5.banking Setup

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Banking Setup
1. Steps: Set Up Banking ........................................................................................................................... 3
Prerequisites ..................................................................................................................................... 3
Context................................................................................................................................................ 3
Steps.................................................................................................................................................... 3
Result .................................................................................................................................................. 5
Next Steps .......................................................................................................................................... 5
Related Information ......................................................................................................................... 5
2. Define Bank Accounts ........................................................................................................................... 5
Prerequisites ..................................................................................................................................... 5
Context................................................................................................................................................ 5
Steps.................................................................................................................................................... 6
Result ................................................................................................................................................ 15
Example ............................................................................................................................................ 16
Related Information ....................................................................................................................... 17
3. Create Petty Cash Accounts ................................................................................................................ 17
Prerequisites ................................................................................................................................... 17
Context.............................................................................................................................................. 17
Steps.................................................................................................................................................. 18
1
www.WorkdayTrainingOnline.com, Email: [email protected]
Result ................................................................................................................................................ 19
4. Concept: Bank Account Currency ....................................................................................................... 20
5. Reference: Magnetic Ink Character Formats ...................................................................................... 20
6. Reference: Banking Information Reports ........................................................................................... 22
2
Banking Setup
1.Steps: Set Up Banking
Prerequisites
Define:
 Companies and company hierarchies.

 Payment types.
Context
Enter and maintain information for banks and financial institutions. The banking information enables you to make and receive payments,
and manage your cash.
Steps
1. Access the Create Financial Institution task or the Edit Financial Institution task.
Define the business entities that provide company financial and banking services and hold physical bank accounts. Select the
customer, supplier, or tax authority acting as the financial institution.
Security: Set Up: Bank Entity domain in the Banking and Settlement functional area.
2. (Optional) Access the Update Financial Institution Logo task.
3
When you associate an official logo with a financial institution, the logo automatically appears when Workday displays information
about the bank or other business entity.
You can either select an existing logo or create a new image. Acceptable image formats, such as .jpg or .png, are controlled by the
attachment options specified in the Edit Tenant Setup task.
3. Access the Create Bank Branch task or the Edit Bank Branch task.
Define and maintain information about bank or business entity branches.
4. (Optional) Access the Create Bank Statement Custom Code Set task.
Configure bank statement code sets with your own custom account balance, summary, and transaction type codes for BAI2,
ISO20022, or other bank statement formats.
On manually entered bank statements, prompts display these custom type codes along with the standard BAI2 and ISO codes for
selection.
5. (Optional) Access the Create Outsourced Bank Provider task.
Define an outsourced bank provider that handles your outsourced business functions, such as payroll processing. When you create
an outsourced bank account, you select a provider.
6. Define Bank Accounts.

7. Create Petty Cash Accounts.
4
Result
You can use Workday-delivered reports and queries to view and manage information about banks and other financial institutions.
Next Steps
Set up settlements and bank reconciliation to complete the cash management setup process.
Related Information
Tasks
Steps: Define Check and Advice Print Layouts (XSLT)
Steps: Set Up Companies
Steps: Set Up Settlement
Steps: Set Up Currencies
Reference
Reference: Banking Information Reports
2.Define Bank Accounts

Prerequisites
 Define financial institutions.
 Define the default currency for a company.
 Configure the Bank Account Event business process and security policy in the Banking and Settlement functional area.
Context
5
Create bank accounts in Workday for all external operational accounts that you perform transactions against. For nonoperational accounts,
create an account only if you need to reconcile. These accounts enable you to:
 Create, make, and receive payments.

