Correcting PR LikeA Pro Click on the Picture Holder to insert your Picture, then send it back!

Presentation Contents Here’s the game plan for today! 1 OMG! Determining the Best Way to Correct PR and Dates Data Flow Corrections during PR processing (Unposted PR) Voiding Checks Simple Corrections of Posted PR Advanced Corrections of Posted PR 2 3 4 5 6 7

(and other explanatives!) OMG!! (and other explanatives!) First – DON’T PANIC Determine what is wrong, who it affects and how often it is happening. Is it posted PR or unposted PR? Determine date was is posted and focus on posting the correction to that date or an upcoming check date. Determine if voiding, correcting, or history adjustment are in order. Was a back up prior to making the mistake and can the database be restored? Plan on having a back up prior to posting corrections.

Various WaysTo Correct PR Knowing how to fix problems before they happen can guarantee a win! 1 Voiding a PR Check Reversing a Timecard Current Adjustments History Adjustments General Ledger Journal Entries Job Journal Entries (rarely used) Payroll Correction Feature 2 3 4 5 6 7

PayrollIntegration with other Modules Know the Flow! Payroll 1 Upon posting PR, all PR reports are available on the Posting (check date) General Ledger 2 General Ledger reports (financials) are instantly updated, most commonly on the PR posting date Job Costing 3 Job Costing reports are instantly updated with the PR information most commonly on the PR posting date. SIMPLY BY POSTING YOUR PAYROLL, A TOTAL OF THREE MODULES ARE UPDATED!

PayrollIntegration with other Modules Know the Flow! Payroll 1 Upon posting PR, all PR reports are available on the Posting (check date) General Ledger 2 Choosing to correct a PR Posting through a GL journal entry will update GL reports. Job Costing 3 Job Costing may or may NOT be updated, based on the GL Journal that was used. Some journals allow you to identify the jobs. If they do, then JC reports are updated. SIMPLY BY POSTING YOUR PAYROLL, A TOTAL OF THREE MODULES ARE UPDATED!

PayrollIntegration with other Modules Know the Flow! Payroll 1 Upon posting PR, all PR reports are available on the Posting (check date) General Ledger 2 Choosing to correct a PR Posting through a GL journal entry will update GL reports. Job Costing 3 Job Costing journals may be used to correct PR, but HIGHLY inadvisable if you do Over Under/ WIP/ or production reporting. SIMPLY BY POSTING YOUR PAYROLL, A TOTAL OF THREE MODULES ARE UPDATED!

Question #1

CorrectionsDuring PR Fixing right away! 1 Updating maintenance does not change what you put in the time card. Correct timecards! Unions fringes, locals, and departments can “stick”. Delete TC or affected lines and reenter/recomputed. If you make a change and re-compute and you do not see the change, purge COMPUTED payroll (not timecards) Check less than zero? – If not enough hours for Misc Deduction, use current adjustment feature GL not defined? Think of any new item and check that the GL is set up Checks did not print correctly? Don’t answer “YES” to the question, “Are all Checks/Direct Deposits correct” 2 3 4 5 6

VoidingChecks 1 Pay Period must be set to the dates when the check was cut. Post date must be either the same date as originally cut or posted to upcoming check dates. Do not use, “today’s” date or taxes will be difficult to track. After the Void Check is computed, make sure the net adjustment is EXACTLY the same amount as the original checks (just negative) At the time you are entering the void, do NOT change the “Use Timecard History” flag. Leave it as “Yes”. Don’t use a post date that is in a previous year or a previous quarter. You cannot “Reuse” a payroll check number as you can in AP. 2 3 4 5 6

Wrong GLAccount 1 You can do a simple GL Journal entry to move the money to the correct the GL account. Determine if this is a set up issue or a data entry issue and will happen again. Post GL Journal Entry on the SAME DATE that the payroll posted. Keep in mind that GL expense accounts can be overridden by PR departments and/or cost codes. Check your pre-check register for the GL Register before posting the next payroll if you think the issue is or is not resolved. 2 3 4 5

