WorkdayProRecord-to-Report (R2R)Certification Exam Questions and Answers
If an account posting rule doesn't have any conditions or default ledger account, and a transaction occurs against that rule, what will happen?
Options:
The transaction will stop with a critical error message for the initiator to fix.
The transaction will post with the first ledger account in the account set.
The transaction will route for additional approval.
The transaction will post in error with no ledger account for that line.
Answer:
DExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
When a transaction invokes an account posting rule that has neither a matching condition nor a default ledger account, Workday has no configured result from which to derive the journal line's ledger account. The operational journal is consequently generated with that line in error and no ledger account. The transaction and its accounting can then be investigated through the applicable error reports and posting-rule configuration.
Workday does not arbitrarily select the first account in the account set because doing so would violate accounting policy and could materially misstate the ledger. The source transaction is not necessarily stopped immediately with a critical validation because accounting derivation and business-process validation are separate controls. Additional approval also cannot supply the missing account. Depending on journal-source suspense configuration and its threshold, some journal loads may use suspense processing or fail according to the permitted error level, but the posting rule itself still lacks a valid ledger-account result. The administrator should add an appropriate condition and resulting account or configure a defensible default, test the rule, and reprocess the errored accounting. Therefore, the direct outcome described in D is correct.
Official Workday reference: Workday Education - Accounting Journals ; topics: account posting rules, missing ledger accounts, and journal error handling.
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Refer to the following scenario to answer the question below.
A company is a global organization that needs to comply with multiple accounting standards. The company has configured their account posting rules so that certain supplier invoices will comply with U.S. GAAP rules but will not comply with IFRS.
In addition to the supplier invoices, what transaction is necessary for the IFRS book to achieve compliance?
Options:
An adjusting journal entry that includes a book code specific to U.S. GAAP.
Two adjusting journal entries that include book codes for IFRS and for U.S. GAAP.
An adjusting journal entry assigned to the blank book code.
An adjusting journal entry that includes a book code specific to IFRS.
Answer:
DExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The supplier invoices generate operational accounting that follows the configured U.S. GAAP account posting rules. Workday ordinarily records operational journals with a blank book code, placing them in the Common Book. Because IFRS requires a different accounting result, the organization must record only the difference through an adjusting accounting journal assigned to an IFRS-specific book code.
The IFRS reporting book can then combine the blank-book-code operational activity with the IFRS adjustment book code. This produces the IFRS result without duplicating the underlying supplier invoice. A U.S. GAAP-specific adjustment is unnecessary because the operational transaction already represents that treatment. Assigning the adjustment to the blank book code would contaminate the common operational basis and make the IFRS difference appear in every book containing blank activity. Creating parallel U.S. GAAP and IFRS adjustments would also duplicate accounting rather than isolate the reporting-basis difference. Therefore, the required transaction is one adjusting journal using the IFRS-specific book code and the ledger accounts needed to reverse or reclassify the U.S. GAAP treatment. This is the central Workday multi-book design: common operational entries are recorded once, while standard-specific differences are held in separate adjustment book codes.
Official Workday reference: Workday Education - Multi-book ; topics: blank book code, common book, and IFRS adjustment journals.
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A company that has multiple subsidiaries is implementing Workday. They need to set up intercompany transactions.
What is the first step in this process?
Options:
Create the journal entries for historical intercompany transactions.
Edit the intercompany profiles between the companies.
Define the settlement terms between subsidiaries.
Train employees on how to record intercompany transactions.
Answer:
BExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The first configuration step is to establish the intercompany relationships through Edit Company Intercompany Profile. The profile determines which companies may transact with or settle each other and controls capabilities such as initiation, settle-only relationships, payment types, bank accounts, automatic intercompany receipts, and asset transfers. Without a valid profile, Workday cannot expose the affiliate as an eligible intercompany counterparty for many transaction types.
Historical journal conversion should occur only after the foundational company relationships, posting rules, affiliate worktags, and opening periods are correctly configured. Settlement terms and payment methods are components of the broader profile and settlement design; they do not replace creation of the relationship itself. Training users before configuration is complete would teach an incomplete process and cannot enable transactions. After profiles are established, administrators configure intercompany payables and receivables account posting rules, companies as customers or suppliers for direct intercompany activity, appropriate business processes, elimination rules, and reconciliation reporting. This sequence ensures that transactions create balanced due-to and due-from accounting and remain traceable through settlement and consolidation. Therefore, editing the intercompany profiles is the correct first step.
Official Workday reference: Workday - Define Intercompany Profiles ; topics: Edit Company Intercompany Profile and relationship setup.
