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Correcting a year-end general ledger transaction

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Posted on by oryan90

I made an incorrect entry during the year-end transactions and now I can't seem to fix it in the general ledger.

Without going into unnecessary detail, I was supposed to debit accounts A and B, and credit account C. Instead I incorrectly debited account B and credited A, then debited A and credited C.

When I realized my error, I knew that the only way to fix it (since it is a year-end transaction) was to make another journal entry reversing it. So to start, I debited account A and credited B, which was the opposite of my first transaction. I thought that they would decrease back to their original amounts, however, they both increased. I tried again and the same thing happened.

No matter if I debit or credit the accounts the amount increases. Now the debit and credit amounts on my accounts are way too high. I'm at a loss as to what to do. I wish I could just delete the incorrect transactions.

Any advice as to how to solve this issue?

Thank you in advance.

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Microsoft Dynamics GP

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Joseph Markovich 3,947 on at

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RE: Correcting a year-end general ledger transaction

Click the Correct button, select Back Out a Journal Entry and then enter or look up the journal entry number you want to back out.

The information that shows up on the screen is creating a NEW transaction to correct the balances in the accounts of the first journal entry posted (the JE number you selected). This is providing a trail (especially for the auditors) of what and why you did what you did.

In the grid of the screen you'll see the debit and credit amounts are flipped from the original journal entry.

You'll need to post this to back out the account transactions posted in the original journal entry. Notice in the Reference field, it says something to the extent of backing out journal entry xxxx.

If you are clicking the Delete button, that is just deleting the unposted journal entry on the screen.

Then just keep repeating these steps for all the journal entries you created to get you back to the beginning.

Let me know if you have any questions.

Joe
Bill Campbell 12 on at

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RE: Correcting a year-end general ledger transaction

When you say it remains posted, I would like you to look at the detail transactions and for the JE that you have backed out - it should show VOIDED

While the system uses the term delete - it really only voids that transaction. It should not effect the balance in the account. Please screen shot any report that shows them VOIDED or is active after you have 'deleted' or 'backed out' the transaction
oryan90 5 on at

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RE: Correcting a year-end general ledger transaction

I'm using Microsoft Dynamic GP 2016. I have a "delete" option and a "correct" option but whenever I pull up the transaction (I go to Correct, then Back Out, and select the transaction) and select delete it still stays posted.
Bill Campbell 12 on at

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RE: Correcting a year-end general ledger transaction

First question - what version of Dynamics are you running?

Based on your answer, if you are on a current version, there should be an option in the General Ledger transaction that allows you to 'Delete' a transaction.

In your case, each of the Journal entries you have done should be 'deleted' in the reverse order from which they were created. So the last on created, should be the first deleted.

If none of this sound familiar, please post a screen shot of a BLANK General Ledger Transaction entry screen, along with the version details of your installed version.