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Administrator Guide
Last Updated: 2023-06-23
Setup Considerations: Settlement

Setup Considerations: Settlement

You can use this topic to make configuration decisions for Workday Settlement. It explains:
  • Why to set it up.
  • How this feature 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

Workday Settlement provides a comprehensive platform that enables you to process and manage your payments.

Business Benefits

Workday Settlement enables you to manage all incoming and outgoing payments in 1 place across your entire business. This unified infrastructure:
  • Controls the financial inflows and outflows of your enterprise.
  • Gives you the analytic data you need to make informed decisions.

Use Cases

You can:
  • Set up payments by managing your payment types and configuring your check printing options.
  • Settle inbound electronic payments and outbound payments.
  • Set up payment integrations to transmit payments to financial institutions and receive payment acknowledgments.
  • Process payments after settlement by printing checks and canceling payments.

Questions to Consider

Questions
Considerations
What bank accounts do you plan to use?
You can integrate Workday with bank accounts for settlement processing and check printing. To generate payment files for settlement processing, you can:
  • Create 1 or more integration systems for each combination of bank and electronic payment type.
  • Assign multiple integration systems to a single bank account. Example: You want to process payments that are of the same type but in different categories or countries.
  • Use the same integration for each account in the same bank with the same payment type.
What kinds of payments and functions do you want to use your bank accounts for?
You can configure a bank account to use it for multiple payment types. You can also create a bank account for unique functions, such as an account that covers only payroll expenses.
How do you want to route your payments?
You can configure rules to determine which bank accounts the settlement process routes payments through. When a payment doesn't match any rule, Workday uses your default bank account.
Bank routing rules only apply to payments involving standard accounts. A company can only have 1 bank routing rule.
How do you want to process payments?
You can assign:
  • A settlement specialist role responsible for processing all operational transactions.
  • Roles based on specific functional areas.
Whether you centralize or decentralize your payment processing impacts how you:
  • Configure the
    Settlement Run Event
     business process.
  • Segregate your check and advice printing.

Recommendations

  • To help prevent downstream integration errors, set up bank institution records in Workday. You can store detailed bank information, by country, that workers can select when they create worker and settlement bank accounts.
  • Use settlement run filters to save time and fit your specific use case.
  • Automate your recurring settlement and prenote runs to reduce manual effort.

Requirements

No impact.

Limitations

When you cancel a settlement run, you can no longer make changes to it.

Tenant Setup

Use the
Edit Tenant Setup - Financials
 task to view and configure tenant-wide options for Workday Settlement.
You can use the task to set ID sequence generators for:
  • EFT payments.
  • Settlement runs.
  • Prenote runs.
You can use the
Settlement and Bank Account Options
 section to:
  • Enable multicurrency settlement runs.
  • Enable bank account masking for payment elections.
  • Enable dynamic supplier payment dates.
  • Disable errors when you enter invalid bank identification codes on payment elections or settlement bank accounts.
  • Enable payment purpose codes for supplier payments.

Security

The
Process: Settlement
 domain in the Banking and Settlement functional area enables users to settle and report on all payment types. To enable users to settle and report on specific payment types, secure them to these domains:
Domains
Considerations
Process: Ad Hoc Payment Settlement
 in the Banking and Settlement functional area.
Enables users to settle ad hoc payments and view related reporting.
Process: Bank Account Transfer for Settlement/Settlement
 in the Banking and Settlement functional area.
Enables users to settle bank account transfers for settlement and view related reporting.
Process: Customer Invoice Payment/Settlement
 in the Customer Accounts functional area.
Enables users to settle customer direct debit payments and view related reporting.
Process: Customer Refund Settlement
 in the Customer Accounts functional area.
Enables users to settle customer refund payments and view related reporting.
Process: Expense Report Payment/Settlement
 in the Expenses functional area.
Enables users to settle expense payments and view related reporting.
Process: Intercompany Payment/Settlement
 in the Financial Accounting functional area.
Enables users to settle intercompany items and view related reporting.
Process: Miscellaneous Payment Request Settlement
 in the Miscellaneous Payments functional area.
Enables users to settle miscellaneous payment requests and view related reporting.
Process: Payroll Settlement
 in the Core Payroll functional area.
Enables users to settle payroll payments and view related reporting.
Process: Pending Student Refund/Settlement
 in the Student Financials functional area.
Enables users to settle student refunds and view related reporting.
Process: Procurement Card Payment/Settlement
 in the Procurement functional area.
Enables users to settle procurement card payments and view related reporting.
Process: Schedule Settlement Run
 in the Banking and Settlement functional area.
Enables users to schedule settlement runs and view related reporting.
Process: Student Payment/Settlement
 in the Student Financials functional area.
Enables users to settle student payments and view related reporting.
Process: Student Sponsor Refund/Settlement
 in the Student Financials functional area.
Enables users to settle student sponsor refunds and view related reporting.
Process: Supplier Invoice Payment/Settlement
 in the Supplier Accounts functional area.
Enables users to settle supplier invoices and view related reporting.

