Navigate to Reports > Journal Lines Report

Locate the posted Journal Entry you want to reverse. You can use filters (such as Journal Number, Posted Date, or Reference) to find the specific entry.

Click the Reverse icon (↩) in the Detail view of the Journal Entry you want to reverse.

SoftLedger will generate a new Journal Entry in Draft status with the debits and credits swapped from the original entry. The line items will mirror the original entry but with the debit and credit amounts reversed.

Review the draft reversing Journal Entry to confirm the details are correct (Posted Date, accounts, amounts, etc.).

Post the reversing Journal Entry to finalize the reversal.

A new Journal Entry is created in Draft status with all the same line item detail as the original, but with the debit and credit amounts swapped.

The Notes field of the new entry will indicate it is a reversal of the original Journal Entry, including the journal number being reversed.

The original posted Journal Entry remains unchanged in the system — it is not deleted or modified.

Once the reversing entry is posted, the net effect of both entries on your ledger balances is zero, effectively canceling out the original entry.

Navigate to Reports > Journal Lines Report.

Select all columns from the Edit Display icon to ensure your export includes all necessary fields.

Apply filters to isolate the posted Journal Entries you want to reverse (e.g., filter by Status = Posted, a specific Location, date range, or other criteria).

Click Export to Excel to download the filtered journal lines as an xlsx file.

Save a copy of the exported file without any changes as a backup (e.g., title it "Original Posted Journals - Do Not Edit").

Create a copy of the exported file and title it something descriptive (e.g., "Journal Reversal Upload File").

Swap the debit and credit column headers — replace the "debit" column header with "credit" and the "credit" column header with "debit". This effectively flips all the amounts so that original debits become credits and original credits become debits in the reversal entries.

Update the Journal.reference field to indicate these are reversal entries. For example, prepend or append text such as "Reversal of JE #[original journal number]" or "Reversal - [original reference]" so there is a clear audit trail linking each reversal back to the original entry.

Optionally, update the Journal.notes field to add additional context about why the entries are being reversed.

Ensure the Journal.number column contains unique values for grouping line items. Remember, the Journal.number field is specific to the upload file and is used to group debit and credit lines together into a single Journal Entry. The system will auto-assign the actual Journal ID upon upload.

Verify the postedDate field is set to the date you want the reversals to post on. This date must fall within an open Accounting Period.

Save the file.

Navigate to Financial > Journals.

Click on the Bulk Journal Import tab.

Click Upload and select your prepared reversal file.

The system will validate the file. If there are errors, a table of errors will appear indicating which rows or journal numbers have issues (e.g., debits and credits not balancing, closed Accounting Period, invalid Ledger Account numbers).

Resolve any errors and re-upload if necessary.

Once the upload completes successfully, the reversing Journal Entries will be created in Draft status.

All uploaded Journal Entries will be assigned a System Job ID, which you can use to filter the Journals table and locate your newly uploaded reversal entries.

Review the entries to confirm accuracy.

Use bulk actions to select and Post the reversing Journal Entries. You can select up to 1,000 journals at a time using the checkboxes on the left side of the table, then click Post.

New Journal Entries are created in Draft status with the debit and credit amounts reversed from the original posted entries.

Each reversing entry includes reference information tying it back to the original journal being reversed.

The original posted Journal Entries remain unchanged in the system.

Once the reversing entries are posted, the net effect on your ledger balances is zero for each reversed entry.

Accounting Periods: Ensure the Posted Date of your reversing entries falls within an open Accounting Period. If you attempt to upload or post entries into a closed period, you will receive an error.

Audit Trail: Always include reference information (in the Reference or Notes fields) that ties the reversing entry back to the original posted Journal Entry. This maintains a clear audit trail.

Ledger Account Permissions: Verify that all Ledger Accounts used in the original entries are still active and accessible in the Location where you are posting the reversals.

Currency Considerations: If the original Journal Entries were posted in a foreign currency, ensure the reversal entries use the same currency. If using a custom currency, the fxrate field will also need to be provided in the upload file.

Intercompany Entries: If the original entries included intercompany (IC) detail, the reversal entries should include the same IC Location and IC Account information to properly reverse the intercompany activity.

Review Before Posting: Reversing entries are uploaded and created in Draft status specifically so you can review them before posting. Take advantage of this step to confirm all details are correct.

Journals

Bulk Journal Upload

How do Reversing Journals work?

How do I transfer Journal Entries from one SoftLedger Location to another?