Solution:

This article explains how to configure negative negative pay types and enter postings for negative amounts in Payroll.

Negative pay type allows the ability to reverse posting entries for the same pay type. For example, if a payroll checks is issued to an employee by mistake or if a bonus has been paid in error, this process allows a reverse payment on the next pay check.

Important
It is highly recommended to reverse the pay type within same quarter so that tax reports are complete and accurate.

To enable negative pay types, please follow the steps below:

1. Open Payroll.
2. Under the Maintain menu, point to Pay Types and click Pay Classes.
3. Type the name of the appropriate pay class into  Pay Class field.
4. Click Edit.
5. If the pay class came with the software, the following message appears:This record contains standard values provided by Sage Software.  Sage Software standard values are disabled.
6. Click OK to proceed.
7. Select Allow Negative Pay.
8. Click Save.
9. Click Exit.

This pay type can now have negative pay amounts entered for it. Repeat this process for all pay types that require this option.

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