JE from Designated to Fund Account

[newlifebaptist]

We were issued a refund for retirement benefits that were overpaid. When the refund was entered into the system, it was put into a designated Misc. account. I'm not sure how to do a JE to return it to the correct accounts so that we will have the correct amounts on our W-2s at the end of the year. I have tried, but it is not correct because it keeps taking it out of the account instead of putting it back in.

JY
NLBC

[JohnDMeyers]

You will have to make the correction in Payroll in order to correct the W2s.

First, you have to undo any posted transactions made in fund accounting.

To make the correction in Payroll,
1) locate the item description for your retire benefits
2) note the type (taxable or employer liability) and the DB and CR accounts
3) create a new item description, and call it something like "overpayment refund" of the same type
4) in the "overpayment refund", reverse the accounts in the DB and CR from the original item description
5) attach the new item description to the affected employees
6) put the amount in each employee's description
7) process payroll once with this item turned on
turn this item off or remove it

[newlifebaptist]

I'm unsure as to what you mean on item 4. I have reversed everything I have done in Contributions and Fund Account as far as receiving the refund. I am now in the process of creating the new accounts to reverse it out of payroll, but item 4 has me stumped. It will not let me reverse the Liability/Bank accounts. For instance, it shows the checking account as the first entry and the liability account as the second. When I try to reverse those, it gives me an error. So do I enter the reverse account the same as the regular account, then add it to the employee, and put the amount in as a negative so that it reverses? I hope this makes sense.

Secretary Annuity Withheld
Item Number: 824
Description: Annuity Sec
Type: Other Deduction
Liability Account: 01-xxxx-000 Annuity Withheld-Sec
Bank Account: 01-xxxx-000 First National Checking
Tax Options: Retirement Deduction Box 12 Code: E

Payroll deduction would be entered as a positive number.

Secretary Annuity Withheld Reverse
Item Number: 992
Description: Annuity Sec
Type: Other Deduction
Liability Account: 01-xxxx-000 Annuity Withheld-Sec
Bank Account: 01-xxxx-000 First National Checking
Tax Options: Retirement Deduction Box 12 Code: E

Since it wont let me reverse the Liability and Bank accounts, would the payroll deduction would be entered as a negative number?
Thanks
Janita

[JohnDMeyers]

Yes, I see what you mean. It won't let you switch the type of accounts.

Just as well. I figured out an easier solution.

Simply edit the item that was overpaid to the employee.
Turn off all other items.
Enter a negative amount in the item.
Run Payroll.

Much easier solution. Necessity is the mother of easier solutions!

[newlifebaptist]

Thank you for your help!