Forum Discussion

Daniella's avatar
Daniella
Experienced Cover User
4 years ago

Bank reconciliation out due to wage adjustment made in next month (April)

Hi there,   At the end of march I processed the payroll and was later informed that an employee was underpaid. I made the adjustment and corrected the employees pay - deleting the incorrect pay pr...
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi Daniella 

     

    Thanks for your post. There's a couple of ways you can handle this. The first way is to reverse/delete the second pay and re-process the original pay with the incorrect amount. Then process an adjustment pay for the under payment amount and make the payment date the 1 April. You'll be able to reconcile both payments in the correct month.

     

    However, payroll reporting (super, PAYG etc) is based on payment date and the 1st April is a new quarter so that adjustment pay will be reported in April and the April-June quarter, something to keep in mind when reconciling payroll.

     

    The other option is to reconcile your bank account to the 1st April instead of the 31 March. You could reconcile for the whole day or just for that one pay transaction. Change the bank statement date to the 1st April and the Closing Statement balance to include the pay.

     

    It might be worth speaking to your accountant to check which way is best for your business.

     

    Please let me know if you need further help.

     

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

Tracey_H's avatar
Tracey_H
Former Staff

Hi Daniella 

 

Thanks for your post. There's a couple of ways you can handle this. The first way is to reverse/delete the second pay and re-process the original pay with the incorrect amount. Then process an adjustment pay for the under payment amount and make the payment date the 1 April. You'll be able to reconcile both payments in the correct month.

 

However, payroll reporting (super, PAYG etc) is based on payment date and the 1st April is a new quarter so that adjustment pay will be reported in April and the April-June quarter, something to keep in mind when reconciling payroll.

 

The other option is to reconcile your bank account to the 1st April instead of the 31 March. You could reconcile for the whole day or just for that one pay transaction. Change the bank statement date to the 1st April and the Closing Statement balance to include the pay.

 

It might be worth speaking to your accountant to check which way is best for your business.

 

Please let me know if you need further help.

 

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

Daniella's avatar
Daniella
Experienced Cover User
4 years ago

Hi Tracey,

 

Thank you so much for getting back to me. 

 

I contacted my accountant and he has given the OK for me to reconcile the bank account as at 1 April. 

Much apprecaited! 

 

 

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