Dynamics GP comes with the ability to use Back Out or Back Out and Correct Entries functions. To use, click on the Correct button in the General Ledger Transaction window. But, if the entry was one from a subsidiary ledger, such as the Payables Transaction Entry, it is necessary to set the General Ledger Setup option first so that you can correct or void the subsidiary transactions.
Method
If the batch came from a subsidiary such as Payables, ensure that the General Ledger Setup is set to Allow Voiding/Correcting of Subsidiary Transactions. Follow this path from the Microsoft Dynamics GP button: Tools > Setup > Financial > General Ledger.
Go into the Transaction Entry window by following this path: Transactions > Financial > General Entry. Then, click the Correct button located at the top of the window.
In the Action field, choose ‘Back Out a Journal Entry and Create a Correcting Entry’. Then enter the Original Journal Entry you want to fix.
If the entry came from a subsidiary such as Payables, you will be notified that the transaction was entered in the subsidiary ledger. It will ask you want to continue.
Click the Yes button to accept. Then click OK on the Correct Journal Entry window.
This will create two journal entries. Post both of them.
The first entry will have the Reference: Back Out Journal Entry #### (with ##### being the number you are correcting). Post this one as is since you are reversing the original entry. You need to be sure the period is open related to the transaction date of the transaction.
The second entry will appear right after you post the first. The reference will display Correct Journal Entry ##### (with ##### being the number you are correcting). Before posting, you can change the Transaction Date to fit in the period where it should have been entered. This is also the time to make any other necessary changes to accounts.
Need someone to guide you through this or other processes? We can help. Get in touch by emailing us at Support@Crestwood.com.
You can also take a look at "The Corrector" which significantly smooths this process and provides a full and reportable audit trial of how the correction was made. If you do reclass entries regularly, you will appreciate how simple it can be with The Corrector. If you use suspense accounts, you will see instant value.