Accounting: Complete a Payroll Accounting Adjustment in Workday

This guide provides a high-level overview of how to submit Payroll Accounting Adjustments in Workday. This process is used to correct payroll for specific workers and pay periods after payroll has been processed.

Security Groups with access to Payroll Accounting Adjustments include:

Budget Coordinators
Org Managers
Central Finance

Step 1: Search for "Create Payroll Accounting Adjustment" in the Workday search bar.

Screenshot of the Search Bar from the Workday home screen.

Step 2: Complete the following fields on the Create Payroll Accounting Adjustments home screen:

Employee - the worker whose payroll costs are being adjusted
Pay Groups - groups of employees processed in the same payroll cycle
Company - the legal entity employing the worker
Change Reason - the reason for making the payroll adjustment (a description of each reason is found at the end of this guide).

Screenshot of the required fields to complete under the Create Payroll Accounting Adjustments section.

Step 3: Under the Optional Parameters section, enter Pay Period(s) for the adjustment.

Screenshot of the Pay Period and Payroll Result Type fields under the Optional Parameters section.

Note: You can enter the Pay Period in the next screen, but it is easier to select it here. The drop-down list on the next screen is organized differently, making it more time-consuming to find and select the pay period you are looking for.

Step 4: Determine if you are processing the payroll accounting adjustment based on a percentage or an amount. Follow Step 4.A if a percentage. Follow Step 4.B if an amount.

Step 4.A: To process a payroll accounting adjustment based on a percentage, click the + sign to add a row.

Screenshot of the Payroll Accounting Adjustment percentage table with the + icon highlighted to add a row for the information.

The Position and Worktags where the salary is currently posted will automatically populate.
Select the appropriate Pay Component from the Earnings section. DO NOT SELECT DEDUCTIONS.
Under Worktags, delete the auto-populated data and enter the new cost center or Worktags to which you wish to move the salary.
In the Distribution Percent field, enter the percentage of the amount that you want to move. Note: The total percentage must add up to 100%. For example, if you are moving 50% to a new cost center or worktag, you will need to enter another line and enter 50% to post to the current cost center or worktag.
Click OK and continue to Step 5.

Step 4.B: Payroll Accounting Adjustment based on Amount:

After selecting the Pay Period under optional parameters, click OK.
Enter your Pay Component under Earnings.
Click the checkbox for Refresh Journal Lines. The Current Journal Lines section auto-populates.

The Pay Component(s), Change Reason and Refresh Journal Lines fields. The Pay Component(s) and Change Reason fields are highlighted with a red asterisk and information is filled in. The Refresh Journal Lines checkbox is highlighted.

Click Add Row to Proposed Adjustments section and enter the following information:

Debit Amount - amount being charged to the new accounting line
Position - specific job role held by the employee for the payroll adjustment (this should auto-populate)
Pay Component - type of pay being adjusted (e.g., salary, bonus)
Worktags - labels (e.g., Cost Center, Project) used to classify and track the adjustment. Clear out what is there and enter the worktags associated with where you are moving the expense to.
Budget Date - date used to determine the budget period for the transaction

Screenshot of the “Proposed Adjustments section with the Add Row (+) icon highlighted as well as the required fields.

Note: The total of the Proposed Adjustments debits needs to match the total debits from the Current Journal Lines. You will need to add a line and enter the amount needed to reach the total of the Current Journal Lines.

Step 5: Review your work for accuracy. Under Summary Totals section, click Update Amounts.

Your difference should be 0.00.

The Summary Totals section shows the Update Amounts box highlighted.

Note: To add an attachment, click Add. On the new screen that displays, click Attachments and upload required document.

The Summary Totals section showing the Add button at the bottom of the screen.

Step 6: Submit the adjustment for approval.

The Submit, Save for Later, and Cancel buttons.

Overview of Business Process Routing:

The Payroll Accounting Adjustment will route for approval as follows:

Cost Center Manager (of the cost center where the salary is currently posted)
Cost Center Manager (where the salary is being moved to)
Grant Manager
Principal Investigator

Reasons for Payroll Accounting Adjustments:

01 - Administrative Error - A mistake or inaccuracy made during the process of calculating an employee’s salary and wages.

02 - Staffing Issues – Payroll adjustment for understaffing, overstaffing or turnover.

03 - Allowability Issue – Payroll expense is not allowable on Grant worktag.

04 - Cost Share Adjustment – Payroll adjustment to cost shared effort on a cost share Grant worktag.

05 - Effort Adjustment – Payroll adjustment to sponsored effort that is allocated to a Grant worktag.

06 - Pre-Award Cost Transfer - Payroll expenses incurred before the official start date of the Award need to be moved to the Grant worktag once the Award is finalized.

07 - Award Establishment / Adjustment Delay –Grant worktag(s) were not established when the work began, requiring payroll to be charged to a non-sponsored funding source and then later transferred to the correct Grant worktag(s).

08 - Continuation of Award with new Grant Worktag – Payroll adjustment needed to transfer payroll expenses to Grant worktag established for new Award period.

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