customer payment.
  • Configure the
    Customer Payment Application
    business process and security policy in the Customer Accounts functional area.
Once you record a customer payment, you can apply the payment to the appropriate customer invoices. Workday also enables you to:
  • Apply writeoffs during the payment application process.
  • Search for additional invoices before you apply the payment.
You can also cancel, return, unapply a payment, or record an overpayment except when the payment has an associated customer refund in
Draft
 status. To unapply large volumes of customer payments that are in error, you can use the
Unapply Customer Payment
 web service.
  1. (Optional) Access the
    Edit Customer Payment Auto-Application Configuration
     task.
    To search through large volume of open invoices, select the
    Do Not Pre-Select Invoices in Apply Customer Payment Task
     check box.
    Security:
    Set Up: Company General
    in the Common Financial Management functional area.
  2. Access the
    Apply Customer Payment
     task.
    Select the
    Customer Payment
     that you want to apply.
    Security:
    Process: Customer Invoice - View
    and
    Process: Customer Writeoff - View
    in the Customer Accounts functional area.
  3. As you complete the task, consider:
    Option Description
    Remittance Advice Lines
    Click to view the remittance advice lines from the recording of the customer payment. Workday automatically selects the invoices from the remittance advice and populates their payment amount to assist payment application.
    Apply to Oldest First
    When you select this check box, Workday sorts the
    Invoices
     grid by
    Due Date
    , listing the oldest invoices first. Workday then selects invoices with amounts that can be paid in full with the
    Payment Amount to Apply
    . When the next invoice amount is greater than the amount remaining to apply, Workday assigns only the remaining amount to pay for that invoice.
    Example: There's a recorded payment of 1000.00 EUR. The oldest invoice for the customer is 600.00 EUR and the next is for 1500.00 EUR. Workday selects both invoices, applies the payment to first invoice in full and remainder to the next invoice. The outstanding 1100.00 EUR on the second invoice remains in the queue of unpaid invoices.
    Recall Last Payment Application
    When you select this check box, Workday automatically selects the applicable invoices in the results.
    Amount to Place On-Account
    When your payment amount is greater than the total amount applied to 1 or more invoices, you can place the overpayment amount on account. To balance and submit the payment, enter an amount that is equal to the
    Remaining Amount to Apply
     value. Workday then updates the
    Remaining Amount to Apply
     to zero, which means your payment is balanced and ready to submit.
  4. Select the invoices for payment application.
    • For consolidated invoices, apply the payment towards invoices for the parent or for the child customers.
    • Workday doesn't support on behalf of payments and write-offs that include invoices with term discount.
  5. To search through large volume of open invoices, click
    Search for Invoices
    .
    You can continue to search and add invoices multiple times. Each time you search, Workday saves the previous changes including payment amounts, discount amounts, and writeoffs.
  6. As you enter the payment information for each invoice line, consider:
    Option Description
    Payment Amount
    Apply a full or partial amount of the recorded payment towards the selected invoice. For partial amounts, put the remaining balance on-account.
    Discount Amount
    When you apply the payment within the discount date from the customer invoice, Workday applies the discount based on the payment amount applied, not the invoice balance. You set the discount terms on the customer invoice in the
    Payment Terms
     field.
    Workday applies discount amounts as part of the payment application process. Discount amounts aren't part of the payment amount itself, and display in a separate field on reports.
    Writeoff
    Click the write-off value and specify the amount. You can also split the writeoff amount by writeoff reason and balancing worktag if your tenant has worktag balancing enabled.
    Workday updates the journal line accounting to reflect the debit and credit amounts to the correct ledger accounts.
    Amount Due Remaining
    Workday updates this value dynamically when any of these amounts change:
    • Amount Due
    • Discount Amount
    • Payment Amount
    • Writeoff Amount
Workday initiates the
Customer Payment Application Event
 business process to route the payment for approvals, and then creates the operational journal lines. If you save for later, Workday saves the payment in
Draft
 status, and doesn't generate any operational journal lines.
For intercompany transactions:
  • Workday automatically populates the intercompany affiliate between the 2 companies for the generated journal lines. You can view the intercompany accounting details under the
    Payment Application
    View Accounting
    Intercompany
     tab of the customer transaction.
  • Create a settlement run to transfer the payment and to clear the intercompany payable and receivable entries.