Reversing a Journal Entry

This procedure is performed when the operator needs to reverse a balanced and posted journal entry after the original journal entry has been saved..  This procedure creates a new journal entry based on the original journal entry with the amounts reversed.   The new reversing entry is posted to the same period and year as the original journal entry and cancels the original journal entry out.  Note:You can also automatically create a reversing entry at the same time that you create an original journal entry.  This procedure is discussed in the Creating  a Journal Entry section of this document.

 Typically a journal entry is reversed for the following reasons.

•      The original journal entry was made as an accrual and a reversing entry needs to be posted in the next period to reverse the accrual and restore the account balances to the correct value in the next period.   This procedure is discussed in this section.

•      A mistake was made and the journal entry was posted to the wrong period, year, or account, or with the wrong amts.  This error can be corrected using the Void a Journal Entry procedure listed later in this document

1.  Identify the journal entry to be reversed and the period and year in which it should be reveresed.Select the Journal Entry View from the General Ledger Pull-down menu.

2.  Print a Journal Entry Proof of the entry to be reversed and determine the period in which the entry should be reversed. 

3.  Select the Journal Entry program from the menu, set the posting period to the period in which the entry should be reversed, and press the F8 key to select the Journal Entry Submenu.  Once the Sub menu is displayed, select the "Load Existing JE" option and enter the journal entry number of the entry to be reversed.  Once the journal entry number is entered, enter an "R" to reverse the amounts of the entry.  At this point the system creates a journal entry with amounts that are the opposite of those on the original entry.  The operator then checks the entry and saves it to the system by pressing the SAVE key.

4.  Verify that the entry has been reversed. - Select the Account Lookup program from the menu and view the accounts that were posted to by the original entry.  The original entry and the reversing entry should both be displayed in the period or periods in which they were posted.

More:

Recalling an Existing Journal Entry