A change made in a previous pay run can result in a correction deduction showing in the current pay run.

You can't delete a correction but you can reverse it, if it's not required. To do this, you create a net deduction for the same amount.

When to reverse a correction deduction

• You’ve corrected an already completed pay
• This resulted in the employees pay reducing
• Outside of Payroll, you paid the employee the reduced amount in that pay period

These means you have already accounted for the amount.

For example

Your employee Sam received a bonus in month 2. You accidentally included the bonus in month 3 as well, meaning Sam's pay and payslip weren’t correct.

You edit the completed pay in month 3 to remove the bonus and provide Sam with a new payslip.

In month 4, you reverse the correction as you have already paid Sam the correct amount.

Reverse the correction

1. Select Summary from the menu bar.
2. Then Process pay run.
3. Process until the PAY window.
4. Select the employee with the correction.
5. Choose Add Deduction then Add a New Deduction.
6. Choose Net Deductions as the Deduction Category and Other Net Deduction as the Deduction Type.
7. Enter a name and description. For example, Manual correction reversal then select Save.
8. In the Rate field, enter a negative value for the same amount as the deduction correction.

 NOTE: You only need to create the deduction once. It will then be available for any employee to select. 

Adjust the journal sent to Sage Accounting

If you also have Sage Accounting and have enabled automatic postings, your journals will no longer match Payroll.

To correct this, you'll need to create a new journal in Accounting: