Automatic reversing of a posted transaction
Brief Accounting allows for the automatic reversing of a posted transaction. Checks, receipts, invoices, payments and AJE's can all be reversed. The program will automatically determine how to create the offsetting transaction. Only items that have not been cleared (for example: checks that have not cleared the bank and invoices that have not been marked paid) can be reversed.
As the original and reversing transactions will be cleared from the bank and/or marked as paid (depending on the type of transaction), the reversing transactions cannot be easily undone and therefore this procedure should be used cautiously.
To Reverse a Transaction:
1. It is assumed that the user is inside the appropriate Ledger or Journal (Trust, General, Accounts Receivable or Post Outstanding)
2. Double-click on the transaction to be reversed.
3. From the Special Menu select Reverse Transaction. The program will automatically determine how to create the offsetting transaction and clear, and/or mark paid both the reversing entry and the original entry.
4. Click the Reverse button. Once complete, the reversing entry will appear below the original entry in the Journal. The details of this reversal should then be recorded manually on the posting report of the original transaction in order to alert the auditor and others of the reversing transaction.
Transaction Cannot be Reversed
If a transaction has cleared the bank (such as a receipt or check) or applied against another transaction (such as an invoice, credit memo or receivables payment) a dialog box will appear, warning that the transaction cannot be reversed, unless it is uncleared or unapplied.
To Unclear a Bank Reconciled Transaction:
1. If the transaction is a check or receipt and has cleared the bank, uncheck the "Clr'd Bank" checkbox, then reverse the transaction.
Unclearing a transaction that has cleared the bank will effect the bank reconciliation, making it out of balance for both the period in which the transaction was entered and all subsequent periods.
To Unapply a set of Receivables or Payables Transactions:
If the transaction is a Receivables or Payables check, receipt or invoice and a transaction has been applied against it - both the original transaction(s) and the applied transaction(s) will need to be unapplied against each other and then the transaction can be reversed.
1. Select the Paid sidetab of the Statement screen.
2. Tick off the set of transactions to be unapplied in the "UnClr" column and click UnClear.
3. Once you have uncleared the transactions, click on the Journal tab and then the O/S sidetab.
4. Double-click on the items you wish to reverse, go to the Special Menu and click Reverse.
5. After reversing both transactions, you can now create new invoices/payments with proper amounts.