Year-End Close: Reversing Transactions Dated Before The Accounting Close Date

*Updated for 2016*

The end of the year is right around the corner and the Rent Manager® support team wants you to have access to the information, tips, and tricks that will make your year-end close straightforward and problem-free.

Rent Manager allows you to reverse certain transactions (such as checks and journal entries) and date the reversal within an accounting period that is not yet closed. Transactions that are dated prior to the accounting close date can be “reversed” by creating a journal entry and dating the entry after the accounting close date.

To create a journal entry to reverse a transaction:

1. Go to Activities > Accounts Payable or Accounts Receivable> Journal Entries.
2. Select a Date that falls after the accounting close date.
3. Depending on the transaction being reversed, select the appropriate Accounts (suggestions are listed below) and enter the amount under the appropriate Debit/Credit column.
4. Select the Property and Unit (if appropriate) and optionally, enter a Memo that describes the purpose of the entry.
5. Click Save.

The reversing transaction will be listed on financial reports that include the date of the Journal Entry. Previous financial reports will not be changed.

Vendor Credit reversal:

Credit: Accounts Payable

Debit: The Chart Account selected on the vendor credit

REQUIREMENTS / PERMISSIONS

Go to File > Administration > Manage Users:

Properties group: Enable (check) the appropriate Properties
Accounting group: Add Journal Entries

For complete instructions on how to process year-end tax documents and reports in Rent Manager, refer to our Year-End Close Resource Center or log into your Rent Manager University account.