Prepayments and Rebanks

The Prepayments/Rebank option is used to correct errors or enable employees to be paid outside of the normal payrun.

Prepayments

Prepayments will not generate pays, cheques, cash or bank credits. They update the employee's year-to-date figures and/or leave dates with the details.

A prepayment would be used to specify details of a manually prepared pay made to an employee.

Example:

• Recording the pay for an employee who has terminated employment and was given final pay prior to the payrun.
• Enter an adjustment to the last pay for a payment that was not included (e.g. overtime) that was paid manually.
• Correcting an error in an employee's pay calculation prior to them receiving their pay. The incorrect pay is reversed using the rebank option and the details corrected using the prepayment option.

 

Rebanks 

A Rebank is used to enter details of pays that are to be reversed or cancelled.

Example:

• An employee whose decision to terminate was cancelled after the payrun and the termination pay need to be rebanked.
• Enter an adjustment to the last pay for an overpayment (e.g. overtime) that was handed back by the employee.
• An error was found in the employee's pay calculation. The incorrect pay is reversed using the Rebank option and entered using the Prepayments option.

 

Rules and Guidelines

• All details setup against the employee are not carried through to the Prepayment/Rebanks window, standard Allowance/Deductions, etc are not included in the processing, they must be entered manually.
• Prepayments and Rebanks does not calculate tax.
• Percentage-based Non-contributory Superannuation Allowance/Deductions with a Classification of S are generated only if the Super for Prepayments and Rebanks flag is set to Y in the Program Control option PAY38 for position 38.
• For rebanks, all values are entered as a positive value unless a true negative is required. A positive Gross value will reduce the employee's year-to-date Gross.
• Prepayment and Rebank transactions allow for the entry of HELP and SFSS deduction codes. Specific values for these tax elements can be specified against the Allowance/Deduction code. The value for Total Tax includes the value of the Supplementary Tax.
• Rebanks do not affect Unused Leave Balances. Any leave being rebanked reduces the leave accruals but not the Unused Leave Balances. These balances will have to be updated manually.
• A Prepayment or Rebank may not be processed if the Employee's Pay Frequency does not agree with the Pay Frequencies selected in the Payrun Header or if the employee's Paid Up to Date is in advance of the Payrun Header; unless Position 26 of Program Control option PAY34 and Position 35 of PAY38 are set correctly.
• Prepayments and Rebanks that do not balance are not accepted. A message is displayed on the Time Edit Report that the record is out of balance.
• Preceda is alerted to the entry of prepayments and rebanks by the use of the Pay Slip ID's. The Pay Slip ID is used to indicate Preceda that more than one pay and pay slip is selected for an employee.
• The Pay slip ID will generate separate Pay slips for each section of the pay. For example, if paying an employee leave or termination pay, separate pay slips can be generated for the standard pay and the extra amounts.
• Pay slip ID's are also used to define prepayments and rebanks.
• When the option is taken to process shortfall superannuation as a Prepayment, the transaction automatically creates a prepayment with a pay separator of M.
• Process Prepayments and Rebanks

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