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Administrator Guide
Last Updated: 2023-06-23
Concept: Settlement Processing

Concept: Settlement Processing

When you process a settlement run, Workday launches the
Settlement Run Event
 business process and settles the unpaid open items and pending payments as a single unit.

Unpaid Open Items

For unpaid open items, Workday creates and settles the payment. The payment date is the settlement date. These items include:
  • Cash advances.
  • Customer invoices and adjustments.
  • Expense credit card transactions.
  • Expense reports.
  • Intercompany items.
  • Miscellaneous payment requests.
  • Procurement card transactions.
  • Supplier invoices and adjustments.
  • Student payments and refunds.

Pending Payments

For pending payments, the process settles the existing payments. The payment date derives from the transaction itself and the settlement date doesn't have any bearing. These payments include:
  • Ad hoc payments.
  • Bank account transfers for settlement.
  • Customer payments and refunds.
  • On-cycle and off-cycle payroll payments.
You can use the
Find Payments
 report to find and view all inbound or outbound payments in 1 place.

Payment Groups

The process automatically organizes the payments into payment groups according to criteria such as:
  • Bank account
  • Category (such as supplier invoice, expense report, payroll, and ad hoc payment)
  • Company (for intercompany payments)
  • Cost center
  • Country
  • Credit card type
  • Currency
  • Handling code (on supplier invoices)
  • Reference type (on supplier invoices)
  • Pay group (payroll)
  • Payment type (such as check or EFT)
  • Paycheck delivery method
  • Maximum allowable payments in a file
  • Integration system
  • Supervisory organization
You can review the settlement status for each payment group on the confirmation, which displays:
  • How the settlement process grouped payments.
  • The status of each payment group.
  • Details and status of each business process and subprocess step.
  • The people involved in the workflow.

Subsequent Business Processes

When the
Settlement Run Event
 business process reaches
Approved
 status, Workday proceeds to subsequent business processes automatically:
  • For electronic payments, Workday launches the
    Payment Release Event
     business process to release electronic payments in the settlement run. Electronic payments include credit card payments.
    After releasing the payments, Workday checks to see what integration system is associated with each bank account. Workday uses the associated integration system to create and transfer electronic payment files to the bank.
  • For payments by check, Workday launches the
    Print Checks Task
     business process. This process creates a Workday Inbox item for the settlement specialist.
    When the business process completes, Workday launches the
    Payment Printing Event
     business process to generate a positive pay file.
  • For outsourced payments, Workday launches the
    Outsourced Payment Release Event
     business process to send an integration file to an outsourced provider.
Once you approve and complete all applicable subprocesses that you've configured for the
Settlement Run Event
, Workday updates the settlement run status to
Complete
. The settlement process also generates the accounting entries associated with each payment and sends them to Workday financial accounting.