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Back out and create correcting entries for posted transactions

Backing out a transaction creates a new transaction that reverses the original’s debits and credits. You can also create a correction transaction by using the debits and credits of the original transaction to begin the new one.

Posted transactions you can back out include:

• Standard
• Reversing
• Clearing
• Quick journal writing

You can also let users recover transactions from other modules. However, if you back out or cancel a transaction in the General Ledger (GL) which had been entered in another module, this transaction is only backed out and cancelled in the GL.

You can use the “Transaction Entry” window to back out a posted transaction. When you back out a transaction, a new one is created, and the debits and credits of the original are reversed when you post the new transaction. The tax distribution and multidimensional analysis information will also be reversed. The source document’s code, currency and transaction date are copied from the original transaction.

You can back out transactions posted during the open year as well as the most recent historical year.

You cannot back out the following types of transactions:

• Voided transactions
• Consolidated transactions
• Transactions created during the year-end closing process
• Transaction posted in a previous year
• Clearing entries that use multiple currencies
• Clearing entries that use a single currency other than the functional currency
• Transactions that have already been backed out
• Transactions entered to back out a previous transaction

You can back out transactions from other modules if you check the “Voiding/Correcting of Subsidiary Transactions” option in the original GL window.

You can also back out intercompany transactions if you check the “Back out of Intercompany Transactions” option in the window.

To back out a posted transaction

1. Open the “Transaction Entry” window (Transactions>Finance>General).
2. The “Correct Journal Entry” window will open.
3. Under “Action,” scroll and select “Back out a Journal Entry and Create a Correcting Entry.”
4. Select the year in which the transaction you are backing out was posted.
5. Select the transaction’s journal entry number.
6. Select “OK.” The “Correct Journal Entry” window will close, and the new transaction will appear in the “Transaction Entry” window. The original transaction’s debits and credits will be reversed when you post the new transaction.
7. Select “Post” to post the new transaction, or enter or select a batch ID number. Select “Save” to save the transaction in a batch.
8. Close the window.

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