Journal / Reversing Entry In A Closed BAS Period

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.

Please Note:

The Repair Past function should not be used lightly because you can alter the closing bank account balances in months that are closed.

You should not add or transactions into a month in a closed BAS period without consulting your accountant first.

When editing transactions in a closed BAS period, you should be careful not to change the GST category of a transaction’s Code unless you are sure that it is incorrect. Changing the Enterprise, Allocation or Description is safe as this does not affect the GST.

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

1. From the Home Page, click on the Cashbook.
     
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 2^nd 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.

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Read more on GST Corrections & Adjustments