Advance Bank Adjustment Functionality

How "Advance Bank" Adjustments Previously Operated:

Previously, when a transaction was reversed an "AdvanceBnk" adjustment was automatically created to recoup the monies the employee was overpaid and this adjustment included a "max lifetime" amount within the adjustment matching the original net pay amount of the reversed check. Once the "max lifetime" amount was satisfied, the adjustment would automatically deactivate.

In the example below we see the net pay on the check as $515.50:

For reference, here we see that the net amount of original check is listed in the "Max Lifetime" section of the adjustment:

Following our example, here we enter in 31 hours as the hours Joseph should have been paid for:

From the adjustments section of the employee record users would verify how much they are owed. In this example, we paid the employee 41 hours and should have paid them 31. Let's look at it this way:


Original TransactionRe-Do TransactionBalance Owed by Employee
Hours413110
Dollars515.50(8.) 391.74(7.) 123.76

Here we see the (9.) max lifetime remains consistent at $515.50:

How "Advance Bank Adjustments" Operate Now: 

Advance Bank adjustment functionality has been updated to allow for increased flexibility related to additional changes to a transaction that can sometime happen (ex. suppose the reversal has to be undone). The major changes for users to note are:

1. Max Lifetime is listed as $0.00: This means regardless of subsequent changes to transactions, the advance bank will always be focused on getting to $0.00 - this way, the employee is never over or under garnished for monies related to advance bank.

2. Adjustment Status: The adjustment will continually be listed as active, and will at no point automatically deactivate. This is again, to allow Enterprise to respond to additional changes made to a transaction(s) that may effect whether they owe you money, or you owe them money.

 In the example below we see the net pay on the original check as $298.40:

When we reverse the check, the "Advance Bank" adjustment is added onto the employee's record, with the max lifetime listed as zero. We still see the original net amount of the check as $298.40 within the "amount" section of the adjustment:

Following our example, here we enter in 30 hours as the hours Matthew should have been paid for:

From the adjustments section of the employee record users would verify how much they are owed. In this example, we paid the employee 41 hours and should have paid them 31. Let's look at it this way:


Original TransactionRe-Do TransactionBalance Owed by Employee
Hours403010
Dollars $298.40$227.70$70.70

Here we see the max lifetime remains consistent at (1.) $0.00, the original amount for reference is within the (2.) amounts table, and the balance owed by the employee is listed within the (3.) AdvanceBnk adjustment:

Following our example, let's say we discover we should have never reversed the original check (for example, perhaps we reversed a check on an incorrect employee.). In that case, we will undo the check correction. Once the check correction is undone, (4.) the original check amount will display as being owed to the employee and once again, Enterprise's goal will be to get to zero:

To bring this full circle, the next time we pay Matthew, even 1 hour in this example, he will be paid for the 1 hour plus the amount we "owe" him from having incorrectly reversed his previous check:

The (5.) gross wages show $10.00 for the 1 hour worked, and with the (6.) AdvanceBnk adjustment of $298.40, Matthew's total net pay is calculated at $306.97:

Lastly, the adjustments page of Matthew's record, shows no one (employer or employee) is owed any monies, but the adjustment will continue to remain as active in case subsequent changes are made:

*Note- If a future check is reversed, a new "Advance Bank" adjustment would be added to the employee's record. That is to say, every time a check is reversed, a unique "Advance Bank" adjustment is added and utilized.

Related Articles

  • None