Comparison of Reversal and Adjustment

The Paycheck Reversal/Adjustment process produces different results, depending on whether you select Reversal or Reversal/Adjustment for your run control:

Term	Definition
Reversal	Produces a negative image of the original pay record, with all the amounts changed from positive to negative. This effectively backs the check out of the system.
Adjustment	Produces an off-cycle paysheet page with two pay lines: a Reversing Adjustment with a net pay of zero and an Adjustment record where you enter the information for the check as it should have been originally.

When you reverse a check, you generally either cut a new on-demand check for the correct amount or do nothing after having reversed it (if that check shouldn't have been issued at all).

When you adjust a check, three situations are possible:

• No change in net pay.

  For example, an employee's pay is incorrectly charged to Department 10100 instead of Department 10010.

• The company owes the employee money.

  The original check is for too small an amount. For example, you pay an employee for 2 hours of overtime instead of 20 hours.

• The employee owes the company money.

  The original check was for too large an amount. For example, you pay an employee for 20 hours of overtime instead of 2 hours.