Overview of Balance Adjustments

Perform balance adjustments when you complete any or all of these tasks and you want to correct the processed balance values:

• Correct balances you loaded using the Load Initial Balance task with these incorrect values:

  • Tax balance dimensions

  • Tax jurisdiction

  • Overstated or understated tax limits

  • Omissions or unwanted balance initialization

• Zero out arrears you have manually recovered or written off the dues from terminated employees after processing their final pay.

• Load balances for payroll payments administered by a third-party, such as:

  • Sick Pay
  • Stock Options
  • Relocation Expenses

  Though a third-party is calculating these payments, you must report the earnings and taxes withheld. Therefore, you must import the details using balance adjustments.

  Note: You don't have to complete this task if you choose to process these earnings in the payroll run.

• It’s recommended that you use retroactive pay to process retroactive changes. However, not all elements support retroactive payroll processing and hence you may have to use balance adjustments. For example, Tax Deductions are not enabled for retroactive pay.

Here are the methods that you can use to adjust balances for a person. The option you use depends on the corrections required.

Adjustment Method	When to use this method
Adjust Individual Balances Choose an element, a worker and a date, and then enter the input and context values for the run result.	Adjust existing balances for elements processed in a payroll run. Create balance results for elements not processed in a payroll run.
Adjust Balance action on the Balance Results section in the Person Process Results page. All the values of element name, context values, date, and so on, are inherited from the balance results screen.	Adjust balances for elements you have already processed in a payroll run.

Before adjusting the balances, use the Person Process Results task to view the balance results of the specific employee, and review and document these details:

• Employee

• The effective date of adjustment

• Balance before your adjustment with relevant contexts

• Adjustment amount

• Expected balance after adjustment

• Costing overrides on the element entries, if any

Adjust Balance Action

Use the Adjust Balance action on the Balance Results page when you need to adjust element entries that:

• Are already associated with a person
• Have contexts that don't require updates

To adjust a balance:

1. Search by balance group or balance name.
2. Select the appropriate balance value in Balance Results.
3. Use the Adjust Balance action and select an element.
4. Enter the adjustment value.

Verify Adjustments

After making the adjustments, verify that the Payroll Process Results task indicates the correct adjusted values.

If you have set the adjustment to be refunded in the employee's payment, the payment amount includes the adjusted amount.

You can verify the amount in the employee's payment once a prepayment process runs for an effective date that includes the date the adjustment was made.

Roll Back Balance Adjustments

If you need to correct or remove a balance adjustment, you must roll back the adjustments on the Person Process Results or Payroll Process Results page.