Reverse a transaction

You might need to reverse a transaction, because it is a duplicate or because you paid a AP purchase invoice that you didn't want to pay right now. Whatever the reason, you have the option of reversing many types of transactions.

Reversing a journal entry is a little different from reversing other transaction types. See Reverse a journal entry.

After you reverse a transaction, you cannot undo the reversal. However, you can create another transaction to replace the original.

  1. Go to the list page for any transaction that can be reversed, find the transaction, and select Reverse at the end of the transaction line.
  2. In the Transaction Reversal Date page, enter the following:
    • Memo: It’s recommended that you enter the reason for the reversal.
    • Reversal date: Select the date for reversing the transaction. This date is usually the original transaction date or a later date.
  3. Select Submit. The system returns you to the transaction list, and displays two line items for this transaction. (The transaction is not zeroed out so there's an audit trail.)
    • One line item is the original transaction, where the Reverse link now is labeled Reversed.
    • The other line item added by the system is the reverse of that transaction, which produces a net effect of zero for that transaction. This transaction is labeled Reversal.

If you do not see a reverse link for a transaction, it might be for reasons, such as your application doesn't support reversals, or your user permissions are not enabled for reversals, or you are trying to reverse a transaction that just can't be reversed. Check the following:

  • User permissions: Do you have the proper user permissions? Check your user permissions to be sure that you are allowed to reverse this type of transaction. Still not sure? Contact your administrator.
  • The transaction was already reversed: Are you trying to reverse a transaction that was already reversed? You can quickly check the state of the transaction by viewing it.
  • Transaction type: Are you trying to reverse a transaction that can't be reversed? The following are transactions that can be reversed. If you do not see your transaction type on this list, it can't be reversed.
    Transactions that can be reversed
    ApplicationReversible transaction types

    Accounts Payable

    Accounts Receivable

    Cash Management

    Expenses

    Journal Entry

    Journal entries

    Reversing a journal entry is a little different from reversing any of the above transaction types.
  • Subledger period is closed: The period has to be open for the reversal transaction. If the period in which the transaction was created is closed, you can:
    • Open the closed period to reverse the transaction with the original date.
    • Reverse the transaction in the current open period.
  • Paid transaction: Is the transaction partially or fully paid? The transaction must be partially or fully paid, unless you configured your application for reversal of unpaid transactions, such as AP purchase invoices, AR sales invoices, expenses, or adjustments.

    FYI: if the transaction state is

    • Selected: you need to remove it from the selected state, then reverse the transaction.
    • Partially paid or Paid, you need to reverse the payment first, then reverse the transaction.

Are there other ways to reverse a transaction?

You can reverse a transaction from the:

  • Cheque register: Void the payment, and the system automatically reverses the AP purchase invoice.
  • Receipt register: Reverse the receipt of payment.
  • Bank register: Reverse a receipt of payment, or void payment to automatically reverse an AP purchase invoice.

Why can't I undo a reversal?

Undoing a reversal isn't in accordance with accounting best practices. Instead of undoing a reversal, perhaps one that was done by mistake, re-enter the original transaction, correcting any errors.

This ensures that the original transaction, reversal, and new transaction provide a valid audit trail and are compliant.