Reverse a finalised payroll month
Sometimes you need to undo a finalised payroll. Here's the safe way.
When you'd do this
- You finalised a month with wrong attendance data
- A retroactive salary revision was missed
- TDS rate change announced after finalisation
How to reverse
Only the Owner or HR_HEAD can do this. Other roles see a disabled button.
1. Payroll → Past Runs → [month] → Reverse
2. The system warns you that:
- Payslips will be marked as VOID (but kept on record)
- Disbursement file will be marked as VOID — recall must be done at the bank manually
- Statutory returns (PF ECR, ESI challan) marked as VOID
3. Type the month name to confirm
4. Reversal is logged with full audit trail (who, when, why)
After reversing you can run the payroll again with corrections. Don't run a fresh month while a reversed one exists — finish the corrected re-run first.
What if disbursement has already happened?
You can still reverse the payroll record. Bank recall is a separate process; reach out to your relationship manager. After bank recall succeeds, the next payroll cycle should reflect the correction as a recovery deduction.
Related
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