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Administrator Guide
Last Updated: 2023-06-23
Create Suppliers

Create Suppliers

  • Configure the
    Supplier Event
     business process and security policy in the Suppliers functional area.
  • Create supplier groups and supplier categories to make them easier to find and for reporting purposes.
  • Define default payment terms and payment types.
  • Define
    Set Up: Supplier
     and
    Set Up: Supplier Notes
     domains in the Suppliers functional area.
  • To review and update trackable asset lines, include the
    Review Trackable Lines for Assets
     action step in the
    Supplier Event
    .
Create suppliers to procure goods and services for your organization. Provide details for managing supplier relations, payment terms, and reporting.
  1. Access the
    Create Supplier
     task.
  2. As you complete the task, consider:
    Option Description
    Supplier Name
    If you select a value from the
    Create Supplier from Business Entity
     prompt, Workday automatically populates the
    Supplier Name
     field.
    Phonetic Name
    Records the correct pronunciation of the
    Supplier Name
     and these details on the
    Settlement Bank Account
     tab:
    • Bank Phonetic Name
    • Branch Phonetic Name
    • Phonetic Name on Account
    Displays when:
    • You enable phonetic names on the
      Edit Tenant Setup - Global
       task.
    • Users select the relevant locale and display language in their preferences.
    The preferred language of the bank account country must match the language enabled on the tenant setup.
    Create Supplier from Business Entity
    Create a supplier from an existing business entity.
    Workday automatically populates the
    Supplier Name
     and
    Supplier ID
     fields with the business entity that you select. Once you select a business entity, you can't change it.
    DUNS Number
    If available, enter the data universal numbering system (DUNS) number of the supplier.
    If you use procurement cards, your credit card integration can use DUNS numbers to look up suppliers from transaction files.
    Supplier Category
    Select a supplier category.
    Supplier categories classify suppliers for reporting and price negotiation purposes.
    Supplier Group
    Select a supplier group.
    Supplier groups organize suppliers for reporting and price negotiation purposes.
    Document Link
    This field displays when you set up a valid Uniform Resource Identifier pattern (URI), including:
    • A Uniform Resource Locator (URL)
    • An empty line, to enable users to enter any values without restrictions on this field.
    To set up a valid URI, select
    Supplier Document Link
     from the
    Supplier External URI Link Type
     prompt on the
    Maintain External Link Validation
     task.
    Workday validates the link to ensure that it has a valid URI, as defined by your security administrator. This process provides additional security to help avoid malicious content in external links.
    If you store supporting documents or images in an external repository, then enter the URL to that location. Once you save the transaction, Workday displays the URL as a live hyperlink to the image. Approvers can reference this document before approving the transaction.
    Default Payment Terms
    Specify the payment terms that you agreed to with your supplier.
    Payment Type
    Specify 1 or more payment types for this supplier.
    If you specify Automated Clearing House (ACH), direct debit, direct deposit, or wire, complete information in the
    Settlement Bank Account
     tab.
    Default Payment Type
    If you select
    Credit Card
    , you can select the credit card of a worker from the
    Credit Card
     prompt.
    Default Reference Type
    If your reference type requires 1 payment per invoice, you can set
    Always Separate Payments
    .
    Credit Card
    If your organization uses procurement cards, select the card of a worker as the default credit card that the supplier can use for purchase orders and supplier contracts.
    Default Currency
    Select a default currency to populate on transactions with this supplier. When you create transactions, you can change from this currency to any currency accepted for the supplier.
    When you don't select an option from this prompt, Workday populates the tenant default currency on transactions, even when the supplier doesn't accept the tenant default currency.
    Supplier Security Segment
    If your company requires segmented security and this supplier doesn't belong to a security segment through its supplier category or group, create a supplier security segment.
  3. As you complete the
    Supplier Details
     section, consider:
    Option Description
    Restricted to Companies
    Specify the companies or company hierarchies to associate with the supplier.
    The
    Supplier
     prompt for transactions where you can select a supplier displays only those suppliers associated with the selected company or company hierarchy.
    Customer Account Number
    Store the account number the supplier uses to identify your company.
    Certificate of Insurance Date
    To create reports for suppliers with insurance that is overdue or that requires renewal, set the supplier certificate of insurance date.
  4. As you complete the
    Payment Details
     section, consider:
    Option Description
    Exclude from Supplier Invoice Discount
    Displays the charges excluded from the calculation for the supplier invoice discount. You can configure the field on the
    Edit Tenant Setup - Financials
     task.
    When you create invoices with discounted payment terms, you can view the discounted amount reflected in the
    Discount Taken
     column on the:
    • Create Settlement Run
       task.
    • View Supplier Payment
       report.
    Override Supplier Invoice Discount Exclusions
    Select an option to change the tenant level setup and configure unique discount calculation options for the supplier.
    Always Separate Payments
    Creates separate payments for each supplier invoice. If unchecked, Workday settlement consolidates the invoices into a single payment.
