Due To and Due From Accounting

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Objective or Task:

Understand how Due To and Due From accounting works in Workday Finance.

Instructions:

  1. Recognize that Due To and Due From accounts track financial obligations between departments across different companies within the university.

  2. Understand that these accounts function as internal records when one department owes money to another.

  3. Identify that Due To represents an amount to be received and Due From represents an amount owed.

  4. Learn that these accounts are used specifically for intercompany transactions between different entities.

  5. Understand that intercompany transactions occur when one department performs financial activity on behalf of another company.

  6. Recognize that Due To and Due From accounts appear on the balance sheet as current assets and liabilities.

  7. Understand that these accounts act as clearing accounts and typically balance to zero after settlement.

  8. Use regular reconciliation practices to ensure accuracy and identify discrepancies in these accounts.

  9. Recognize that Workday Finance automatically creates Due To and Due From entries based on predefined rules.

  10. Understand that intercompany pairing rules determine how these entries are generated.

  11. Identify that these rules define default accounts and settlement behavior for each company involved.

  12. Understand that Workday uses worktags to generate and balance Due To and Due From entries.

  13. Recognize that additional elements such as funds and companies must be tracked for each transaction.

  14. Understand that Workday provides real-time visibility into Due To and Due From balances.

  15. Use this visibility to support timely reconciliation and accurate financial reporting.

  16. Recognize that Workday supports intercompany netting to offset balances between companies.

  17. Understand that this automation reduces manual effort and improves accuracy.

  18. Follow established processes when performing transactions on behalf of another company.

Outcome:

You understand how Due To and Due From accounting works within Workday Finance and how it supports intercompany transactions. You are prepared to interpret, monitor, and reconcile these accounts to ensure accurate financial reporting.

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