 Reconcile the books.
 Manage cash.
Steps
1. Access the Create Bank Account or Edit Bank Account task.
2. As you complete the general Account Information section, consider:
Option Description
Phonetic Name You can use phonetic names for these bank account fields to include their
correct pronunciations in payment files:
o Organization
o Name on Account
o Financial Institution
o Branch Name
Displays when:
o You enable phonetic names on the Edit Tenant Setup - Global task.
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Option Description
o Users select the relevant locale and display language in their

preferences.
For Name on Account and Branch Name, the preferred language of the
bank account country must match the language enabled on the tenant setup.
Organization Selecting a company hierarchy enables you to share the account across its
companies. You can change this value if there isn't any account activity.
Account Currency The currency in which you store funds in the account, and convert funds that
you transfer into the account.
For companies, Workday automatically populates the company currency.

For company hierarchies, Workday automatically populates the currency
from the consolidation details, if applicable. Otherwise, Workday uses the
default currency of the tenant. You can change this value to any currency if
there isn't any account activity.
To use this account for payroll, the account currency must match the
company currency.
Accept All Add the Account Currency as an accepted currency.
Currencies/Accept
These Currencies
7
Option Description
Allowed Payment The payment types used for payroll, supplier, and other payments must
Types match the payment types for the bank accounts.
Example: If your employees can select direct deposit as their preferred

payment type for payroll payments, the bank account used to make these
payments must include direct deposit as the payment type.
Select Manual to make off-cycle manual payments from this account.

Bank Account Security A bank account security segment enables a particular security group of
Segment workers to use this bank account for creating, editing, and canceling ad hoc
payments.
3. Enter specific Account Details for the selected Country:
Option Description
Bank Sort Code Enter the 6-digit sort code either with or without hyphens. Example: 000000 or
00-00-00. (UK only).
Account Number For the UK, the account number must be 8 digits.
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Option Description
Roll Number (Optional) Required for certain building society or former building society
accounts. Most accounts no longer use roll numbers. (UK only)
Name on Account For the UK, a name on account is optional, as bank transfers rely on sort codes
and account numbers.
IBAN (Optional) Enter an IBAN number to enable funds to transfer to or from this
account across national borders. This field only displays for some countries.
If the bank statement for the account uses the ISO20022 format, you must
specify the IBAN number that's identified in the bank statement file.
Fraction Enter the fraction form of the bank transit number as a backup for the MICR on
the check.
Not used in the UK.

Formatted MICR
If you use blank check stock, and your bank requires a different magnetic ink
character recognition format (MICR) than the Workday-delivered print layout,
enter the appropriate values.
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Option Description
Workday uses the MICR you specify in the position you select on the check print
layout.
Not used in the UK.

Target Balance Record the balance that you want to maintain for this account so that you can
store and report on this information.
Example: The bank moves money to or from the account to meet the target
amount. Alternatively, you can target to have a certain balance at the end of each
day and move the money yourself.
Bank Statement Workday assigns balance, summary, and transaction type codes to bank
Format statement records based on the statement format.
For bank statements previously imported, recorded, and submitted for

reconciliation, you can only select or update the bank statement format if they're
fully reconciled.
Bank Statement (Optional) Select a bank statement code set with your own custom account
Custom Code Set balance, summary, and transaction type codes for BAI2, ISO20022, or
nonstandard bank statement formats.
For manually entered bank statements, prompts display the bank-reported type
codes for selection.
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4. Reconcile the balance of the account in Workday against the balance at the financial institution. To reconcile nonoperational
accounts, you can use ad hoc bank transactions and templates to record key transaction information.
As you complete the Reconciliation Configuration section, consider:
Option Description
Advanced Mode Select this check box to reconcile bank statement lines to operational
transactions based on reconciliation rule sets. Workday automatically creates ad
hoc bank transactions for reconciling first-notice items using first-notice rule
sets.
Clear the check box if you're reconciling bank statement lines to operational
transactions based on matching amounts and reference numbers only.
Perform Automatic o Selecting Manually initiates bank statement reconciliation manually for
Bank Reconciliation all statements from this account.
o Selecting On Load initiates automatic bank statement reconciliation
when you load statements from this account into Workday.
Matching Rule Set Select a matching rule set to reconcile bank statement lines to operational
transactions. Workday uses the rules for matching:
o 1 bank statement line to 1 reconcilable item

