Reverse a Paycheck with Transaction-Level Adjustments

Reversing a check that has transaction-level adjustments (equipment, per diems, reimbursements, etc.) requires steps additional to those in the conventional check-reversal process. Avionté only deducts the net amount of the check in the Advance Bank and does not include the transaction-level adjustment. a check-reversal is being processed without any transaction-level adjustments, refer to the Reverse a Paycheck or Reverse a Paycheck - 16.1 and Newer help articles.

This process describes how to correct a paycheck ONLY. For more information on processing an invoice correction, see the Invoice Corrections help article.

Reversing a paycheck will affect tax reporting in Avionté and Greenshades. The check date is used for tax reporting to accurately show when a check was cut and what taxes were processed with that check.

 

While it is important to review check dates when making payroll corrections, it isn't always necessary to correct the check date because totals balance out if checks were cut in the same reporting period (e.g. quarter, year, etc.) Payroll corrections from a previous reporting period (e.g. previous quarter, previous calendar year, etc.) can be back dated, however this will necessitate tax filing corrections and amendments for the previous year/quarter.

 

If back dating a check is necessary, consult Avionté Support before moving forward.

Note: The Advance Bank in the employee's record doesn't affect any reports until the new check/next check is processed for the employee.

The following process describes how to complete a reversal and includes additional steps on how to include these transaction-level adjustments in the Advanced Bank amount.

1. From the Main Menu, navigate to Back Office > Paycheck
   
   
2. Search for the check that will be reversed.
   
   
3. Select the paycheck to reverse by double-clicking on its row.
   
   
4. Click the Actions menu.
   
   
5. Click Reverse Paychecks. The Reversal Paycheck window appears.
   
   
6. Fill in the fields with the appropriate information: 
   
   
   
   
   

   Field	Description
   Accounting Period	Select the appropriate accounting period. Note: Avionté best practice is to process any paycheck corrections in the current accounting period.
   Check Date	If the original check and the corrected check are issued in the same filing year, set the date to either today's date or a date in the future. Note: All corrections should be made in the current accounting period when possible. Do NOT backdate the check date unless it meets the special circumstance outlined below. Manipulating this information will affect quarterly and year end tax filings. If the original check was issued in the previous year (i.e. December 2017) and the correction is processed in the current year (i.e. any time in 2018), set the check date to the last day of the previous year (i.e. December 31, 2017). Processing the correction in this way will avoid negative wages in the current year. Note: If the check correction was processed across filing years, as described above, it is necessary to amend the previous year filings. Consult your financial adviser for more information.
   Run Type	"Check Reverse"
   Bank	Select the Bank account that will be used to process this reversed check.
   Description	Enter information regarding the reversal of the check. Note: This field is optional.
   Generate Original Pay Units	Check this box to insert a transaction back into Time Entry so that the pay units can be readjusted. When this box is checked, the Apply State Minimum Wage check box is enabled.
   Apply State Minimum Wage	Check this box to apply the state minimum wage to the pay units. In some states you can elect to pay the employee the state's minimum wage if the employee walked off the job.
   Reason	Enter or select a reason why the check is being reversed.

7. Click Finish. The check has been processed and a message that says "Paycheck reversal has been processed" displays.
   
   
8. Click OK on the message.
   
   
9. Another message that says "Payroll has been posted" will display. Click OK.
   
   
10. Navigate to Employee > Payroll > Deduction and view the Advanced Bank item in the grid.
    
    
    
    
11. Make any changes in the Order or Time Entry section as necessary to correct the check.
    
    
12. Navigate to Payroll > Home.
    
    
13. Click Select Transaction.
    
    
14. Choose a grouping method item in the Group By drop-down menu.
    
    
15. Select the payroll item containing the advance bank adjustment.
    
    
16. Click Process to build the checks.
    
    
17. Navigate to Payroll > Checks.
    
    
18. Click the Pencil icon to edit the check.
    
    
    
    
19. Increase the Advance Bank deduction amount to include the amount of the adjustment. It should now either match the Amount in Employee > Payroll > Deduction, or should be the largest number without making the check drop below $0.
    
    
    
    
20. Return to Payroll > Home and continue the Payroll process of Printing and Posting checks.