Adjustment timesheets are used to correct any errors that have been entered in a timesheet that has been finalised or processed in a pay run.
Some common reasons you may need to create an adjustment are:
- The incorrect Start or Finish time has been entered in a timesheet.
- Time units have been entered under the incorrect Job.
When an adjustment timesheet is saved and approved, the adjusted units will flow into Process Payroll. A record of the originally processed timesheet will be kept to create a clear trail of the changes made. Any invoiceable items will appear in the Invoicing module once the timesheet is finalised in Pay Conditions.
Adjustment timesheets are denoted with a red [A] in the Timesheet Status report.
Creating an Adjustment Timesheet
To create an adjustment timesheet:
- Go to Payroll > Status Reports > Timesheet Status.
In Report Settings, select any filters to narrow down your search. Untick 'All Outstanding' so you can choose the correct timesheet status (eg, Finalised or Paid) > Go
Click on the relevant timesheet to open it.
Select ‘Create Adjustment’ > Confirm. You’ll need to specify a Job if there are more than one included on the timesheet.
IMPORTANT: To adjust time units, only edit the relevant time blocks and always ensure the full amount of time is entered. For example, if the original time block was entered as 9am to 3pm on Tuesday but it should have been 9am to 4pm, simply change the finish time to 4pm for Tuesday. Do not delete any other time blocks, and do not change the time from 3pm to 4pm, as this would result in a reduction in hours worked.
When the adjustment has been created, the timesheet status will update to ‘Pending Submission’ and be identified with a subtitle under the timesheet name (eg ‘Adjustment 1’). The fields in the timesheet will activate so that you can edit the data.
You can view a record of the original timesheet and any adjustments that have been created in the History section of the timesheet.
Approve an Adjustment Timesheet
Once you've entered the revised data, you can Save the adjustment as a draft or Submit for approval.
Notifications are sent to Approvers when an adjustment timesheet is submitted. The Approver will be able to review and approve the adjustment either from within the email or by logging into their portal. Alternatively, you can approve the adjustment yourself as an Admin.
Process an Adjustment Timesheet
Once approved, the adjustment timesheet will show in the Pay Conditions screen with a status of ‘Ready for Interpretation’.
The Astute system will calculate the difference between the amounts paid or invoiced in the original timesheet and the data entered in the adjustment timesheet, creating the pay and charge items that need to be processed.
A positive adjustment in a timesheet will:
- generate additional pay for the employee in the Process Payroll Report, which you include in a new pay run or add to an existing draft pay run.
- generate an additional invoice for the client.
A negative adjustment in a timesheet will:
- create a Recoverable Deduction in Process Payroll. This can be applied to another pay run that includes the employee to recoup the overpaid amount.
- Generate a Credit Note for the purposes of invoicing.
Timesheet Adjustments and Leave Accruals
Adjustments to timesheets that are made after an anniversary date may cause variations to Holiday Pay. The adjusted amounts will be included as part of the Holiday Pay calculated at the end of the relevant period. As a result, the Annual Leave in Advance accrual calculation on the Pay Date will include this amount.
An adjustment made before an anniversary date will result in a recalculation of the Holiday Pay accrual and Annual Leave in Advance accrual. The system will compare the recalculated leave entitlement against the original accrual amounts, then add the differences in the leave ledger.