Hi SalArc,
To address this situation, please follow these steps:
- Record the Refund:
- Record a receive money transaction for the refund given by the employee. This step ensures that the funds returned are reflected in your accounts.
2. Reconcile the Bank Transaction:
- Match the receive money transaction to the corresponding bank feed transaction (payroll) to complete the reconciliation process. This will help keep your banking records accurate.
3. Process the Reversal:
- Reverse the incorrect pay run in your payroll system. It is normal for this reversal to be automatically recorded as cash. This ensures that your payroll records are updated to reflect the reversal. For detailed guidance, here's a link on how to reverse a pay run: Fixing a pay.
Regards,
Sai
