Summary

You can reverse a pay for the following purposes:

• To reverse an incorrect payment that was made in a 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 in the wrong financial period:

1. Open a Manual Pay.
2. Open Transaction View.
3. Press Ctrl+A to change the accumulators to the period that you want to reverse the pay from.
4. Press Insert to open the Pay Header.
5. Complete the Pay Header form and click OK.
6. If the employee has permanent transactions, then the following message appears:
   [Employee] has permanent transactions. Should these be included in this pay?
7. Click No.
8. Enter the code of the allowance that you want to reverse, or select from the list of allowances.
9. Click OK to open the allowance form.
10. In the Quantity field, type the number of hours to be reversed as a negative, for example - 40:00.
11. 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.
12. For auditing purposes, you should enter transaction text on the Text tab page to record the reason for the reversal.
13. 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.

14. 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.

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

    Note: Two negatives make a positive.

18. Click OK.
19. 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, 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.

Note: You can reverse just the incorrect transaction, but only if you can determine the portion of tax that you must also reverse.

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.
4. Complete the employee's transaction correctly.
5. Complete a full system process of the pay. Ensure that Type is set to Manual or Both. Complete standard closing procedures.

Payment

Generally in this situation, you should change the payment method to Cash or Cheque.

If the difference between the pays is a negative value, then you must ask the employee to reimburse the company.

See also

Manual Pays in Transaction View