Understanding Deduction DBA Setup to Adjust Negative Pay

If an employee's gross pay does not cover the amounts to be deducted, the system adjusts deduction amounts to increase the net pay to zero. The system does not enable negative net pay situations. You can set up deductions to control this adjustment process. Depending on the deduction's arrearage rule, one of these actions occurs:

The system adjusts the deduction either partially or for the full amount.
The system puts the adjusted amount in arrears and makes the adjustment the next time that the employee is paid.
The system puts the adjusted amount in arrears and makes the adjustment each time the employee is paid within the same pay period but does not carry any remaining balance forward into the next pay period.

The system adjusts negative pay in different ways, depending on the arrearage method that you use.

This table describes negative pay adjustment options:

Method	Description
P, blank, F	When all or part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system: Reduces the deduction. Attempts to collect the amount each time the employee is paid during the current pay period. Attempts to collect the amounts in a future pay period. That is, the DBA is placed in arrears. Amounts not taken appear on the Deductions Not Taken report, which the system generates during pre-payroll processing.
Q, R, G, H	When all or some part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system: Reduces the deduction. Attempts to collect the amount each time the employee is paid during the current pay period. Attempts to collect the amounts in a future pay period. That is, the DBA is placed in arrears. Amounts not taken appear on the Deduction Arrearage report, which the system generates during pre-payroll processing.
S, T, I, J	When all or some part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system: Reduces the deduction. Attempts to collect the amount each time the employee is paid during the current pay period. Does not hold the amounts over to collect them in a future pay period. That is, the DBA is placed in arrears for the current pay period only. Amounts not taken appear on the Deduction Arrearage report, which the system generates during pre-payroll processing.

Method

Description

P, blank, F

When all or part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system:

Reduces the deduction.
Attempts to collect the amount each time the employee is paid during the current pay period.
Attempts to collect the amounts in a future pay period. That is, the DBA is placed in arrears.

Amounts not taken appear on the Deductions Not Taken report, which the system generates during pre-payroll processing.

Q, R, G, H

When all or some part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system:

Reduces the deduction.
Attempts to collect the amount each time the employee is paid during the current pay period.
Attempts to collect the amounts in a future pay period. That is, the DBA is placed in arrears.

Amounts not taken appear on the Deduction Arrearage report, which the system generates during pre-payroll processing.

S, T, I, J

When all or some part of the deduction cannot be taken and you have set up the DBA with one of these arrearage methods, the system:

Reduces the deduction.
Attempts to collect the amount each time the employee is paid during the current pay period.
Does not hold the amounts over to collect them in a future pay period. That is, the DBA is placed in arrears for the current pay period only.

Amounts not taken appear on the Deduction Arrearage report, which the system generates during pre-payroll processing.

Note: The system does not create journal entries for adjusted amounts and arrearages until the deduction is actually withheld. The system posts only the actual amounts deducted as journal entries.