Reverse journal (D<-->C)

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Once a journal has been posted (updated) to the ledger with the amounts in the incorrect column (e.g. in the debit column instead of the credit column), this error will not be revealed by the trial balance. This is called errors of reverse posting.

TurboCASH allows you to check and edit the entries in a journal before posting or updating the transactions to the ledger. It is good practice to list the transactions in the journal and check your data thoroughly before posting a journal.

You may transfer the transaction amounts as entered into the debit columns to the credit columns and vice versa for any unposted journal.

This option should be used with utmost care and only if you have entered amounts in the incorrect side debit instead of credit and vice versa.

To reverse transactions in an unposted journal:

1.In the following example, the amounts for the transactions in the Sales journal (Journal type), were incorrectly entered in the credit column (instead of the debit column). The Journal entry screen for the Sales journal will display the incorrect transactions as follows:

Should this journal be posted (updated) to the ledger, the individual customer accounts (and the Customer's control account) will incorrectly be credited and the Sales account (income) incorrectly debited. This feature allows you to correct this with a few mouse clicks.

2.Click on the F9:Process icon. The Process the journal options screen will be displayed.

3.Select the Reverse journal (D<-->C) option, and click on the OK button.

You may also right-click on the selected journal on the Journal type selection screen, and select the Reverse journal (D<-->C) option on the context menu.

4.All amounts entered in the credit columns will be transferred to the debit column. If the journal was balanced, the Balancing amounts will also be transferred to the correct column (e.g. credit column).

Should this corrected journal be posted (updated) to the ledger, the individual customer accounts (and the Customer's control account) will correctly be debited and the Sales account (income) incorrectly credited.

If you have selected a Tax code, in the Cashbook (Receipts journal and Payments journal), the amount EXCLUSIVE of VAT/GST/Sales Tax (NOT the INCLUSIVE of VAT/GST/Sales Tax) is reflected in the amount column, when the cursor is not on the amount field of a transaction.

The following list indicates whether amounts of transactions for a specific journal type should be entered in the debit or credit columns in a journal entry screen:

Journal

Debit / Credit (Amount entry)

Sales

Debit

Sales returns

Credit

Purchase journal

Credit

Purchase returns journal

Debit

Receipts journal

Credit

Payments journal

Debit

Petty cash journal

Credit

General journal

Both Debit and Credit


Once a journal is posted of which the transactions have been entered in the incorrect amount columns (debits as credits and vice versa), you need to:

1.Enter the transactions in another journal to cancel the transactions, which were incorrectly posted (updated) to the ledger.

2.Enter the transactions again to record the original transactions and post (update) it to the ledger.

Another option is to make a backup and use the Cancel / Reverse posted journal in Setup → Tools → Global processes. This will cancel the journal and import it to the journal entry screen on which you may use the Reverse journal (D<-->C) option before posting the journal again.

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