Reversing wages that have been recorded, chaning to Director's drawings

Cheryl Bayfield

Wages have been recorded incorrectly.  Should have been against drawings.  How do I reverse wages?

Mirko

Hey Cheryl,

Welcome to the Community & thank you for your post.

You may wish to check with your accountant if it is permissible to delete the pay item and replace it with the corrections.

If it is permissible in this instance, the processing side of things is as follows;

1. Delete the Pay for the director.
2. Create New Payroll Item.
3. This item should be linked up to Drawing Account.
4. Process pay under same date with correct pay item.

Thanks,
Mirko