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How do Reversing Journals work?

Create a Reversing Journal Entry

Geoff Ostrega avatar
Written by Geoff Ostrega
Updated this week

Description

SoftLedger automates the process when a journal entry that is created needs to be subsequently reversed at a future date. These types of Journal Entries are often common with accrued revenue or prepaid expenses, as well as any fair market valuation entries done for point in time reporting of asset values.

How to create a Reversing Journal Entry

Creating a Journal Entry in the User Interface (UI)

  • Go to Financial > Journals

  • Click on +NEW

  1. Input Journal Detail, Change Entry Type from Standard to Reversing

  2. Input Transaction Date, Posted Date, and Reversing Date

    • The Reversing date will become the Posted Date of the reversing journal line items the system creates.

    • The Transaction date will be the same for all journal lines in this record

  • See Journal View once the Journal is created

NOTE: When viewing in the journal report, you can filter by Field Reversing Line, to see which journal lines are the reversal and note the different posted date.

Creating a Journal Entry via Bulk Journal Import Template

The reversing entry type can also be created in the excel bulk upload template.

  • Input all Journal Details

  • Update the entryType field to reversing

  • Input posted date for the desired reversing journal lines in the optional reverseDate field

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