How-to · Adjusting entries
How to reverse a journal entry
To reverse a journal entry, post a new entry with the same accounts and amounts but debits and credits swapped, dated when you want the effect undone. The original stays in place, so the history is clear and earlier periods don't change.
How-to guides / Reverse a journal entry
The accounting behind it
Reversing is the normal tool for month-end accruals: accrue on the 31st, reverse on the 1st, and enter the real bill when it comes.
It is also the right way to undo an entry in a period you have already closed or reported. Editing or voiding the old entry would change numbers you have already given someone; a reversal dated today does not.
For a plain typo in the current, open month, editing the entry is simpler.
| Account | Debit | Credit |
|---|---|---|
| Account A | Amount | |
| Account B | Amount |
| Account | Debit | Credit |
|---|---|---|
| Account B | Amount | |
| Account A | Amount |
Worked example: undoing a wrong reclassification after month-end
On March 31 you moved $850.00 from Office Supplies to Repairs and Maintenance, and March is now closed and reported. In April you find the cost really was office supplies. Reverse the entry dated April 10: March stays as reported and April corrects it.
| Account | Debit | Credit |
|---|---|---|
| Repairs and Maintenance | $850.00 | |
| Office Supplies | $850.00 |
| Account | Debit | Credit |
|---|---|---|
| Office Supplies | $850.00 | |
| Repairs and Maintenance | $850.00 |
Common mistakes
- Reversing an entry and then also deleting it, which undoes it twice.
- Dating the reversal in the same period as the original, which cancels it in that period too.
- Reversing invoices, bills or payments with journal entries. Use a credit memo, vendor credit or void for those.
- Forgetting to reverse month-end accruals, so expenses are counted twice.
In AcboBooks
- Find the entry. Go to Activities → Transactions and find the journal entry (type Journal).
- Reverse. Click Reverse. AcboBooks asks for the reversing-entry date and suggests the first day of the month after the original. Change it if you need another date and click OK.
- Check. The new entry appears in the list with every line swapped. The original is unchanged.
Reverse is offered for journal entries only. Edit and Void are on the same row; neither works for a date in a closed period unless an admin enters the closing password.
Menu names are from AcboBooks 0.2.1. Not using it yet? Try it free for 15 days, with the sample company to practise on.
Questions
What is a reversing entry?
A new entry that swaps the debits and credits of an earlier one, usually dated the first day of the next period.
Should I reverse or void?
Void when the entry never should have happened and its period is still open. Reverse when the entry was right at the time (an accrual) or when its period is closed.
Can I reverse an invoice?
Use a credit memo or void the invoice instead. In AcboBooks the Reverse button is only for journal entries.
Related how-to guides
Terms used here
- Monthly closing checklist
- What your accountant needs from accounting software
- Financial reports in AcboBooks
Updated October 25, 2026. General bookkeeping information, not tax, legal or accounting advice. Rules differ by state and province and change over time; check with the IRS, the CRA or your accountant for your own situation.
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