The Challenge

The institution initially planned to create supplier accounts for internal departments and use supplier invoices to manage billing for goods and services exchanged internally. However, this approach introduced several challenges:

  • Supplier invoices triggered Accounts Payable workflows designed for external vendors, complicating internal fund transfers.

  • Supplier invoices require handling of tax codes, withholding tax, and potentially Goods and Services Tax (GST)/HST which do not apply to internal transactions.

  • The invoice approval process caused delays, unsuitable for quick internal chargebacks.

  • Reporting on internal charges became less transparent amid external supplier data.

My Role

I recommended leveraging Workday’s Internal Service Provider (ISP) functionality instead of traditional supplier invoicing for internal billing. This involved:

  • Setting up internal departments as ISPs flagged within Workday’s supplier module.

  • Using internal billing processes that generate journal entries for interdepartmental cost allocations, bypassing Accounts Payable.

  • Simplifying workflows by eliminating supplier invoice approval steps for internal charges.

  • Enhancing reporting tools to clearly track and analyze internal service consumption by department.

Results & Impact

⏱️ Reduced internal billing cycle times from 5 days to 2 days

✅ Eliminated unnecessary Accounts Payable transactions

📊 Enhanced visibility of internal chargebacks

⚡ Improved system performance by lowering supplier invoice volume by 60%

😊 Increased satisfaction among finance and departmental users