35 Overview to Interim Cheques

This chapter contains these topics:

35.1 Objectives

  • To process payments outside the normal payroll cycle

  • To understand the different ways you can process interim payments

35.2 About Interim Cheques

An interim cheque is any cheque that you prepare outside the normal payroll cycle, such as a bonus cheque, advance pay, a termination cheque, and vacation pay.

Interim cheques consist of:

  • Entering interim cheques

  • Printing interim cheques

  • Updating interim cheques

When you enter an interim cheque, you can use existing timecard records or enter new timecard information specifically relating to the current interim cheque. The system uses these time entry records to calculate the gross pay, taxes, DBAs, and net pay amount for processing a mini pre-payroll for each cheque.

Entering interim cheques includes:

  • Entering cheque parameters

  • Entering time or using previously entered timecard information

  • Calculating all cheque details, including earnings, taxes, DBAs, and net pay

The system can calculate interim cheques interactively. When you use interactive processing, the system displays the detail for each cheque one at a time.

Alternatively, you can enter several cheques at a time and the system calculates them as a batch job.

The system generates a Payroll Register for both interactive and batch processing. The system stores all pay type, tax, and DBA calculations for interim cheques in workfiles to process later during a payroll cycle. Processing interim cheques in a payroll cycle creates journal entries and updates history.

35.2.1 When Can You Print and Update Interim Cheques?

You can print interim cheques on the computer only in a payroll cycle. You can prepare them manually as either handwritten or typed.

You can process interim cheques in a payroll cycle with other cheques or separately, but you must process them through a payroll cycle.

The Payroll system provides two alternatives for printing and updating interim cheques:

Alternative Description
Running a regular payroll cycle that includes interim cheques When you run a regular payroll cycle that includes interim cheques, the system prints the interim cheques along with the payroll cheques. The system also prints the payroll cycle reports that include interim cheque information.
Running a payroll cycle for interim cheques only When you run a payroll cycle for interim cheques only, the cycle includes printing of interim cheques. You can print payroll cycle reports for the interim cheque information. If your organization processes a high volume of interim cheques, this alternative is beneficial.

When you update interim cheques, the system:

  • Creates journal entries

  • Prints payroll cycle reports

  • Updates history

35.2.2 What Are the Purposes of Interim Cheques?

You can use interim cheques for the following:

Task Description
Calculate gross to net from timecards Interim cheques allow you to calculate earnings, tax, and deduction detail. You can the use the resulting calculations in one of these four ways:

  • Save/No Cheque - To display the resulting cheque information and save it but write the cheque manually. You might create a termination interim cheque this way.

  • Save/Print Cheque - To display the resulting cheque information, save it, and print a computer cheque. For example to create a bonus cheque where you enter the information in advance and print the cheque during the next payroll cycle.

  • Display/Advance - To display the resulting cheque information in detail but save only the net amount as an advance. The system treats the advance as a deduction and nets this amount out against the employee's gross pay during processing of a normal pay period. For example, you can create an interim cheque to pay an employee an advance on earnings-to-date.

  • Display Only - To display the resulting cheque information but not retain it. For example, for "what if" calculations. Note, however, that the JD Edwards World Tax Calculator is designed to calculate tax amounts, so you might prefer to use that selection from the Interim Cheques and Special Post menu.
Enter information from manual cheques (hand-typed or handwritten) You can record information from hand-typed or handwritten manual cheques including earnings, tax, and deduction details. Normally, the system merges this information into history when you complete the next payroll cycle.
Adjust historical data for an employee You can adjust historical data for an employee, for example, if an employee was taxed incorrectly. This interim cheque process provides an audit trail for future reference.
Enter a flat dollar advance on pay The advance is treated as a flat dollar deduction to be subtracted from gross pay during normal payroll processing.
Convert payroll history Interim cheques can also be used to load historical data for conversion purposes and provide an audit trail for future reference.