In some of the accounting software i have used, delete was used only for reversing the journal entry (Dr. & Cr.) and allocate automatically, it wouldn’t show in the reports at all, like supplier & client statements, and you could see the reversed journal if you wanted to.
But in manager IO delete is literally deleting it, with no reverse journal.
Can manager io make an option that deleting is reversing for anything that has journal entry and have a report of those reversals ? or maybe there is already ?
The availability of the delete option does not mean it is required for reversing entries. It is entirely appropriate to use a reverse entry to cancel the effect of a previous entry. If you have multiple users, you can restrict certain users from performing delete actions.
@Abeiku I agree, but i want the option of reversal rather than delete. it would have been very useful even for purchase & sale invoices.
You can delete anything you want and it shows in history, like supplier & client account, items, etc. But when it comes to anything with Journal Entries, i believe reversal is more convenient.
You can clone a transaction and use negative numbers to achieve a reversal effect.
Example
Original Transaction:
Dr Account A: 25
Cr Account B: 25
Reversal:
Clone the transaction and add a negative sign to the figures:
Dr Account A: -25
Cr Account B: -25
I do not really think programmers will see value in introducing a function that is hardly required if systems are properly set up to provide timely information and minimize errors that necessitate reversals.
However, I do agree that a Reverse Transaction option could be added to the “Copy to” menu to simplify generating such entries.
The transaction would simply be cloned with all amounts converted to negative.
I get your explanation for adding negative sign to a number to achieve this effect but it is not accurate under (IFRS) or standard accounting principles, if we do that then we are completely neglecting the standard double-entry bookkeeping system.
Kindly explain your position on why such a method is considered non-compliant with IFRS. I believe it is an excellent approach, as reversals simply reverse the original transaction, and this method achieves exactly that. Unless there is a tax consequence requiring an additional entry to address the issue, I see no reason why there should be any issue with this.
It doesn’t align with fundamental principles of debits and credits, and yes tax & audits will require accurate reversal entries of the actual accounts not just the amount. we are not changing for example expense account to Cr. when reversed as per your take we just need to make the amount negative and that is not accepted.
It seems you misunderstood my point. I’m not suggesting that the initial transaction be edited; rather, I’m proposing that a counter transaction be made.
@Aryan_Mohammed, correct me if I am wrong but is your concern mainly about the missing audit trail from deleted journal entries? If that is the case then Manager retains the History in lieu of the audit trail. In my opinion, other audit controls including History, User Permissions, Lock Dates and Backups outweigh a general ledger polluted with deletions and other corrections that can make it confusing to an auditor or anyone else drilling down on transaction history.
Why not just copy the original journal entry to a new journal entry and swap the amounts in the debit/credit colums?
Just put a comment in the description to let you know it is a reversal of a previous entry.
Yes it works i know but that is not a proper reverse as i explained before, the accounts should be reversed and i wanted to be automatic not manually reverse it. also i know there are history that can be checked and filtered.
When anything that has (journal entry) if it has been entered by mistake (internal or external) a cancellation of any kind should be a reverse so it can be properly distinguished from other deletions and documented.
I guess I’m asking for too much that probably no one here needs it, but it would’ve been great to have that feature built in.
The manual reversal as explained by @VACUUMDOG and agreed to work is compliant with the IFRS principles (there are several more including the method explained by @Abeiku ven though you claim otherwise). It is now clear that you want it automatically flagged as some applications do but Manager as explained in many topics does not do any automatic actions. Indeed the manual approach may be more prone to mistakes but these as explained by @tony can be found easily.