Entering adjustment pays
Adjustment pays are handled in a similar manner to time sheet pays. Adjustment pays generate pay numbers and (optionally) pay advices, in addition to those generated for time sheet pays. Adjustment pays are necessary for a number of reasons, the most common being that an error was made in a previously processed pay.
Some examples include:
- to make a full reversal of a previous pay
- to include a missed pay element, such as overtime
- to adjust an over or under payment
- to adjust an incorrect tax amount
- to adjust costing details
- to adjust year-to-date employee figures
You can enter either positive or negative adjustment pays to adjust an employee's previous pay.
Entering an adjustment pay is very similar to entering a time sheet pay except that you choose Transactions | Payroll | Adjustments | Create or Modify. All line details must be manually calculated and entered, including superannuation. Tax will be calculated automatically but can be overridden. For more information, see Entering time sheet pays.
Remember to set Payment Required to Yes if a payment details such as a pay advice, cheque or bank transfer transaction are required. Payment details will only be generated for positive adjustments.
If an error was made in a previously processed pay, Attaché Software recommends that if practical, the processed pay should be fully reversed and re-entered correctly, see the How to reverse a pay (tutorial).