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Administrator Guide
Last Updated: 2023-06-23
Setup Considerations: Intercompany Expense Report Processing

Setup Considerations: Intercompany Expense Report Processing

You can use this topic to help make decisions when planning your configuration and use of intercompany processing on expense reports. It explains:
  • Why to set it up.
  • How it fits into the rest of Workday.
  • Downstream impacts and cross-product interactions.
  • Security requirements and business process configurations.
  • Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is

With support for intercompany processing on expense reports, in Workday you can:
  • Expense or itemize individual lines to different companies from the header company on expense reports.
  • Settle expense reports across multiple companies.

Business Benefits

  • Streamlines how you create, submit, and settle expense reports.
  • Eliminates the need to create individual expense reports for each company.

Use Cases

When you configure intercompany processing for expense reports:
  • Employees can include expenses charged to multiple different companies on a single expense report.
  • Sales executives can split their expenses across multiple companies that they visit on 1 trip on a single expense report.
  • Hospital and university physicians can bill their expenses across both their companies on 1 expense report.
  • Employees in a multicampus university, where each campus is an individual company, can expense transactions to each company.

Questions to Consider

Questions
Considerations
Do you want to generate accounting between companies at the transaction or contract level?
Does your company have direct intercompany contracts configured?
If your company has set up direct intercompany contracts, you can continue to use your configuration to generate accounting against contracts. However, if you want to generate accounting between companies at the transaction level with expenses, you can configure intercompany processing for expense reports.
Is there a need to report on value added tax (VAT) expenses between companies within the same VAT group?
You can configure your tax groups based on your tax reporting requirements so that companies within a group can have an intercompany relationship with each other. Workday then enables workers to select between companies within the same VAT group.
If the companies don't require VAT reporting on expenses, workers can select from companies that have an intercompany agreement.

Recommendations

  • To prevent accounting errors, don't remove or edit intercompany profiles when the expense report is in the approval or settlement process.
  • To enable workers to select from companies within the same VAT group, configure VAT groups and effective dates.

Requirements

No impact.

Limitations

If your company uses:
  • Spend authorizations, Workday doesn't support intercompany processing on expense reports when you link spend authorizations on expense lines and itemizations.
  • Credit cards, Workday only enables you to select between the expense report header company and the credit card company on expense lines and itemizations.

Tenant Setup

No impact.

Security

Configure the
Set Up: Company General
 domain in the Common Financial Management functional area for workers that need to:
  • Configure expense options for individual companies.
  • View individual company reporting.
Domains
Considerations
Business Process Administration
 and
Manage: Business Process Definition
 in the System functional area
Users can configure the
Expense Report Event
 business process definition to include the intercompany review process.
Set Up: Company General
 in the Common Financial Management functional area
Users can:
  • Configure expense options for individual companies.
  • View individual company reporting.

Business Processes

Add the
Initiate Expense Report Intercompany Event
 action step on the
Expense Report Event
 business process to:
  • Hold the affiliate company on the expense lines and itemizations accountable for the workers spend.
  • Initiate the approval process for the company on the expense report lines or itemizations to notify them of the expenditure.
If the intercompany approver denies the intercompany lines, they deny the entire expense report.

Reporting

No impact.

Integrations

Integrations
Considerations
Put Company
Use to enable or disable intercompany expense report processing in your expense company options.
Submit Expense Report
Use to submit expense reports for intercompany expense reports.

Connections and Touchpoints

Feature
Considerations
Financial Accounting
Workday processes and generates the accounting for the intercompany expense report, including companies with balancing worktags configured.
Workday uses your balancing worktag configuration to ensure the generated accounting balances by worktag for the applicable expense transactions.
Financial Transaction Tax
You can bill expenses between companies belonging to the same VAT group on intercompany expense reports.
Projects
You can:
  • Use capital project worktags on intercompany expense reports to expense or capitalize costs as assets.
  • Settle and generate intercompany accounting for capital project transactions on expense reports.
Settlement
You can settle and process intercompany expense reports.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.