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An accountant is creating an on-behalf-of intercompany transaction using a manual journal. When selecting the line company, the user notices that a company is missing from the list.
What configuration should they look at to allow for this transaction between the two companies?
Options:
Intercompany Payables Account Posting Rule
Intercompany Profiles
Maintain Companies as Customers or Suppliers
Intercompany Receivables Account Posting Rule
Answer:
BExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The available line companies on an on-behalf-of accounting journal are controlled by the intercompany relationships established in the companies' intercompany profiles. The administrator should inspect Edit Company Intercompany Profile and confirm that the relevant relationship permits initiation or the required on-behalf-of activity. If the relationship is absent or not enabled appropriately, the company will not appear as an eligible line-company value.
Intercompany Payables and Intercompany Receivables account posting rules determine the ledger accounts used after Workday creates balancing due-to and due-from lines; they do not populate the company prompt. Maintain Companies as Customers or Suppliers supports direct intercompany customer and supplier invoices. An on-behalf-of manual journal does not require the missing company to be selected through that customer-supplier mapping. The profile is therefore the controlling setup. After correcting it, the administrator should validate compatible account sets, allowed transaction direction, shared fiscal-schedule requirements, and any required affiliate worktags. Once eligible companies are selected on the journal, Workday can generate the appropriate intercompany balancing accounting. Thus, Intercompany Profiles is the correct configuration area to review.
Official Workday reference: Workday - Define Intercompany Profiles ; topics: on-behalf-of intercompany relationships and line-company eligibility.
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Refer to the following scenario to answer the question below.
Your company just implemented Workday. Several users in the finance department cannot access certain delivered financial reports they need to perform their month-end close tasks. Additionally, some journal entries that were manually created are not being automatically routed for approval as expected. As a member of the security team, you need to investigate and resolve these issues.
Why are the users unable to access the reports?
Options:
The users' Workday accounts have not been activated since the system went live.
The reports are poorly designed.
The reports are scheduled to run only at specific times that do not coincide with the users' access attempts.
The users do not have access to the security domain, which secures the standard report.
Answer:
DExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
Delivered Workday reports are securable items governed by security domains. A user can access a delivered financial report only when a security group to which the user belongs has permission on the domain securing that report and the user's organizational constraints permit access to the relevant company data. If several finance users cannot open specific delivered reports, the first technical cause to investigate is missing domain access.
Account activation would prevent the users from accessing Workday generally, not selectively block only certain reports. Report design quality affects usability and output but does not determine whether the report appears or can be launched. A scheduled report can normally also be run interactively when the user has permission; scheduling time is not the access-control mechanism. The security administrator should use View Security for Securable Item on each affected report, identify the protecting domain and permitted security groups, and then confirm group membership or role assignment for the users. Separately, the journal-routing problem must be examined through the Accounting Journal Event business-process definition and its step conditions. The report-access issue itself, however, is explained by the users lacking access to the security domain that secures the standard report.
Official Workday reference: Workday Education - Report Security ; topics: security domains, delivered reports, and domain security policies.
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All operational transactions with the spend category of Office and Administrative should post to ledger account 6300-Office Supplies. Costs are currently posting to 1100-Suspense.
What should you do?
Options:
Configure a condition on the Spend Rule with the appropriate dimension, value and resulting ledger account.
Update the default ledger account on the Spend Posting rule to 6300-Office Supplies.
Run the Fix Operational Journals With Errors Report and Correct the Ledger Account.
Add condition rules for ledger accounts to the Approval step in the Supplier Invoice Event business process.
Answer:
AExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The Spend account posting rule must contain a condition that evaluates the Spend Category dimension for Office and Administrative and returns ledger account 6300-Office Supplies. Workday evaluates conditions in sequence and assigns the ledger account from the first matching condition. The current posting to 1100-Suspense indicates that no suitable spend condition or default result is being derived for this category.
Changing the default account to 6300 would direct every unmatched spend transaction to Office Supplies, not only transactions with the specified spend category. Fix Operational Journals with Errors is a diagnostic or correction process and does not replace the missing policy configuration; moreover, successfully posted suspense activity may require controlled correcting entries after the rule is fixed. Business-process approval conditions control routing, not ledger-account derivation. The administrator should add the precise dimension, comparison value, and resulting ledger account, place the condition ahead of any broader match, test representative invoices, and then correct affected accounting as permitted. This resolves the root cause and ensures future Office and Administrative spend consistently posts to 6300. Therefore, option A is correct.
Official Workday reference: Workday Education - Accounting Journals ; topics: Spend account posting rule conditions and resulting ledger accounts.
