Creating Entity Adjustments

An entity adjustment allows you to update FICA covered wages or the subject gross of deductions. Entity adjustments are made using the External Adjustments (EADJ) transaction. The information entered on the External Adjustments transaction is incorporated into existing balances when the next payroll is processed, or after a no-pay-calculation Gross-to-Net run. The following steps provide instructions on how to create an External Adjustment transaction via the Payroll Management activity folder.

1. Navigate to the Payroll Management (PAYM) activity folder.

2. Enter search results to locate the employee for whom you want to enter an external adjustment, then select the record from the search results grid. 

3. Select the row-level Create External Adjustments action for the desired record in the grid. Result: An External Adjustment (EADJ) transaction is created and opened.

4. On the External Deduction Adjustments tab, select the Add Record icon. 

5. Complete the External Deduction Adjustments section. Note: “ * “ denotes a required field. For a non-FICA deduction, enter the date on which the adjustment is effective in the Adjustment Date field, and also populate the Deduction Type and Deduction Plan, and the Adjustment amount of subject gross deduction. For a FICA deduction, enter the amount of change to covered wages using the Deduction Type and Deduction Plan of the employer contribution.

6. To add additional external deduction adjustment lines, repeat steps 4 - 5.

7. On the External Pay Adjustments tab, select the Add Record icon and complete all required fields. Note: “ * “ denotes a required field.

8. To add additional external pay adjustment lines, repeat step 7.

9. Select Validate to make certain that your entries are correct.

10. Select Submit to save your entries.

11. Select Close to exit the External Adjustment (EADJ) page and return to the main page of the Payroll Management (PAYM) activity folder.