The Customer Invoice process may be used to collect repayment of unused Cash Advance funds or personal expenses erroneously charged to a PCard. The Customer Invoice option can be used when the employee does not have bank issued checks or prefers to use debit/credit card or eCheck. Failure to complete repayment will be subject to collections.
This guide provides a quick reference for accounting for repayments using the Customer Invoice option.
Workday Accounts Receivable for Employee Repayments:
This section covers the basic accounting entries for common employee repayment scenarios processed through Workday Accounts Receivable, including unused travel cash advances and personal charges on a PCard. In these scenarios, Workday generates the accounting entries automatically. Important: For sponsored grant-related transactions on FD520, first coordinate with OSP before processing the repayment.
Customer Invoice for Unused Travel Cash Advance Repayments:
When the customer invoice is created, Workday records a debit to 12000: Accounts Receivable. If Cash Advance Repayment (RC1537) is used on the invoice line, Workday records a credit to 12660: Travel Advances, which reduces the outstanding travel advance balance previously recorded when the cash advance was issued to the employee. You will want to include any applicable balancing worktags from the corresponding spend authorization on the invoice lines (not the invoice header) for these transactions. OSU’s Balancing Worktags are: Balancing Unit, Fund, Gift, Grant, Project, and Company.
| Ledger Account | Amount | Debit | Credit | Revenue Category |
|---|---|---|---|---|
| 12000: Accounts Receivable | $100.00 | X | ||
| 12660: Travel Advances | $100.00 | X | Cash Advance Repayment (RC1537) |
Customer Invoice for Personal Charges on a PCard:
When the customer invoice is created, Workday records a debit to 12000: Accounts Receivable. If Expenditure Recovery (RC1722) is used on the invoice line, Workday records a credit to 66050: Other Expense, which offsets the original expense recognized for the personal charge. You will want to include any applicable balancing worktags from the corresponding expense report on the invoice lines (not the invoice header) for these transactions. OSU’s Balancing Worktags are: Balancing Unit, Fund, Gift, Grant, Project, and Company.
| Ledger Account | Amount | Debit | Credit | Revenue Category |
|---|---|---|---|---|
| 12000: Accounts Receivable | $100.00 | X | ||
| 66050: Other Expense | $100.00 | X | Expenditure Recovery (RC1722) |
Payment Application and Deposits for Employee Repayments:
When repayment is received through an online credit card, debit card, eCheck, the Bursar’s Office applies the payment to the outstanding customer invoice and records the related cash receipt activity. The accounting entries are as follows:
| Ledger Account | Amount | Debit | Credit | Steps Completed by Bursar's Office |
|---|---|---|---|---|
| 12130: Undeposited Payments | $100.00 | X | Payment Application | |
| 12000: Accounts Receivable | $100.00 | X | Payment Application | |
| 10000: Cash | $100.00 | X | Deposit | |
| 12130: Undeposited Payments | $100.00 | X | Deposit |
Manual Cost Center Journal to Reclassify from Other Expense (Optional):
After the repayment has posted, if desired, record a manual cost center journal to reclass the offset from 66050: Other Expense to the original expense ledger account used on the expense report. This entry debits 66050: Other Expense and credits the original expense ledger account so the repayment reduces the same expense account and spend category as the original charge.
| Ledger Account | Amount | Debit | Credit |
|---|---|---|---|
| 66050: Other Expense | $100.00 | X | |
| Use original expense report ledger account and spend category | $100.00 | X |