    Do not pay during Bank Account updates
    Select to exclude supplier invoices from settlement runs if:
    • A
      Supplier Change Event
       business process is in progress for this supplier, and
    • You selected the
      Settlement Bank Account
       option in the
      Create Supplier Change
       task.
    Remittance Integration System
    To remit payments electronically, select the integration system that generates them.
  5. As you complete the
    Default Supplier Payment Memo
     section, consider:
    Option Description
    Default Text
    Enter memo text for check payments to this supplier.
    Use Supplier Reference
    The supplier reference numbers from supplier invoices print in the
    Memo
     field on the check.
    Use Invoice Memo
    The value you enter when creating supplier invoices prints in the
    Memo
     field on the check. If multiple invoices have memos, Workday concatenates them on the check.
    Use Supplier Connection Memo
    If you want to configure multiple remit-to supplier connections, select to use payment memos that you define in the remit-to connections.
  6. In the
    Supplier Hierarchy
     section, use the
    Proposed Children
     prompt to define a parent/child supplier relationship to help with spend reporting.
  7. As you complete these tabs, consider:
    Option Description
    Contact Information
    In the
    Use For
     field, specify the transactions that apply to these addresses:
    • Billing
    • Remit To
    • Shipping
    • Procurement
    • Tax Reporting
      Select to use a different address for IRS reporting. If you don't use a tax reporting address, Workday uses the primary address of the supplier.
    • Email
      Select the
      Primary
       check box to issue the purchase orders to a specific email address.
    You can configure the usage names in the
    Maintain Address Usages
     task.
    Settlement Bank Account
    Add details for electronic payments to suppliers such as:
    • ACH
    • Direct debit
    • Direct deposit
    • Wire
    Select the
    For Supplier Connections Only
     check box to:
    • Create multiple bank accounts with the same payment types.
    • Enable any combination of accepted payment types and settlement bank accounts.
    Click
    Intermediary Bank Accounts
     to link settlement bank accounts that require intermediaries to intermediary bank accounts.
    Tax Information
    • Tax Authority Form Type
      Identify the tax authority form type of the supplier:
      • 1042-S
         for a nonresident alien that is subject to U.S. income withholding.
      • 1099 MISC
         to report miscellaneous income to the IRS.
      • TDS
         to identify tax deducted at source for nonresident suppliers.
    • Tax Document Date
      Select a date to note when you received the tax document. You can use tax document dates in:
      • Business processes to route suppliers for review and approval.
      • Custom reports to identify old documents that need to be updated.
    • Report 1099 MISC with Parent
      For 1099 TIN types, consolidate 1099 MISC reporting for parent and child suppliers. Ensure that you remove entries in the
      TIN Type
       and
      Tax ID
       fields.
      To determine if the taxpayer requires a 1099 MISC report, total all payments for their payee identification. Workday enables you to consolidate 1099 reporting in a parent/child structure.
      The IRS requires all payments for a particular payee identification to be aggregated.
    • Default Tax Code
      Workday automatically populates the selected default tax code on the supplier invoice header when you select a supplier.
    • Default Withholding Tax Code
      Workday automatically populates the selected withholding tax code on the supplier invoice header when you select a supplier.
    • FATCA
      Select to trigger the
      FATCA filing requirement
       check box on the 1099 MISC form. This configuration supports the FATCA filing requirements of certain foreign financial institutions.
    Specify the tax IDs for this supplier.
    Enable the Set Up: Supplier Settlement Bank domain security policy for Workday to display the transaction tax ID number for a supplier.
    • Tax ID Type
      Select a tax ID type that is applicable to the country.
    • Identification #
      To report and file with the IRS, enter the supplier tax identification number.
    • Transaction Tax ID
      Select the transaction tax ID used to record transaction tax for the given country.
    • Primary Tax ID
      Select the single tax ID when managing multiple IDs for a supplier.
    Specify the tax statuses for this supplier.
    • Transaction Tax Status
      Select the transaction tax status for the country.
    • Withholding Tax Status
      Select the withholding tax status for the country.
    Alternate Names
    To use an alternate name in documents and files, enter a name different from the name of the supplier in the
    Name
     field. Then, select the type of usage for that alternate name from the
    Alternate Name Usage
     prompt.
    To use multiple alternate names for a single supplier on supplier connections, select the
    Alternate Supplier Connection
     option from the
    Alternate Name Usage
     prompt.
    On a supplier connection, the
    Alternate Supplier Connection
     usage replaces the
    Remit To Advice
     and
    Remit To Payee
     usages. Workday ignores the
    Alternate Supplier Connection
     usage when you don't use it specifically for a supplier connection.
    Examples:
    • Identify contingent workers with the same name by including their locations in parentheses. To print the legal name on 1099 MISC forms, enter the legal name as the
      Alternate Name
      . Then select
      1099 MISC Recipient
       from the
      Alternate Name Usage
       prompt.
