Re: Transaction reversal - I think

[..hidden..]

if you sell tangible goods check to see the purchase/cogs are calculated
properly. our businese use sl and at each monthend we have to do a journal
entry to correct cog/inventory to reflect the actual values and it is
typical that the values are off by 15-20%. that could be quite a bit of
money if you are a medium business and the irs probably isn't going to
like it too much...tim

> On Sat, 2008-05-17 at 09:09 +1000, Terry Porter wrote:
>> Hi all,
>>
>> Caveat: I'm an electronics technician, not a bookeeper, or accountant,
>> tho I have studied bookkeeping in my spare time at home.
>>
>> What I do to reverse a transaction is :-
>>
>> 1) Open the invoice that needs reversal, lets call it "INV101"
>> 2) Append "REV" to the invoice number, i.e 'INV101REV"
>> 3) Place a minus sign "-" in front of ALL item QUANTITIES in INV101REV
>> 4) Place a minus sign "-" in front of all payments listed in INV101REV
>> 5) Add a note in the comments section "Reversal because blah blah" of
>> INV101REV
>> 6) Check INV101REV
>> 7) Double check INV101REV
>> 8) Click on "post as new"
>> 9) Call up the customer invoice history and see that the invoice amount
>> has been reversed.
>> 10) Open the invoice that needs reversal, "INV101"
>> 11) Append "ADJ" to the invoice, i.e. INV101ADJ
>> 12) Alter it to fix the error
>> 13) Check INV101ADJ
>> 14) Double check INV101ADJ
>> 15) Click on "post as new"
>> 16) Call up the customer invoice history for "INV101" and check
>> everything, you should see all the amounts are now correct. You should
>> see only three entries, INV101 and INV101REV which cancel out, and
>> INV101ADJ whos value is equal to the total at the bottom of the screen.
>>
>> It sounds tedious, and it is at first, but as I make few mistakes I've
>> had to reverse the reversal of the reversal on occassion!
>>
>> Nowdays after probably 15 reversals so far, I find them really easy. I
>> always reverse the TOTAL invoice and create an ADJ for the final
>> replacement, I don't know if a partial reversal is possible as my
>> accounting skills suck.
>>
>> One day I asked a 'proper' accountant, who is one of my clients, "have
>> you got many reversals in your books ?" and was stunned by her reply "
>> tons!", as I thought it was just me that made mistakes when creating
>> invoices, but no, even the 'professionals do it' !
>>
>> Some tips:
>> 1)NEVER cancel an invoice
>> 2)Set your system to refuse any deletions, i.e. force reversals instead.
>> 3)ALL mistakes can be corrected with a reversal, it just takes a little
>> practice, so create some test invoices with just one item and one
>> payment, and reverse it, repeat until you get the hang of the process.
>>
>>
>> Cherio
>> Terry
>>
>>
>
> Many thanks, I'll be giving that a go this morning.
>
> Cheers
> Richard
>
>>
>> On Fri, 16 May 2008 13:36:35 -0700
>> "James D. Ivey" <..hidden..> wrote:
>>
>> > beamends wrote:
>> > > Hi All,
>> > > I've had a spot of bother with Invoices being posted twice, and
>> > > forgetting to change the total payment when customers have added
>> > > something. I need to reverse the extra transactions (presumably?) -
>> > > could some kind soul explain how I do this (I'm using the default UK
>> > > chart, with VAT) - I'm affraid I go all blank on the accountancy
>> side of
>> > > things, so words of one syllable would good.
>> > I've been trying to do this:
>> > http://tinyurl.com/5k8cqy
>> >
>> > But without success so far.  I must be doing something wrong because
>> > "Update" always replaces the 0 amounts with the default amounts.
>> >
>> > FWIW: version 1.2.13.
>> >
>> > Regards,
>> >
>> > Jim
>> >
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