Agencies – detailed guidance for Workday COA

Contents

Introduction

PTAEO to Workday COA Conversion - History

Transactions Processed in Workday – after July 1, 2017

Overview of Structure

How to use Structure in Transactions

Introduction

Agencies of Yale are non-Yale entities that do business within the Yale GL. For those working on the WD COA design for agencies, please note the following additional guidance. Please use this in connection with the following two foundational documents that are located on the WD COA website:

  • WD COA Definitions
  • Business Use Case Guide

In Workday, what we know as Agencies will be in an “agency” Company (i.e., a company that is not Yale University). Depending on the specific agency, it may have its own Company or may be combined in one aggregate company called “Other Agencies” (# CO11). These agencies will also have their own cost centers that are not Yale cost centers. Yale Cost Center numbers begin with “CCxxxx”; agency cost center numbers begin with “NCxxxx”.

PTAEO to Workday COA Conversion - History

Please use the following principles when evaluating your PTAEO conversion mapping for history.

  1. Where the Oracle PTAEO information contains both (a) Balancing Segment 02 AND (b) award 80000A
  2. Workday Company – should be something other than CO01 (Yale University)
  3. Workday Cost Center – should be an agency cost center that begins with the letters “NC” (not “CC”)
  4. Program and project should represent the activity. Where there are not local reporting needs, since these are not part of Yale’s functional reporting, units are encouraged to simplify and use PG00486 (Administer Agencies) and PJ000001 (General Project).
  5. Where the Oracle PTAEO information contains Balancing Segment 03 (regardless of Oracle award)
  6. Workday Company – should be something other than CO01 (Yale University)
  7. Workday Cost Center – should be an agency cost center that begins with the letters “NC” (not “CC”)
  8. Program and project should represent the activity. Where there are not local reporting needs, since these are not part of Yale’s functional reporting, units are encouraged to simplify and use PG00486 (Administer Agencies) and PJ000001 (General Project).

All other PTAEOs for historical activity are not considered agencies and will continue to follow the Yale conversion principles for Company and Cost Center:

  1. Company = CO01 Yale University
  2. Cost Center – begins with letters “CC”

Transactions Processed in Workday – after July 1, 2017

Overview of Structure

  1. Agency purchases goods through Yale’s suppliers (A/P and Procurement) – this will follow the same process as any Yale department. The only thing that is unique is that the Company and Cost Center in the charging instructions will be non-Yale.

[Following is detailed system information for YU Central Finance]

  1. Use the Workday PO/Supplier Invoice processes
  2. The user guide will specify exactly how to process the transaction for agencies and how to ensure that the appropriate data gets on the transaction. However, the transaction will reference that
  3. Yale is the responsible Company for paying the supplier
  4. Expense booked to Company other than Yale (the Agency Company)
  5. Expense booked to a non-Yale, Agency cost center (# begins with “NC”)
  1. Agency receives services from Yale ISPs - The Yale ISP will “bill out” their charges directly to the agency customer.
  2. The revenue category that will be used is one for external revenue, since the customer is not Yale
  3. The expense side (debit) of the billing will be booked to the agency’s charging instructions with include a non-Yale Company and non-Yale cost center (# begins with “NC”) – spend category reflects the nature of the service provided.
  4. Payroll is involved - Yale employees provide services to the agency – Yale pays the employees, and it is funded by/billed to an agency
  5. Payroll costing books the salary expense to Yale
  6. Company = CO01 Yale University
  7. Cost Center – begins with letters “CC”. In order to provide agencies with detailed financial information to support the Yale Payroll charges billed to them, there will be a cost center within the Yale company for each non-Yale entity that is involved. These will all be marked as Agency Staffing.
  8. Program – will identify that the activity is “staffing to agencies”
  9. Yale “bills” the agency via a journal entry
  10. Debit (expense) to:
  11. Company – should be something other than CO01 (Yale University)
  12. Cost Center – should be an agency cost center that begins with the letters “NC” (not “CC”)
  13. Ledger Account/Spend Category – 72014 - Agency Staff Compensation with SC545
  14. Credit (recovers the payroll expense) to:
  15. Company = CO01 Yale University
  16. Cost Center = the Yale cost center that contains the payroll costing / salary expense
  17. Program = the program that contains the payroll costing / salary expense
  18. Ledger Account/Revenue Category – 72015 - Recovery of Staffing Provided to Agencies with RC183
  19. Agency represents contracted services – there is NO A/P, ISP or payroll involved
  20. Send a bill. Use the Workday accounts receivable functionality and treat like any external customer of Yale.
  21. No agency company or cost centers involved.
  22. No use of “summary” agency cost centers inside of Yale
  1. All Transactions between Companies – The system generates the due to/from between Yale and the Agency when a transaction has Yale on one side of the transaction and non-Yale on the other side. This will look different in Workday than it does in Oracle.
  1. Payments made to/received from Agencies
  • Although agency accounts reside in the Yale accounting system, they are not part of Yale University. When recording payments made to or received from agencies, please make sure to use Spend and Revenue Categories that represent external expenses and income. (Do not use categories that start with “Internal Expense” or “Internal Income”.)
  • For payments received from agencies to settle the net amount due to Yale – Revenue Category = RC239 – Payments Received from Non-Yale Agencies
  • For payments made to agencies to settle the new amount due from Yale – Spend Category = SC295 - Subsidies
  • For payments received from agencies for a specific product or service provided by Yale – This is no different from any other cash receipt from a 3rd party. Select a revenue category that appropriately identifies the nature of the product or service.

How to use Structure in Transactions

Non-Payroll: The vast majority of transactions (except for payroll that used to be charged to agencies in labor costing allocation schedules) will be booked directly to non-Yale Cost Centers. The information below provides general information about how the Company/Cost Centers work together on different types of transactions. For full detail, please see the individual user guides for each business process/task:

  • Cash Sales (old RIF), Requisitions, POs, Invoices – these have both a “header” and “line” level – Header should contain the Yale Company (CO01); Line level needs your Agency Company and Agency Cost Center – this makes sure that the AP or Cash goes through Yale and the expense/revenue goes to the Agency
  • Journal entries – you specify the Company on each line. Where the full entry is within the Agency, you will have the Agency Company and Cost Center on both/all lines. Where the entry is between Yale and Agency (rare), the individual Companies will be identified on each respective line.
  • Advances, Expense reports (P-card and out of pocket), Spend Authorizations – these do not contain both a header and line level – there is only one Company field. We have identified an accounting challenge here during the week of 7/3 and have the following temporary workaround in place. We will update when the final new process is deployed.
  • When processing the transaction, please put the Yale Company in the transaction along with the Agency Cost Center. This is the only instance where there is a “mismatch” between the company and cost center.
  • The central workday team will shift the company with central entries – this will not happen daily.

Payroll transactions: Since employees get earning statements from Yale, the payroll costing all goes to a Yale Company and Yale Cost Center and is “billed” to the agency through a central allocation entry. Further details above.

Agencies – detailed conversion guidance – v. 07/06/2017

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