Reversal of Pay

Question

Hi, I hope someone can help lol. I preset a payrun at the start of the month as I was going to be away. All good, except that a member of staff that I paid, then left, without working any of the time he had been paid for. He has refunded the money backk to the business, so happy days on that front. However the accountant has advised that I will need to reverse in MYOB to make my STP reporting correct. So I have gone into the transaction and selected Edit and Reverse Transaction. This then tells me it will record the pay and the payment method will be Cash do I wish to continue?

Now... just to add to the issue , my MYOB is not linked to the business bank account as payments are done manually. If I say yes I want to continue, will I be giving myself a whole heap of other problems?

Conused on the Sunshinme Coast :)

Denise

Tracey_H · Accepted Answer

Hi @DensieB

Thanks for your post. As advised by your accountant you do need to reverse that pay in AccountRight to accurately reflect what you have paid your employee through STP and with the ATO.

In the Pay Employee window you have the Pay from Account which, in your case, I think will be your business bank account. And you have the Payment Method. When you reverse a pay the Payment Method is changed to Cash, not the Pay from Account. Changing the payment method won't have any affect or cause any issues.

When you say yes to that message, the net amount of the pay will be allocated to the same Pay from Account as the original pay. If this is your business bank account you just need to match the reversal with the repayment deposit made by the employee in bank feeds or when manually reconciling your bank account.

Please let me know if you need further help with this.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.