Package Adjustments

Package adjustments are required from time to time when things do not go to plan.

Below are some guidelines on how to create the package adjustments you need depending on the situation.

Use these to help in developing your in-house documentation for package adjustments (each organisation's preferred treatments will be different).

Decision Tree

Payroll Deductions are too high

• Option A - Return to the Employee in the next Pay Run

• Option B - Return to the Employee in a Pay Run that has been posted (Issue a new separate Invoice)

• Option C - Return to the Employee in a Pay Run that has been posted (Issue a new combined Invoice)

1.1 The disbursement has not been made yet

• The disbursement has been made

1.2 The disbursement has been made

1.2.1 The disbursement is to a supplier and can be offset against other payments

Suppliers / Account "Payee" is 'Supplier' and "ABA Format Type" is 'Supplier'

1.2.2 The disbursement has been refunded

• Option A - Recurring Benefit deducted in error and money paid back

• Return to the Employee in the next Pay Run

Return to the Employee in the next Pay Run

Return to the Employee in a Pay Run that has been posted (separate invoice)

Payroll Deductions taken can be returned to an Employee if they are still employed and the Employer is happy to process negative amounts.

Note: Issue a separate invoice for any changes you need to make to a posted Pay Run.

1. Go to Contracts / Lease and create a credit budget entry

2. Go to Packaging / Pay Runs and create a Pay Run invoice (for the credit amount) using the required date

3. Update Pay Run selections to generate an updated Pay Run report, send this to the Employer to finalise.

4. Open the Pay Run invoice PDF (credit) from one of the selected records and send this to the Employer to satisfy documentation requirements.

Return to the Employee in a Pay Run that has been posted (combined invoice)

Note: Catch-e does not recommend this process. We recommend using the process shown above and issuing a separate invoice for any changes you need to make to a posted Pay Run.

Payroll Deductions taken can be returned to an Employee if they are still employed and the Employer is happy to process negative amounts.

1. Go to Contracts / Lease and create the credit budget entry

2. Go to Packaging / Pay Runs and check the total of the pending and posted records for the Pay Run

3. If this is as expected, go to Fleet / Billing / Re-print and Un-Post the existing Pay Run invoice

4. Go to Packaging / Pay Runs and create a new Pay Run invoice using the required date

5. Update Pay Run selections to generate an updated Pay Run report, send this to the Employer to finalise.

6. Open the Pay Run invoice PDF from one of the selected records and send this to the Employer to satisfy documentation requirements.

Transfer Payroll Deduction Employee Contribution from one contract to another

Do this when you have an Employee Contribution that is too high on one contract and too low on another.

The specific Cap situation and FBT treatment of each contract should be considered when doing this. Also, consider the timing of the adjustment and make sure they are both dated into the same FBT year.

1. Go to the contract where the Employee Contribution is too high

   • Contracts / Lease - create a 0 value credit budget entry

   • Pre-Tax Deduction - positive entry

   • Employee Contribution - negative entry

2. Go to the contract where the Employee Contribution is too low

   • Contracts / Lease - create a 0 value debit budget entry

   • Pre-Tax Deduction - negative entry

   • Employee Contribution - positive entry

3. Go to Pay Runs / Pay Run and invoice the two records

4. Go to Receivables / Receipts and post the two records (or you can leave the two records to be picked up in the next pay run receipt)

Disbursements

Below are approaches to creating the credit transaction for different situations.

Recurring Benefit deducted in error and money paid back

Approach 1: Create a Credit Deduction

1. Go to Contracts / Lease and create a credit budget entry for the next Pay Run.

2. Wait until the next Pay Run has been processed and the credit has been receipted.

3. Go to Contracts / Claim and create a credit value Adjustment claim. Process this as a History Only transaction.

Disbursement Type remains as 'Recurring'

If the item's Disbursement Type is 'Recurring', the processing order is important because the scheduler job autoBuildClaims is designed to keep pushing your benefit contracts back to a 0 balance if it can. If a credit adjustment is created, autoBuildClaims will create new claim records to try and pay out the balance. Use this approach if you are:

• Returning the funds to the Employer, or

• Transferring the funds to a different item via the Payroll Deductions

1. Go to Contracts / Lease and create a credit budget entry

2. Go to Packaging / Pay Runs and create a Pay Run invoice

3. Go to Receipts and create and post a matching receipt

4. Go to Contracts / Claim and create an Adjustment claim or Adjustment approval to offset the credit budget amount.

Approach 2: Disbursement Type updated to 'Claim'

In this process, the order of processing does not matter once the item is updated, as only manually created claim records will be created.

