Step-by-Step Guide: Reversing or Deleting Journal Entries in QuickBooks Desktop and Online

Managing financial records in QuickBooks is vital for precise and up-to-date financial statements. However, one often needs to delete journal entries due to errors, redundancy, or data cleanup.

This guide covers how to delete and reverse journal entries in QuickBooks Desktop, ensuring the integrity of the financial data during the deletion process. In addition to it, this guide explains how to delete and reverse a journal entry in QuickBooks Online and desktop.

What are the Common Reasons for Deleting Journal Entries in QuickBooks?

Common causes for deleting journal entries in QuickBooks include:

• Rectifying errors – Correcting errors helps maintain accurate financial statements.
• Reversing wrong financial activities – Undoing entries enables adjustments to prevent reporting errors.
• Ensuring precise financial data – Accurate financial information supports informed business decisions and ensures compliance with protocols. Erasing wrong entries helps maintain trustworthy and transparent financial records.

Learn how to easily create and edit journal entries in Quickbooks to keep your accounting accurate and up-to-date. Start Reading Now and become a QuickBooks journal entry pro!

What are the Important Points to Consider Before deleting and reversing a Journal Entry in QuickBooks?

Before implementing the steps to reverse or delete journal entries, it is important to comprehend the difference between them.

• Reverse a journal entry – This is used to assign a transaction between two accounting periods or resolve a debit/credit error. Reversing an entry does not erase the original entry. It creates a new entry that reverses the debits and credits.
• Delete a journal entry – This is used when an entry was created in error and needs to be erased permanently.

How to Delete a Journal Entry in QuickBooks Desktop?

Making an incorrect journal entry is common. It is imperative to delete or reverse the entry by following certain steps. It is possible to manually create journal entries in QuickBooks. Edit or reverse the entry if needed when an issue occurs.

Here are the steps to erase an entry in QuickBooks Desktop:

• Open the Company menu.
• Choose the option “Make General Journal Entries”.
• Find and choose the journal entry to erase:
  • In QuickBooks for Windows, click the option “Find”, add the name, date, entry number, or amount, then click the “Find” button.
  • In QuickBooks for Mac, choose the journal entry from the list in the “Make General Journal Entries” screen.
• Erase the journal entry:
  • In QuickBooks for Windows, click the entry twice, choose the “Delete” or “Void” button, and click the “OK button.
  • In QuickBooks for Mac, click the “Delete General Journal” option from the “Edit” menu.
• Click the “Save & Close” button.

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How do you reverse a journal entry in QuickBooks Desktop?

To reverse a journal entry in QuickBooks Desktop, follow these steps:

• Open the “Company” menu and choose the option “Make General Journal Entries”.
• Locate and choose the journal entry to reverse:
  • In QuickBooks for Windows, click the option “Find”, add the name, date, entry number, or amount, then click the option “Find”.
  • In QuickBooks for Mac, choose the journal entry from the list available on the left side of the Make General Journal Entries screen.
• Click the option “Reverse”.
• Click the “Save & Close” option.

How to Delete a Journal Entry in QuickBooks Online?

Deleting an incorrect journal entry unbalances the accounts. Ensure the entry needs deletion. Create an adjusting journal entry rather than deleting it if an accountant checks the books.

Here are the steps to delete a journal entry in QuickBooks Online:

• Click the “Settings” tab and choose the option “Chart of Accounts”.
• Locate the account linked to the journal entry.
• Click the option “Account History”.
• Find the journal entry in the account register.
• Confirm the word “Journal” in the “Ref No. or Type” column.
• Choose the journal entry to expand the view.
• Click the “Delete” option, then click the “Yes” button to confirm.
• The journal entry is now erased.

Read Also: If you accidentally delete important accounting data, our QuickBooks Data Recovery services can help restore lost information.

How do you reverse a journal entry in QuickBooks Online?

Reversing a journal entry in QuickBooks Online does not delete the original entry. It creates a new entry that reverses the debits and credits.

Here are the steps to reverse a journal entry in QuickBooks Online:

• Click the “Settings” tab and select the “Chart of Accounts” option.
• Locate the account linked to the journal entry.
• Click the option “Account History”.
• Find the journal entry in the account register.
• Confirm the word “Journal” in the “Ref No. or Type” column.
• Choose the journal entry to expand the view and click the “Edit” option.
• Click the “Reverse” option and then click the “Save” button.

Learn how to easily import your Chart of Accounts into QuickBooks and save time on manual data entry.

When QuickBooks reverses an entry, it makes a new journal entry to display the changes.

Here are the key details of a reversed entry:

• The reversed entry keeps the actual journal number and includes the letter “R”, showing it is reconciled.
• The new entry is dated the first day of the following month.
• It keeps the same information, like account, name, and description.

What happens after you delete a Journal Entry in QuickBooks?

When a journal entry is erased in QuickBooks, the software automatically makes changes to maintain financial integrity. These adjustments help avoid inaccuracies or inconsistencies in financial records.

This feature ensures precision in accounting tasks like balance sheets, income statements, and cash flow statements. It keeps the software updated with the current financial data, enabling businesses to manage their finances successfully.

Recommended: While correcting transactions, you may also encounter QuickBooks posting errors that need special handling.

Conclusion

Deleting or reversing a journal entry in QuickBooks Desktop or Online includes a few steps. However, ensure you need to erase or reverse the entry, as it could impact your balances.

In this guide, all the crucial information and steps related to deleting and reversing a journal entry in QuickBooks Desktop and QuickBooks Online have been shared. For users frequently making data entry mistakes, consider getting help from our QuickBooks Support experts for faster resolution.

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