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Administrator Guide
Last Updated: 2023-06-23
Create a Non-PO Supplier Invoice

Create a Non-PO Supplier Invoice

  • Configure the
    Supplier Invoice Event
     business process and security policy in the Supplier Accounts functional area.
  • To create non-PO supplier invoices in the Supplier Invoice Workbench, set up Security:
    Process: Supplier Invoice - Invoice Workbench
     domain in the Supplier Accounts functional area.
Manually create a supplier invoice that isn't based on a purchase order.
  1. (Optional) Access the
    Edit Company Accounting Details
     task, and select the
    Supplier Invoice
     option for the
    Allow Accounting by Approval Date
     prompt to use the approval date as the accounting date on your customer invoices and adjustments or to order document sequence numbers by accounting date.
    Security:
    Set Up: Company Accounting
     domain in the Common Financial Management functional area.
  2. Access the
    Create Supplier Invoice
     task.
    You can also create a non-PO supplier invoice by clicking
    Ad Hoc Lines
     in the
    Supplier Invoice Workbench
     task.
  3. Enter details in the
    Invoice Information
     section:
    Option Description
    Company
    The company responsible for invoice payments.
    Supplier
    Select who you are creating the invoice for. Workday displays the suppliers that are available for use with the selected company or company hierarchy.
    Remit-To Connection
    If the supplier has a
    Default
     remit-to connection, it displays in this field. You can update the default as needed.
    Currency
    Defaults to the preferred currency of the supplier if specified on the supplier; otherwise, it's the company currency. You can change the currency to any of the accepted currencies defined for the supplier.
    Invoice Date
    Enter the date for the supplier invoice. The Invoice Date controls the due date if you have payment terms set up for this supplier.
    Example: If the payment terms are
    Net 30
    , the
    Due Date
     field will be 30 days after the invoice date. If the date falls within a closed period, Workday posts accounting to the next available period.
    Accounting Date Override
    The accounting override date you enter must be in an open accounting period.
    This field displays when you enable
    Allow Accounting in Arrears
     for
    Supplier Invoice
     on the
    Edit Company Accounting Details
     task. Depending on how you configure the company accounting, Accounting Date Override might be optional or required.
    Example: If you provide a service, but you create the invoice for the service in the next accounting period, you can select the service date as the accounting override date.
    Control Total Amount
    Enter an amount if you know what the total invoice is and you want to ensure that the computed
    Total Invoice Amount
     matches your expectation.
    Freight Amount
    Other Charges
    Allocate these landing costs from the transaction header back to the lines. Add a spend category that's eligible for allocation of freight and other charges to at least 1 line, as set up on the
    Maintain Spend Categories
     task.
    Example: You purchase a large piece of equipment and have 1 line for the equipment itself and another for installation.
  4. Enter details in the
    Terms and Taxes
     section:
    Option Description
    Payment Terms
    Defaults from the supplier, but you can change the terms if necessary.
    Discount Date
    Calculated automatically based on
    Payment Terms
     that have a discount for early payment, and
    Invoice Date
    .
    Due Date Override
    Select a different due date if there's an exception to the terms.
    Override Payment Type
    Select a payment type other than the default set for the supplier.
    Originating Country Payment Purpose
    Select a payment purpose code if the country sending this invoice payment requires a purpose code. This field displays when you enable Payment Purpose Codes on the
    Edit Tenant Setup - Financials
     task.
    Receiving Country Payment Purpose
    Select a payment purpose code if the country receiving this invoice payment requires a purpose code. This field displays when you enable Payment Purpose Codes on the
    Edit Tenant Setup - Financials
     task.
    Default Tax Option
    Workday automatically populates this value from the company accounting details.
    Workday automatically populates the tax option at the line from the header, but you can override it at the line level.
    Default Tax Code
    Workday automatically populates the default tax code from the supplier profile. If the default tax code isn't set up or to override it, select a tax code.
    Workday automatically populates the tax code at the line from the header, but you can override it at the line level.
    Default Withholding Tax Code
    Workday automatically populates the default withholding tax code from the supplier profile. If the default withholding tax code isn't set up or to override it, select a withholding tax code.
    Workday automatically populates the withholding tax code at the line from the header, but you can override it at the line level.
    Tax Amount
    If you selected to calculate tax, Workday displays the sum of the calculated tax amounts from the taxable lines, based on tax code you specify for each line. To override this calculated amount, you can change calculated tax by tax rate on the
    Tax
     tab.
    If you select to enter tax due to the supplier, enter the tax amount for the transaction. You must have at least 1 line with a tax applicability that is taxable and enabled for allocation.
