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Payroll Options Processing tab

Payroll G/L Integration Integration tab

Reversing a Paycheque

If you print and approve a paycheque or post a manual cheque in error, you can use the Reverse Transactions window or the Reconcile Statements window to reverse the cheque.

These steps describe how to reverse a Payroll cheque using the Reverse Transactions window in Bank Services.

If you reverse a paycheque using the Reconcile Statements window, the Reconciliation Date determines the Reversal Date used in payroll, unless payroll uses the option Use Original Dates When Reversing Cheques.

Note: If security is turned on for your Sage 300 Payroll system, you must be assigned to a security group authorized to reverse payments or to reconcile bank statements.

To Reverse a Paycheque

  1. Open Common Services > Bank Services > Bank Transactions > Reverse Transactions.
  2. Enter the Bank Code.
  3. For the Source Application, select Canadian Payroll from the drop-down menu.

  4. If you are reversing one cheque, identify it by filling in the following fields:

    1. Enter a reason for reversing the cheque.
    2. If necessary, change the reversal date. (Click this link to see if you need to enter a reversal date.)

      The session date displays as the default date in the Reversal Date field.

      Depending on your payroll options, the reversal date field may be used in the journal entries for the reversed cheque and the associated employee data that displays for that cheque on the Payroll Register report.

      • If the payroll program does not use the option Use Original Dates When Reversing Cheques, accept or edit the reversal date. (For Canadian tax exemption purposes, we recommend that you enter the original cheque Pay Period End Date as the reversal date.) All the journal entries of the reversed cheque and the employee's cheque data on the Payroll Register will use the reversal date you entered.
      • If Payroll uses the option, Use Original Dates When Reversing Cheques, you need not enter a reversal date. The journal entries for the reversed cheque and the employee's cheque data on the Payroll Register will use the original cheque dates, regardless of the date you enter in the Reversal Date field, and regardless of the type of date to use as the journal entry date (as specified on the Payroll G/L Integration setup window).

      The dates used on the original cheque depend on the selection for the Journal Entry Date option on the Payroll G/L Integration window.

      • If the option, Use Cheque Date As Journal Entry Date, is selected, the journal entries for the original cheque would have used the Cheque Date from the original cheque.
      • If the option, Use Pay Period End Date As Journal Entry Date, is selected, the journal entries for bank and employee liability accounts would have used the Cheques Date from the original cheque, while journal entries for expense and employer liability accounts would have used the Pay Period End Date from the original cheque.
    3. Use the Finders to select the employee number and the cheque number. The program displays the payment amount and payment date.
  1. Click Post, and then close the window.

If you are reversing more than one cheque

  1. Select the Reverse Multiple Transactions option. Additional fields and a table for multiple transactions display.
  2. Specify selection criteria to identify the transactions to reverse. Use the From and To fields to specify ranges for cheque numbers, payment dates, currencies, payment amounts, and employee numbers.
  3. Click Go (Image of the Go button.) to display the selected transactions on the table.
  4. If you need to reverse all the cheques in the list, click Select All. Otherwise, double-click in the Reverse column for each transaction you want to reverse.
  5. For each reversed transaction, as necessary, enter a reversal date or additional information in the fields provided. (Click this link to see if you need to enter a reversal date.)

    The Reversal Date field defaults to the session date. Depending on your payroll options, the Reversal Date field may be used for the journal entries of the reversed cheque and the associated employee data that displays for that cheque on the Payroll Register report.

    • If you have not chosen the option, Use Original Dates when Reversing Cheques, on the Processing tab of the Payroll Options window , then accept or edit the default reversal date. (For Canadian tax exemption purposes, we recommend that you enter the original cheque Pay Period End Date as the reversal date.) All the journal entries of the reversed cheque and the employee's cheque data on the Payroll Register will use the reversal date you entered.
    • If you have chosen the option, Use Original Dates when Reversing Cheques, then you need not enter a reversal date. The journal entries of the reversed cheque and the employee's cheque data on the Payroll Register will use the original cheque's dates, regardless of the date entered in the Reversal Date field, and regardless of the type of date to use as the journal entry date (as specified on the Payroll G/L Integration setup window).

    Note that the dates that were used on the original cheque depended on the option you had chosen to use for journal entries.

    • If you had chosen the option, Use ChequeDate as Journal Entry Date, on the Integration tab of the Payroll G/L Integration window, then all of the original cheque's journal entries would have used the Cheques Date that was entered for the original cheque.
    • If you had chosen the option Use Pay Period End Date As Journal Entry Date on the Integration tab of the Payroll G/L Integration window, then the journal entries for bank and employee liability accounts would have used the Cheques Date entered for the original cheque, while journal entries for expense and employer liability accounts would have used the Pay Period End Date entered for the original cheque.
  • To verify reversal entries, print the Payroll Register report.
  • In Payroll, if necessary, make the changes required to generate the cheque correctly, and then post the cheque with the correct amount.

When you post a reversed payroll cheque, Sage 300 Payroll tracks information about the reversed cheque to update the associated employee information (for example, delete the associated employment insurance history record and adjust employee payroll totals).

Additionally, Sage 300 Payroll prepares the information for posting to General Ledger.

The system assigns CP-RC as the source code for reversed cheque transactions.