When creating a supplier invoice, how does Workday manage payment terms?

When creating a supplier invoice in Workday, the system is designed to automatically populate payment terms based on specific connections related to the supplier and the invoice details. This automation enhances efficiency by ensuring that terms are applied consistently and accurately, reflecting any pre-established agreements you have with the supplier.

The system leverages pre-set configurations within supplier data—such as negotiated payment terms—so when an invoice is generated, it can quickly reference these predefined terms. This helps to reduce the risk of human error and speeds up the processing time, allowing for a smoother transactional flow.

In contrast, manual input of payment terms could lead to inconsistencies and mistakes, as different users might enter varying terms. Defaulting to the longest payment term does not necessarily reflect the agreements made and could disrupt supplier relationships. Requiring approval for payment terms could slow down the process, countering the efficiency aim of the invoicing system. By automating this component, Workday optimizes the Procure to Pay process, ensuring that invoices are processed swiftly and in adherence to contractual obligations.