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Payroll Options Processing tab

Payroll G/L Integration Integration tab

Reversing a Paycheck

If you print and approve a paycheck in error, you can use the Reverse Transactions window or the Reconcile Statements window in Payroll > Processes to reverse the check.

These steps describe how to reverse a Payroll check using the Reverse Transactions window in Bank Services.

If you reverse a paycheck using the Reconcile Statements window, the Reconciliation Date determines the Reversal Date used in payroll, unless payroll uses the option Use Original Dates When Reversing Checks.

Note: If security is turned on for your Sage HRMS Payroll system, you must be assigned to a security group authorized to reverse payments or to reconcile bank statements.

To Reverse a Paycheck

  1. Open Payroll > Tasks > Reverse Transactions.
  2. Enter the Bank Code.
  3. For the Source Application, select U.S. Payroll from the drop-down menu.

  4. If you are reversing one check, identify it by filling in the following fields:

    1. Enter a reason for reversing the check.
    2. If necessary, change the reversal date. (Click this link to see if you need to enter a reversal date.)

      The session date displays as the default date in the Reversal Date field.

      Depending on your payroll options, the reversal date field may be used in the journal entries for the reversed check and the associated employee data that displays for that check on the Payroll Register report.

      • If the payroll program does not use the option Use Original Dates When Reversing Checks, accept or edit the reversal date. (For Canadian tax exemption purposes, we recommend that you enter the original check Pay Period End Date as the reversal date.) All the journal entries of the reversed check and the employee's check data on the Payroll Register will use the reversal date you entered.
      • If Payroll uses the option, Use Original Dates When Reversing Checks, you need not enter a reversal date. The journal entries for the reversed check and the employee's check data on the Payroll Register will use the original check dates, regardless of the date you enter in the Reversal Date field, and regardless of the type of date to use as the journal entry date (as specified on the Payroll G/L Integration setup window).

      The dates used on the original check depend on the selection for the Journal Entry Date option on the Payroll G/L Integration window.

      • If the option, Use Check Date As Journal Entry Date, is selected, the journal entries for the original check would have used the Check Date from the original check.
      • If the option, Use Pay Period End Date As Journal Entry Date, is selected, the journal entries for bank and employee liability accounts would have used the Checks Date from the original check, while journal entries for expense and employer liability accounts would have used the Pay Period End Date from the original check.
    3. Use the Finders to select the employee number and the check number. The program displays the payment amount and payment date.
  1. Click Post, and then close the window.

If you are reversing more than one check

  1. Select the Reverse Multiple Transactions option. Additional fields and a table for multiple transactions display.
  2. Specify selection criteria to identify the transactions to reverse. Use the From and To fields to specify ranges for check numbers, payment dates, currencies, payment amounts, and employee numbers.
  3. Click Go (Image of the Go button.) to display the selected transactions on the table.
  4. If you need to reverse all the checks in the list, click Select All. Otherwise, double-click in the Reverse column for each transaction you want to reverse.
  5. For each reversed transaction, as necessary, enter a reversal date or additional information in the fields provided. (Click this link to see if you need to enter a reversal date.)

    The Reversal Date field defaults to the session date. Depending on your payroll options, the Reversal Date field may be used for the journal entries of the reversed check and the associated employee data that displays for that check on the Payroll Register report.

    • If you have not chosen the option, Use Original Dates when Reversing Checks, on the Processing tab of the Payroll Options window , then accept or edit the default reversal date. (For Canadian tax exemption purposes, we recommend that you enter the original check Pay Period End Date as the reversal date.) All the journal entries of the reversed check and the employee's check data on the Payroll Register will use the reversal date you entered.
    • If you have chosen the option, Use Original Dates when Reversing Checks, then you need not enter a reversal date. The journal entries of the reversed check and the employee's check data on the Payroll Register will use the original check's dates, regardless of the date entered in the Reversal Date field, and regardless of the type of date to use as the journal entry date (as specified on the Payroll G/L Integration setup window).

    Note that the dates that were used on the original check depended on the option you had chosen to use for journal entries.

    • If you had chosen the option, Use CheckDate as Journal Entry Date, on the Integration tab of the Payroll G/L Integration window, then all of the original check's journal entries would have used the Checks Date that was entered for the original check.
    • If you had chosen the option Use Pay Period End Date As Journal Entry Date on the Integration tab of the Payroll G/L Integration window, then the journal entries for bank and employee liability accounts would have used the Checks Date entered for the original check, while journal entries for expense and employer liability accounts would have used the Pay Period End Date entered for the original check.
  • To verify reversal entries, print the Payroll Register report.
  • In Payroll, if necessary, make the changes required to generate the check correctly, and then post the check with the correct amount.

When you post a reversed payroll check, Sage HRMS Payroll tracks information about the reversed check to update the associated employee information (for example, delete the associated employment insurance history record and adjust employee payroll totals).adjust employee payroll totals, and update the 941 tax liability).

Additionally, Sage HRMS Payroll prepares the information for posting to General Ledger.

The system assigns CP-RC UP-RC as the source code for reversed check transactions.