Creating a Supplier in Workday Finance

In Workday Finance, establishing a supplier is easier than you may assume. I enter via Teresa with a start proxy, and instantly, I can see a case filed by Jacqueline.

Since this is an actionable item, I click on it straight from my email.

I always have the choice to accept it, reject it if the source isn’t needed, or send it back if modifications are needed.

The supplier is formed with only one click when I provide my approval.

This procedure is smooth thanks to Workday Finance, and I can see a green checkmark indicating that the supplier was created.

I end the proxy session and go back to my regular user when the supplier has been successfully formed.

Workday Finance logs every step, so I know precisely who is accountable for what. This guarantees precision and avoids mistakes while creating suppliers.

Maintaining Payment Terms in Workday Finance

After the supplier is established in Workday Finance, I go on to define payment conditions. To provide terms for every supplier, I launch the Maintain Payment Terms task.

For example, I may construct a term with an 8% discount if payment is completed within five days, and the net due is fifteen days.

I specify the payment terms in detail, such as “8% discount in 5 days, net 15 days.”” I can also grant grace days if required.

Workday Finance determines the due date automatically depending on the transaction date, ensuring my payments are monitored precisely.

I manage cash flow and make sure suppliers are rewarded for early payments by upholding these conditions of payment.

I have complete insight and control over these important financial procedures thanks to Workday Finance.

Creating Spend Categories in Workday Finance

I then use Workday Finance to construct expenditure categories that are required for purchases.

I can organise purchases rationally by spending categories, such as classifying Office 365 software under IT software.

I may either leverage current hierarchies or develop a new hierarchy if required.

IT Software,’ for instance, is the expenditure category I choose, and I choose its utilisation. For supplier invoicing and procurement, I always make sure the use is set.

Workday Finance defaults procurement to include supplier invoices; choosing solely supplier invoices doesn’t include procurement.

Accurate financial monitoring requires this differentiation.

Assigning Spend Category Usage in Workday Finance

Assigning expenditure category utilisation is crucial in Workday Finance. I select if a category pertains to procurement, ad hoc payments, or costs.

I use procurement for my supplier purchases, and supplier invoices are automatically included. This guarantees accurate tracking of all associated purchases.

Even at this point, Workday Finance gives me the freedom to modify use if my company procedures change in the future.

I may also activate inventory monitoring for expenditure categories if I wish to control total stock levels. Workday Finance integrates these settings seamlessly into the procurement workflow.

Managing the Purchase Process in Workday Finance

I make purchases in Workday Finance as soon as the spend category is prepared. Because it dictates how the item is recorded in procurement, the expenditure category is required in this case.

I associate my purchase, such as Office 365 software, with the appropriate expenditure category.

With the purchase item set up, Workday Finance enables me to manage orders, approvals, and payments quickly.

I can be confident in the financial correctness of every stage, from creating the supplier to setting up the payment terms to creating the buy item.

Workday Finance guarantees that each supplier transaction is tracked down and associated with the appropriate categories by handling the purchasing process in this manner.

This reduces errors and increases transparency across our finance operations.

Spend Categories in Workday Finance

Spend categories are usually the first thing I teach people about Workday Finance since they subtly manage a lot of downstream activities.

When I create a spend category in Workday Finance and choose procurement, the system instantly activates invoicing.

Even if I do not explicitly pick a supplier invoice, Workday Finance automatically knows the goal.

One of those little aspects in Workday Finance that often shocks Learners but makes perfect sense when you see it in action is this one.

In Workday Finance, I explain that expenditure categories are not supplier-related. They are just for purchases.

This implies that even once suppliers are established, I may still add or modify a spend category at a later time.

We are not hindered in actual business situations since Workday Finance provides such flexibility.

I often highlight this since many newbies feel everything must be generated in a regular sequence, which is not necessarily true with Workday Finance.

Payment Terms and Supplier Setup in Workday Finance

While working with Workday Finance, I make it obvious that payment conditions are master data.

I establish a new payment term before creating a supplier if I require one. Workday Finance applies this reasoning since payment terms are set at supplier creation.

Workday Finance won’t make a payment term for me later on if there isn’t one already.

In my workshops on Workday Finance, I frequently receive queries regarding whether payment conditions may be altered later.

Yes, in theory, but defining them up front is Workday Finance’s best practice.

This prevents rework and maintains clean supplier data. Everything downstream runs more smoothly when the supplier approval in Workday Finance is successfully finished.

Creating Purchase Items Step by Step in Workday Finance

After the spend category is set, I proceed to one of my favourite presentations in Workday Finance: generating a buy item.

In Workday Finance, a purchase item symbolises something actual that I intend to acquire. Without a purchase item, invoicing cannot happen.

When I purchase Workday Finance, I give it a clear name and description, such as Adobe Photoshop.

The description and third-party URL are optional, but the expenditure category is necessary.

Workday Finance requires every purchase item to be tied to precisely one expenditure category.

Purchase item groups are optional, and based on my Workday Finance experience, they are useful but not necessary.

I also show an essential best practice in Workday Finance: do not tie a purchase item to a single supplier unless there is a solid reason.

If I establish supplier information at the buy item level, Workday Finance limits procurement to that source exclusively.

I like to keep everything transparent so the company can compare rates and quality.

Pricing, Units of Measure, and Work tags in Workday Finance

Pricing is where Workday Finance gets really practical. When I define a purchasing item, I must provide the default price and currency.

I may state that the software in Workday Finance costs $100 USD. Along with price, I also chose the base unit of measure.

For software, I normally pick ‘each’ in Workday Finance, since I am purchasing individual licenses.

Workday Finance includes various units of measure like boxes, bundles, days, or acres, but I usually advise learners to think rationally. If I sell one license, I use ‘each’.

If I wish to provide a kit or package, Workday Finance enables me to designate several units of measure with conversion factors.

I can even specify which one should be the default for ordering in Workday Finance.

Workday Finance sometimes makes mistakes while submitting, which is really a fantastic teaching opportunity.

A typical example is a compulsory work tag like a cost centre. If a spend category designates a work tag as necessary, Workday Finance will compel me to input it on the purchase item.

If I wish to modify that behaviour, I go to Maintain Work tag Usage in Workday Finance and update it there.

I submit the purchase item after fixing the work tag requirement, and Workday Finance verifies that it was produced correctly.

At this time, I frequently remind Learners that in Workday Finance, principles matter more than instances.

They may use books, software, or any custom item name, as long as they understand how Workday Finance handles the data.