How to Reverse an Incorrect Journal Entry on Sage

Reverse an Incorrect Journal Entry on Sage

In general, in any software, Sage 50 journal entries are used for making online transfers between the nominal accounts. The principle that it works on is Double-entry Bookkeeping. There must be a journal balance (Your Credit and Debits should be equal) and then post it. If it is not balanced, your posting can’t be completed. Always enter journal entries in a batch.

Procedure to Post the Journal Entry

You should always record non-regular transactions in the Journal Entry, i.e. writing a Bad Debt and Fixed Assets Depreciation. Journal Entries can also be used to transfer amount from One Account to Another Account.

Don’t violate the Double-entry Bookkeeping principle while creating any journal entry for the debit balance. You will also have a sequential credit balance. Several Credits are used to make this with overall total balances. Follow the procedure we are mentioning below.

• Click on the Journals, select the New Journal.
• Now, there is some information that it requires, you need to fill out this information.
  • To attach the file, i.e. receipt copy
  • You will see the attachment button, click on it to upload the file. Now, a screen will open, browse to the location of the file and double-click on it to select it.
• Now, you need to check whether your debits and credits are balanced or not. Select Save.

Read More : Sage 50 Journal Entries not Showing up in Account

Posting a journal entry on the wrong date is one of the most common errors. If you have committed the same error in Sage, you must have observed it is quite difficult to delete the entry and start with the new one. However, any transaction can easily and quickly be reversed using Nominal Reversal Options.

At first, you need to make sure what journal entry you want to reverse.

You can easily take a note of it by using the Audit Trail or it is Transaction Date, Number, Reference, Department of the journal with an error that you can take a printout of. Then, follow the instruction:

• Go to the Company Module and then go to the Nominal Ledger and then select the Reversal Icon.
• It is also suggested that you take backup of the journal entries and then proceed further.
• Now, enter transaction number, posting department/reference, date in the required range in the transaction range window. This is to reverse the Journal Entry and then select OK.
• Now, click on the Journal Entry that you want to reverse in Nominal Reversal Window. Now, click on the reverse.
• Now, select the Save button and the reversal will be posted.

Your journal is now reversed and the original entry is reversed.

Manually Reverse a Journal

To manually reverse a journal the user needs to post an opposite entry with the same date as the original posting.

Here is an example where a journal is posted with the wrong date:

• Start by Clicking on Nominal codes 
• Next, click on the Journal entry.
• Finally Complete the Journals window, by using the original incorrect date and the opposite debit and credit amounts. In our example:

• To correctly reverse the original entry the user needs to use the same date as the original journal.
• TIP: In case you are not sure about what the exact details are for the date, you can get the details by running the Day Books: Nominal Ledger report for the date of the original journal. This report is available in:
  • Nominal codes 
  • Reports 
  • Day books.
• Click Save.

Also Read : How to Setup Recurring Entry in Sage 50

Final Words!

So, you see, be it any software, the Sage 50 journal entries are used for making the online transfers between the nominal accounts. Here the principle applied is Double-entry bookkeeping. However, if you still have doubts regarding the same, be sure to visit us at www.accountingadvice.co and you are sure to have your issues clarified.

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