Setup Considerations: Multiple Funding Sources
You can use this topic to help make decisions when planning your configuration and use of
multiple funding sources. 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
A funding source is money set aside for a specific purpose that you can use while within
limitations or if you meet conditions. You can pay for costs and transactions
directly from the funding sources. When you process a transaction for funding,
Workday reclassifies the transaction using the associated funding source rule.
Business Benefits
You can fund a project with multiple funding sources. When you fund a project with
multiple funding sources, you can prioritize specific funding sources to pay for
costs and expenses. This helps you budget and track the actual costs of your
project, which you can then analyze to help gauge project performance and budget
allocation.
Use Cases
Multiple funding sources enables you to do these things on a project:
- Assign projects to multiple funding sources.
- Reclassify expense transactions using the project worktag to specified funding sources.
- Restrict allocation of funds to funding sources using condition rules.
- Control the priority of funds you charge to a funding source on a funding source rule.
- Track expense transactions that you reclassified to a funding source.
Questions to Consider
Questions | Considerations |
|---|---|
Do you receive state or governmental funding for projects or
programs? Do you have projects that have restrictive
requirements? Do you have sponsorships and grants that you can
only use for specific purposes? | Public or government funds frequently have stipulations that
require you only use those funds for specific purposes, or towards
specific expenses. You can use funding source rules and condition rules
to track funds based on those stipulations. |
How do you want to restrict funds on your funding source? | Workday enables you to restrict access to funds by either spend
restrictions or condition rules. You can use spend restrictions to limit
funds based on spend categories. You can also use condition rules to
limit funds based on indexed journal line attributes. |
How do you want to structure your worktags and worktag
types? | Multiple funding sources can use worktags configured with the
project to identify and reclassify expense transactions to funding
sources. When you build your worktag structure, consider if you need
these:
There's frequently worktag type requirements on the grants that
might not be on the funding source. If you don't account for the
restrictions on both the funding source and the grant, your
facilities and administration expenses might not fully reflect your
funding source transaction. |
Recommendations
Functionality | Considerations |
|---|---|
Funding source rule | Workday recommends that you prioritize your most restrictive
funding sources when you configure funding source rules. Workday
evaluates funding sources from the top down. When you prioritize a
loosely restricted funding source rule, Workday allocates funds from
that priority first. |
Condition rules | Workday recommends you configure condition rules for your funding
source rules. Condition rules add an additional layer of restriction
using indexed journal line attributes as filter criteria. Without
condition rules, any transaction that uses the correct project
worktag can take funds from the funding source. |
Spend restrictions | We recommend you configure spend restrictions on your funding
source rule. Spend restrictions help you include or exclude spend
categories on a funding source, even with a shared project worktag.
The restrictions help ensure that a funding source only receives the
transactions you want. |
Requirements
Before you can use multiple funding sources, you must set up projects and create project
hierarchies.
Limitations
You can't create a business process to review and approve the creation of:
- Funding sources.
- Funding source condition rules.
- Funding source rules.
You can only use multiple funding sources with 1 project hierarchy at a time.
You can only create 1 funding source condition rule per priority line.
Tenant Setup
Select a project hierarchy on the
Top Project Hierarchy
prompt in the
Funding Source Options
section of the Edit
Tenant Setup - Financials
task.You can also select the
Disable Funding Source Reclassifications for WIP
Lines
check box. This option prevents Workday from reclassifying
work-in-progress transactions when you process a funding source. Disabling
reclassifications lowers the processing time and reduces the possibility of
incorrectly reclassified transactions.Security
Configure these security domains in the Financial Accounting functional area:
Domains | Considerations |
|---|---|
Process: Funding Sources
| Set up to process and reprocess funding sources |
Set Up: Funding Sources
| Set up to create:
|
Set Up: Spend Restrictions
| Set up to create spend restrictions. |
Configure the
Set Up: Grants
domain in the Grant Management functional area if you want
to reclassify expense transactions to your grants.Business Processes
Configure the
Funding Source Reclassification Event
business process with an additional
approval step to process or reprocess reclassification events for funding
sources.Reporting
Reports | Considerations |
|---|---|
Award Spend Restriction Audit
Report
| Enables you to verify that your transactions apply to the correct
grants. |
Find Funding Source Reclassification
Lines
| Enables you to review the reclassification lines on an expense
transaction. |
View Default Funding
Source
View Funding
Source | The details on a funding source. |
View Funding Source Condition Rule
| The details on a funding source condition rule. Also helps you find
funding source rules that use that condition rule. |
View Funding Source Rule
| The details on your funding source and funding source
priorities. |
View Spend Restriction
| The configuration of a spend restriction. |
Integrations
Web Services | Considerations |
|---|---|
Get Default Funding Sources
Get Funding
Sources | Retrieves funding sources. Enables you to view detailed information
across multiple funding sources. |
Get Funding Source Condition Rules
| Retrieves funding source condition rules assigned to a funding
source rule. Enables you to view detailed information on those condition
rules. |
Get Funding Source Rules
| Retrieves funding source rules. Enables you to view detailed
information across multiple funding source rules. |
Get Spend Restrictions
| Retrieves details on spend restrictions. Enables you to view all of
your spend restrictions at once. |
Put Default Funding Sources
| Sets a default funding source for the company. |
Put Funding Source Condition Rules
| Creates a funding source condition rule on a funding source
rule. |
Put Funding Sources
| Creates a funding source. |
Put Funding Source Rules
| Creates a funding source rule. |
Put Spend Restriction
| Creates a spend restriction. |
Connections and Touchpoints
Functional Areas | Considerations |
|---|---|
Grant Management | A significant source of funding can come from grants, which
organizations frequently award with restrictions or stipulations.
Multiple funding sources can help you allocate those granted funds,
while maintaining the specified restrictions. |
Projects | Multiple funding sources can help you set up and maintain your
projects. You use funding sources to allocate funds to a project, which
determines the amount of available money. |
Project Tracking | You can track the transactions tied to a project using worktags.
Reclassification of a transaction to a project applies the project
worktags and uses any funds the transaction qualifies for. |