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Journal / Reverse Entry

This article is for users who want to reverse a transaction. 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 money 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 Cashbook.
      
  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. 

  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 

 

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