FINs Fun – Acronyms for HCM Folk

If you tuned in to Season 6 Episode 4 of “The Sharing Show”, you’re already familiar with some of the key acronyms and terms used in the world of Financials. But those are just the beginning! We discussed only a few of the numerous terms you will hear within the world of Financials. Continue reading as we break down additional essential terms across various segments: areas of Workday® Financials, Financial Accounting, and Supplier and Procurement (PTP).

Areas of Workday® Financials

1. RTR: Record-to-Report. This encompasses the processes involved in recording financial transactions and generating reports from those records. It typically includes activities like journal entries, general ledger accounting, reconciliations, and financial reporting.

2. PSA: Professional Services Automation. PSA modules streamline and automate various aspects of professional services delivery within Workday® Financials. This may include project management, resource scheduling, time tracking, expense management, and invoicing for consulting or service-oriented businesses.

3. P2P: Procure-to-Pay. P2P involves the entire procurement process, from requisitioning goods or services through to payment. It typically includes steps like requisition, purchase order (PO) creation, receiving, invoice processing, and payment.

4. EXP: Expense Management. This refers to the process of tracking and managing employee-initiated expenditures, including travel expenses, entertainment, and other business-related costs. Organizations can utilize Workday® Expenses even when using other ERP accounting systems outside of Workday® Financials.

Financial Accounting

1. BS: Balance Sheet. This is a financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

2. JE: Journal Entry. The record of a financial transaction is used to adjust account balances and to update financial information. All operational transactions within Workday® generate a journal entry to the GL. The amount of manual JEs should be minimal within Workday® if the APRs (Account Posting Rules) are configured correctly.

3. GL: General Ledger. It's the core component of accounting systems, where all financial transactions are recorded and organized by account. In Workday®, detailed reporting is done with a combination of account and worktags such as spend category, revenue category, custom worktag, etc. Instead of having hundreds to even thousands of accounts, Workday® Financials relies on a slimmed down chart of accounts to get to the detailed reporting needed.

Suppliers and Procurement (P2P)

1. PO: Purchase Order. A PO is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
   

2. REQ: Requisition. This is a formal request to buy goods or services. In Workday® Financials, a requisition is often the initial step in the procurement process.

For More Information

Tune in for more FINs Fun acronyms and sharing on future episodes of “The Sharing Show”, monthly Share-a-thons, and Sharing Cafés, like the FINs Sharing Café, which are on the third Thursday of each month.

Author: Melissa from Illinois