How to use negative deductions to adjust employee records in Payroll in Microsoft Dynamics GP

This article describes how to use negative deductions to adjust employee records in Payroll in Microsoft Dynamics GP and Microsoft Business Solutions - Great Plains when a deduction is over-withheld.

Applies to:   Microsoft Dynamics GP
Original KB number:   968014

To use negative deductions to adjust employee records, follow these steps:

1. If a deduction was entered for an incorrect period, create a negative manual check for the deduction in the Payroll Manual Check-Adjustment Entry window. To do this, follow these steps:

   1. On the Transactions menu, point to Payroll, and then select Manual Checks.
   2. In the Check Type area, select Manual Check.
   3. Leave the Batch ID field blank.
   4. Change the date in the Check Date field to the check date from the pay run in which the deduction was originally withheld incorrectly.
   5. In the Check Number field, use the default check number, or type the check number that you want to use.
   6. In the Employee ID field, enter the employee ID.
   7. Select Transactions.
   8. In the Payroll Manual Check Transaction Entry window, select Deduction in the Transaction Type drop-down list, and then enter the deduction code that you want to update in the Code field.
   9. In the Date From field, enter an appropriate date.
   10. In the Date To field, enter an appropriate date.
   11. In the Amount field, type the amount that you want to adjust for the deduction.
   12. Select Save.
   13. Close the Payroll Manual Check Transaction Entry window.
   14. In the Payroll Manual Check-Adjustment Entry window, select Post.

2. Create a second manual check for a positive adjustment by using the posting date in which the deduction should have been taken. To do this, follow these steps:

   1. On the Transactions menu, point to Payroll, and then select Manual Checks.
   2. In the Check Type area, select Manual Check.
   3. In the Check Date field, enter the check date in which the deduction should have been taken.
   4. In the Check Number field, use the default check number, or type the check number that you want to use.
   5. In the Employee ID field, enter the employee ID.
   6. Select Transactions.
   7. In the Payroll Manual Check Transaction Entry window, select Deduction in the Transaction Type drop-down list, and then enter the deduction code that you want to update in the Code field.
   8. In the Date From field, enter an appropriate date.
   9. In the Date To field, enter an appropriate date.
   10. In the Amount field, type the amount that you want to adjust for the deduction.
   11. Select Save.
   12. Close the Payroll Manual Check Transaction Entry window.
   13. In the Payroll Manual Check-Adjustment Entry window, select Post.

For more information about how to correct over-withholding of employee payroll taxes, see How to correct over-withholding of employee payroll taxes in Microsoft Dynamics GP.