Reconciliation compares the projected payroll used to generate employee payments to the actual hours worked and recorded by employees. At a minimum, the Reconciliation feature compares each employee's projected and actual number of hours per earnings code for each day in a pay period. Your company may also choose to compare and reconcile the rates used to calculate an employee's pay. If any discrepancies exist between employees' projected and actual hours per earnings code (and/or rates, if enabled for reconciliation), the Time & Attendance module automatically creates reconciliation adjustments. These adjustments are calculated to adjust the employee's payroll to reflect his/her actual hours, earnings codes, and earned rates. These automatically generated adjustments are not posted to employee's records until a practitioner approves them.

The reconciliation process cannot occur until all of the days in a pay period have passed and the pay period has been closed. Therefore, reconciliation adjustments are reflected in employees' payroll in the pay period after the pay period for which the employee's payroll was projected. All reconciliation records for a pay period must be reviewed and either accepted or rejected before the next pay period is closed. During the End of Period process, the Time & Attendance module checks for unreconciled records and, if any are found, provides a link to them.

Although you must review any outstanding reconciliation records during the End of Period process, you can review them at any time after they have been generated. The Reconciliation Processor that performs the automatic comparisons and generates reconciliation adjustments runs a few minutes after each projected pay period is closed.

Only those reconciliation adjustments that are accepted by a practitioner are ever applied. When they are accepted, these adjustments are recorded as non-editable payroll adjustments on employees' timecards. Posted reconciliation adjustments can be viewed by the appropriate practitioners, managers, and employees.

To review and accept or reject the projected payroll reconciliation adjustments created automatically by the Time & Attendance module:

1. From the Time & Attendance menu, select Maintenance.

   Note: If the Maintenance option is not visible, make sure that you have selected Practitioner in the Role Selector.

2. Under the click the Payroll Reconciliation link. The Payroll Reconciliation page opens and displays a summary of the reconciliation status for each pay cycle that is configured for projected payroll and reconciliation.

   Note: The Reconciliation Data column on the Payroll Reconciliation page indicates whether the Reconciliation Processor has run successfully for a pay cycle. If the status is "Available," the Reconciliation Processor has generated any adjustments required to reconcile the projected and actual data for the pay period. For pay periods with available reconciliation data, the Incomplete column displays how many employee records (if any) contain adjustments that have not yet been accepted or rejected by a practitioner.

3. Click the number that appears in the Incomplete column for the pay cycle you want to reconcile. The Payroll Reconciliation Summary page opens and displays a summary of the reconciliation adjustments created automatically for a single employee. For a description of each field on this page, see The Payroll Reconciliation Summary Page.

   Note: If the number in the Incomplete column of the Payroll Reconciliation page is zero (0), no reconciliation records require attention and you do not need to proceed further to reconcile the pay period.

4. Review and accept or reject the reconciliation adjustments for the employee, as follows:

• If you are ready to accept or reject all of the adjustments created for the employee without viewing the individual adjustments, click the Accept All or Reject All button. After you click either button, the Payroll Reconciliation Summary page refreshes and displays a summary view of the unreviewed reconciliation adjustments for the next employee.

• If you want to view the individual adjustments for each day, so that you can accept and reject them individually or attach notes to them, click the Details link in the menu on the left side of the page. From the Details view, click in the Accept or Reject column for each row to accept or reject each adjustment. To accept all of the adjustments, click the All button in the header of the Accept column. To reject all of the adjustments, click the All button in the header of the Reject column. After you have reviewed and marked each adjustment, click the Submit button. The Payroll Reconciliation Summary page refreshes and displays the unreviewed reconciliation adjustments for the next employee.

  Notes:
  You can only accept or reject adjustments by day, even if more than one earnings code or rate requires adjustment. You must use the Detail view to accept or reject adjustments by day.
  
  In the Details view, you can add notes to adjustments. To add a note, click the on an adjustment row, enter your note text in the Notes pop-up window, and then click Done.
  
  If you accept an adjustment, it will be posted as a non-editable payroll adjustment in the employee's timecard. The adjustment will increase or reduce the employee's next paycheck so that he/she is paid for the exact hours he/she recorded rather than the hours that were projected based on his/her schedule. For example, if an employee was scheduled to work 8 hours but only recorded 4 hours, the reconciliation adjustment, once accepted, will reduce the employee's pay in the next pay period by 4 hours.
  
  Rejecting an adjustment results in the employee being paid according to the projected hours the employee was expected to work. These hours were based on the employee's schedule and were exported with the projected payroll export before the pay period was closed.
  
  The Reconciliation feature only compares total hours per earnings code per day or, if your company chooses, total hours per earnings code and rate per day. Labor charge field values, such as departments and jobs, are not compared and cannot be reconciled.
  
  Accepted reconciliation adjustments are charged to employees' default labor charge categories (department, job, etc.).

7. Repeat step 4 as necessary, until you have reviewed the reconciliation records for all employees.

Notes:
The numbers in parentheses near the top of the page indicate how many employees have unreviewed records. After you have accepted and/or rejected all reconciliation records for an employee, the total number decreases. For example, (1 of 8) indicates that eight employees have unreviewed records and the first of these employees is being displayed. In this case, if the Accept All button were clicked, the screen would refresh to show a new employee and the count would change to (1 of 7). When you have reviewed the adjustments for all employees, the count indicator is no longer displayed.

After you have reviewed and accepted or rejected all reconciliation records, ADP recommends that you run a Reconciliation Report. The Reconciliation Report lists the details of every reconciliation adjustment, including those that were rejected. This report can help you verify the accuracy of your payroll exports. The Reconciliation Report can only be run for the previous pay period, so it is important that you run this report before closing the pay period again.