Payroll Adjustment

Question

I incorrectly over paid a staff member by $ 374.60. This was part of a bulk electronic payment.

The staff member repaid the difference of $ 374.60 to the bank.

I reversed the full gross amount of $ 704.52, and then reprocessed the payroll with the correct gross amount being $ 249.92.

As the amount had been paid back, there was no need to run another "actual " pay so I processed the $249.92 as a "cash" payment. The problem that I have is that the $249.92 is sitting as an unmatched credit in my payroll cheque acct , and the $624.52 is in my "Electronic Payments"

Ive attached an excel spreadsheet showing my workings. Any help would be appreciated :)

tracey_h · Answer

Hi&nbsp;Julie_Cook&nbsp;
&nbsp;
Thanks for your post. When an employee returns the overpaid amount we do recommend processing a negative adjustment pay for the overpaid amount. That will correct the employee's pay history and the negative pay can be matched with the repayment in the bank account. The Help Article, Fixing a payroll overpayment or underpayment, has more information.
&nbsp;
To resolve your situation, you've got:
&nbsp;

the original pay transaction which has been included in the electronic payment transaction
the reversal which is in the Prepare electronic payments window, tick the reversal and click on Bank file to record the electronic payment transaction. This will appear as a deposit in the Reconcile accounts window.
the second pay transaction for $249.92 as a withdrawal in the Reconcile accounts window

Manually reconcile the reversal and second pay by ticking them in the Reconcile accounts window. The deposit of $624.52 minus the withdrawal of $249.92 leaves you with a deposit of $374.60 which matches the amount the employee repaid. If you use bank feeds you'll need to hide the bank feed transaction in the Bank feeds window.
&nbsp;
Please let me know if you need further help.
&nbsp;
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

julie_cook · Answer

thanks Tracey, when I go to record the electronic transaction it says that I do not have bank details as I initially processed as cash, and I cant seem to undo?

tracey_h · Answer

Hi&nbsp;Julie_Cook&nbsp;
&nbsp;
Are you getting the error There were no transactions to process in the Prepare electronic payments window? If you are, open the pay transaction and change the Payment method to Electronic. If you can't change the Payment method send me a screenshot of that pay transaction and the Prepare electronic payment error by private message.
&nbsp;
If you're getting a different error can you send me a screenshot of the Prepare electronic payment window and the error.

julie_cook · Answer

Hi TraceyI ended up calling partner support, and after many many hours of being on hold and transferred to different people, they told me that after reversing the pay for the employee, to then drill into the electronic payment and unselect that person, and then re process them.&nbsp;&nbsp;I have attached screenshots.&nbsp;&nbsp;Unfortunately , when I try to reconcile, I am still out the amount that I have correctly paid them.&nbsp; &nbsp;$841.36 .I tried to call partner support back, but have been unsuccessful.&nbsp; I am going to wirte to them now.Thanks for all your help :)&nbsp;I&nbsp;

tracey_h · Answer

Hi&nbsp;Julie_Cook&nbsp;
&nbsp;
Looking at the screenshot of the Bank register you've entered a general journal for the payment of $841.36, that would need to be deleted. It also looks like the repaid amount of $191.46 has been recorded as a Receive money transaction, that would need to be deleted too.
&nbsp;
The original electronic payment transaction shouldn't be changed as it has been processed and matches the amount actually paid. The original pay run transaction should be reversed and the reversal processed through Prepare Electronic payments as a separate transaction. The second pay run transaction should be processed as a separate transaction in Prepare Electronic payments.
&nbsp;
In the Reconcile accounts window you'll then have:
&nbsp;

the original electronic payment transaction which matches the amount actually paid in that bulk payment, for example $5000
the reversal transaction as a deposit, for example $1000
the second pay transaction as a withdrawal, for example $800
the reversal and second pay transactions leave a total of $200 deposit

On the bank statement you'll have:
&nbsp;

the original bulk payment of $5000 which matches the electronic payment transaction
the employee repayment of $200 deposit which matches the total of the reversal and second pay transactions

Manually reconcile the employee repayment by ticking both the reversal and second pay in the Reconcile accounts window.
&nbsp;
If you're still haing trouble with this can you send me screenshots of the actual pay transactions and Prepare electronic payments window by private message.

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Payroll Adjustment

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