Spend categories are a required element for every Workday Procurement transaction.
Spend categories are a blend of commodity codes which identify the type of good/service
being purchased AND object codes from the Legacy system. Workday spend categories
can be deemed trackable while others are not tracked. A tracked spend category should
be used for items with a total acquisition cost of $1,000 or greater, with the exception
of bullet proof vests, firearms, and livestock/animals that are tracked at any value,
and are tagged as an LSU asset.
The goal of Procurement spend categories is to build a well-rounded view of the overall
spend based on commodities across the LSU system. Accurate reports for commodity spend
opens the potential for higher discounts/new contracts, which is a good thing for
the University. It has been noticed in initial reports that some end users are selecting
the spend category based on the spend category hierarchy and/or the project they are
using the items for rather than the specific item within the spend category hierarchy.
For Example: Adding a memory board to a CPU, some end users select Maintenance – Computer Equipment
(SC008) while the appropriate selection should be Computer Supplies (SC0172).
Remember: The spend category is tied to the good/service itself, rather than the project/end
use of the item.
The crosswalks regarding legacy object codes were created to help give direction of
the new spend category structure, however, both the initiator and approvers (Cost
Center Manager and Buyers) should all share in the responsibility of taking a second
look to ensure the selected spend category accurately identifies the good/service
Click HERE for a list of Procurement Spend Categories.