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        <a class="WebWorks_Breadcrumb_Link" href="transactions.17.1.htm#1087392">Transactions</a> &gt; Reversing a transaction</div>
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      <blockquote>
        <div class="hs_SectionHeading"><a name="1087392">Reversing a transaction</a></div>
        <div class="b_Body"><a name="1087393">If your accountant wants you to maintain a strict record of all </a>your accounting entries, you should reverse a transaction rather than change or delete it. </div>
        <div class="b_Body"><a name="1087394">A reversal transaction is a new transaction that replicates the </a>original transaction, but with debit amounts shown as credit amounts and vice versa. After posting a reversal transaction, you have two transactions (the original and the reversal), but the account balances appear as if the original transaction was never posted. </div>
        <div class="b_Body"><a name="1090891">A reversal transaction is automatically posted to the same </a>account for the same amount as the original transaction. You cannot change the amount or account of a reversal transaction.</div>
        <div class="hmn_ModuleHeadingNoSplit"><a name="1090917">Before you can reverse a transaction</a></div>
        <div class="b_Body"><a name="1090918">You can only reverse a transaction if it is </a><span style="font-style: italic;">unchangeable</span>. An unchangeable transaction is identified by a grey zoom arrow&nbsp;(<img id="1090941" class="Default" src="images/transactions.17.6.1.png" width="19" height="22" style="display: inline; float: none; left: 0.0; text-align: left; top: 0.0;" />) next to it. To make your transactions unchangeable, select the <span class="w_Widgets">Transactions CAN'T be Changed; They Must be Reversed</span> option on the <span class="w_Widgets">Security</span><span style="font-weight: bold;"> </span>tab view of the<span style="font-weight: bold;"> </span><span class="w_Widgets">Preferences</span> window. You can change this option at any time. </div>
        <div class="hr_RunInHeading"><a name="1090925">Reversing a transaction can affect closed periods</a></div>
        <div class="b_Body"><a name="1090926">When you </a>reverse a transaction, be aware of the transaction date you enter: </div>
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                <div class="bb_Bulleted_inner"><a name="1090927">If you use the current date when you reverse a transaction </a>from a prior month, the month-end financials for the prior month will not reflect the reversal transaction. </div>
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                <div class="bb_Bulleted_inner"><a name="1090928">If you use the original date for the reversal transaction, your </a>prior month’s financials should be reprinted because they will have changed. </div>
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                <div class="bb_Bulleted_inner"><a name="1090929">If the original transaction date falls in a prior GST period, </a>recording the transaction on the original date may affect the GST reportable in that period.</div>
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        <div class="hr_RunInHeading"><a name="1090930">Negative inventory</a></div>
        <div class="b_Body"><a name="1090931">You cannot reverse a purchase if it will </a>result in a negative on-hand inventory count.</div>
        <div class="hr_RunInHeading"><a name="1090932">Customer and supplier payments</a></div>
        <div class="b_Body"><a name="1090933">If an early payment </a>discount was applied to a sale or purchase, you also need to reverse the discount. For information about how to find a transaction, see <span class="l_Link"><a href="transactions.17.2.htm#1111183">Finding a transaction</a></span>.</div>
        <div class="hp_ProcedureHeading" onclick="WebWorks_ToggleDIV(WebWorksRootPath, &quot;wwdd1090910&quot;);">
          <span class="N_007eProcBullet"></span><a name="1090910">To reverse a transaction</a><script type="text/javascript" language="JavaScript1.2">WebWorks_WriteArrow(WebWorksRootPath, "wwdd1090910", false);</script></div>
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                <div class="bs_BodyStep_inner"><a name="1087415">Find the transaction you want to reverse. See </a><span class="l_Link"><a href="transactions.17.2.htm#1111183">Finding a transaction</a></span> for instructions.</div>
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                <div class="bs_BodyStep_inner"><a name="1087417">Go to the </a><span class="w_Widgets">Edit</span> menu and choose <span class="w_Widgets">Reverse [...]</span>. For example, if you want to reverse a sale, choose <span class="w_Widgets">Reverse Sale</span>. A new transaction containing corresponding negative amounts to that of the original transaction appears.</div>
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                <div class="bs_BodyStep_inner"><a name="1087418">If you want, alter the date and memo. Note that you can’t </a>change the accounts and amounts.</div>
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        <div class="btFi_TipHeadingFirstIndent">
          <span class="N_007eNoteCautionWarning">tip : </span><a name="1090710">Recap transaction</a></div>
        <div class="btLi_TipBodyLastIndent"><a name="1090711">Before you record this transaction, </a>you can use the recap transaction feature to view the journal entries that will be created when the transaction is recorded. To recap, choose <span class="w_Widgets">Recap Transaction</span> from the <span class="w_Widgets">Edit</span> menu.</div>
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                <div class="bs_BodyStep_inner"><a name="1087419">Click </a><span class="w_Widgets">Record Reversal </span>to record the reversal transaction. The transaction is reversed and all account balances are returned to their previous levels.</div>
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        <div class="href_ReferenceBlockHeading"><a name="1114172">Related Topics</a></div>
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                  <span style="color: Gray;">■</span>
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                <div class="bbi_BulletedIndented_inner"><span class="l_Link"><a href="transactions.17.4.htm#1087349" name="1114176">Changing a transaction</a></span></div>
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                <div class="bbi_BulletedIndented_inner"><span class="l_Link"><a href="transactions.17.5.htm#1087362" name="1114180">Deleting a transaction</a></span></div>
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