Reverse a Direct Deposit Check

Occasionally, it may be necessary to reverse a direct deposit or a check that has been processed with a direct deposit.

For information about voiding and reversing a payroll check, see Void a Payroll Check and Reverse its Entry.

To reverse a direct deposit entry

Select Payroll Main menu > Payroll Data Entry.
In the Employee No. field, enter the number for the employee whose check is to be reversed. For more information, see Payroll Data Entry - Fields.
On the Header tab, select No in the Print Check field so that checks do not print.
At the Check No. field, enter the check number or direct deposit stub number that is being reversed.
Complete the remaining fields on the Header and Lines tabs as you normally would when voiding a check.
In the Manual Payroll Tax Entry window, enter all required tax information. Enter an adjustment amount for the direct deposit as a negative number to back it out. This process does not create a transmission to the employee's account; it only performs the General Ledger and Bank Reconciliation entries necessary to adjust the direct deposit amount.
Click OK and exit Payroll Data Entry.
Select Payroll Main menu > Employee Maintenance.
In the Employee No. field, enter the employee number. For more information, see Employee Maintenance - Fields.
On the Main tab, click Direct Deposit.
in the Deposited YTD field, adjust the amount for those accounts affected by the reversal.
Click Accept and exit Employee Maintenance.

The reversal is reflected on the Check Register and is included in the direct deposit total. An individual reversal transaction does not appear on the Direct Deposit Register.

If the funds have already been transferred to the employee's account, you must contact your financial institution to reverse the actual funds deposited to the account.