It is not possible to reverse a paycheque which has been entered with Timesheet hours. If you normally use Timesheets to process payroll, do not use them for this process. Instead, choose the Bonus/Commission pay frequency from the Process Payroll so that you can manually enter the hours/dollars directly into the paycheque.

Example

In addition to her ordinary pay, Mary Jones has been overpaid by 40 hours holiday pay.

The amounts that need to be adjusted are:

• Holiday Pay to be reduced by $660
• PAYG Withholding withheld to be reduced by $117
• Holiday Leave Accrual to be reduced 1.67 hours
• Sick Leave Accrual to be reduced by 0.67 hours
• Superannuation Guarantee contribution to be reduced by $59.40 

When entering the paycheque, enter the amounts as if you were actually paying the employee. You will need to take into account how much extra tax and employee deductions have been deducted in error, as well as any superannuation and leave that have been accrued in error.

Refer to the example below.

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To reverse the paycheque entered in Step 1, you need to have your Security preference set ensure transactions can be reversed. To do this:

1. Go to the Setup menu and choose Preferences then click the Security tab.
2. Select the option Transactions CAN'T be Changed. They Must be Reversed as shown below, then click OK.
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To reverse the paycheque:

1. Go to the Accounts command centre and click Transaction Journal.
2. Click the Disbursements tab.
3. Click the zoom arrow next to the paycheque.
4. Go to the Edit menu and choose Reverse Transaction. Click Record. The reversed paycheque will look like the example shown below:
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1. contain opposite values of the earlier pay. See our example below:
2. Click Record. 
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To delete the paycheque entered in Step 1:

1. Change your Security preferences to deselect (turn off) the option Transactions CAN'T be Changed. They Must be Reversed. See Step 2 for more information.
2. Go to the Accounts command centre and click Transaction Journal.
3. Click the Disbursements tab.
4. Click the zoom arrow next to the paycheque created in Step 1. Ensure you have the correct paycheque displayed.
5. Go to the Edit menu and choose Delete Transaction.

The result of following the above steps will be:

• The amount that was repaid will be credited to the bank account from which you pay your paycheques. Note that if you use electronic payments, the deposit transaction won't occur until you process the negative transaction via Prepare Electronic Payments.
• The employee's payroll history and general ledger account balances will be corrected.