    The tax allocated to the lines is only the nonrecoverable amount for the transaction and doesn't always add up to this header amount.
    If you enter a negative value, Workday allocates the tax amount to a negative or zero-cost line.
    Withholding Tax Amount
    Workday calculates the withholding tax from the invoice lines when tax amounts have a realization point at invoice time.
    This total doesn't include tax amounts that have a realization point at time of payment. To override this calculated amount, you can change calculated tax by tax rate on the
    Tax
     tab.
    Update Tax
    Select
    Update Tax
     if you update tax on an invoice line and want to recalculate the tax displayed in the header.
    If you update taxes on an invoice line, Workday automatically recalculates the header tax when you submit or save for later.
  5. Enter details in the
    Invoice Reference Information
     section:
    Option Description
    Ship-To Address
    Workday uses this address when evaluating tax rules to determine tax code and tax applicability overrides for the transaction lines.
    On Hold
    Select to hold payment on this invoice.
    Supplier Document Received
    Select if the supplier provided an invoice or other relevant document.
    Supplier Reference Number
    If you've received the supplier document, enter its reference number.
    Example: If the supplier provided a supplier invoice, enter the invoice number from the supplier document.
    By default Workday delivers duplicate validation enabled for this field. To validate against your own conditions, you can disable this option using the
    Tenant Setup - Financials
     task and then use the
    Maintain Custom Validations
     task to establish your own condition rules for supplier invoices.
    External PO Number
    If you use a procurement system other than Workday, enter the purchase order number.
    Supplier Contract
    Select a
    Supplier Contract
     if the company and supplier on the contract match the invoice. The invoice amount will be subtracted from the remaining contract balance after the supplier invoice is approved.
    Document Link
    If you store your document images in an external repository, enter the URL to that image location instead of including the image as a file attachment. Once saved, Workday displays the URL as a live link to the image. Each link must begin with one of the valid URL patterns as defined by your security administrator, or Workday doesn’t allow the link.
    Memo
    When you print a check for payment of this supplier invoice, the value that you enter here prints in the
    Memo
     field of the check. Select the
    Use Invoice Memo
     option in
    Default Supplier Payment Memo
     for the supplier.
    Use the
    Create Supplier
     or
    Create Supplier Change
     task to configure the invoice memo. If more than 1 invoice for the check to the supplier has a memo, Workday concatenates the memos on the check.
  6. On the
    Invoice Lines
    Option Description
    Company
    Defaults to the company to which the supplier invoice belongs. If the company allows intercompany transactions, you can select from the options included in its intercompany profile.
    Item
    For new lines, select the item.
    Spend Category
    The spend category links items to corresponding accounting posting rules and provides additional details for reporting. If you select an item, Workday populates the spend category assigned to the item and you can't change it.
    The spend category for the invoice line requires the
    Supplier Invoice
     spend category usage type.
    Tax Applicability
    Indicates whether the line is taxable and, if taxable, its recoverability. You can use tax applicability to filter transactions in reporting. It automatically populates from the item-specific tax rule based on ship-to address, first by purchase item and then by spend category. If there's no match, it automatically populates from the purchase item. Otherwise, it automatically populates from the spend category.
    Tax Code
    If taxable, the code automatically populates from the
    Default Tax Code
     on the header, which you can override.
    To default your tax codes, use the
    Create Transaction Tax Rule for Country
     task.
    Withholding Tax Code
    The code automatically populates from the
    Default Withholding Tax Code
     on the header, which you can override.
    Tax Point Date Type
    Select the type of tax point date for the invoice line and specify a tax point date if the type is
    Goods/Service Delivery Date
    . Workday populates tax point date type with
    Invoice/Adjustment Date
     unless you select the
    VAT on Payment
    check box for a company. If you select the
    VAT on Payment
     check box on the
    Edit Company Tax Details
     task, Workday sets the tax point date type as
    Payment Date
    .
    Tax Point Date
    When you select
    Goods/Service Delivery Date
     for the tax point date type, you must enter a tax point date.
    Tax Recoverability
    Workday automatically populates the recoverable percentage on the transaction line based on the specified tax applicability and tax code. You can override this selection. When you specify the tax recoverability, Workday applies the recoverable percentage and the allocation method to the tax amount for tax rates within a tax code.
    Use the
    Maintain Tax Recoverabilities
     task to specify the tax recoverability of multiple tax rates for each tax code.
    Tax Option
    Select
    Calculate Self-Assessed Tax
     when suppliers or payees don't charge tax. This option enables you to post your tax liability to a separate ledger account. Otherwise, select
    Calculate Tax Due to Supplier
     to post the tax payment made to the supplier or payee.
    Quantity
    • For goods lines, enter the number of items.
    • For service lines, Workday defaults the quantity to zero.
    Unit Cost
    Based on the selected item. If the currency for the
    Item
     and invoice differ, Workday automatically converts this value to the
    Currency
     of the invoice. Workday uses the current currency conversion rate between the 2 currencies as defined for the
    default
     currency rate type (which is part of tenant setup).
    For service lines, the unit cost is always zero.
    Extended Amount
    • For goods lines,
      Quantity
       times
      Unit Cost
      . If you change the
      Extended Amount
      , Workday recalculates the
      Unit Cost
      . If you change the
      Unit Cost
      , Workday recalculates the
      Extended Amount
      .
    • For service lines, Workday populates the
      Extended Amount
       automatically. You can modify the
      Amount to Invoice
       as needed.
    Worktags
    Use worktags as keywords to more easily classify and find transactions. Configure the allowed worktag types on the
    Maintain Worktag Usage
     task. When you select a worktag type that has related worktags, Workday automatically populates transactions with the related worktag values.
    Billable
    This option displays if the invoice line includes a billable project worktag. Select
    Billable
     if the line or split is billable to the project.
    The
    Billable
     option doesn't impact accounting if you include it as a dimension in account posting rule conditions.
    Prepaid
    Check
    Prepaid
     to prepay this line.
    Workday automatically checks
    Has Prepaid Line(s)
     in the
    Prepaid Details
     tab after you select prepaid lines.
    Spend categories for prepaid lines must be:
    • Non-trackable
    • Trackable with the
      Expense
       accounting treatment
    When tax isn't allocated on a prepaid line, it won't be included in the prepaid accounting in related invoices. Instead, it will use the
    Transaction Tax
     account posting rule.
    Splits
    Click to split lines by
    Amount
     or
    Quantity
    . You can then specify the amounts or quantities for the split, enter a memo, and select specific worktags for each line split.
    You can split service lines by amount only.
  7. Use the
    Tax
     tab to review a summary of all the tax codes and their applicability as specified on the invoice lines.
    If several lines share the tax, this tab consolidates them and totals the amount with this tax.
  8. To set up prepaid supplier spend, access the
    Prepaid Details
     tab and select the
    Prepaid Amortization Type
    :
    Option Description
    Manual
    Select to manually amortize the prepaid spend amortization on a future date. Optionally enter the
    Expected Amortization Date
    .
    You can use the
    Expected Amortization Date
     for reporting and to create custom alerts, but Workday doesn't validate against this date.
    Manual prepaid amortization type payments must be settled and paid before you can amortize spend.
    Schedule
    Specify to define a schedule for amortizing prepaid spend from installments on a prepaid supplier invoice amortization schedule.
  9. Use the
    Attachments
     tab to upload or drag and drop files, such as supplier invoice supporting documents.
    Workday supports the file types listed in the
    Edit Tenant Setup - System
     task for business document attachments.
  10. Submit
     the supplier invoice for approval.
    Workday creates the supplier invoice when you submit or save. The invoice number displays toward the top.
  • Workday initiates the
    Supplier Invoice Event
     business process for transaction review and approval. If the business process definition includes an approval step, reviewers can modify the supplier invoice as part of the workflow event before they approve it.
  • When you view the transaction:
    • Line Details
       display the accounting distribution of any landed cost amounts allocated from the header to the lines and the total
      Gross Amount
       (net extended amount plus allocated tax, freight, and other charges). Workday uses the gross amount for:
      • Debit entry of spend accounting.
      • Receipt accruals.
      • Budget checking of spend transactions.
      • Default acquisition cost during asset registration.
    • The
      Tax
       tab displays the recoverable percent and distribution of recoverable and nonrecoverable tax amounts based on the:
      • Tax applicability.
      • Tax code.
      • Taxable amount.
  • Workday automatically creates operational journals in the company currency for approved transactions. If the transaction and company currencies differ, Workday converts the amounts to the company currency.
  • Workday processes accounting for supplier invoices with prepaid and non-prepaid lines when the
    Supplier Invoice Event
     business process completes:
    • Non-prepaid lines use the Spend account posting rule.
    • Prepaid Lines use the Prepaid Spend account posting rule.
  • Use the
    Find Supplier Invoices
     report to retrieve and act on existing invoices that you save or submit.
If you selected
Schedule
 as the prepaid amortization type, access the
Create Prepaid Spend Amortization Schedule
 related action from the supplier invoice to create the schedule and generate spend amortization installments.