How to Use Spend Categories in Workday
This guide will instruct users on understanding and using spend categories in Workday.
Understanding Spend Categories
Spend Categories in Workday Finance are used to classify types of expenditures for goods and services.
They provide a granular view of expenses, helping our organization track and analyze our spending patterns.
Spend Categories are like Object Codes in Kuali - they describe the nature or purpose of the transaction.
Assigning the correct Spend Category ensures that expenses are categorized accurately for reporting, budgeting, and compliance purposes.
Examples of Spend Categories
Spend Categories can vary widely depending on the organization's needs. Here are some common examples:
Spend Category
Description
Office Supplies
Expenses for items like paper, pens, and other office materials.
Professional Services
Fees paid for consulting, legal, or other professional services.
Utilities
Payments for electricity, water, gas, and other utility services.
Equipment
Purchases of machinery, computers, and other equipment.
Maintenance
Costs for maintaining buildings and equipment.
Advertising
Expenses related to advertising, promotions, and other marketing activities.
Common Uses of Spend Categories
Spend Categories are required on many finance-related tasks in Workday, including:
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Requisitions: When ordering goods or services.
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Supplier Invoice Requests (SIRs): When requesting payment for goods or services from suppliers.
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Journal Entries: For recording financial transactions.
How to Select the Appropriate Spend Category
When creating a financial transaction, it is important to choose the most appropriate Spend Category. Look for the option that best describes what is being purchased or recorded.
For example, use “Office Supplies” for stationery, not “Miscellaneous” or “Other.”
If you are unsure which category to use:
- Use the search function in Workday to explore options.
- Refer to any available category crosswalks or cheat sheets.
- Check with your department’s finance contact.
- Choosing the correct category helps ensure transactions route correctly and appear in the appropriate reports.
Using Spend Categories for Reporting
Once Spend Categories are assigned to financial transactions, they become valuable tools for filtering and analyzing spending data.
For example, you can run reports to view all transactions linked to a specific Spend Category, which helps you better understand how funds are being spent. This allows you to:
- Spot spending trends over time
- Compare expenditures across departments or projects.
- Make more informed budgeting decisions.
Benefits of using Spend Categories
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Enhanced Reporting: Provides detailed insights into spending patterns.
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Budget Management: Helps track and manage budgets more effectively.
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Compliance: Ensures expenses are categorized correctly for regulatory reporting.
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Cost Control: Identifies areas where costs can be reduced or optimized.
How Spend Categories Affect Workflow and Approvals
In Workday, the Spend Category you select can influence how your transaction is routed for review or approval. Certain categories may trigger specific workflows or compliance reviews.
For example, selecting “Capital Expense” may require additional approvals due to contracting or policy requirements.
Be sure to choose carefully; the category not only affects reporting but can also determine how quickly your transaction moves through the system.
Experiencing an issue or need additional support? Contact our OneIT Team by
If you need assistance with Workday Financials-specific issues, contact Finance Support.