Reverse a correction payment

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

You can't delete a correction. If you don't need the correction, you can reverse it. To do this, you create a net deduction for the same amount.

When to reverse a correction payment

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

These means you have already accounted for the amount.

For example

Your employee, Alex, received their usual pay in month 1.

After you complete the pay run, you discover a missing overtime payment for Alex that you need to add.

You edit the month 1 pay run to include the overtime and provide Alex with a new payslip.

Alex receives the correct pay (including the overtime).

In month 2, you reverse the correction as you have already paid Alex the correct amount.

Reverse the correction payment

1. Process your pay run up to the PAY window.
2. Select the employee with the payment correction.
3. Choose Add Deduction then Add a New Deduction.
4. Choose Net Deductions as the Deduction Category, and Other Net Deduction as the Deduction Type.
5. Enter a name and description for the deduction, such as Manual correction reversal.
6. Select Save.
7. In the Rate field, enter the reversal amount. Ensure the value is the same amount as the correction amount.

Adjust the journal sent to Accounting

You may subscribe to Sage Accounting and automatically post salary journals from Payroll.

Reversing the correction deduction also creates a difference in your salary journal:

• The totals in your payroll
• The totals posted to your accounts

This difference is equal to the correction amount.

Check the salary journals