The Cheque/Deposit Cancellation module is used to reverse all applicable history entries originally generated by a payroll run or manual cheque entry.
A cheque cancellation is required to reverse the effects of an employee's pay when that payment has been stopped.
The history entries generated by processing a cancellation can also be reversed by canceling a Cheque Cancellation. Canceling a cheque cancellation has the effect of reversing the implications of the original cancellation, thus making the original payment active again. Canceling a cheque cancellation generates a complete new set of history entries. There is no restriction on the number of times you cancel or un-cancel a cheque, although each set of history entries may only be cancelled once. The Year-to-date history on the original cancellation displays as 'CP' for the cancellation of a payroll history payment and 'CM' for the cancellation of a Manual Cheque entry. The cancellation of a cheque cancellation will display as 'CC'.
You CANNOT cancel the cancellation of the Manual Cheque.
You may cancel a prior year cheque, although you will be warned and prompted to ensure this is correct. When a cheque is cancelled for a prior year, the earnings and deductions reversal is not applied to the employee master balances. The only exception is for the ARREARS deduction, Group 0 Type 0. The ARREARS deduction is always updated as this specialized deduction is not a year-based deduction.
The program creates an interface file containing the journal entries to update the accounting system reflecting the cheque or deposit cancelled. These journal entries are placed into the file ###%%%%PRIN03.YPP. Where YPP is the last three digits of the current pay period, ### is the Finance interface code found in the Payroll Master Profile, %%%% is the payroll ID code found in the Payroll Master Profile. This file should be interfaced to Finance as soon as you have finished your cancellations.
When AUTO INTERFACING is active:
Upon exiting from this process, you will be prompted:
Do Auto Interface
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Enter 'N' to omit the auto interfacing at this time.
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Enter 'Y' to auto interface the Journal Entries and Invoice Entries interface files.
The Cheque/Deposit Cancellations program reverses all EI entries in the EI file. This must be done before making a manual cheque entry for the replacement of the cancelled item. If you do not do this cancellation prior to the manual cheque, the Unemployment Insurance records for the employee may be incorrect. The manual cheque will detect that the person has already reached their limit or close to it and will take a wrong deduction amount. When the cancellation is later executed, the amounts will be reversed, leaving the employee short on the EI.
Throughout the Cheque Cancellation the History Memo function is available. When the screen displays MEMO you can access existing or add new history memos for the employee's pay period.
NOTE: Cheque/Deposit Cancellations must be run online with the output to disk or a printer.
Enter Employee #
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Enter the number of the employee to cancel the cheque for. Use look-up to select the employee by name.
Enter Period
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Enter the period in which cheque was issued. This may be a special pay period.
Earnings and deductions for the pay period display.
Is this the Correct Cheque
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If the correct history record is displayed enter 'Y'. History records may include Payroll, Manual cheques or Cancellations of a Payroll entry. History entries that have already been cancelled are marked as 'Previously Cancelled". History entries may only be cancelled once.
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Enter 'N' and the next record for the period will display.
Enter the Cheque # OR accept default if EFT
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Enter the computer cheque number given when the cheque was issued. Use look-up for a list of the employee's cheque numbers.
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Enter when a history record was a bank deposit.
The cheque amount, history amount and the difference between the two displays. If there is a difference, the system returns to the 'Is this the Correct Cheque' prompt.
Cancel this Cheque
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Enter 'Y' to cancel the cheque.
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Enter 'N' if the cheque is not to be canceled.
Contract Paid Employee
When the Cheque/Deposit to be cancelled includes entries against an employee with contract pay, the entries to be reversed related to the cheque are listed as shown above. When the cheque is cancelled, the contract amount paid, units, adjustments and pays remaining per contract line will be reversed out of contract master values.
A contract history entry is generated (transaction type 'C') listing the results of the cheque cancellation.
The original GL interface entries display.
The original GL Interface entries display in a non-summarized format as shown below. At the bottom of the screen, the amount of the cheque as compared to the GL's displays. An OUT OF BALANCE warning message displays if the cheque total and GL total do not match. This is only a warning you may continue.
Once the GL information is displayed (as shown below), the system collects the EI information. The EI screen displays (as shown below) both the amount taken against the cheque as well as any adjustment amounts included in the cheque amount. The totals and any differences also display. In the event of a difference, a prompt will display to allow the user to process the EI as is or not reverse the EI. If the no reversal option is taken, the EI entries will have to be reversed manually.
All storage bank transactions generated by the cheque being cancelled are listed. If the cheque/deposit cancellation is accepted all storage bank transactions will be reversed.
Continue Cancellation
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Enter 'Y' to cancel this cheque and return to the period number prompt.
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Enter 'N' not to cancel this cheque and return to the period number prompt.
Enter Cancellation Date
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Enter the date of cheque cancellation. The default displayed is the end date for the pay period.
Once the cancellation date is entered, the cheque/deposit cancellation will be processed and the user will be returned to the Employee # prompt. At this point a new cancellation can be started or if done with cancellations select 'Continue' to review report. After opening the document or selecting 'Cancel' the user is prompted to the auto interface page. Select Yes or No to auto interface. If Yes was selected enter your accounting period, Journal Entry Interface Batch Code followed by the districts payroll interface option, Invoice Entry Interface Accounting Period (if applicable), Invoice Entry Interface Batch Code (if applicable), Invoice Entry interface Default GL For Errors, Invoice Entry Interface File Selection pertaining to district.