How to Reverse an Entry in QuickBooks?

Arranging the financial details is the route to process payrolls, report accurate taxes, budget for future investments, etc. QuickBooks turns these tasks manageable for a business owner. From time to time, a user may require to reverse an entry to correct something. If you wish to reverse or edit something from the main interface of an application, in QuickBooks Enterprise and QuickBooks Premier Account Edition, it is possible.

There are some factors on which reversing an entry in QuickBooks depends on.

When you reverse an entry, it is entirely dependent on the version of the QuickBooks that is being used, if you are using QuickBooks Enterprise Pro or QuickBooks Premier/ QuickBooks Enterprise Solutions.

What is the Definition of a Journal Entry?

Journal Entries are used to register the financial activities of a business organization. When you are recording journal entries, you, basically have two choices. You can record it in a subsidiary ledger only when you handle the books manually. The second option is you can register the journal entries in the General ledger in because you are using the QuickBooks accounting software.

Journal Entries are always prepared with the complete date and description of a particular transaction. In the majority of the business firms, Bookkeepers and Accountants mention a special number for every journal entry when they enter the transaction manually. But, when the topic is about the accounting software QuickBooks, it issues a unique number automatically for every journal entry.

Why do You need to Create a Journal Entry in the Accounting Software QuickBooks?

Here are the reasons to create a Journal Entry in the accounting software QuickBooks:

• Add credits and debits manually, which is the same for traditional accounting systems.
• Allocate money from an asset, liability, or equity account to a certain income or expense account.
• Move money between the expense and income accounts.

How to Reverse a Journal Entry in QuickBooks?

Between two different accounting periods, if you need to rectify or rightly assign the transactions or you wish to rectify a mistake but do not wish to remove the original entry, the primary method is to reverse the journal entry.

Here are the steps to reverse the journal entry in QuickBooks for you to checkout.

Step 1: Firstly, you need to start your QuickBooks Online and then press on the icon for Settings.

Step 2: Now, navigate to the tab for QuickBooks Online Chart of Accounts. Now press on the related account for the transactions.

Step 3: Press on the option, View Register that is right underneath the Action column. Now, choose the journal entry that you wish to reverse.

Step 4: Press on Edit and then navigate to the transaction window and press on Reverse.

Step 5: Repeat this process for all those QuickBooks entries that you want to reverse.

We hope that the information provided in this article has been very helpful to you. We hope that now you know the step-by-step process to reverse a Journal Entry in QuickBooks. All the related information has been added here.

Still, if you are facing any problem in reversing a journal entry in QuickBooks, or if you have some questions then we highly suggest you ask some pro advisors.

Our team of professionals has years of expertise in QuickBooks. They can answer all your problems and fix them instantly.

---