    • The supplier name is too long to print on a check. To print a shorter name, enter a shorter
      Alternate Name
      . Then select
      Remit to Payee
       and
      Remit to Address 1
       from the
      Alternate Name Usage
       prompt.
    Procurement Options
    Invoicing Options
    • Invoice Any Supplier
      Select to specify that this supplier can invoice any supplier.
    • Enable Tax Changes in Supplier Portal
      Select to enable suppliers to change invoice tax information in the Supplier Portal. Then, when suppliers create invoices from purchase orders, they can change these fields:
      • Tax Option
      • Tax Amount
      • Tax Applicability
      • Tax Recoverability
    • Default Procurement Item
      The procurement item you set up populates on supplier invoice documents at the line when you select a supplier. These values also populate at the line from the procurement item:
      • Item Description
      • Spend Category
      • Tax Information
      • Unit of Measure
      • Unit Cost
      • Related Worktags
    • Default Spend Category
      You can select a default spend category for supplier transactions.
    General Options
    • Enable Global Location Number
      Select to specify that this supplier can use global location numbers (GLNs). Suppliers use GLNs for the various Ship-To and Deliver-To business locations on procurement documents. Suppliers then send these documents through electronic data interchange (EDI), and printed purchase orders.
    Purchase Order Options
    • Issue Option
      • EDI/ XML
        : When you issue purchase orders, Workday sends an EDI or XML version to your supplier or supplier network.
      • EDI/ XML Auto
        : When you issue purchase orders, Workday generates an EDI or XML version of the purchase order. Workday then sends it to the supplier when the administrator approves the purchase order.
      • Email
        : When you specify an email as primary, you can issue a purchase order PDF. This option requires a purchase order print layout.
      • Print
        : Select to issue printed purchase orders. This option requires a purchase order print layout.
        If you don't specify an issue option, Workday uses the
        Print
         option.
    • Default PO Issue Email
      Select 1 or more email addresses that you can define as default when issuing purchase orders to suppliers through email.
      You can select only email addresses if you select
      Procurement
       from the
      Use For
       prompt in the
      Contact Information
       tab.
    • Multi-Supplier Supplier Link for PO Issue
      If you select
      XML
       or
      XML Auto
      , select the preferred multisupplier link to use when issuing purchase orders for the supplier.
      You can also use the
      Maintain Supplier Links
       task to include this supplier as a multisupplier.
    • Disable Change Order
      Select if this supplier doesn't accept change orders.
    • Change Order Issue Option
      Select if the change order issue option is different than the default issue option.
    • Shipping Terms
       and
      Shipping Method
      Set up these values for the supplier.
    • Acknowledgement Expected
      Select when you expect suppliers to send purchase order acknowledgments when you issue purchase orders.
      This configuration is important when you use EDI 850 and EDI 855 integrations. When you select this check box, Workday sets the ISA14 segment to
      1
       when you issue EDI 850 files to the supplier. This informs the supplier that you expect an acknowledgment.
    Advanced Ship Notice (ASN) Options
    • Enable ASN
      Select to enable advanced ship notices for this supplier.
    • ASN Due in Days
      When you enable ASNs, enter the number of days that indicates when the buyer can expect ship notices from the supplier.
    Related Worktags
    To populate related worktags on nonpurchase order supplier invoice lines, select the applicable values from the
    Allowed Worktags
     and
    Default Worktag
     prompts.
    You can set up worktag types for suppliers on the
    Maintain Related Worktag Usage
     report.
    Classifications
    To associate this supplier with procurement classification codes, select spend categories and hierarchies.
    To comply with federal, state, or local government requirements, add the classifications of your supplier.
    Contingent Worker Options
    If the supplier enters expense reports in Workday for a hired contingent worker, select
    Do Not Reimburse Contingent Worker Expense Reports
    .
    When you don't reimburse contingent workers for expense reports, you can create manual invoices to reimburse their expenses.
    Attachments
    Attach supporting documentation for the supplier.
    Workday supports the file types listed on the
    Edit Tenant Setup - System
     task for business document attachments.
    Notes
    Include supplier notes. Workday records the
    Person
     entering notes and the
    Created On
     dates.
You can use suppliers in procurement documents and transactions after approval.
  • Configure the
    Supplier Change Event
     business process.
  • Set the supplier status.
  • Create reasons for supplier status changes.
  • To update approved suppliers, access the
    Create Supplier Change
     task from the related actions menu on a supplier.
  • If your supplier uses catalogs, create them.
  • Create purchase orders and supplier contracts.
  • To view the list of Workday-provided reports and their descriptions, access the
    Workday Standard Reports
     report, and select
    Supplier Accounts
    .
  • (Optional) Access the
    Find Supplier Duplicates
     report to detect and view potential duplicates of supplier records.
  • (Optional) Create custom reports using custom fields.
  • To restrict access to the tax information of the supplier, set up the
    View: Supplier Tax Information
     domain in the Suppliers functional area.