Concept: Sales Items

You can manage your sales items using the

Create Sales Item

and

Edit Sales Item

tasks. To drive accounting and analysis, you can organize sales items into revenue categories, sales item groups, and sales item bundles. You can also maintain pricing for

Vendor Specific Objective Evidence

(VSOE),

Third Party Evidence

, and

Estimated Selling Price

for use in custom reporting. Sales items can have 2 units of measure, such as the number of users and time (day, hours, month, week, or year). Workday uses the units of measure to determine how to package and sell sales items to customers. When you select sales items on customer contract lines, Workday populates the lines with the sales item information you specify. You can also review sales metrics through the related actions, including:

You can categorize sales items by revenue category and automatically assign them during accounting using the

Create Revenue Category

task. You must associate each sales item with 1 revenue category. You can also group your revenue categories for reporting purposes using the

Create Revenue Category Hierarchy

task. You then can use revenue categories to create account posting rules for revenue and drive the accounting related to the sales item to particular ledger accounts.

You can:

Create sales item relationships using the
Maintain Fair Value Price List
report and then calculate your fair value pricing based on the relationship.
Configure revenue allocation rules to handle exceptions at the sales item level using the
Set Up Revenue Allocation Configuration
task.

Sales item groups enable you to search for sales items more easily. A sales item can belong to more than 1 group. Example: A laptop can belong to both the

Office Supplies

and

Laptops and Desktops

sales item groups.

You can use these tasks to configure sales item groups:

Maintain Sales Item Groups
Assign Sales Items to Item Group

You can associate sales item groups with 1 of these group types:

General
FV Pricing
(Use with fair value price lists.)
Sales Item Pricing
(Use with price lists for multidimensional pricing.)

You can create sales item bundles by selecting the

Sales Item is a Bundle

check box on the

Create Sales Item

task. When you include a sales item bundle on customer contract lines, you can:

Bill for the entire contract line.
Recognize revenue for individual sales items in the bundle.

When you invoice customers, Workday:

Displays the sales item bundle as 1 line item on the invoice with a single grouped price.
Uses the individual sales items within the bundle for revenue allocation.

You can change which sales items are in a bundle using these tasks:

Create Customer Contract
Create Customer Contract Amendment
Create Customer Contract Change

You can configure separate sales item price lists based on dimensions, such as company size, location, or channel using the

Maintain Sales Item Price List

report.

You can associate sales items and sales item groups with a fair value price list using the

Maintain Fair Value Price List

report. For each sales item, you can configure the fair value price list based on a percentage or amount value. When you add a sales item on the customer contract line, Workday populates information from the fair value price list on the contract line. You can also associate a fair value price list with your customer contracts by selecting the

Multiple-Element Revenue Allocation

check box on the contract.

You can map sales items to purchase items and revenue categories to spend categories for use on direct intercompany transactions. When you map sales items to purchase items and revenue categories to spend categories, there must be a 1-to-1 relationship.

When you need to map multiple spend categories to a single revenue category, you must create:

Additional revenue categories so that you can maintain a 1-to-1 relationship.
Multiple sales items that map to a single intercompany revenue category and map each sales item to a purchase item in a 1-to-1 relationship. You can then map each purchase item to the appropriate spend category.

Workday creates direct intercompany supplier invoices at the lowest level of detail. Example: If a revenue category maps to spend category X, but the sales item on the invoice maps to a purchase item that maps to spend category Y, Workday uses the spend category associated with purchase item Y on the supplier transaction.