Wrong MiscellaneousDeductions For Section 125, 401(k), IRA, SEP 1 If posted, you must adjust difference through the Adjustment Genie While Federal and State taxable amounts are corrected, the withholding is not adjusted. Doing so will ensure that the taxable amounts and limits will be changed correctly If the employee is terminated and you owe an amount in Section 125, you may have to reduce the amount of the Federal Withholding to offset the FICA withholding. 2 3 4

Or you simply void the old check and redo that payroll for that week. Lost/StolenChecks 1 Option 1 – Handwrite a new check Option 2 – AP Invoice to Misc Vendor for Net PR Check Amount. Debit the PR Cash Account. 2 Or you simply void the old check and redo that payroll for that week.

Question #2

Payroll CorrectionFeature 1 Only needs a “Corr” misc deduction and to be identified on the PR Control File This feature can be used even if there are current timecards in the system. It can be used to correct for previous periods of time. It can be used to correct multiple weeks of mistakes and it will track what is owed to employee(s) or owed by the employee(s) It corrects certified payroll reports and union reporting correctly Preferable to only use one time per employee per week, so fix all known issues one time. Lovely feature when Union doesn’t give you pay rates/fringe rates for many weeks or when an employee “forgets” to turn in a time card. 2 3 4 5 6 7

PR CorrectionFlow 1 Make sure you are in the same Pay Period Letter (but dates are not an issue) PR / Daily / PR Corrections / Enter Corrections Answer question, “Have checks been distributed”. Applied to direct deposits also. Enter Weekend Date and employees to be corrected. Click OK. Choose to pay differences after taxes “By Check” or “Later”. If the employee owes money, always choose “Later”. Click report and it will show you the difference owed. Timecards originally entered will be offered up. You can delete a timecard, add a timecard, or modify an existing one. Click “Save & Continue” and repeat for next employee if applicable When all employee corrections are made, Choose “Done” and “Yes” to compute the corrections 2 3 4 5 7 8 6 Choose the employees to be corrected. Click “Next”

PR CorrectionFlow 9 Print the Pre-Check Correction Register To post the correction, choose “Print Correct Paychecks and Deposits” even if you are not actually printing a check. This is where it is posted Choose the date you wish the taxes and difference to be committed to. We recommend the upcoming PR check date for tax reasons. A check or a revised check stub will be available to print. Do so and adjustments will be posted.. During next normal payroll, put in current timecards. When you compute, a message will pop up to advised you that you can give back or take from the employee at that time. Repeat entire process if corrections span multiple weeks. All difference due to or from the employee(s) are banked in the “CORR” misc deduction. 10 11 12 14 15 13

PR HistoryAdjustments 1 Lump Sum Union Changes Lump Sum Worker’s Comp Third Party Sick Pay Adjustments PR History to date (i.e. Terminated EE history you need a W2 for) 2 3 4 5 Lump Sum changes in general

PR HistoryAdjustments 1 Make sure you are in the same Pay Period Letter (but dates are not an issue). NO CURRENT PR TIMECARDS CAN BE IN THE SYSTEM!!! PR / Daily / Adjustment Genie Choose “Adjust Prior PR History”, Employee(s) and Types of Adjustments. Enter correct amounts in appropriate areas or add new items. Click Next until complete. Post Adjustments. WATCH POST DATE. Put the date you want it corrected to (check date, preferably). Only check the “Bypass GL” if you DO NOT want GL to be affected by the History Adj. You cannot “Fix” and adjustment through Adjustment Genie. Must go to “Enter History Adj” and modify. Compute must be done, removing Misc & Union Ded Cycles, marking “Positive” and “Hist Adj Only Perform a pre-post copy 2 3 4 5 7 8 6 Click “Done” and allow compute PR to happen

Question #3

Correcting PR Like a Pro Thanks for Attending Correcting PR Like a Pro www.foundationsoft.com email@foundationsoft.com