RDA Systems Inc

Best Practices/Requirements

• The Original Payroll in which the check was initially issued MUST be completed, including the Distribution and Update Bank Reconciliation PRIOR to Voiding the Payment.
  
• It is recommended when Voiding a Check to use the Current Calendar Month and Year (Depending on the desired Expense Month and Year, the Fiscal Month and Year should be set accordingly).
• A Void Payroll cannot be undone

NOTE: Voiding is NOT necessary if the check is to be replaced with NO CHANGES (Due to being Lost or Destroyed). In this case, run the Stop Payment/ReIssue Check process only.

Void Payroll Check/Direct Deposit

HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment (Run the Following Processes)

1. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Pay Master / Pay ID

• Create a Unique Pay ID for the Void 

NOTE: IF Voiding multiple checks for the same employee, you must create a Pay ID for each check/direct deposit and run a separate void process for each Pay ID.

  2. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Pay Check/Direct Deposit or Repayment

• Populate all fields, as described below:

NOTE: Select Repayment ONLY IF the Original Check has been Cashed or Direct Deposit was Received. The FULL Net Amount MUST be collected from the Employee PRIOR to Voiding the Check unless the money was returned by the Bank. IF the FULL Net Amount CANNOT be collected from the Employee, see section "Void Check with Repayment with Partial Pay Back".

3. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Purge Archived Pay Checks

• Select the desired Bank Identification (Bank Original Check was Cut FROM)
• Range on the Check Number(s)

• From Check Number: Enter the FIRST Check Number to be Purged. 
• To Check Number: Enter the LAST Check Number to be Purged. 

NOTE: IF there is only ONE Check to be Voided, the FROM number should be the same as the TO number

OR... 

 3. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Purge Archived Direct Deposit Transmittals

• Select the desired Bank Identification (Bank Original DD Transmittal was Drawn FROM)
• Range on the Transmittal Number(s) 

• From Transmittal Number: Enter the FIRST Transmittal Number to be Purged 
• To Transmittal Number: Enter the LAST Transmittal Number to be Purged

NOTE: IF there is only ONE Transmittal to be Voided, the FROM number should be the same as the TO number

4. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Deduction Register 

• Range on the Void Pay ID and Verify the Void Totals

5. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Payroll Register

• Range on the Void Pay ID and Verify the Void Totals

6. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Distribution

• Range on the Void Pay ID and Verify the Void Totals

7. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Clear Checks / Transmittals

• Range on the Void Pay ID and Verify the Void Totals

8. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Update Payroll History

• Range on the Void Pay ID and Verify the Void Totals

NOTE: IF the Void is for a Substitute, and it is necessary to reissue a payment for the Substitute; Run the Create Void Subpaid Records to mark the sub work transaction as "NOT finaled" with removal of Paid Units. Range on the Original Pay ID the Sub was Paid on, and the Void Pay ID; AND Range on Substitute's Personnel ID.

9. HR → Payroll → Maintenance → Void Check/Repayment/Stop Payment → Post Activity

NOTE: DO NOT RUN the STOP PAYMENT/REISSUE CHECK PROCESS when VOIDING. 

NOTE: Select Repayment only if the employee is paying back the entire net, not if the bank sends the money back.  IF Repayment was Selected...A Balance Sheet Receipt MUST be added in Financial Management, and Payroll Repayment MUST be check marked True (Received From/Source is the Employee's Name or the Bank Name). Cash is both Credited and Debited (The Repayment Process will create necessary Balance Sheet Entries for Cash as well as reflect a Deposit in the Bank Reconciliation). DO NOT ADD A RECEIPT IF REPAYMENT WAS NOT SELECTED on the VOID.  

If the bank refunds the money back, do not select the Repayment and the void will handle the cash and balance sheet entries properly.

NOTE: Deduction Amounts paid previously through Vendor Withholding will be added back to the Deduction Account as a Credit.

Void Check with Repayment with Partial Pay Back

• Although it's highly recommended that full net pay be collected from the employee if the employee has already received the payment, there are situations in which only partial payment is paid back to the employer
• If this occurs, the employee's pay information and taxes must be corrected accordingly
• The Void with Repayment process can be run, however this will result in duplicate payment reflecting in the Bank Reconciliation module (i.e., 1. the employee's original check/direct deposit, and 2. the correction payment that will be entered in the system)
• After voiding the check (with Repayment flagged), a Pay ID will need to be created in which to record the actual amount that was paid to the employee, as well as the associated deduction amounts
• To accurately determine the taxes and other deduction amounts, it is highly recommended that you run a test payroll through Compute, and then make sure those amounts are duplicated in the real Pay ID
• Complete the payroll for the employee including assigning a check/direct deposit number and run all processes to Post Activity
• No new check/direct deposit will be issued to the employee, since this is for recording pay only; know that the Check/Direct Deposit Number set in this payroll will never clear in the Bank Reconciliation Module
• A balance sheet receipt should be entered for the amount received from the employee (see more information under the Void Check section)
  

Direct Deposit with Partial Returned Amount Owed to Employee

• When the employee has multiple direct deposit deductions and the bank returns one of the direct deposits, a receipt would need to be entered in Financial Management to reflect the money returned; Can enter the receipt as an Expenditure type using the original salary expense account for the employee (this will be offset with the vendor payment in the next step) and enter the amount returned
• A vendor needs to be added for the employee in Vendor Payments by going to the employee's direct deposit deduction and click on Create Direct Deposit Employee Vendor and REMIT ADDRESS in Vendor Payments which is located on the Direct Deposit tab and this will create a Vendor Master for the employee.  NOTE:  IF THIS "Create Direct Deposit Employee Vendor and Remit Address" is greyed out, it means that the employee already has a vendor master set up in Procurement.
• A check will need to be issued to the employee in Vendor Payments as an Expenditure payment using the same expenditure account used on the receipt for the amount that was returned
• Since the amount that the employee was paid will not change, nothing will be done on the payroll side
• Since there is no void and no new check/direct deposit issued to the employee in Payroll, know that the Check/Direct Deposit Number will still show in the Bank Reconciliation Module