DO NOT use this process in Sage 100 versions payroll 2.x (Business Framework on versions 2018 and higher). Using the method below in PR 2.x and higher can cause Capped wages to be incorrect.

USE the new Payroll Check Reversal button in PR 2.x versions!)

Reverse or void Payroll checks in Payroll Data Entry in legacy (2017 and prior only!!)

Note for checks dated in prior quarter: If reversing a payroll check/direct deposit with a prior-quarter date, you must use a check dated in the current quarter. **Do NOT manually change quarter/year in Payroll Options.

Reverse Payroll Checks:

1. Open Payroll, Main, Payroll Data Entry.
2. In the Pay Cycle window, do the following:
   • Select applicable Pay Cycle
   • Enter Payroll Ending Date from the original check
   • Select Manual Taxes check box
   • Deselect all remaining options:
     • Auto Deductions
     • Auto Earnings
     • Print Checks
     • Direct Deposit
3. Click OK
4. In the Employee No. field, select the employee number and press the TAB key.
5. On the Header tab, use negative numbers to enter the information from the original check in the Days Worked and Weeks Worked fields.
6. Enter the following information from the original check: Reminder: If reversing a payroll check with a prior-quarter date, you must use a check dated in the current quarter. (ex. Current Qtr/Year= 1/2014, Original Check Date=10/13/13; Check Date for Reversal must be dated within 1/1/14 - 3/31/14)
   • Bank Code
   • Check No.
   • Check Date
   • In the Check Amount field, type the original check amount as a negative amount
7. Click on Lines tab, enter the employee earnings and voluntary deduction information.
   • The earning and deduction lines must be entered exactly as they were entered in the original check. All hours and dollar amounts must be entered as negative numbers
8. Click on the Lines tab, enter the employee earnings and voluntary deduction information. **See Important Notes below
9. Complete all detail entries, and click Accept
10. In the Manual Payroll Tax Entry window, using negative numbers, enter all applicable tax amounts
11. Click Accept
12. Continue processing payroll as usual

Reverse Payroll Direct Deposit:

1. Open Payroll, Main, Payroll Data Entry.
2. In the Pay Cycle window, do the following:
   • Select applicable Pay Cycle
   • Enter Payroll Ending Date from the original check
   • Select Manual Taxes check box
   • Deselect all remaining options:
     • Auto Deductions
     • Auto Earnings
     • Print Checks
3. Click OK
4. In the Employee No. field, select the employee number and press the TAB key.
5. On the Header tab, use negative numbers to enter the information from the original check in the Days Worked and Weeks Worked fields.
6. Enter the following information from the original direct deposit: Reminder: If reversing a payroll direct deposit with a prior-quarter date, you must use a direct deposit dated in the current quarter. (ex. Current Qtr/Year= 1/2014, Original Direct Deposit Date=10/13/13; Check Date for Reversal must be dated within 1/1/14 - 3/31/14)
   • Bank Code
   • Check No.
     • In the Check No. field, enter the capital letter D before the direct deposit stub number (i.e. D12345). This signifies that it is a direct deposit. The Check Amount field becomes unavailable.
   • Check Date
7. Click on Lines tab, enter the employee earnings and voluntary deduction information.
   • The earning and deduction lines must be entered exactly as they were entered in the original check. All hours and dollar amounts must be entered as negative numbers
8. Complete all detail entries
9. Click Accept
10. In the Manual Payroll Tax Entry window, using negative numbers, enter all applicable tax amounts
11. • In the Adjust. to Dir. Deposit field, enter the Net Direct Deposit Amount as a negative number for this direct deposit reversal
12. Click Accept
13. Continue processing payroll as usual
14. See additional direct deposit steps below to correct employee direct deposit YTD amount

Important Notes:

• The earning and deduction lines must be entered exactly as they were entered in the original check. All hours and dollar amounts must be entered as negative numbers.
• Negative direct deposit entries are not included in the direct deposit interface file.
  • If the original incorrect direct deposit entry has already been uploaded to your bank, you must call your bank to ask if the incorrect entry can be removed.
  • If the original incorrect direct deposit entry has not been uploaded to your bank and you would like to remove an entry(ies) from your direct deposit interface file before uploading to your bank, see Related Article, How to remove direct deposit employee from direct deposit interface file
• When reversing a check for which the benefit accruals are based on hours, enter the hours as a negative number in order to reverse the accrual
• The check amount entered must equal the total earnings minus voluntary deductions and taxes. If the amount in the Net Amount field does not agree with the amount in the Check Amount field, an "Out of balance" message appears.
• When reversing a check with Tips Reported (05 Earnings Code), the reversing deduction code entry (01 Deduction Code) must be entered as a negative amount.
• If Timecard is integrated with Payroll the Job Cost and Cost Code fields will not be available. Original posting to the Job Cost module from Payroll will need to be reversed through a Job Posting Entry, if required. Otherwise, if Payroll is integrated with Job Cost only, the Job Cost and Cost Code fields will be available for entry.

Correct Employee YTD Direct Deposit amount:

Reversing an employee's direct deposit does not change the Deposited YTD field in Employee Maintenance. These amounts must be manually corrected for the YTD Direct Deposit as follows:

1. Open Payroll, Main, Employee Maintenance.
2. Select Employee No., from look up
3. Click Direct Deposit button.
4. Highlight the direct deposit information to be adjusted.
5. Change the amount in the Deposited YTD field. (reduce by the amount of the direct deposit reversal)
6. Click Ok