Payroll can be trying at times, especially when payroll processing has started or even, heaven forbid, completed, and there is something amiss. The process to cancel or correct the payroll depends entirely on where you are in the Payroll processing cycle.
Earning Statements can easily be deleted and recreated if the Pay Statement has not been generated.
In case the Pay Statement has been generated, it too can be deleted and re-created. However it is slightly more complicated to delete a Payroll Payment once it has been issued. By following the steps outlined below, the process for each scenario will be clearer.
Until the Earning Statement lines have been ‘Processed’, (carry the Payment Status of ‘Processed’) they can be “Removed” simply by marking them and clicking the “Remove” button. That includes Earning Statement Lines that have a status of ‘None’ or ‘Released’.
The entire Earning Statement can be ‘Deleted’ if the lines are in those same statuses of ‘None’ or ‘Released’.
However once the Earning Statement has been ‘Processed’ and a Pay Statement exists, the process to cancel starts with the Pay Statement.
When the Pay Statement has been generated, the status on the Earning Statement lines becomes “Processed’. Navigate to the appropriate Pay Statement.
From the Pay Statement, adjustments can be made, lines can be removed, or the entire Pay Statement can be deleted. Once the Pay Statement has been deleted, the Earning Statement reverts back to a ‘Released’ Payment Status. At this point, the Earning Statement can be adjusted, lines added, or lines removed and a new Pay Statement generated or it can be deleted entirely.
If the Pay Statement has been ‘Submitted for Payment’, or if the Payment has been issued and/or posted, the Pay Statement can be Reversed by using the Reverse option under Pay Statement.
A Reversing Pay Statement will be created to offset the original Pay Statement and to have record of the reversal. Confirmation that a reversal is desired will appear in a pop up. Please note that neither Pay Statement will be editable.
The Earning Statement is set back in status to ‘Released’ and can be adjusted or deleted.
If the Payment, from the Payment Journal, has not been generated, the Payment line can be ‘Rejected’ from the journal and complete the Payroll process.
If the Payment has been generated, additional steps are then required to remove all of the traces of the original Pay Statement transactions from ledger, Accounts Payable Invoices, and YTD Accumulators (i.e. W-2s, benefit accruals and reports).
- The reversed Pay Statement must be submitted for payment and processed through the remainder of the Payroll Cycle.
- If the Payroll Invoice for the original Pay Statement is no longer open, the new invoice will have to be settled manually.
- The disbursement will need to be reversed following the steps taken to reverse any bank disbursement.
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