How to reverse a journal entry in QuickBooks

Choose between reversing and deleting. Intuit suggests a reversal when a transaction has to be allocated between two accounting periods, or when an entry has a debit and credit mix-up. Deleting is for an entry made in error that you want gone permanently.

Intuit is cautious about journal entries in general. It suggests avoiding them unless they're truly needed or your accountant is helping, and it warns that deleting one can quickly throw your accounts out of balance. If your accountant has been invited into your books, they can post an adjusting journal entry instead of deleting the original. If you're unsure which of the three fits, check with your accountant first.

Know which account the entry was posted to. Intuit's steps reach the entry through the account history of an account on one of its lines, so any account the entry used will do.

1. Go to All apps, select Accounting, then select Chart of accounts.
2. Find an account the journal entry used and select Account history.
3. Look through the account register for the entry. The word Journal shows in its Ref No. or Type column.
4. Select the entry to expand it, then select Edit.
5. Select Reverse.
6. Select Save.

After a reversal there are two entries. The original is untouched, and QuickBooks adds a new journal entry that swaps every debit for a credit and every credit for a debit, so the second balances out the first.

The new entry differs from the original in two ways. It keeps the original journal number with the letter "R" added. And it's dated the first day of the month that follows the original entry's date. Everything else carries over, including the Account, Name and Description on each line.

Both entries appear in the account history of the accounts involved, and the Journal report lists every journal entry, so both show there too.

A deleted entry, by contrast, is removed permanently, with no reversing entry beside it.