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MiinYeo's avatar
MiinYeo
Contributing Cover User
6 years ago

How to record bounced employee due to incorrect bank account

After processing a batch (ABA) payroll, one of the pay was bounced back and recorded in bank feed as the employee has provided incorrect bank details. Do I record this bounced payment as receive mone...
  • Steven_M's avatar
    Steven_M
    6 years ago

    Hi MiinYeo

     

    In theory, you would only need to reverse that one particular employee's pay rather than the full bulk payment.

     

    Below is a process that can be used to deal with the banking side of things with a bounced payment, although certainly not the recommended way to deal that situation.

     

    1. Go to Banking>>Receive Money. Ensure that you do have the correct bank account listed as the Deposit to account, date and amount entered. You will need to also select an allocation account (account in the grid).
    2. Once that has been recorded, you would do a Banking>>Spend Money transaction to record the amount leaving the bank account. You will need to select the same allocation account in Step 1.

    What this process will do is generate a deposit to the bank account to show the amount being deposited back in and a withdrawal when it is paid to the employee. As you are using the same allocation account it will increase the account and then decrease it thus there is no effect for those transactions on that account (withdrawal and a deposit will cancel each out other).