What you'll find
A Reversing Journal Entry is simply a posting that reverses a previous posting.
In
agrē, reversing entries are created automatically
for many types of tasks.
For example when inventory is received, postings are made to the inventory
Asset and inventory Accrual accounts (you want to record the increase
in asset value right away, but since you don't have a bill technically
you don't owe the supplier anything so it can't be included among
your payables - at least not yet). When you get the bill, and the
inventory receipt is imported to a purchase invoice, the posting to
the accrual account is reversed
automatically and the value is posted instead to Accounts Payable
(now that you have a bill, the amount is payable and no longer just
accrued).
You
can setup up your own manual Reversing Journal
Entries to generate a posting now (or backdated in the past)
that will be automatically reversed at a specified future date.
This allows items to be expensed during the period in which they occur,
independent of when the actual money changes hands.
Reversing Journal Entries are designed to help with adjustment postings that are entered after the fact.
Reversing Journal Entries are usually part of the month-end (or period- or year-end) process, often used to record accruals such as payroll earned but not yet paid.
you
won't forget to enter the reversing entry
it will be made automatically on the date you specified with no activity
on your part
less
chance of error
since you don't need to specify which accounts to post to, there is
less possibility of an error being made when making the reversing
entry
Tip
For entries that require a future date, use a regular journal entry (dated today or in the past) and a one-time recurring journal entry (dated to post in the future).
To add a reversing journal entry
Navigate
to General Ledger > Enter
Reversing Entry.
The Reversing Journal Entry window opens.
In
the Posting Date box, enter the posting
date of the entry.
Posting dates must be either current or past dates; future dates are
not permitted.
In
the Reversing Date box, enter the reversing
posting date of the entry.
Reversing dates must occur after the posting date; future dates are
not permitted.
In the Description box, enter a unique description for the reversing journal entry.
In
the Source box, enter the source of
the journal entry.
Only general ledger and payroll source entries can exist in journals,
such as year end adjustments, depreciation, and bank
deposits.
In the Created By box, optionally change the name of the person adding the reversing journal entry.
In the Account column, enter an account for the entry.
Tips
If you need to add
a new GL account, click Add Account.
To remove an entry in the table, select the entry and click Remove Transaction Detail.
In
the Location column, enter a location
to attach the entry to a location.
Location isn’t available for Asset (1), Liability (2), and Equity (3)
accounts.
In
the Project column, enter a project
to attach the entry to a project.
Project isn’t available for Asset (1), Liability (2), and Equity (3)
accounts.
Tip
If you need to add a new project, click Add Project.
In the Debit or Credit column, add the entry amount.
In
the Description column, enter a description
for the entry.
This description appears in the GL Transaction Journal reports.
Enter the remaining debit and credit entries until the balance of the journal entries is $0.00, which is shown in the Difference box.
Note
The Save button is not available until the balance of your journal entries equals $0.00.
Click Save.
Reversing journal entries are edited from the Journal Entries window.
Reversing journal entries are deleted from the Journal Entries window.
To view a report on the reversing journal entries that posted, run the GL Transaction Journal.