o 1 bank statement line to many reconcilable items
o Many bank statement lines to 1 reconcilable item
o Many bank statement lines to many reconcilable items
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Option Description
o 1 or more bank statement lines to 1 or more suggested items
Bank Reconciliation Select a rule set to reconcile bank statement lines to operational transactions.
Rule Set Workday uses the rules for matching:
o 1 bank statement line to 1 reconcilable item

o 1 bank statement line to 1 or more suggested items
Note: During a bank statement reconciliation, Workday runs the matching rule
sets before the bank reconciliation rule sets. Any duplicate bank reconciliation
rules are ignored.
Perform First Notice Valid values are:

Item Reconciliation
o After Auto-Reconciliation Completes: Automatically initiates first-
notice reconciliation for the bank account after all other automatic
reconciliation is complete.
o Manually: Select to initiate first-notice reconciliation manually.
First Notice Item Select the rule set to use for creating ad hoc transactions to reconcile with first-
Rule Set notice items, such as service or transaction fees generated from this account.
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Option Description
Group Customer Select to collect electronic payments initiated by Workday as credit card or
Payments into a direct debit payments into a single deposit, and reconcile these deposits as a
Deposit single item.
Group Electronic Select to collect electronic payments initiated by Workday into reconciliation
Payments for groups. Workday reconciles each reconciliation group as a single item and
Reconciliation generates them at time of settlement.
Submit Reconciled Select to submit automatically reconciled bank statements. Workday sends the
Statements statements for approval as soon as all lines and first-notice items are reconciled.
Automatically
Default Bank Select to automatically populate the beginning balances on imported bank
Statement Beginning statements when they don't provide this value. Workday calculates the
Balance beginning balance using the ending balance from the last noncancelled bank
statement for the account.
Beginning balances are required on all bank statements for reconciliation.
5. (Optional) In the Worktag Mapping Configuration section, select a Bank Statement Worktag Rule Set to associate with the
bank account. Workday uses the bank statement worktag override rule set to assign specific worktags on bank statement lines for
the account.
6. In the Bank Account Usage section, define the purpose for using the account.
You can set up a bank account to make both supplier and expense payments, and receive customer payments. You can also
create a bank account for unique functions, such as an account that covers only payroll expenses.
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Note: Define 1 bank account that includes all uses to serve as the default account for your bank routing rule.
As you complete the section, consider:
Option Description
Primary Select the primary types of payment to use for this bank account. Example:
Account Usage Select Ad Hoc Payment to use this account to pay bank fees using ad hoc payments.
Allow Select to make the bank account available for any additional types of payment that
Additional you might need to process.
Usage
7. As you complete the Check Options section (not used for the UK), consider:
Option Description
Enable Select to send an electronic file to the financial institution containing details for checks
Positive Pay issued from this account. A check presented for payment is compared to the list of
checks in the electronic file. If 1 or more elements of the check don't match the
electronic file, the bank can withhold payment.
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Option Description
Before you can activate positive pay, you must build an integration to the financial
institution using the Workday Enterprise Interface Builder (EIB). You can then trigger
the integration from the Payment Printing Event business process definition.
Last Check The first check in the sequence begins with the last check number +1.
Number
Used Unless there's a break or gap in the sequence of checks, you only need to define the
starting sequence when you first create the account. If there's a break in the check
sequence, restart the sequence by entering the new sequence starting number - 1.
Check Print Override the default check printing layout for your production tenant with a layout
Layout specific to this account.
If you haven't set up a default print layout, and a check print layout isn't assigned to the
bank account, Workday defaults to the delivered business form layout.
8. Create Settlement Setup Rules.
Specify a settlement setup rule to define the action to take with payments initiated from this account (for example, send to a bank,
print as check).
Result
Workday routes the new bank account to the next business process participant for review and approval.
You can use the bank accounts that you create to:
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 Set up routing rules.

 Record and deposit customer payments.
 Create ad hoc bank transactions.
 Make manual payments.
 Record cash sales.
 Outsource check printing and banking.
Example
Creating Rules Based On Payment Types
Create these integration rules to manage EFT and Direct Deposit payments:
 Rule 1: Specifies the integration system to use for routing Direct Deposit payments.
 Rule 2: Specifies the integration system to use for routing EFT payments.
The condition rule for direct deposit payments has highest priority in the Settlement Setup grid, followed by the condition rule for EFT
payments. The first payment processed by the settlement engine is an EFT payment. Workday tries to match the payment with the first rule
in the grid. When this rule doesn't return a match, Workday evaluates the payment against the second rule. In this case, Workday:
 Recognizes that the rule applies to EFT payment types.

 Records a match.
 Uses the integration system associated with the second rule.
When defining an integration system, consider:
 Unspecified criteria means that you're including everything.

 A payment must meet all of the conditions defined in a row of the Settlement Setup grid to produce a positive match.
 Define the most granular rule first and work down to the broadest rules.
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Related Information
Concepts
Concept: Bank Account Reconciliation
Tasks
Steps: Set Up Checks and Advices for Printing
Maintain Currency Conversion Rates
Define Bank Routing Rules
Steps: Set Up Bank Integrations for Settlement Processing
Steps: Restrict Access to Bank Accounts for Ad Hoc Payments
Create Matching Rule Sets for Bank Reconciliation
Reference
Workday 31 What’s New Post: Bank Account Business Process
Reference: Edit Tenant Setup - Global
3.Create Petty Cash Accounts

Prerequisites
 Create financial institutions.
 Define a default currency for a company.
 Security: Set Up: Bank Entity domain in the Banking and Settlement functional area.
Context
Define or update an account for tracking petty cash transactions.
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Note: In Workday, you can use both bank and petty cash accounts to make supplier and expense payments, receive customer payments,
or for cash management. However, you must use standard bank accounts in routing rule definitions to automatically make payroll, expense,
or supplier payments from the correct accounts. You can only use petty cash accounts when you have manually specified a source or
receiving account.
Steps
1. Access the Create Bank Account or Edit Bank Account task.
2. As you complete the task, consider:
Field Description
Phonetic Name You can use a phonetic name for the Organization field to include its
correct pronunciation.
Displays when:
o You enable phonetic names on the Edit Tenant Setup -

Global task.
o Users select the relevant locale and display language in their
preferences.
Organization Select the company or company hierarchy for which you're defining the
petty cash account. You can change this value if there is no account
activity.
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Field Description
Account Currency For companies, Workday automatically populates the company currency.
For company hierarchies, Workday automatically populates the currency
from the company hierarchy consolidation details, if applicable. Otherwise,
Workday uses the default currency of the tenant. You can change this value
to any currency if there isn't any account activity.
Accept All
Currencies/Accept Add the Account Currency as an accepted currency.
These Currencies
Allowed Payment The payment types used for supplier and other payments must match the
Types allowed payment types for the petty cash accounts that the payments are
drawn from.
Example: If the supplier accepts cash as a payment type, the petty cash
account used to make these payments must include Cash as an allowed
payment type.
Result
You can use the petty cash accounts you created for making customer, supplier, and other types of payments. You can also use petty cash
accounts for cash transactions such as ad hoc bank transactions and bank account transfers.
Related Information
Tasks
19
Create Ad Hoc Bank Transactions

Create Ad Hoc Payments
Define Bank Accounts
Reference
Reference: Edit Tenant Setup - Global
4.Concept: Bank Account Currency

Each bank account that you define in Workday has its own currency, called the account currency. You store funds in the bank account and
convert funds that you transfer into the bank account using the account currency. You can also specify which currencies a bank account
accepts. You use the Create/Edit Bank Account task to set the account currency.
Example: Your U.S. company has a local bank account in USD, and a bank account based in Ireland in EUR. You perform a wire transfer
of 100K USD from the U.S. account to the Irish account, which accepts USD. The bank gives you a currency exchange rate of 85K EUR
equal to 100K USD. Workday transfers 100K USD out of the US bank account and deposits 85K EUR into the Irish bank account.
Related Information
Concepts
Concept: Multicurrency
5.Reference: Magnetic Ink Character Formats

If your bank requires a magnetic ink character (MICR) business format that isn't delivered in the Workday standard check layout, you can
define a custom MICR in the Formatted MICR field when setting up banks.
To define a custom magnetic ink character (MICR), use these values.
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Table 1. Formatted MICR Values
Valid Description
Values
Numbers 0 - 9 Use numeric characters to define routing numbers and account numbers.
Spaces Use spaces for variable length fields such as check numbers.
A Transit Symbol.
B Amount Symbol.
C On-Us Symbol.
D Dash Symbol.
# Represents a check number digit. Repeat as many times as necessary to represent the largest acceptable check
number.
F This symbol indicates that the on-us symbol floats to the start of the check number instead of printing in a fixed
location.
Related Information
Tasks
21
Define Bank Accounts

Steps: Define Check and Advice Print Layouts (XSLT)
6.Reference: Banking Information Reports

View and manage information about banks and other financial institutions in these reports:
Report Description
View Financial Institution Provides financial institution information at a glance.
 From the related actions menu of a financial institution, you can edit,
update the logo, or view an audit trail.
 From the related actions menu of a branch, you can edit the branch.
View Financial Institution Provides an editable list of contacts for a specific financial institution, enabling
Contacts you to manage contacts quickly.
Bank Account Use this report to view and manage bank account details, including:
 Reconciliation configuration details.

 Account usage across Workday financial management and payroll.
From the related actions menu of the bank account you can:
 Edit the check sorting setup.
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Report Description
 Modify the payment integration setup.

 Record voided checks and audit changes.
View Lockbox Use this report to track down payments remitted to lockboxes. Details include
the:
 Company that owns the lockbox.

 Associated bank account.
 Physical address.
 List of customers remitting payment to it.
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 Companies and company hierarchies.

2. (Optional) Access the Update Financial Institution Logo task.

Define and maintain information about bank or business entity branches.

5. (Optional) Access the Create Outsourced Bank Provider task.

6. Define Bank Accounts.

2.Define Bank Accounts

 Create, make, and receive payments.

o Users select the relevant locale and display language in their

For companies, Workday automatically populates the company currency.

Example: If your employees can select direct deposit as their preferred

Select Manual to make off-cycle manual payments from this account.

3. Enter specific Account Details for the selected Country:

Not used in the UK.

Not used in the UK.

For bank statements previously imported, recorded, and submitted for

As you complete the Reconciliation Configuration section, consider:

o 1 bank statement line to 1 reconcilable item

o 1 or more bank statement lines to 1 or more suggested items

o 1 bank statement line to 1 reconcilable item

Perform First Notice Valid values are:

Beginning balances are required on all bank statements for reconciliation.

As you complete the section, consider:

8. Create Settlement Setup Rules.

 Set up routing rules.

 Recognizes that the rule applies to EFT payment types.

When defining an integration system, consider:

 Unspecified criteria means that you're including everything.

3.Create Petty Cash Accounts

o You enable phonetic names on the Edit Tenant Setup -

Create Ad Hoc Bank Transactions

4.Concept: Bank Account Currency

5.Reference: Magnetic Ink Character Formats

To define a custom magnetic ink character (MICR), use these values.

Table 1. Formatted MICR Values

Define Bank Accounts

6.Reference: Banking Information Reports

View Financial Institution Provides financial institution information at a glance.

 Reconciliation configuration details.

 Edit the check sorting setup.

 Modify the payment integration setup.

 Company that owns the lockbox.

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