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You need to find balances due to several suppliers for multiple periods.
What report will you use?
Options:
Suppliers by Company
Find Journal Lines
Find Suppliers
Supplier Activity Summary
Answer:
DExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
Supplier Activity Summary is the delivered report intended to analyze supplier-account activity and balances across a selected company and period range. It summarizes beginning balances, invoices, adjustments, payments, and ending amounts due, allowing the accountant to compare several suppliers over multiple periods and drill into supporting activity where necessary.
Suppliers by Company identifies supplier relationships but does not provide the required period-based accounts-payable balances. Find Suppliers is a master-data search and is therefore unsuitable for analyzing transaction activity. Find Journal Lines can locate accounting entries, but it requires the user to reconstruct supplier balances from journal detail and may not present the supplier-account lifecycle as efficiently as the purpose-built summary. Supplier Activity Summary is secured through the applicable supplier-account reporting domains, so the user's company access and role constraints still determine which balances are visible. The report provides the appropriate operational view for identifying amounts due, reviewing payment and adjustment movements, and reconciling supplier subledger activity to the general ledger. Consequently, Supplier Activity Summary is the correct report for the stated requirement.
Official Workday reference: Workday Education - Supplier Accounts ; topics: Supplier Activity Summary and supplier balances by period.
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What security group can enter a supplier invoice?
Options:
Supplier Administrator
Accounts Payable Manager
Accounts Payable Data Entry Specialist
Accounts Payable Analyst
Answer:
CExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The Accounts Payable Data Entry Specialist is the delivered role-based security group designed to perform core supplier-account transaction entry, including creating and maintaining supplier invoices and supplier invoice adjustments for assigned organizations. Its constrained role assignment determines the companies for which the user can enter transactions, while the relevant domain and business-process security policies authorize the task and initiation action.
Supplier Administrator primarily maintains supplier master data and related setup rather than performing routine invoice entry. Accounts Payable Manager and Accounts Payable Analyst may have reporting, review, approval, or broader management responsibilities, but the delivered group explicitly aligned to entering supplier invoices is Accounts Payable Data Entry Specialist. Organizations can extend or modify security policies, so an implementation may grant additional groups access; however, certification questions use the delivered functional responsibility. The administrator should confirm both task-domain permission and the Initiate action on the Supplier Invoice Event business process, along with an appropriate company role assignment. Therefore, Accounts Payable Data Entry Specialist is the correct security group.
Official Workday reference: Workday Education - Supplier Accounts ; topics: Accounts Payable Data Entry Specialist and supplier-invoice processing.
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A company needs to comply with both ASC 842 and IFRS 16 leasing standards.
When creating an alternate supplier contract to comply with IFRS 16, what will determine the appropriate accounting for the installment expense recognition?
Options:
The alternate supplier contract's accounting method
The alternate supplier contract's interest rate
The original supplier contract's accounting method
The original contract's contract type and contract accounting method
Answer:
AExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The alternate supplier contract's accounting method determines how Workday accounts for its installment expense recognition. Alternate contracts allow the same underlying lease arrangement to be evaluated under different accounting standards, accounting methods, and book codes. Therefore, the IFRS 16 alternate contract must carry the accounting method that represents the IFRS treatment.
The original supplier contract remains the source for supplier invoices, but its accounting method does not override the accounting treatment assigned to the alternate contract. This separation is necessary because ASC 842 and IFRS 16 can produce different expense-recognition patterns. For example, IFRS 16 generally treats long-term operating leases as finance leases, resulting in interest and depreciation or amortization components rather than the single straight-line lease expense commonly associated with an ASC 842 operating lease.
The interest rate is an input used in present-value and interest calculations, but it does not independently select the accounting framework or expense-recognition methodology. Similarly, the original contract's type and accounting method govern the original contract's treatment, not the alternate contract's parallel accounting.
Consequently, Workday evaluates the accounting method assigned directly to the alternate supplier contract when generating the applicable installment expense-recognition accounting.
Official Workday reference: Workday Education - Lease Accounting ; topics: Alternate Supplier Contracts, Expense Recognition, and ASC 842 and IFRS 16.
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A company is required to comply with both IFRS and U.S. GAAP lease accounting rules. The company has already booked their U.S. GAAP leases.
What accounting method should the company select to create the alternate contract for IFRS?
Options:
Straight line expense
ROU asset operating expense
Workday will automatically select the appropriate accounting method
ROU asset depreciation expense
Answer:
DExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
For IFRS 16, a long-term operating lease is treated in a manner comparable to a finance lease. The alternate supplier contract must therefore use the ROU asset depreciation expense accounting method. This method supports recognition of the right-of-use asset and lease liability, followed by depreciation or amortization of the ROU asset and separate interest expense over the lease term.
