81794

Correcting timesheets with inaccurate employee salary amount

Resolution: 

From the Contents in Help, select Employees > Pay rates > Recalculating time and follow the instructions.

Prior to version 5.11.10 or later, follow these instructions: 

Salary amount is entered as the wrong amount and timesheets have been entered.  

Example: The salary was entered as annual amount instead of amount per pay period, causing overstated project costs and inflated financials. 

This error will result in project cost amounts and the employee gross pay being too high. In addition, if calculate the earned amount as a multiple of cost is selected, this amount may be overstated. 

Make sure that no employees will be entering or changing time for the employee whose salary is wrong. 

Determine if the time has been billed or paid:

• To see if the time has been paid:  
• 1. Select Manage > Time > Timesheets by Employee tab, and
  2. Add the Paid column on the timesheet list window. 
• To see both Paid and Bill together:  
• 1. Open each timesheet.
  2. Click the Customize button to add the Billed and Paid columns.
  3. Next, select cell with hours in it. Look in the hours detail section for each cell to determine if it has been Paid or Billed. 
• Optionally, to see if time has been billed:  
• 1. Select Reports > Employee > Hours Distribution by Employee report.
  2. Drill down to see if the time has been billed.  

If the time has been paid but the check can be voided, void the check.

1. In Manage > Payroll, void the check for the wrong amount. The time is now considered unpaid. Follow the instructions to Correct time NOT marked as paid. 
2. After making all the corrections, create a paycheck for the employee for the correct amount.  

Correct time marked as billed:

1. In Manage > Client Invoices, change the invoice status from Final to Reissue for all invoices on which the time was billed.  
2. If the time has not been paid, follow the steps to Correct time NOT marked as paid.  
3. If the time has been paid follow the steps to Correct time marked as paid.  
4. After making all corrections, print the final invoice(s) again for the same amount  

Correct time NOT marked as paid:

1. Correct the salary amount in the employee setup in Setup > Employees on the Pay Information tab.
   1. Enter the correct amount in Pay Period Salary Amount field.
   2. Click Save. 
2. In Manage > Time, double-click a timesheet that has time you need to correct.
   • Clear the Supervisor approved check box and the Accounting approved check box at the top of the timesheet if they are selected.  
3. Click the Print button to print a copy of the timesheet.
4. Right-click each row and select Delete row.
   • This reduces the cost by the original cost amount NOT the new salary amount. 
   • If part of the timesheet line has been Billed or Paid, the delete option is not available. For those days that have NOT been Billed or Paid, change the hours to zero. This will reduce the cost by the original amount. 
5. Re-enter the rows and hours you deleted or changed to zero. The employee will now be paid the correct amount for these hours and the project cost will reflect the correct rate.
6. In the Overhead section of the timesheet:  
   1. Right-click each cell with hours in it,
   2. Select Delete, and
   3. Then re-enter the hours.
      • The employee will now be paid the correct amount for these hours.
7. Repeat the steps for each timesheet that has unbilled, unpaid time you need to correct. 

Correct time marked as paid: 

1. If you have already corrected the employee salary in employee setup, you need to temporarily change it back to the incorrect amount On the Pay Information tab in Setup > Employees. 
2. In Manage > Time select the timesheet that has paid time that you need to correct. 
3. At the top of the timesheet, clear the check boxes for Supervisor approved and Accounting approved to allow for new entries on the timesheet. 
4. For each project/phase/activity combination on the timesheet, enter a new row with the same combination and with negative amounts for the same number of hours on each day that was paid or billed. The result is that the net number of hours will be zero for this project/phase/activity combination.
5. Click the Print button to print a copy of the timesheet. 
6. In the overhead section of the timesheet, note which overhead rows have time that you need to correct. In the detail portion of the timesheet enter a new row for that overhead project combination with negative amounts for the same number of hours on each day that was paid or billed. Use the printed copy of the timesheet to get the project/phase/activity breakdown for the overhead row. 
7. When you have finished entering new rows, click Save. 
8. Repeat steps for each timesheet with paid time that you need to correct.  
9. Enter the correct salary information for the employee in Setup > Employees > Pay Information tab.  
10. Return to the Timesheet List window. Open each timesheet on which you entered negative hours. On new timesheet rows, re-enter the hours as positive amounts for each project/phase/activity combination and save the changes.
11. Be sure to do this for all project related and overhead group projects you changed in the steps above. This step will add the time back to the timesheet at the correct cost amount.

Note:  If the earned value (WIP) was calculated as a multiple of cost, it shows in/out entries at the inflated rate which net to zero and a positive hour at the correct standard hourly rate.