Reversing entries are commonly used to adjust G/L accounts temporarily or record estimates. When a General Journal entry is selected to be reversed, Sage 50 automatically enters a second, reversing entry on the first day of the following accounting period, negating the original adjustment.
Reversing entries are optional and relate to bookkeeping technique. Reversing entries are commonly used to show the expenses incurred by a business as reflected on [a monthly] financial statement. For example, you may want to include payroll tax liabilities in December but enter the paycheck itself in January.
Note: You cannot access or edit the reversing entry that Sage 50 generates. However, the reversing entry is present in the General Journal for the following period.
Enter or select the date of the transactions you want to enter.
Sage 50 defaults this date to the Sage 50 system date. If you are in an accounting period that is different from the system date, then Sage 50 displays the first day of that period.
Select the Reverse check box to have the transaction automatically reversed the first day of the next accounting period.
Reversing means that debits become credits and credits become debits.
For each line enter an amount in either the Debit or Credit columns.
For each line enter a description for the transaction.
The description will appear in general ledger and various reports.
Once the Out of Balance field is zero (0.00), select Save to record the transaction in the General Journal.
Note: The Recur button is disabled for reversing transactions.