Creating Payroll Adjustments
To make changes to previously committed paychecks, you should create payroll adjustments. These adjustments can be either positive or negative, depending on the situation.
Payroll adjustments never directly affect company disbursement (bank) accounts or employee accounts. Instead, adjustments balance expenses recorded on your company's accounting ledgers. You must collect incorrect payments directly from employees.
Only those user roles that include Process Payroll with the Full option can commit a payroll. These user roles include Full Access: Full, Payroll Manager: Full, and Payroll Setup: Full. For more information, see NetSuite Roles Overview, Showing Role Permission Differences, and Standard Roles Permissions Table.
NetSuite automatically funds any increase in liabilities from your Payroll Funding Account and files amendments with tax agencies.
To reverse disbursements associated with a previously committed paycheck, you should create a payroll reversal. For more information, see Creating a Payroll Reversal.
To create a payroll adjustment:
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Go to Transactions > Employees > Create Payroll Adjustment.
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In the Payee field, select the employee for whom you are entering the adjustment.
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If you track departments, classes, or locations, select the appropriate information for those fields.
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In the Pay Period Ending field, select the date for the pay period in which these funds were originally disbursed.
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In the Post Date field, enter the date of the payroll that includes the adjustment.
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In the Posting Period field, select the fiscal period to which NetSuite must post the adjustment.
Note:You cannot post to a locked accounting period.
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If you have a NetSuite OneWorld account, select a subsidiary from the list in the Subsidiary field.
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Enter the amount of the adjustment. This amount can be either positive or negative.
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Enter a memo for this adjustment.
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Select an account to use to fund this transaction.
You must use the Payroll Funding Account you selected on the Set Up Payroll page.
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On the Earnings, Withholdings, Deductions, and Company Contributions subtabs, enter amounts for the payroll items related to the adjustment.
Note:If you need to reduce a value, enter a negative amount.
NetSuite automatically checks the corresponding box.
In the Amount field, NetSuite calculates the total for the adjustment based on the amounts entered.
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Click Save.
NetSuite calculates the taxes associated with this adjustment and updates the employee’s payroll history.
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Click Commit to commit the payroll batch.
To review a list of payroll adjustments, on the Payroll Adjustment page, click List. On the list, click the View or Edit links to review individual adjustment records.