How can I make reversing journal entry?
The quickest way is to View journal entry you want to reverse. Click Clone button, change the date and copy&paste debit amounts into credit column and credit amounts into debit column. So the new journal entry is basically reversing the original one on different day.
an auto reversing entry would be very helpful, can we please get this feature?
no, journal entries are meant for manual and thoughtful input
I think it may be useful for accrued and deferred incomes/expenses at the closing of the year. Although it would be more useful if Manager could automatically calculate the accruing values at closing by assigning each revenue/expense the corresponding period at the input.
Hi, I attached a screenshot of Peachtree’s journal entry window where you could see it has a feature for the user to tick mark if he wants the journal entry to reverse in the next accounting period. I believe Peachtree added this feature because they had in mind that though journal entries are manual inputs, auto reversing certain journal entries would also save time to the user not to mention saving him from the trouble of forgetting to reverse later on.
Please for your consideration.
Thank you.
Regards,
Jaime
1 Like
Hi Lubos,
it will be more easier if there is an option to input the journal number which i wish to reverse and tick 
then update and it will auto reversed.
Since it is a perpetual accounting software you can only have a “reverse copy” function.
Why don’t you clone the transaction and edit the debit and credit fields and set it into the future by giving it a future date?
I don’t think that setting a future transaction without a pending functionality is a good idea. It will enhance the possibility of errors. And also, in many country, it is even illegal.
How is setting a journal entry to reverse at a future date different from another entry to do a reversal in the future date?
There is completely no difference. In fact what I am saying that inserting any kind of active" future transaction in an kind of accounting software, under my point of view, is not a good practice.
A completely different thing is if you have something like sales orders where you can leave an accounting as a memo and clone it when it is effective. I have already asked for something that I called Journal Notes but it was not of interest for @lubos.
Come on, don’t try to make controversy for free… one day after is not future. And then, please tell me, based on your experience, when you happened to account accrued or prepaid transaction before the ending of a fiscal period.
Actually @Davide, processing accruals at period ends is a very common practice when the system doesn’t automatically recognize/amortize prepaid items.
In fact, unless you have this process automated, this is the best practice to handle prepaid items because it keeps your balance sheet clean at all times.
However, I can see how auto-reversal might be an overkill because it is only a once per period exercise that doesn’t justify the costs of automation.
Imo, a simple reverse button in the view menu of journal entries where you can just enter the date would answer most of OP’s needs, if @dalco agrees with me.
I agree that a “reverse copy” is the easiest and best solution.
I have used a variety of accounting software programs throughout my 50 years in accounting. I cannot recall any of them that did not have the capability to auto reverse a journal entry. That being said, in Manager, when I create a journal entry that requires reversing at a subsequent date, I immediately clone the entry, edit the date and switch the debit and credits. The ability to clone an entry (which I have not seen in any of the programs I have used) to me is a more useful function than the ability to auto-reverse a journal entry.
Journal entries are also fairly rare when Manager is used as intended.
@hsequira I agree that cloning is a handy feature, but it’s not unique to Manager. In other software it’s usually called “Duplicate”.
I think though, cloning is a poor fit for journals because you really don’t want to clone the journal because you will either change the date or the lines or – most probably – both. I can’t think of a situation where I want to clone everything.
That’s why I believe a Copy to button with the following menu items:
- Journal Entry
- Reverse Journal Entry
Would be more handy.
1 Like
I agree, for the most part.
2 Likes