Create Reversing Entries

A reversing entry is a type of adjusting entry to record a debit or credit entry that reverses a prior entry. There are two parts to a reversing entry: the original entry and the reverse, or opposite entry. The second entry records the reverse of the debits and credits in the original entry. The end result is a zero balance on the books.

Examples of reversing entries:

An auditor can use a reversing entry to push an expense recorded in the current year to the prior year.
A user can create a journal entry in one period and Connect will create the reversing entry in a different period.
A user codes an invoice entry to the wrong month and you want to post the invoice entry to a different period.

In this section:

How do I create reversing entries?

How do I create an entry in one month and reverse it in the next month for audit purposes?

How do I change my default preferences to use the reference number from the source journal?

Create Reversing Entry Options