Payroll reversal and bank feeds in AR
Hi I have had to reverse 2 pays as the employees are able to claim the covid19 disaster payment and i had already paid them out of annual leave so they had some money. I have followed the instru...
Forum Discussion
Hi phil404
Thanks for your post. When you reverse a payroll transaction you'll get the message "This pay is a reversal. If you record this pay, the payment method used will be cash". This means that the payment method is changed to cash, not the Pay from Accounts, so the reversed transactions will appear in the same account as the original transaction.
Original pay transaction with Pay from Account as Electronic clearing account and Payment Method as Electronic:
Reversal with Pay from account as Electronic clearing account and Payment Method as Cash:
Reversing a transaction won't unreconcile the original transaction as it hasn't been changed in any way, you've just recorded a completely new opposite version of the transaction.
So in bank feeds the original transaction should be matched with the bank feed withdrawals. The reversal transactions are matched with the bank feeds deposits when the employees repay the funds.
Check the Pay from account to find the account the reversal has been posted to. If it's the electronic clearing account, go to Prepare Electronic Payments window>>select one of the reversals>>click on Bank File and click OK. The bank file isn't created but the transaction is transferred from the electronic clearing account to the bank account to be matched in bank feeds.
Please let me know how you go with this.
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Hi Tracey,
Thanks for your reply. I have found it has worked as you discribed however, in the bank feeds I did have to rematch the original transactions as they became unmatched. Thankfully i had not carried out a reconcile of the bank account at his stage.
