A one-off addition or deduction for a single employee in a payroll period, such as a bonus, an arrear, or a correction to a previous month.
When to use it
When somebody's pay for a period differs from what their salary structure would produce, and the difference is a one-off. A permanent change belongs on the salary assignment instead.
Before you start
Know which component the adjustment should land on, and the date it belongs to. The date decides which payroll run picks it up.
Where to find it
Open the HR area from the main menu, then Payroll, then Compensation Adjustment.
The fields on this screen
| Field (on screen) | What to enter | Required |
|---|---|---|
| Employee | The employee whose pay this correction changes. Their next payroll run picks it up. | No |
| Component | The salary head this correction lands on. Pick the earning or deduction you want the amount to change. | No |
| Adjustment Date | The date this correction belongs to. The next payroll run whose period ends on or after it picks it up. | No |
| Amount | Amount added to the pay. Enter a negative figure to take money off instead. | No |
| Reason | Short reason for this correction. It is saved on the payslip line, so write what payroll needs to see. | No |
| Status | Only a pending correction is picked up. Change it after the run, or the next run applies it again. | No |
| Applied To Slip | (not explained yet) | No |
| Linked Rule | The pay rule this correction is booked against, so it sits with that rule on the payslip. Optional. | No |
| Notes | (not explained yet) | No |
How it works
A payroll run picks up every adjustment for that employee that is still marked pending and dated on or before the end of the period. Each one is added to the slip as its own line.
Close an adjustment once it has been paid
This is the most important thing on this screen. An adjustment is picked up because it is pending. The date only sets the earliest run that can collect it. It is not limited to a single run, and nothing closes it for you when the slip is paid.
An adjustment left pending is added again to the next run, and the one after that, with no end. Payroll will not warn you. Each slip will look consistent, because as far as the run is concerned the adjustment is still outstanding.
Make closing it part of the same task as paying it:
- Run payroll and check the adjustment appears on the slip you expected.
- Approve and pay.
- Come back here and take the adjustment out of pending.
If you are taking over an existing system, the quickest check is to compare the adjustment lines on this period's slips with last period's. Anything that appears twice for the same reason has been paid twice.
Tips and common mistakes
- Put the reason in plain words. You and the employee will rely on it months later when the payslip is questioned.
- Use an adjustment for a one-off only. If the same amount is needed every month, change the salary structure or the assignment instead, and you avoid the closing step entirely.
- Date the adjustment to the period it belongs to, not the day you type it. The date decides which run collects it.
Related guides
- Bulk Salary Slip Run, where adjustments are collected into slips
- Salary Slip, the slip an adjustment lands on
- Compensation Recoverable, for an amount recovered over several periods instead of one