Adjustments - Other Earnings and Deductions

Adjustments to an employee's pay may be done in the current, or subsequent period.

CURRENT PERIOD - EMPLOYEES NOT YET PAID
If the employees have not yet been paid their salaries then simply delete, change or add the transaction/s that need adjustment and run a Calculation Routine. Once this is done follow through the normal processing steps that include checking the payroll, printing, exporting data, backing up and doing a period end procedure.

CURRENT PERIOD - EMPLOYEES ALREADY PAID
If the employees have been paid their salaries then process a 'Net Paid Adjustment'. This is an amount equal to the Net Pay already paid which brings the net pay to zero thus preventing the double payment of amounts.  Whatever transactions that are then processed produce a second net pay that is unaffected by what has already been paid and is equal to the net value of the adjustments.

The advantage of this method is that the employee will receive a second payslip which contains:
- all the transactions for the current period
- the Net Paid amount already received
- the adjustment/s, and
- the additional Net Paid amount caused by the adjustment

ADJUSTMENTS PROCESSED IN A SEPARATE BONUS PERIOD
If you would like to process the adjustments in a separate bonus period then make sure that you have created the bonus period before doing a period end.

Create a bonus period to process the adjustment separately. See this link and then go to the heading 'Bonus - Bonus Period' to find more information about creating and processing a bonus period. Process the adjustment and make payment to employees in the normal manner. The adjustment could also be calculated using the backpay facility (See FAQ topic 'Backpay - How').

ADJUSTMENTS PROCESSED IN THE NEXT PERIOD
Sometimes it is best to process the adjustment in the following pay period. Process the adjustment even though it relates to transaction/s in prior period/s.