Adjusting Pays
The Payroll module of MYOB Acumatica includes the ability to create adjustment pays for individual employees, to correct or update incorrect details in their pays. For example, you might want to correct an underpayment or overpayment.
This feature supplements the pay reversal features. It is intended for use in cases where an employee's pay needs to be adjusted, but reversing the whole pay run is impossible or undesirable. Unlike pay reversals, adjustments can be made to any historical pay.
How Adjustment Pays Work
The pay run adjustment process affects all items included in the employee's original pay run, including imported timesheets, imported public holidays and leave imported from the Employee Self Service module. Superannuation payments are adjusted as necessary – this will show on the Superannuation Transactions screen (MPPP4300). Similarly, any adjustments to employee’s entitlements will be visible on the Entitlement Movements screen (MPPP6032).
When you choose to adjust a pay, MYOB Acumatica creates two adjustment pay runs – a negative and a positive.
- The negative adjustment pay run's purpose is to negate all of the employee's pay values
from the original pay run.
- It is immediately set to the COMPLETED status.
- It does not require a Single Touch Payroll (STP) batch.
- It cannot be reversed or adjusted.
- The positive adjustment pay run is what you edit to update the employee's pay values.
- It contains a copy of the employee’s original pay run details.
- It is created in the OPEN status.
- Once completed, an STP Update batch will be generated.
- Once completed, it can be adjusted, but not reversed.
- This pay run becomes the most recent pay run for its Pay Group, which means that it is no longer possible to reverse the pay run that came before it.
If the employee’s contract has been terminated, any applicable termination payments are included in the negative and positive adjustment pays. The employee’s termination status remains as it was, which means there is no need to send an update Single Touch Payroll (AU) or Payday Filing (NZ) reporting.
Creating an Adjustment Pay
- On the Manage Pays (MPPP4110) form, open the pay run that contains the incorrect details.
- On the Pay Run Details (MPPP3120) form, select the checkbox for the employee whose pay needs to be adjusted.
- On the table toolbar, click Adjust Pays.
- In the Adjust Pay(s) window, choose a transaction date for the adjustment journals. By default, the transaction date is the same as it was for the original pay run, but you can enter a different date if necessary.
- Click OK. Both a negative adjustment pay run and a positive adjustment pay run are automatically created. You can now edit the positive adjustment pay with the correct details. You don't have to do anything with the negative adjustment pay.
Editing a Positive Adjustment Pay
After creating an adjustment pay, edit the positive adjustment pay run with the correct pay run details for the employee, then process and complete it as normal.
You can easily find adjustment pays by using the Related Pays window. There are two ways to open the Related Pays window:
- Go to the Pay Run Details (MPPP3120) form for the original pay you adjusted. On form toolbar, click the three dots icon (...) and choose View Related Pays.
- Go to the Manage Pays (MPPP4110) form and click the link in the Adjusted column.
Generating Adjustment Pay Batches
After an adjustment pay has been processed, you can create payment batches. For a positive adjustment pay run, payment batches are not generated automatically when the pay run is completed. To generate a payment batch manually, use the Generate Payment action on the Pay Run Details form.
Pay Adjustment Scenarios
The exact process for dealing with payments will differ from case to case, and will largely depend on whether or not the employee has already had the money paid to them. The following related articles give guidance on how to deal with a variety of pay adjustment scenarios.