Replacing a Check when Using ADP

This article contains information about the steps to take after a payroll batch has been printed and the disbursement file was sent to ADP for the overall total of the batch and a routing number or account number was incorrect or did not exist. ADP sends funds back to customers that cannot be placed in a valid account.

When a check is printed, the direct deposit information from the Employee Master File (EMF) is saved with the check. If this information is incorrect, it cannot be edited at the check level. Creating a replacement check is the option to address incorrect direct deposit information.

To replace a direct deposit check without going through ADP, follow the steps in PAY: Replacing a Check.

Funds are put back into the customer’s account from ADP. Enter a credit memo invoice to debit the cash account from ADP and then create an adjusting journal entry for the funds going back to the employee.

Funds are paid to the employee when the replacement check is sent to the bank in the NACHA file with the correct direct deposit information.