Straight line expense and ROU asset operating expense are associated with the single lease-expense pattern used for an ASC 842 operating lease rather than the IFRS 16 finance-style expense pattern. Workday does not automatically select the method without the relevant configuration; the accounting method is assigned through the lease contract type and book-code design and becomes a controlling attribute of the alternate contract. The original U.S. GAAP contract can continue to generate its own expense recognition, while the alternate IFRS contract produces the different accounting in an IFRS-specific book code and, where required, the IFRS asset book. Selecting ROU asset depreciation expense therefore establishes the appropriate IFRS treatment and prevents the alternate contract from duplicating the U.S. GAAP operating-lease expense pattern.
Official Workday reference: Workday - Multibook Asset Accounting for Leases ; topics: IFRS 16 operating leases and ROU asset depreciation expense.
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There are several companies within a tenant, one of the companies requires a location worktag on supplier invoices.
What task should you use to manage this requirement?
Options:
Maintain Related Worktag Usage
Maintain Business Process Step Conditions
Maintain Custom Validations
Maintain Worktag Usage
Answer:
CExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
Maintain Custom Validations is required because the Location worktag requirement applies to only one company. The validation should be configured for the Supplier Invoice transaction type and should test whether the invoice company equals the designated company and the Location worktag is blank. A critical validation will prevent submission until the required Location is entered.
Maintain Worktag Usage is not appropriate for a company-specific requirement. Workday applies the required-worktag configuration for a transaction type throughout the tenant. If Location were marked as required for supplier invoices through Maintain Worktag Usage, every company would receive the same requirement. Workday's official course guidance specifically directs administrators to use custom validations when a worktag is required for one company rather than tenant-wide.
Maintain Related Worktag Usage supports defaulting or requiring worktags associated with another business object, such as deriving a Region from a Cost Center. It does not independently implement the stated company-level condition. Business Process Step Conditions control whether workflow steps execute; they do not perform transaction-level FDM completeness enforcement.
The appropriate configuration is therefore a company-conditioned critical custom validation. This preserves the other companies' existing supplier-invoice behavior while ensuring that the selected company cannot submit an invoice without Location.
Official Workday reference: Workday Education - Accounting Journals ; topics: Tenant Wide, Maintain Worktag Usage, and Custom Validation Condition Rules.
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Company D and Company E process direct intercompany transactions, and both companies would like to automatically record intercompany receipts. Company D billed Company E for services provided, and Company E settled the invoice. However, Company D's accountant noticed the receipt has not been posted.
What is the most likely cause?
Options:
Company D did not select the option to record receipts automatically from Company E via the Edit Company Intercompany Profile.
Company D does not have an intercompany relationship defined with Company E.
Company E did not select the option to record receipts automatically from Company D via the Edit Company Intercompany Profile.
Company D is not defined as a customer for supplier Company E to settle invoices.
Answer:
CExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The automatic receipt configuration is evaluated from the company performing the settlement. Company E is the paying company because it settled the supplier-side obligation created from Company D's customer invoice. Therefore, Company E's intercompany profile relationship with Company D must have Record Intercompany Receipt enabled.
Workday defines this option as generating an intercompany receipt after the current company settles an intercompany transaction received from the company identified in the profile's To relationship. In this scenario, Company E is the current company and Company D is the company from which the intercompany transaction originated. If Company E has not selected the automatic receipt option for Company D, settlement can complete without the corresponding receipt being generated and posted for Company D.
Company D's profile setting in option A represents the reverse transaction direction. A missing intercompany relationship is less likely because the companies successfully processed and settled a direct intercompany invoice. Similarly, the required company-as-customer and company-as-supplier configuration must already exist for the underlying direct intercompany invoice flow to operate. The failure specifically concerns the post-settlement receipt, making Company E's automatic receipt setting the controlling configuration.
Official Workday reference: Workday - Define Intercompany Profiles ; topics: Record Intercompany Receipt and Direct Intercompany Activities.
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You submit a journal entry.
What journal status proves Workday recorded it in the ledger?
Options:
Approved
Posted
Submitted
Completed
Answer:
BExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
Posted is the journal status that confirms Workday has recorded the journal in the ledger. Workday defines a posted journal as one that has completed the Accounting Journal Event business process, has been posted to the applicable company ledger, and is included in financial reporting.
