Pay reversal not being seen to match up in transactions
Hi there
we had an instance where an employee who is paid not by electronic banking, but by direct banking transfer thru the actual bank, was overpaid. The owner who processed the pay rang the employee and the employee was happy to pay back the money into the account, we reversed the pay and processed a correct one and paid that to the employee.
Now reconciling the bank, the first transaction - the overpaid amount matched off fine. The reversal is sitting in the bank account, but not showing up in the transactions to match it against. As stated before, we do not use the electronic banking feature for the pays.
How do I match the reversal sitting in the bank account, against the actual payment that went into the bank showing on transaction feed, when the reversal doesn’t show up in transactions to match against? Thank you.
Hi Feebie ,
I see that the reversal won't match any of the transactions. Generally, the best way to process an overpayment is to create a pay run with just the amount of adjustments. Bank feed transactions are only designed to match transactions with the same values, so it's recommended to create the pay runs with how it happens in real life. If the overpayment was returned, you instead must create a pay run with the amount of returned value. I recommend reading through the article 'Fixing a Payroll Overpayment or Underpayment' for better insight regarding this.
In the meantime, feel free to create a new thread if you need any other help.
Thanks,
Genreve