Steps: Process Payroll Commitment Accounting

Create position budgets.

Configure commitment accounting to control positions.

Review setup considerations for payroll commitment accounting.

Payroll commitment accounting enables you to track and control payroll costs for filled and unfilled positions.

Workday Payroll enables you to:

Initiate payroll commitments for filled and unfilled jobs in the fiscal year. It includes position management staffing and filled jobs in job management staffing.

Liquidate and create actuals for payroll and fringe benefits.

You can make adjustments throughout the fiscal year based on events such as compensation and costing allocation changes.

If you implement Workday Payroll in the middle of the fiscal year and upload payroll data for the first part of the year, you must liquidate payroll commitments for the uploaded period before using payroll accounting.

Access the

Create Fringe Benefit Commitment Rule

task to define percentage brackets for the fringe benefit portion of payroll commitments using fringe benefit commitment rules.

You can:

Create a rule based on job family and cost center.

Resolve fringe benefit commitment rules for filled (obligations) and unfilled (commitments) positions.

Apply the commitment rules to multiple company and year combinations.

See Example: Set Up 2-Tier Fringe Benefits Based on Salary for Earnings and Example: Set Up Earnings with Different Fringe Benefit Percentages Based on Different Rules.

(Optional) Enable Earning Frequency Override.

Enable the earning frequency override so you can adjust payroll commitment accounting to align with the payroll actual calculations.

Create Payroll Commitment Rules.

Configure rules for payroll commitments and fringe benefit commitments. You can define fringe benefit percentages for earnings.

Create Initial Payroll Commitments.

Initiate payroll commitments with the Create Initial Payroll Commitments
business process.

Configure Payroll Commitment Options.

Add and open a new base fiscal year. Create multiyear commitments and configure fiscal year proration options.

(Optional) Access the

View Payroll Commitment Rule

report to copy the payroll commitment rule for the current fiscal year and modify it for the following year.

From the related actions menu of the commitment rule, select

Payroll Commitment Rule

Copy

Security: Set Up: Position Commitment Accounting
domain in the Core Payroll functional area.

Access the

Run Pay Calculation

task.

Liquidate payroll and fringe benefits and calculate payroll and fringe benefit actuals.

Security: Process: Run Batch Calculations (Pay Calculation)
domain in the Core Payroll functional area.