how gl entries affects payroll troubleshooting

Foundation Software User Conference 2012

Payroll Troubleshooting Bronwyn Betts Client Services Representative

How Payroll AffectsOther Modules

How GL Entries AffectsOther Modules


How JC Entries AffectsOther Modules

What We’ll Cover Today• OMG!• Determining the BEST way to Correct PR• Voiding Checks• Simple Corrections• Corrections that Require Diligence• Hey, Office Hero!


First – Don’t panic!

Determine – WHAT is wrong

WHO it affects

WHAT it affects

HOW often is it happening

HOW to correct (easiest not always ok)

Act – Update Manually

OMG!!!

Various Ways to Correct PR

• Voiding PR Check• Reversing Timecard• Current Adjustment• History Adjustment• General Ledger Journal Entries• Job Journal Entries• NEW – Correcting Payroll Feature

# We do NOT correct by entering Neg Hours


Voiding a Check/Direct Deposit• Pay Period

• Put the Pay Period back to the dates when check was cut

• Net Adjustment• Net must be the same as

the original check – just negative

• Post Date • Should be same date as

original check or the upcoming check date

• DON’T• Don’t change the “Use

Timecard History” flag. Leave as “Yes”

• DON’T void checks originally cut in a prior year

• DON’T post a void into a prior quarter

• Do a General Ledger Entry on the Post Date of the payroll

• Determine why it happened and correct if possible

• Keep in mind that General Ledger expense accounts can be overridden by “departments” and/or cost codes

• Next PR, check your pre-check GL REGISTER!

Simple CorrectionsWrong General Ledger Account


• Easiest is a Payroll History Adjustment• Done when no timecards are in the system• Negative amounts corresponding to the

incorrect state/rate, positive to correct state/rate

• Must be computed correctly• Post date should be in same quarter where the

error occurred. Affecting GL is optional.

Simple CorrectionsWrong Worker Comp State/Class/Rate

• Adjusting in the next payroll the easiest method to fix through Adjustment Genie.

• If no payroll upcoming for the employee (terminated or laid off), history adjustment can be used. However, recommend the new correcting payroll feature if updated to 12.6 or later, if employee is owed money.

Simple CorrectionsWrong Miscellaneous Deduction (not Section 125 or 401(k) related)


• Must adjust through the Adjustment Genie.• Taxables and amount will be changed correctly.• Federal and State withholding cannot be

calculated at this point. Technically a non-issue because the taxable is correct.

Simple CorrectionsSection 125 or 401(k) Miscellaneous Deductions

• Adjusting in the next upcoming payroll the easiest method to fix through Adjustment Genie assuming the mistake happened in the same quarter.

• Determine why it happened because it may need to be corrected in a maintenance area.

• If in a different quarter, the History Adjustment will need to be created through the Adjustment Genie.

Simple CorrectionsWrong Tax Authority or FUTA/SUTA


Simple CorrectionsWrong Job (not Certified PR or Union)

GL Journal

Entry

Use GL Journal that

has a place for

Job/Cost Code/Cost

Class

Date as of “Check

Date”

Credit Labor GL Acct

& wrong Job and

costing info

Debit Labor GL Acct

& Correct job and

costing info

OR

Job Journal Entry

Enter wrong job in the

header

Add a line date as of

“Check Date”

Enter cost code/class

used on wrong job,

negative amt & negative

hours. Enter to save

Repeat for correct job only

use positive amt &

positive hours.

POST!

OR

Transfer Job

Costs

Enter “Check Date” in

header

Enter a line in the

“Remove” and enter

positive amounts

Enter a line in the

“Distribution” and enter

positive amounts

Enter to save

Post!

• Create an Earn Code “Retro” as type “Additional” (lump sum) and add in next payroll.

• If missing hours, no need to enter lump sum. Just add hours on timecard, make sure pay rate is zero. Do this AFTER overtime is pre-processed

Simple CorrectionsEmployee(s) owed money or hours (Only if ok for Certified PR and Union)


• Type/handwrite a new check (note old and new number for person doing the bank rec)

• Do an AP check for the Employee as the vendor. The GL expense is the PR cash account. Post and print check.

• Go through the void process and post void on the original check date. Re-enter the timecard and process for single check. Confirm net check is same amount as original.

Simple CorrectionsEmployee lost check/washed it in the laundry

Corrections That

Require Diligence


Introducing….

• Found in PR / Daily Transactions under the Void Check area

• Feature can be used even if there are current payroll timecards in the system

• Feature can be used even if correction is in another period of time.


SIMPLE ONE-TIME SETUP

• Create a Miscellaneous Deduction “COR” or similar. Plan type must be “Other”

• PR Control File / Misc Tab. Must add this new Misc Deduction in the Payroll Correction field.

1. Change Pay Period, choose Period (not date) and click ok

2. Go to “Enter Corrections”3. Answer question, “Have checks been

distributed?” (applies also to Dir Dep)4. Enter Weekend Date where correction

needs to be made5. Enter criteria as desired. Click “OK”

Correction Flow


6. Click all the appropriate payroll postings to be corrected. Click “Next Check”

7. Options:a) Click “Delete” if this timecard should

never have been entered.b) Click “Modify” and make appropriate

corrections to the timecardc) Click “New” if an additional timecard

should have been entered

Correction Flow

8. Click on “Save and Continue” until all changes have been made

9. When done, click on “Done”.10.Answer “Yes” to run the Compute

Corrections now.11.Choose any difference (+ or -) to pay

a) By Checkb) By Emp Reg Pay Methodc) Later

Correction Flow


- By check will produce an actual check to be printed

- By employee’s regular method, the difference will be included/excluded in next pay.

- Later will be during a payroll at your discretion. Amount can also be controlled.

Correction Flow

12.The compute payroll result screen will tell you how much is due from or due to each employee for that particular week.

13.Print the Pre-Check Correction Register.14.Print Correct Paychecks and Deposits.

Enter the check date you want this to post to (advise the next upcoming payroll week)

Correction Flow


a) At this point, a check will be produced for the difference (if due TO the emp)

b) Adjustments will be posted.

Correction Flow

REPEAT ENTIRE PROCESS IF CORRECTIONS SPAN MULTIPLE WEEKS

Assuming that you have completed all the corrections you need to make and they are posted, you will at some point, whether immediately or later, begin to do regular payroll. When you compute payroll, a message will pop up and tell you how much difference is due TO or FROM

an employee.

You can choose the WHOLE amount or a partial amount. It will automatically be included in the payroll!

Correction Flow


Re-compute, but this time, DON’T click the “Positive” or “Negative” button.


“You recently added a new effective date for your SUTA but forgot to refill out the State Tax info.”

“The Deduction/Fringe tables need a new effective date range just like the pay rates do.”


“Purge timecards by the old transaction number range”

“You erased the timecard after computing. You need to PURGE COMPUTED PR.”


“You can! The Timecard History exists to show both un-posted timecards AND posted timecards!”

“Check to see if they met their limit. Also check to make sure the yearly limit amount & type are correct.”


“A highly compensated employee may meet the yearly Social Security limit. So now only Medicare is

deducting”

“You changed the WC rate for a classification in the middle of the time period for which you are running the

report. The rate is an average of the changes”


“Learn the hierarchy of PR GLs:GLs on Budgeted Cost Codes

GLs on Cost CodesGLs on Departments

GLs on Maintenance Items”

“The file may not be saved to a shared drive or you do not have permission to access the file.”

how gl entries affects payroll troubleshooting

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