Reversing a Reversing Journal Entry

How to reverse a manual ledger entry that is a reversing entry

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When a manual ledger entry is a reversing entry, the reversing part of the entry creates its own entry with its own journal entry number in the next period. To reverse a reversing entry, the current month’s entry must first be reversed, then the reversing entry needs reversed.

Example:

An entry is made in May and when prompted to reverse next period, Yes is selected. This creates the first entry in May AND the reversing entry in June.

1. If this entry needs reversed, first find the number of the entry by running a journal entry report

   1. LDG > Report Manager > Journal Entry Reports > 1. Print Standard Reports > 2. Journal Entry Report

      1. Run the report for the current period and the next period to get both entry numbers

      2. Open

         

   2. In this example, the first entry number is entry 0001 in the 24005 period, and the reversing entry is entry 0001 in the 24006 period

2. Before reversing the entries, go to LDG > Select Journal Period and select into the first entry’s journal period

3. To reverse the entries, go to LDG > Journal Entries > Reverse Journal Entries and choose 1. Reverse Current Period Entry

   2. Key in the first entry number

   3. A warning will pop up saying there are related entries. This is referencing the reversing entry, but reversing this one entry will not reverse the other. Select OK to continue, then select Yes to reverse the entry. An opposing entry will be created in the current ledger period.

4. Repeat the same process, but for the reversing entry’s period. Begin by going to LDG > Select Journal Period and select into the reversing entry’s period, then go through the reversal process. Reversing one of the entries does not reverse the other