QUESTION:
How do you Void / Reverse a Revenue and Expense Journal Entry?
If a Revenue and Expense journal entry was posted incorrectly and needs to be effectively “voided”, you will need to make a reversing journal entry.
PROCESS:
From JE’s > Miscellaneous > Revenue and Expense
If this was the Original Revenue and Expense Journal Entry you posted:
This is the REVERSING journal entry you would need to post:
On the reversing Revenue and Expense JE:
- The Transaction Date should be the same date as the original JE (as long as the original date is not in a reconciled month).
- Enter the Amount from the original JE as a Negative amount (ex: -50.00 )
- The Take From Account should be the same as the original JE.
- The Add To Account should be the same as the original JE.
- The Event Code should be the same as the original JE (if an Event Code was used).
- The Category should be the same as the original JE (if a Category was used)
The Reference should be ““Reversing JE # < ####>, <####> “
This is what the reversing JE Proof Sheet would look like for this example: