This is particularly useful where an item is posted in error, or needs clearing for a different reason. Before reversing a transaction, it's important to ensure that it's not reconciled or allocated as this may have unexpected effects.
Using the corrections module
To reverse a transaction:
Click Financials then select Enquiries.
Click Nominal Transactions.
Find the relevant transaction.
Click the popover option.
You then see the options for reversing as below:
Reverse as Negative | This generates an exact reversal of the same transaction type. The values on the transactions are negative. |
Reverse as Opposite | This generates a reversal using the opposite transaction type, example:
With the corrections module it's possible to use those options to post a reversal via the original transaction. It's possible to post negative values for transactions of all types within the system. |
Correct Transaction Details | You're able to amend details of transactions, This can be done by using the relevant Edit options of the transaction within the enquiry screen when bringing up the ellipses menu. |
Reversing a Transaction Manually
To raise a negative value transaction, simply open the required transaction type and use the minus sign when entering the values.
For example, in order to reverse an incorrectly posted journal:
Navigate to the Financials Ledger
Click Transactions select the appropriate journal type
Fill in the details as required.
Note: Ensure to select the period the incorrect posting is in.Post the amounts to the opposite of where the other Journal went.
Click Save and post the transaction.
Important: When posting a reversal, it's important to ensure that it's as close to the original as possible. Below is a list of fields that should be the same – or as close as possible:
Date - Year/Period – If the original period is closed then post as close as possible to it.
VAT Code.
Exchange Rate - Currency Transactions.
Contra Account - VAT Journals only.
Sub Ledger - if appropriate.
Analysis - Debtors/Creditors.
Detail Line quantities and values including item type in Sales or Purchase Orders.
It's also important to consider the allocation in the Debtors and Creditors ledgers. If the original has been allocated, then this needs to be corrected via the Allocation Correction screen in the appropriate ledger.