1. Update the item Disbursement Type to 'Claim'

2. Go to Contracts / Claim and create an Adjustment claim or Adjustment approval

3. Go to Contracts / Lease and create a credit budget entry to offset the credit claim amount.

4. When the next Pay Run is processed, Current Funds Balance (incl GST) should return to 0.

5. If Item is being suspended, this is fine, otherwise create a Contract / Event entry to follow up on this item and update it back to 'Recurring'.

Disbursement is refunded as bank account is incorrect

1. Go to Item

2. Change the bank account on an item

3. Go to Contracts / Claim and create a credit adjustment claim or credit adjustment approval

4. If the item's Disbursement Type is 'Recurring', the disbursement claim will be created automatically

5. If the item's Disbursement Type is 'Claim':

   • Contracts / Claims - raise the required claim for disbursement and post.

   • Open Funds Check - Current Funds Balance (incl GST) should be 0.

Disbursement is refunded and held pending new details

In this process, the order of processing does not matter once the item is updated, as only manually created claim records will be created.

1. If Disbursement Type is 'Recurring', update the item Disbursement Type to 'Claim'

2. Go to Contracts / Claim and create an Adjustment claim or Adjustment approval

3. Contract will contain an amount to be paid out

4. Create a Contract / Event entry to follow up on this issue

Transfer Payroll Deduction from one contract to another and disburse immediately (Different or Same Tax Treatment)

1. Go to the contract where refund was made - Contracts / Claim and create a credit Adjustment claim or Adjustment approval to offset the credit budget amount.

2. Go to the contract where refund was made - Contracts / Lease - create a credit budget entry

3. Go to the contract where disbursement will be made - Contracts / Lease - create a debit budget entry for the same value

4. Go to Pay Runs and invoice the two records

5. Go to Receipts and post the two records

6. Go to the contract where disbursement will be made:

   • If the item's Disbursement Type is 'Recurring', the claim for making the payment will be done automatically

   • If the item's Disbursement Type is 'Claim':

     • Go to Contracts / Claims and manually create and post the required claim for disbursement

     • Open Funds Check and check that Current Funds Balance (incl GST) is 0.

Transfer Payroll Deduction from one contract to another and disburse in the next Pay Run (Different or Same Tax Treatment)

1. Go to the contract where refund will be made:

   • Contracts / Claim - create a credit adjustment claim or credit adjustment approval

   • Contracts / Lease - create a credit budget entry

2. Go to the contract where disbursement will be made:

   • Contracts / Lease - create a debit budget entry

   • If the item's Disbursement Type is 'Recurring', the disbursement claim will process when required

   • If the item's Disbursement Type is 'Claim':

     • Contracts / Claims - raise the required claim for disbursement and leave as 'Active' / 'Pending Funds'

Transfer costs from one contract to another and disburse immediately (Same Tax Treatment)

If a cost transfer is done and the item's Disbursement Type is 'Recurring', the processing order is important because the scheduler job autoBuildClaims is designed to keep pushing your benefit contracts back to a 0 balance if it can. If a credit adjustment is created, autoBuildClaims will create new claim records to try and pay out the balance.

Because of this, always create the debit side entry first, so the item's balance is either in deficit, or is 0.

1. Go to the contract where refund will be made:

   • Go to Approvals / Approval and create a debit value adjustment approval

   • Supplier - set-up and use a specific supplier for transfers

   • Description - note that this is a transfer to Contract ID ######.

   • Check and update using History Only.

   • Go to Approvals / Approval and create a credit value adjustment approval

   • Supplier is the supplier that refunded the money.

   • Post or History Only depending on your accounting preferences.

   • Open Funds Check and check that Current Funds Balance (incl GST) is 0.

2. Go to the contract where disbursement will be made:

   • Go to Contracts / Claim and create a credit adjustment approval for the transfer.

   • Supplier - set-up and use a specific supplier for transfers

   • Description - note that this is a transfer from Contract ID ######.

   • Check and update using History Only.

   • If the item's Disbursement Type is 'Recurring', the claim for making the payment will be done automatically

   • If the item's Disbursement Type is 'Claim':

     • Go to Contracts / Claims and manually create and post the required claim for disbursement

     • Open Funds Check and check that Current Funds Balance (incl GST) is 0.

Adjustment Type Table

Use the table below to find the claim or approval process you need to use to create an adjustment record to suit your situation.

Recurring

Claim

Periodic

Manually extend an inertia benefit item

Qualifiers

• An item has pending pay runs in the current FBT Year

• You want to manually add billing records for the next FBT Year

Process

1. Go to the Item you want to extend

2. Contract ID - click to navigate to the contract record

3. Navigate to Contracts / Billing

4. Click on Edit

5. Remaining Billings - add one or two years worth of billings to the remaining billings. E.g. if 1 + 26 = 27

6. Click on Save