F&A Encumbrances and Subaward Ledger Accounts in Workday

With the transition to Workday, RAs will see a marked difference on how F&A is reflected and posted to grants. Please note that some of the items below will result in an overestimation of funds if you are only using Workday bottom line totals for projections. Below is a summary of Workday F&A changes:

F&A on Posted Expenses

In Advantage F&A posted once per week. In Workday, F&A will post in real time for every posted transaction giving a more accurate representation of total expenditures for ASU awards.


The F&A rate for Charitable Grants in Workday will only list the ASU portion of the F&A rate. For example, in Workday, the rate for charitable grant with an F&A rate of 10% (5% ASUF, 5% ASU) will be listed as 5% only.

Be aware that this change does not increase the amount of funds available for expenditures. For charitable grants, units are advised to use the grant’s total direct cost total for the spending limit.

F&A Encumbrances

F&A encumbrances are not yet active in Workday. For that reason, units are advised that the total grant balance reflected in Workday will be overestimated. This limitation is set to be resolved with a Workday system enhancement scheduled for September 30, 2018.

Regardless of this system limitation, as best practice, units should always account for projected expenses that are not yet captured in the financial system (i.e. salary/ERE for personnel that has not yet been hired, F&A encumbrances, etc) when doing budget projections and preparing monthly financial reports for PIs.

Units that have not yet updated internal processes to accommodate the implementation of Workday can use the following process for budget projections and grant balances:

  1. Pull the Budget to Actuals – Grant report in Workday.
  2. Export the report to Excel.
  3. Note that Excel version of the report only includes data. You will need to add formulas to the “Total” row and “Available Balance” column.
  4. In the Excel version of the report, add any planned expenses not captured in Workday under the Encumbrance column (by Ledger Account).
  5. Use the FA Calculator to estimate F&A.
  6. Add F&A total from calculator to Encumbrance column.

Subaward Ledger Accounts

In Advantage, there were two different object codes applicable to subawards 7314 (Sub Agreements <=$25K) and 7315 (Sub Agreements >$25K). In Workday, there is only one ledger account for subaward agreements 7201. The F&A basis limit from ERA is being used to identify the $25,000 direct cost amount that can be accessed F&A. Be aware of account for this change when doing monthly reporting and budget projections.