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Journal / Reverse Entry

A journal or reversing entry is a transaction that is created to reverse or move monies (revenue or expenses) from one code to another code.  When doing this action, bear in mind that the code that you are moving the monies to may have a different GST category. When making these changes, the system will notify you of any changes to the GST reporting and will generate an audit trail.

Journal / reversing entry in an open BAS period

To create a journal entry or reversing entry, the below scenario will be used.

Scenario:

A transaction of $1,000.00 was posted to Fencing/Yards Imp. code which was found to be incorrect and should be been posted to Improvement Building code. Before closing the BAS period, you can post a journal/reverse entry to correct this mistake. 

To create a journal/reversing entry in an open BAS period:

  1. From the Home page, click Cash Book  
  2. Click Transactions  
  3. Highlight the transaction for $1000.00 and click the Edit icon (the button with the pencil) 

     

  4. You will be in Edit mode at the Edit Cashbook Transaction screen, which displays the details of the transaction for $1000.00 to the Fencing / Yards Imp. (incl. GST) debit code 

     

  5. Create a second line of -$1,000.00 (incl. GST) to the Fencing/Yards Imp. code to reverse the amount out of this code. This action brings the transaction total back to 0.00. Watch this video to enter transactions 

  6. Create a third line of $1,000.00 (incl. GST) to debit the Improvement-Building code 

  7. Save your changes with the green tick   

Outcome: The amount of $1,000.00 (incl. GST) has been moved from Fencing / Yards Imp. code to Improvement-Building code.  Note: the GST categories on are the same for both codes – i.e. Standard 

Journal / reversing entry in a closed BAS period

To create a journal entry or reversing entry, the below scenario will be used.

Scenario:

After reviewing your BAS entries, your accountant has asked you to change a transaction code from Repairs / Mach code (GST Standard category) to Water Rates (GST free category). This change will be made in a closed BAS period.  

To create a journal/reversing entry in a closed BAS period: 

  1. From the Home page, click on the Cash Book   
  2. Click on the Repair Past   
  3. Click on the Repair Transactions  
  4. Click on Find Transactions  to find the transaction to repair  
  5. In the Select Transactions to Find window 
    • Type in the Record Number of the transaction you wish to post the journal/reversing entry
    • Click on the green tick 

       

  6. The Repair Past Transactions window will open, displaying the found transaction. Click on Edit 
  7. In the Edit Cashbook Transaction window, the transaction displays $1,500.00 (incl. GST) posted to Repairs-Plant / Mach code.   A journal/reversing entry will reverse the $1500.00 out of Repairs-Plant / Mach code and will debit Water Rates / Costs (GST free) code. 
  8. Enter 2nd line (split) of -$1500.00 to bring the transaction back to zero. This is the journal/reversing entry 

  9. Enter 3rd line of $1,500.00 to the correct code of Water Rates / Costs (GST Free) 

  10. Click the green tick 
  11. Repairs-Plant / Mach has Standard GST and the Water Rates / Costs has no GST. So the system will notify you of a GST changes.

 (Read more on GST Corrections & Adjustments)

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