Reversing entry
In Arabic القيد العكسي
A journal that mirrors an earlier one, with every debit and credit swapped, to cancel its effect while leaving both on record.
In plain words
Posted journals should not be edited. When one was wrong, or was an accrual meant to last one period, a reversing entry cancels it, and anyone reading the ledger can see what was posted, when, and when it was undone.
The reversal copies each line of the original with debits and credits swapped, dated on the day of the correction or the first day of the next period. The correct journal is then posted on its own.
The common mistake is posting a partial correction instead of a full reversal. The account ends up right, but the trail mixes the error and the fix, and the original can no longer be read cleanly.
- Original: debit rent
- SAR 3,000
- Original: credit bank
- SAR 3,000
- Reversal: debit bank
- SAR 3,000
- Reversal: credit rent
- SAR 3,000
- Net effect on both accounts
- SAR 0
In Axon Suite
How Axon Suite handles it
A posted journal cannot be edited in Axon Suite. It is reversed by a mirror journal, the two are linked, and both stay on record.
Feature
Every journal names its source
Every automatic journal names the document that posted it, and every invoice, bill and credit note lists the stock movement and journals it raised. One click takes you from one to the other.
Open: Every journal names its source