Recoverable Deductions

Overview

A Recoverable Deduction is generated when an adjustment to a timesheet or item results in an employee owing money. These will appear in  Payroll > Process Payroll > Process Payroll.

The Recoverable Deduction will appear in an employee pay to balance the net wages to $0.00. The Gross Wages value will still show the negative balance.

If you expand the employee pay, the detailed view will include the Recoverable Deduction line with a summary of how the amount was calculated by the system.

If processing through an adjustment timesheet, once the pay run that includes the adjustment pay is locked and the bank file is generated, the adjustment timesheet will update to a status of Payment Authorised.

When the employee is next included in a pay run, the recoverable deduction will be flagged in the Deductions column of the employee pay in the Process Payroll report.

Recover an Overpayment

To recover an overpayment:

1. Go to Payroll > Process Payroll > Process Payroll.

2. Click the + icon to expand the employee pay.

3. Edit the value in the Recovery Amount field, if required.

4. Click Add Adjustment.

A new deduction line named ‘Recoverable Deduction’ will be applied to the employee’s pay, to the value that has been entered in the Recovery Amount field.

Once the deduction has been applied, you can include the employee pay in a new pay run or existing draft pay run.

Write off a Recoverable Deduction

Deductions that need to be written off can be written off in the Recoverable Deductions report. Writing off a recoverable deduction in Astute indicates that it has either been paid back manually or it is actually being written off in your accounting system.

To view the details of a recoverable deduction:

1. Go to Reports > Payroll > Recoverable Deductions.

2. Click the + icon for the relevant employee to expand the report line.

If the deduction needs to be written off so that it won’t appear on future timesheets:

3. Click the Write Off button in the Action column.

4. In the popup window, record the amount being written off in the Write Off field.

5. Record other information in the Notes field (eg transaction details).

6. Click Record > Yes to confirm the write off.

Once the write off is confirmed, you will see a summary of the transaction details.