Workday - Processing Pre-Paid (Multi-Period) Requisitions-V2

Workday - Processing Pre-Paid (Multi-Period) Requisitions-V2

This is the new process for processing Prepaid Expenses in Workday effective September 1, 2025.  Here is the training Video and Here is the Presentation used in the video.  Below is a summary as well as step by step instructions for processing the requisition and purchase order. 

What is a Prepaid Expense?  
~A prepaid expense occurs when we pay in advance for services we will receive or use in the future.  These payments are recorded as assets on the company’s balance sheet until the benefit of the service is realized in future period(s) on the financial statement.  

How are prepaid expenses recorded?
~A prepaid expense is processed through the Supplier Invoice process...
  1. Requisition → Purchase Order → Receipt → Invoice 
  2. This process applies to invoices for a single company.  
  3. Allocated (Multi-Company) invoices follow a different process through Corporate Invoices.
What qualifies as a prepaid expense at HHM Hotels? 
~Per period (Monthly) cost of services must be equal to or greater than 100.00.
  1. Approved Example:  Elevator Maintenance Quarterly Service total invoice = 1500.00
    1. Prepay for Q2:  April - May - June for 500.00 per month.  
  2. Approved Example:  Cvent CSN Advertising yearly invoice total = 3500.00
    1. Prepay over 12 months = 291.66 per month.   
  3. Unapproved Example:  Annual Fire Safety Inspection total invoice 650.00
    1. Prepay over 12 months = 54.16 per month.  
    2. Fail prepaid qualification and would be posted in full for the month received. 

Here are the steps to process a prepaid requisition in Workday:  

In Workday, expenses that are spread over multiple accounting periods (Pre-Paid) are processed with Confirming PO - Non Inventory requisition types.  
  1. Use the "Create Requisition" Task and be sure to select, "Confirming PO - Non Inventory" requisition type:

  2. While creating requisitions for prepaid expenses be sure to use "Goods Lines" as noted below and then, select the correct Supplier, Cost Center, Spend Category and outlet (where applicable) for the expense and note on the line item(s) that it is prepaid and provide the periods to apply the expense.  Example below:
  3. When you are done adding the line items, review for accuracy and submit the requisition.
  4. The budget check process will run for the full amount of the expense for the period of the requisition date.  
  5. When the requisition is approved and in, "Successfully Completed" status, the Confirming PO will be sent as a task to the requisition creator.  Example below:

  7. Update the "Issue Option" to "Print" 

  9. Scroll down to the invoice line items and check the "Prepaid" box on the lines to be amortized

  11. Click on the "Prepaid Details" tab, choose "Schedule" as the "Prepaid Amortization Type"

  13. Approve the task

  15. The PO will now be in approved status and will issue on the next scheduled issue run that processes every 30 minutes.  
  16. When the PO is in Issued status, process the receipt and write the full PO number on the invoice and send it to invoices@hhmhotels.com so gets processed with the PO match.  
  17. The Accounts Payable team will link the PO to the invoice to kick off the 3 way match event.
  18. When the invoice is Approved and Matched, it will land onto the HHM Open Payables report so it is ready for settlement (payment.)
  19. The accountants will receive a task to complete the Schedule in the final task of the business process.  
  20. They will review the expense, confirm that it qualifies for prepaid and then process the schedule to post in the appropriate periods.