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

Are you working diligently on your 2015 taxes? We want to help! The Rent Manager® support team has created a series of articles that feature information, tips, and tricks to help you quickly and easily navigate your end-of-year accounting activities. This post deals with reversing transactions that fall within a closed accounting period.

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

Still need help with your issue? Our support specialists are available to assist you from 8:00 am to 7:00 pm EST, Monday through Friday, 800.669.0871 or support@rentmanager.com.