Summary

You can reverse a pay for the following purposes:

• To reverse an incorrect payment that was made in a previous Standard pay.
• To correct financial reporting if an employee was paid in the wrong financial period.
• To correct costing if an employee's payment was costed to the wrong cost centre.

Reverse an incorrect payment

When an employee was paid an incorrect payment in a previous pay:

1. Open a Manual Pay.
2. Open Transaction View.
3. Press Ctrl+A to open the Sequence Header form.
4. Change the accumulators to the period that you want to reverse the pay from.
5. Click OK.
6. Press Ctrl+P to open the Pay Header form.

   This Manual pay will not have a monetary value, so you do not need to complete the Pay Header details.

7. Click OK.
8. If the employee has permanent transactions, then the following message appears:

   "[Employee] has permanent transactions. Should these be included in this pay?"

9. Click No.
10. Enter the code of the allowance that you want to reverse, or select from the list of allowances.
11. Click OK to open the allowance form.
12. In the Quantity field, type the number of hours to be reversed as a negative, for example -40:00.
13. Confirm that all of the fields on the form are the same as they were in the standard pay, such as the Cost Centre field.
14. For auditing purposes, you should enter transaction text on the Text tab page to record the reason for the reversal.
15. Click OK.

    Each of the cells for this employee in Employee View, are marked with an asterisk (*) to indicate that they were changed. The Drill Down - Sequences View displays details of this transaction.

16. Use the same procedure for each transaction in the employee's pay:
    • Enter allowances as a negative
    • Enter deductions as a negative
    • For Annual leave allowances, enter the Reduce by and Units to pay values as a negative.

    The tax must be added as a Tax override.

17. Press Insert and select the Tax Override allowance.
18. In the Override type field, select Fixed.
19. In the Override amount field, type the amount of tax as a negative.

    Note: Two negatives make a positive.

20. Click OK.
21. Press F9 to process the selected employees pay.

    The Drill Down header displays the Gross, Tax, and Net values, which should equal the pay to be reversed.

    Some transactions may be affected by processing rules. If the values change after you process, then click the transaction and press Enter to open it. Zero the values for Quantity, Rate and Factor. Type '0.00' in the Transaction total field, and set Recalculate to 'No'.

    Do not pay other employees in this Manual pay because you do not want to run the Direct Credit schedule for this sequence.

    When the pay balances with the pay that you are reversing, complete a full system process of the pay. Ensure that Type is set to 'Manual' or 'Both'. Complete standard closing procedures.

Enter the correct payment

1. Open a new Manual Pay.
2. Open Transaction View.
3. Press Ctrl+A to change the accumulators to the correct period.

   If you change the accumulators to a period for which the tax returns have been filed, then you must send an adjustment to the tax department.

4. Complete the employee's transaction correctly.

   Do not pay other employees in this Manual pay. You do not want to run the Direct Credit schedule for this sequence because the employee has already been paid.

5. Complete a full system process of the pay. Ensure that Type is set to Manual or Both. Complete standard closing procedures.

See also

Manual Pays in Transaction View