Business Processes

Business Processes
Considerations
Outsourced Payment Release Event
Enables you to send checks to an outsourced check printing service.
Payment Printing Event
Enables you to generate positive pay files that correspond to printed checks.
Payment Release Event
Enables you to trigger the payment for electronic payment methods.
Print Checks Task
Enables you to print hard-copies of payslips and checks.
Remittance Release Event
Enables you to create and email remittance files.
Settlement Run Event
Enables you to settle payments. Workday delivers the default definition of this business process minimally configured. You can add steps, such as approvals.

Reporting

Reports or Dashboards
Considerations
Find Payments
 report
Use this report to find payments for settlement.
Find Settlement Runs
 report
Use this report to find and report on settlement runs.
Find Settlement Setup Rule
 report
Use this report to find the settlement setup associated with a specified bank account or shared between multiple bank accounts.
Settlement
 dashboard
Use this dashboard to view and track information on end-to-end settlement processing.You can configure this dashboard with worklets to access tasks and reports for:
  • Check and advice printing.
  • Payment returns.
  • Prenote payments.
  • Settlement runs.
Settlement Work Area
 report
Use this report to create, schedule, and find settlement runs.
These report data sources provide settlement data:
  • Bank Account Transfers for Settlement
  • Open Items for Settlement
  • Settlement Runs

Integrations

Workday provides many web services for common settlement inputs and configurations. Consider these web services when configuring Workday Settlement:
  • Import Bank Institution Record Branches
  • Get Payment Purpose Code
  • Put Direct Debit Mandate
  • Put Miscellaneous Payee
  • Put Miscellaneous Payee Category
  • Put Miscellaneous Payment Request Category
  • Put Outsourced Bank Provider
  • Put Payment Acknowledgement Message
  • Put Payment Integration
  • Put Payment Purpose Code
  • Put Payment Type
  • Put Settlement Run Custom Filter
  • Submit Payment Return
Workday supports integrations with these electronic payment service providers and protocols:
  • Automated Clearing House (ACH)
  • Bankers' Automated Clearing Services (BACS)
  • ISO 20022
  • Zengin
You can also create a Payment Connector integration that exports payment data from Workday to a bank or payment processor.
Workday recommends that you use enhanced performance integration templates when available.

Connections and Touchpoints

Functional Areas
Considerations
Cash
Users secured to the associated domain can settle ad hoc payments.
Customer Accounts
Users secured to the associated domain can settle:
  • Customer invoices.
  • Customer payments.
  • Customer refunds.
Unless you select
Always Separate Payments
 when you define a customer, the settlement process combines all invoices and adjustments into a single payment.
Expenses
Users secured to the associated domain can settle:
  • Cash advances.
  • Expense credit card transactions.
  • Expense reports.
Financial Accounting
Users secured to the associated domain can settle intercompany items.
When you complete a settlement run, Workday generates accounting entries and sends them to Workday Financial Accounting.
Miscellaneous Payment Requests
Users secured to the associated domain can settle miscellaneous payment requests.
Payroll
Users secured to the associated domain can settle:
  • Pay group exceptions.
  • Pay groups.
You can configure check print layouts to manage paychecks and advices.
To ensure accurate payroll payments, configure bank accounts with specific payroll usage types.
Procurement
Users secured to the associated domain can verify and settle procurement card transactions.
Student
Users secured to the associated domain can settle:
  • Student payments.
  • Student refunds.
  • Student sponsor refunds.
Supplier Accounts
Users secured to the associated domain can settle supplier invoices.
Unless you select
Always Separate Payments
 when you define a supplier, the settlement process combines all invoices into a single payment.
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.