Concept: Customer Payments

When you receive a customer payment, you can:

Record the payment and deposit it.

Apply it to customer invoices or invoice adjustments. You can apply the full amount or partial payment and place the balance on account. During payment application, you can also write off full or partial invoice amounts.

Record overpayment and place it on account.

After submitting the payment, you can:

Unapply the full payment and edit it to make corrections.

Cancel the payment if it's in error before you settle it.

Return the payment that's already deposited in the bank.

When you cancel payments:

Pending payments are no longer available for settlement.

Workday no longer includes those payments when you print checks or generate the bank file for completed settlement runs.

If you already printed the check or sent the bank file, canceling stops those payments. Ensure to void the check using the

Record Voided Checks

task.

When you cancel or return payments, Workday generates journal entries to reverse the original payments, unapplies them, and makes the invoice available again for payment application.

You can configure cash balance checking to prevent outbound payments from processing when you have insufficient funds. See Steps: Configure Advanced Cash Balance Checking.

You can use these tasks to perform the various actions:

Record Customer Payments

Mass Record Customer Payments

Apply Customer Payment

Auto-Apply Customer Payments

Create Customer Deposit

Create Customer Refund

When you have payments with large volumes of remittance lines, you can use the web services to upload them, and then process using the

Auto-Apply Customer Payments

task.

Mass Record Customer Payments

When you need to record large amounts of payments coming in at once, you can process them with the

Mass Record Customer Payment

task. Use this task when the payments reference only 1 or a few invoices each. You can record payments for different customers as well.

Keep in mind that the task only records payments, and doesn’t apply them. Therefore, Workday doesn't create operational journals. If you want Workday to create operational journals to record the cash, you can create a deposit as part of the task. Workday then creates the journals from the deposit.

Intercompany Payments

Workday enables you to centralize the receipt of customer payments so that a single company can pay invoices for its related companies. A company can receive payments from a customer on behalf of other related companies, and pay their invoices. This functionality makes it faster and easier for you to recognize the receipt of payments and accelerates the cash remittance to banks. However, Workday doesn't support payment application for on-behalf-of payments and write-off transactions that include invoices with term discount.

Setup for intercompany payments:

Use the Process: Customer Invoice
domain security policy to enable your accounts receivable specialist to see more details of another company invoice.

For companies to have intercompany relationships, select

Initiate Allowed

in the

Edit Company Intercompany Profile

task.

Other areas of Workday that support intercompany payments include:

The

View Accounting for Customer Transaction

report contains an

Intercompany

tab that displays intercompany accounting lines, including payables and receivables.

Customer statements give a description of payments to or from another company, if applicable.

To process intercompany payments when worktag balancing is active for either company, ensure that the company paying on your behalf uses the same currency as your company, invoice, and payment currency.

To find invoices in other companies, use Same Bill-To
or Remit-From - By Company
prompt categories on these tasks:

Record Customer Payment

Apply Customer Payment

Payment Transfers

Payment transfers are separate transactions. These transactions don’t generate accounting. Transfers happen when the payment application is for invoices where the company or the remit from customer is different than the customer on the invoice. Workday stores these transactions as either Payment transfer in
or Payment transfer out
depending on the customer that you run the report for.

Student Sponsor Contract Payments

Student sponsor contracts enable educational institutions, corporations, and governmental bodies to pay educational expenses for 1 or more students. Access the

Record Student Sponsor Payment

task to record student sponsor payments and apply them specifically to invoices for student sponsor contracts.

VAT on Payments

In certain countries, companies can elect to pay Value Added Taxes (VAT) on payments instead of on invoices. Upon configuration, you can record VAT pending upon invoice and VAT payable upon collection of payment. Workday calculates and posts VAT on payment automatically. When you configure VAT on payments for a company:

Customer invoices that you haven't paid will still use the original accounting. Workday doesn't apply the tax accounting to the payment.

Customer invoices you create after configuring VAT, will use the VAT on payment accounting.

VAT considerations in Workday include:

Customer invoice and customer invoice adjustments support different rates per invoice line.

Support for prorated tax amounts for partial payments.

On-Account payments use the default tax rate of a company.

On-Account payments apply to a customer invoice.

Payment Terms

You can configure payment terms in Workday to define:

Due dates for a customer invoice.

Discounts based on when your customer pays the invoice.

Customer-specific payment terms.

Payment Methods

Payment methods determine the account that Workday uses for various transactions. Workday provides several payment methods that you can use to configure payment types in your environment using the

Maintain Payment Types

task. Some of the payment methods are electronic, which have additional processing considerations. You can use payment method of direct debit for electronic payment types.

When you use a third-party vendor to process payments outside of Workday, we recommend mapping your payment type to

Payment Method

of Manual
.

Payment Types

A payment type is a valid form of payment that you use to make payments. Workday enables you to configure each Payment Type and map it to a valid Workday delivered Payment Method. Electronic payment types, such as direct debit or credit card, process through settlement runs. Workday automatically creates a combined deposit and payment. Once the settlement engine completes the payments, it generates the accounting entries associated with each payment.

For other payment types, record the payments with the

Record Customer Payment

task and apply them to the associated invoices. Example: You can map a Credit Card

Payment Method

to the Visa

Payment Type