Enter a Reversing General Journal Entry

Related topics

Reversing entries are commonly used to adjust G/L accounts temporarily or record estimates. When a General Journal entry is selected to be reversed, Sage 50 automatically enters a second, reversing entry on the first day of the following accounting period, negating the original adjustment.

Reversing entries are optional and relate to bookkeeping technique. Reversing entries are commonly used to show the expenses incurred by a business as reflected on [a monthly] financial statement. For example, you may want to include payroll tax liabilities in December but enter the paycheck itself in January.

Note: You cannot access or edit the reversing entry that Sage 50 generates. However, the reversing entry is present in the General Journal for the following period.

From the Tasks menu, select General Journal Entry. Sage 50 displays the General Journal Entry window.
Enter or select the date of the transactions you want to enter.

Sage 50 defaults this date to the Sage 50 system date. If you are in an accounting period that is different from the system date, then Sage 50 displays the first day of that period.
Select the Reverse check box to have the transaction automatically reversed the first day of the next accounting period.

Reversing means that debits become credits and credits become debits.
Enter a reference for the transaction up to 20 characters.
For each line enter or select an account ID. To display a list of existing accounts, type ? in the G/L Account ID field, or select the Lookup button.
For each line enter an amount in either the Debit or Credit columns.

Debits and credits (Accounting Primer)

Standard debit and credit entries in journal transactions
For each line enter a description for the transaction.

The description will appear in general ledger and various reports.
If the transaction is associated with a job, enter or select a job ID. You can later apply the General Journal entry to a customer invoice, if needed.
Once the Out of Balance field is zero (0.00), select Save to record the transaction in the General Journal.

Note: The Recur button is disabled for reversing transactions.