Reversing a Paycheck with Reverse Transactions

Before you start

To reverse a paycheck

1. Select Payroll > Reverse Transactions.
2. Enter header information about the reversal in the following fields.
   • Bank Code

     Use the Finder or the navigation buttons to select the code for the bank that processed transaction you are now reversing.

     The default bank code specified on the Bank Options window displaywhen you open the window, but you can change the code if you are reversing a transaction that was processed to a different bank.  

     After you specify the bank code, the program displays the bank account number from the bank record.

   • Reverse Multiple Transactions

     Select this option only if you want to reverse a range of transactions.

     When you select the option, additional fields display on the form, allowing you to reverse more than one transaction.

   • Source Application. Select U.S. Payroll.
3. To reverse a single paycheck, identify it by filling in the following fields:

• Reason For Reversal

  Use this field to explain why you are reversing the transaction.

• Reversal Date (Use caution when accepting or changing the reversal date!)

  The session date displays as the default date for this field.

  The reversal date determines the year and period to which the reversal is posted.

  If you are reversing a paycheck generated in U.S. Payroll, note the following:

  The Reversal date may be used to reverse the paycheck and update the associated employee record in payroll, depending on certain options set in that program. Because there can be significant tax consequences associated with the reversal date, you need to consider the following points carefully before accepting or changing the reversal date:

  • If Payroll does not use the option to use original dates when reversing checks, the journal entries for the reversed check and the employee's payroll data will use the reversal date you enter.

    For a U.S. Payroll check, we recommend strongly that you enter the original check's Pay Period End Date as the reversal date.

  • If Payroll does use the option to use original dates when reversing checks, the journal entries for the reversed check and the employee's payroll data will use the original check dates, regardless of the date you enter in this field.

• If you know the Employee Number, enter it. (The field that displays on your screen depends on the source application.) Filling in this field is optional, but it may help you select the transaction more quickly.

• Use the Finder to select the Check/Payment No.. The field that displays depends on the source application and the type of document you are reversing.

After you specify a payment, the program displays the date and the amount of the transaction. To view the transaction in the original transaction entry form, click the Drilldown () button.

If you are reversing a range of paychecks

1. Specify selection criteria to identify the payments to reverse.

   Use the From and To fields to specify ranges of document numbers, dates, amounts, currencies, and employees.

2. Click the Go button () to list the payments that meet the criteria.
3. Use the table, as follows, to specify the payments to reverse:
• If you are certain that you need to reverse all the payments in the list, click Select All.
• Double-click in the Reverse column for each transaction you want to reverse to change the entry to Yes.
• To change your selections all at once, click Go to refresh the list.
• For each reversed transaction, as necessary, enter a reversal date or additional information in the fields provided. (Use caution when accepting or changing the reversal date.)
4. Click Post to update the bank account balance, and send the reversal information to your Payroll program.

After reversing a paycheck