What Happens when I Void a Payment?

When you void a payment, the Payroll creates reversing payment entries and general ledger distribution entries. To eliminate balancing and reporting problems when voiding payments, make sure the reconciliation date you apply to the void is in the proper payroll quarter.

If you do not enter a reconciliation date when you void a payment, the reconciliation date defaults to the Payroll date. The reconciliation date determines the month, quarter, and year in which the reversing entries are reported in employee history. The Payroll updates payroll history files based on the reconciliation date and uses this date when it creates reversing general ledger entries for a voided payment or partial voided payment.