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We recently moved to E1 9.2 from World A 9.4 and are experiencing this problem when processing negative wages through Payroll. Since no records are created in the F07353 file during pre-payroll no records are generated in the F06166 or F06136 in FINAL update either. This causes the EE’s F06156 records gross amount to be less than the gross wages reported in the F06136 & F06166 for the given year. Since the W-2 file build utilizes those the F06136 file at year end EE’s gross wages show an incorrect amount. In World when we processed these types of checks F06166 records were created for each Tax Type applicable for the EE; no taxes were computed from Vertex but the Gross Pay showed the negative gross Pay amount.
We have asked Oracle for assistance with this issue and given the response that this is working as designed. And given a manual work around to fix the records through the interim tax overrides screen.
We are looking for insight on how other companies deal with this issue. Has anyone modified Pre-Payroll so that the records generate in the F07353 file?
Tana, not sure I have an answer for you….but wondering how you are entering the negative. Are you entering negative timecards, or are you doing an adjustement type interim? I think there may have been a change in World at one point around processing for negative wages. It'd be helpful to understand how and what you are entering for negative amounts.
Alicia: The negative wages are created via time-entry records. As example an EE could have hours allocated to an OT Pay Type one week on accident and the next week the records are backed out of OT and put in at ST rate creating the negative wage amount. Another example would be that an EE was paid at a taxable per diem pay type and then later it’s determined the EE doesn’t has supporting documents to receive per diem.
Due to our company setup using segregation of duties; the Payroll Department doesn’t always know there is time-entry that will result in a negative amount. As the Billing department may only contact the Time-Keeping Department to request the ST/OT correction based on client requirements/backup.
In World we were able to process these types of checks that resulted in a negative amount; no taxes would be calculated but it kept the EE’s Gross Amount between the F06156 & F06166/F06136 in sync. We are just questioning why that isn’t the same in E1; since Standard E1 Payroll Code doesn't prevent the records from being picked up in Pre-Payroll. If the records aren’t supposed to be processed this way then Pre-Payroll should not allow and reset the records just as it does for records that result in 0.00 gross/net check amount.
Tana, thanks for the additional explanation; that helps in understanding the overall situation. Some of the JDE history around negative amounts ties to Vertex I think, and that Vertex doesn't calculate tax on negative amounts–which then perhaps leads to different 'advice' on how to process negative wage situations. I do also think that there was a change done in World in this area several years ago, and that may be why there is a difference between World and E1. Your point about having the ability to identify and reset employees in a negative pay situation is a good one! Also, I am not sure why the system could not update negative amounts just like World does. Did Oracle give any good reasoning as to why this is functioning as designed? It'd be good to hear from others in the community about how they handle these types of situations too.
Unfortunately, Oracle hasn't given us any reason as to why E1 is functioning as designed but yet functioning different than World. They have recreated the scenario in both E1 and World and confirmed they work differently as we've stated. But the only reason for the differences that have been provided is that E1 and World Code are different…..
We were hoping that the SIG Group could provide insight on how they've dealt with this issue inside their organizations. We see this as being a huge problem since W-2's can reflect an incorrect value versus what Check History shows.
Yes we encountered this on E1 and we wrote a custom report that verifies taxable wages. We use the F06136, F06146 and we read the taxability from the F069116. For us it was easy as I'm in Floriday and no state tax. So we verify all federal taxes and issue an error if we find an out of balance situation. We then had to fix the records manually and sometime to add a detail record it may need to be sql'd depending on the table.