Spend Categories

 

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 being purchased.

Click HERE for a list of Procurement Spend Categories. 

Resources

Forms

Memos

A-Z Index

FAQ