Creating Prepaid Invoices in Workday

Prepaid Invoices in Workday

• Prepaid invoices in Workday are generated based on contracts or IOs (Interchange Orders)
• The 'prepaid revenue schedule' triggers accounting processes, classifying revenue as deferred revenue
• At month-end, Lab submits campaign billing transactions to Workday, releasing the deferred revenue from the balance sheet

Creating a Prepaid Invoice

• Find the IO in Workday requiring prepayment
• Add a prepaid line under the "Goods & Services" section of the contract, selecting the prepaid revenue schedule
• Define a billing schedule for the prepaid line, specifying invoice generation and revenue recognition
• Create the prepaid installment based on the billing schedule
• Generate the invoice for the prepaid installment according to the billing schedule

Creating the Prepaid Line

• Amend the Customer Contract by selecting the "Amend Customer Contract" action from the contract's three dots
• Go to the contract line table and add the prepaid line using the "Plus" Icon in the "Goods & Services" menu
• Do not create a line against the "Usage-Based" section
• Select the "Programmatic" revenue category and the "Prepaid" line type
• Save the contract by adding the Amendment Type and Effective date

Billing Schedule Overview

• Enter the transaction date, amount, and description to appear on the prepay invoice

Generating the Prepaid Invoice

• Select "Create Customer Invoice" after completing the billing schedule
• You will be taken to the invoice creation screen with a field for the "amount to bill"
• The quantity is always set to 1
• Make any necessary changes and switch the status to "Ready to Bill"
• The invoice is then ready for the AR team to process

Credit and Rebills

• Full credit notes are issued by creating a credit adjustment for the entire invoice amount
• The original invoice is marked as "Paid," and the billing transaction returns to the "Manage Project Billing" stage

Printing the Credit Note

• After issuing a full credit adjustment, navigate to the original invoice's follow-on actions
• The options include printing either the original invoice or the credit adjustment (credit note)

Confirming the Billing Transaction Status

• The campaign line status on the contract shows the amount available to bill, reflecting any cancellations or credit adjustments
• A full credit adjustment will reset the billing transaction, bringing the available to bill amount to zero

Adjusting the Amount to Bill

• In the "Manage Project Billing" task, the Management Accountant or AR manager can adjust the amount to bill
• Impression updates can only be made after the invoice has been generated.
• To make adjustments, click the checkbox on the right to change the transaction status to "Awaiting Review"
• Add a reason for the change for audit purposes
• The "amount to bill" field will then be available, with the quantity always set to 1
• After making changes, revert the status to "Ready to Bill" for the AR team to process

Important Considerations for Credit Adjustments

• Raising a full credit adjustment or canceling the invoice will reset the billing transaction to the "Ready to Bill" status
• If you copy the original invoice after making a credit adjustment, the billing transaction remains active and can be invoiced again, leading to double billing
• To prevent double billing:
  • Update the campaign billing transaction accordingly
  • If you have already copied the original invoice, move the billing transaction to "DO NOT BILL" in the "Manage Project Billing" task instead of issuing another credit note.

Tax Status and Customer Information

• Navigate to the "Tax" sub-section in the overview section.
• If the customer's tax status is blank, click "Edit" and add the tax status.
• Include the country and the transaction tax status
• Always select "Customer of Services," indicating whether the customer is "VAT/GST Registered in Country" or "Not Registered."

Workday Integration for Lab Billing Transactions

• Lab billing transactions are sent to Workday at month-end.
• These transactions record revenue and campaign data, facilitating accurate campaign billing.

Billing Transaction States in Workday

• Awaiting Review: corresponds to the "Closed Only" status in Lab.
• Ready to Bill: corresponds to the "Closed and Invoiced" status in Lab.

Trader Actions in Lab

• Traders close campaigns in Lab using:
  • "Closed Only": sets the status as "Awaiting Review" in Workday
  • "Closed and Invoiced": sets the status as "Ready to Bill" in Workday

Manage Project Billing Task

• Project Billing Specialists can make amendments to billing transactions in Workday using the "Manage Project Billing Transactions" task.
• Amendments are possible for transactions in the states "Awaiting Review" and "Ready to Bill".

Campaign Structure in Workday

• Campaigns are categorized as projects in Workday.
• Each campaign is associated with a Project Hierarchy (e.g., Programmatic India).
• This hierarchy allows for organized campaign management across different markets.

This quiz covers the process of creating prepaid invoices within Workday, detailing the necessary steps for adding prepaid lines and generating invoices based on billing schedules. It also encompasses how prepaid revenue impacts accounting processes and financial reporting. Test your knowledge on managing prepaid invoices effectively!