Workday Financial Management is a dynamic software solution designed to help businesses manage their financial reporting, accounting, and other imperative business operations.
Workday Worktags are essentially tags or labels that are assigned to specific transactions, accounts, and other financial data within an organization’s current system, enabling Workday users to arrange and evaluate critical financial data.
Read on to learn more about Workday Worktags and how our senior Workday consultants can help you maximize success.
What are Workday Worktags?
Worktags in Workday refer to keywords associated with business events that customers can utilize to report, analyze, and aggregate business information in Workday. Worktags also provide additional details about specific operational, financial, and external reporting transactions compared to other systems.
Worktags typically include functionality and rules, like:
- Routing to the correct fiscal managers or officers
- Identifying the company responsible for revenues and charges
- Building detailed reports of all financial transactions
Transactions can have multiple Worktags, but they all have one main Driver Worktag. Driver Worktags indicate the main funding source for any project and consist of Project, Grant, Program, and Gift components. Other Operational, Related, and Optional Worktags offer additional details about a transaction.
How to Use Worktags?
Here’s a closer look at how to use Worktags in Workday:
1. Carefully Describe Worktags
Users can use Worktags to meet specific company requirements, but they must be used consistently and effectively, especially as business ecosystems evolve. However, it’s essential to define worktags carefully before using them in the actual production environment.
Worktags, for instance, can be configured for multiple departments, projects, cost centers, or other business categories. For optimal Worktag performance, users must consider the relationship between the worktags and their related hierarchy.
2. Allocate Worktags to Transactions and Other Data
Once Worktags are defined, users can leverage manual or automated functionality to assign them to transactions and other financial data within their Workday system.
3. Utilize Worktags to Refine and Analyze Financial Data
Once Worktags are assigned to financial data, users can utilize them to further refine and analyze each data source. Users can leverage Worktags to create reports that reveal all critical transactions across a specific department or project.
Users can also utilize Worktags to compare and research trends over time and analyze different departments or business units over time. By using Worktags consistently and effectively, users can gain invaluable insights into critical financial performance metrics and identify areas of improvement.
4. Worktag Use Training
Training teams to use Worktags effectively is key to any organization’s success, ensuring all users who submit financial data into Workday know how to assign, analyze, and curate Worktags correctly.
Navigating Worktags in Accounts Payable
Worktags can be used in Workday Accounts Payable to better categorize and track expenses across business units and pay periods.
Here are a few critical ways users can utilize Worktags in Workday Accounts Payable:
- Refine Expenses: Worktags can be utilized to conduct cost analysis and locate potential opportunities for cost savings. They can also be used to keep track of project-specific costs and analyze financial data to identify areas of improvement.
- Sort Invoices: Users can categorize an invoice by assigning a Worktag to the responsible department whenever an invoice is received.
- Simplify Approval Processes: Worktags can be useful for streamlining payment and invoice approval processes. By designating Worktags to the department responsible for approval, invoices can be automatically forwarded to the right contact, enabling streamlined approvals.
Common Worktag Structures in Workday
Let’s take a look at some of the most common Worktags in Workday:
- Cost Center: This type of Worktag specifies the department or business unit responsible for each expense.
- Location: This worktag represents the physical location of where an expense occurred, like a store or branch location.
- Project: This worktag represents the exact project that costs are associated with.
Cost Center Worktags, which are associated with people and budget managers, are the predecessors for what is now called department codes. They are used to oversee workflow and security activities while keeping tabs on critical financial transactions.
Cost centers can be combined into a cost center hierarchy that includes the following functionality:
- Users are required to enter fewer data elements, reducing errors and redundancies.
- The Foundation Data Model (FDM) creates an environment for better user experiences, dynamic reporting, greater internal control, and improved data flexibility.
- Workday delivers a robust option to search Worktags and roll them up into a hierarchical structure.
How Can We Help?
Whether you’re looking to streamline processes for approval, find ways to narrow down exactly where expenses are coming from, or just need an extra hand getting started on your journey with Workday, Surety Systems can help.
Our senior-level Workday consultants have the functional skills and experience to help you successfully implement new Workday modules or integrate additional functionality into your existing Workday system. With our team, your needs stay at the top of the priority list, ensuring you have the support you need, whenever you need it.
Interested in learning more about Workday Worktags and where our expert Workday consultants can fit in your organization?
Contact us today!