Correcting a posted entry
Reversal is the only correction mechanism. How to choose the reversal date, what to do when the original period is closed, and how to leave a trail someone can follow.
How-toFor Bookkeepers, Firm staff
The principle
You cannot edit a posted entry, and you cannot delete one. You post a reversal — an equal and opposite entry — and then post the corrected version. The original, the reversal, and the replacement all remain visible, linked to each other.
Choosing the reversal date
The reversal date decides which period absorbs the correction, and it is the only real judgement call in the process.
| Situation | Date the reversal |
|---|---|
| The original period is still open, and the error is yours to fix cleanly. | Same date as the original. The period ends up as if the error never happened. |
| The original period is closed and statements have been issued. | The current open period. Do not reopen a closed period to hide a correction. |
| A month-end accrual that should unwind next month. | The first day of the following period — the ordinary accrual-reversal pattern. |
| The correction is material and the closed period's statements were relied upon. | Current period, and tell whoever relied on the statements. This is an accounting judgement, not a software one. |
Reversing an entry
- 1
Open the entry from the General Ledger list or the account register.
- 2
Choose to reverse it, and set the reversal date.
The reversal is generated with the debits and credits swapped.
- 3
Write a memo saying why.
"Reverses JE 1184 — coded to 6420 in error, belongs in 6430" tells the story. "Reversal" does not.
- 4
Post the reversal.
- 5
Post the corrected entry.
Reference the original in its memo too, so the three entries can be read as one story from any of them.
- 6
Re-check anything downstream.
If the original entry touched a reconciled bank account or a closed period's reporting, confirm the reconciliation and the affected statements still say what you expect.
Correcting things that are not journal entries
| Record | How to correct it |
|---|---|
| Invoice | Void it if unpaid and unsent; otherwise issue a credit memo so the customer's history stays honest. |
| Bill | Void it if unpaid; if paid, a vendor credit or an adjusting entry is the right tool depending on what actually happened. |
| Payment | Void the payment, which unapplies it and restores the open balance on the document it was applied to. |
| Bank categorization | Recategorize the transaction. The prior coding is reversed automatically and both sides stay in the audit trail. |
| Payroll run | Payroll corrections run through payroll, not through the ledger — an off-cycle run or an adjustment, so taxes and filings stay consistent. |
Common questions
Reverse one of them, dated the same as the original if the period is open. Note the duplicate in the memo so the pair reads as intentional rather than as another error.
No. There is no delete, at any permission level. That is what makes the hash chain and the audit trail meaningful — an ability to delete that only administrators had would still be an ability to delete.
Date the reversal in the current open period. Reopening a closed period is possible but should be rare and deliberate — issued statements should stay reproducible.
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