Submission alone does not establish ledger recognition. After submission, a journal may remain In Progress while approvals, reviews, validations, or other configured business-process steps are outstanding. During that period, Workday has assigned the journal to workflow, but it is not yet included in standard financial statements. Approved and Completed may describe workflow events or steps, but they are not the controlling accounting-document status used to demonstrate that ledger posting occurred.
Once the journal reaches Posted status, its debit and credit lines affect ledger balances for the specified accounting date, ledger, company, book code, and worktags. A posted journal can subsequently be removed from active ledger reporting only through the controlled unposting process, subject to period status and security restrictions.
Therefore, the accountant should verify the journal document status itself rather than relying solely on submission or approval history. The definitive status evidencing ledger recording is Posted.
Official Workday reference: Workday Education - Accounting Journals ; topics: Journal Statuses, Posted, and Accounting Journal Event.
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If a user records an on-account payment for a customer, what additional step must be completed in Workday before a refund may be processed?
Options:
Write-off bad debt
Create settlement run
Create a customer deposit
Process a customer invoice adjustment
Answer:
CExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
An on-account customer payment represents cash received but not yet applied to a specific receivable. Before Workday can process a refund from that recorded payment, the payment must be included in a customer deposit. The deposit establishes the bank-account side of the receipt, completes the controlled cash-recording step, and makes the amount available for subsequent cancellation or refund processing. This is distinct from applying the payment against a customer invoice.
Writing off bad debt addresses an uncollectible customer balance and does not convert an on-account receipt into refundable cash. A settlement run is used later to create and process outbound payments, including approved customer refunds, but the eligible refund transaction must first exist. A customer invoice adjustment changes a billed receivable; it is not the prerequisite for refunding an unapplied payment. Therefore, Create a customer deposit is the required additional step. The configuration also preserves a complete audit trail from the recorded payment, through deposit accounting, to the resulting customer refund and settlement. This treatment aligns with the Workday Record-to-Report control model in which cash receipt recording, depositing, refund authorization, and payment settlement are separate but linked events.
Official Workday reference: Workday Education - Customer Receipts ; topics: on-account payments, customer deposits, and customer refunds.
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Your company uses Workday to track shared service costs.
How can you ensure that costs are distributed to the business based on square footage?
Options:
Evenly distribute the costs across all business units, regardless of usage.
Allow each business unit to self-report their usage and manually adjust the costs.
Allocate shared service costs at the end of the fiscal year.
Set up an allocation with pro-rata usage metrics to distribute the costs.
Answer:
DExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
A pro-rata allocation using statistical values is the appropriate configuration because square footage represents a measurable consumption driver. In Workday, the source component identifies the shared-service cost pool, while the basis determines how that pool is distributed. A statistical definition should store square-footage values by the applicable allocation dimension, such as cost center or business unit. Workday calculates each dimension's proportion of total square footage and applies that percentage to the source amount.
Square footage is normally configured as a balance-type statistic because it remains relatively stable and represents a period-end quantity. The target configuration then determines the ledger account and worktags receiving the allocated expense, while the offset relieves the originating shared-service cost center.
Spread Even would allocate identical amounts without considering actual space usage. Manual self-reporting would weaken control and repeatability, and waiting until fiscal year-end is unnecessary because allocation group sets support monthly, quarterly, or annual processing. The pro-rata method therefore produces a systematic, auditable allocation based on the organization's documented cost driver.
Official Workday reference: Workday Education - Allocations ; topics: Allocation Definition: Basis, Pro-Rata, Statistical Values, and Allocation Processing.
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What is the term for a financial account held at a bank or other financial institution?
Options:
Settlement Account
Cash Pool
Bank Account
Ledger Account
Answer:
CExplanation:
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
A financial account maintained at a bank or another financial institution is a Bank Account in Workday. The bank account record identifies the owning organization, account number, currency, financial institution or branch, accepted payment types, account usage, and any settlement or reconciliation configuration. It represents the external cash account whose activity is reflected in the general ledger.
A settlement account is a usage context or account selected for processing particular payments and receipts; it is not the general term for the financial account itself. A cash pool groups cash positions or related accounts for liquidity and balancing analysis. A ledger account is an internal chart-of-accounts classification used to record cash and other financial activity, but it is not the external account held by the institution. Workday links the bank account to appropriate cash ledger accounting through account posting rules and bank-account setup. The distinction matters because operational settlement, bank statements, reconciliation, and payment routing reference the Bank Account object, while financial statements summarize the resulting activity in cash ledger accounts. Accordingly, Bank Account is the precise Workday term requested.
Official Workday reference: Workday - Steps: Set Up Banking ; topics: bank entities, bank accounts, and settlement accounts.
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