Handling Employee Overpayment Recovery in Installments (Outside Receivables Module)
Business Context:
- Payroll is managed through a third-party tool, and data is directly imported into the General Ledger. The Payroll module is not implemented in our environment.
- In some cases, employees have been overpaid (e.g., an employee received $8,000 instead of $4,000 in a month).
- The business intends to recover the overpaid amount (e.g., $4,000) in installments from affected employees, such as:
- 1st month: $2,000
- 2nd month: $1,000
- 3rd month: $1,000
- More than 100 such overpayment cases exist.
Business Requirement:
- The business wants to manage this recovery similar to how Receivables work, i.e., by:
- Creating an invoice (against the employee)
- Applying receipts as installments are recovered
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