Have you ever posted a journal entry in QuickBooks Online and realized that something’s wrong with the records? Maybe you entered the wrong amount, picked the incorrect account, or accidentally made a duplicate entry. If you’re also stuck with this, then there’s no need to worry because we are here at your disposal. We understand that these things happen more often than you think, especially when you’re juggling a hundred other accounting tasks.
The good news is, QuickBooks Online allows you to either reverse or delete a journal entry, depending on your specific needs. If the entry was made in error and should not have been posted at all, deleting it might be the right move. On the other hand, if you want to keep an audit trail and maintain historical accuracy, reversing the journal entry can help you correct the mistake while preserving your records for future reference.
Understanding when to reverse versus when to delete is essential to maintaining accurate books and complying with accounting best practices. In this blog, we will walk you through the steps to reverse and delete a journal entry in QuickBooks Online to make sure your books stay clean, error-free, and ready for reporting at any time.
So grab your coffee, log into QuickBooks, and let’s get that entry sorted out in just a few clicks.
When Do You Need to Reverse or Delete a Journal Entry in QuickBooks Online?
Not every journal entry needs to be edited or undone, but when mistakes slip through, knowing whether to reverse or delete an entry can make all the difference in keeping your books accurate. Here’s how to decide which route to take:
When to Reverse a Journal Entry?
Reversing is the best option when the original entry was technically correct at the time, but now needs to be undone for clarity or audit purposes. Think of it as “canceling out” a transaction rather than removing it entirely. You should reverse a journal entry when:
- You need to maintain an audit trail.
- You’re adjusting accruals, payroll, or temporary entries.
- The entry was valid but now needs to be offset (e.g., reversing a monthly adjustment).
- You want visibility into what was changed and when.
When to Delete a Journal Entry?
Deleting is more appropriate when the journal entry was just plain wrong or entered by mistake, and there’s no reason to keep a record of it. You should delete a journal entry when:
- It was entered in error (wrong account, duplicate entry, etc.).
- The transaction never occurred.
- You’re correcting setup mistakes in a new QuickBooks file.
In short, reverse to correct with transparency. Delete to fix outright mistakes. Now, let’s take a look at the steps to reverse and delete a journal entry in QuickBooks.
How to Reverse a Journal Entry in QuickBooks Online?
For a smart user, it is crucial to be aware of the steps that are required to reverse a journal entry in QuickBooks. This option comes in handy when you need to adjust transactions across two different accounting periods or correct an issue involving debit and credit balances.
Instead of removing the original entry, QuickBooks creates a new one that mirrors and offsets the original, essentially flipping the debits and credits. This way, the original transaction remains visible in your records, maintaining a clear audit trail and ensuring your books stay transparent and compliant.
Here are the steps to reverse a journal entry in QuickBooks:
- Go to Settings, then Chart of Accounts.
- Locate the account for which you created the journal entry. Then select the View register.
- Look up the journal entry in the account register. The word “Journal” should be in the Ref No. or Type column.
- Click on the journal entry to expand it. Click Edit.
- Choose Reverse.
- Hit Save.
When you reverse a journal entry, QuickBooks automatically generates a new entry to offset the original transaction. This acts as a record of the adjustment you made in your books. Also, it has slightly different information which states that:
- The new journal entry keeps the original number with an added “R” to indicate it’s a reversal, making it easy to track and reconcile.
- The reversal entry is dated the first day of the month after the original journal entry.
- The reversal entry retains the same Account, Name, and Description as the original journal entry.
How to Delete a Journal Entry in QuickBooks Online?
Just as it’s important to understand how to reverse a journal entry in QuickBooks Online, it’s equally essential for users to know the correct steps for deleting specific journal entries when necessary. If you’ve created a journal entry by mistake, you can follow a few simple steps to permanently delete it.
However, be absolutely certain before doing so, as deleting a journal entry can affect your account balances and potentially throw off your financial reports. Here are the steps to delete a journal entry in QB Online:
Note: If you’ve invited your accountant to review your books, they can choose to adjust an adjusting journal entry rather than deleting the original one. This approach helps maintain a clear audit trail while still correcting the error.
- Go to the Settings and select the Chart of Accounts.
- Find the account associated with the journal entry and click View register.
- Now, look for the journal entry labeled “Journal” in the Ref No. or Type column.
- Click the journal entry to expand its details.
- Select the Delete option.
- Finally, confirm the action by clicking Yes.
So, these are the steps to delete a journal entry in QuickBooks Online. Once you reverse or delete a journal entry in QuickBooks Online, your records will accurately reflect these changes.
Tip: You should always double-check your entries after making adjustments to ensure your books remain balanced. A good idea is to consult your accountant before making permanent changes if you’re ever unsure.
How to Delete Multiple Journal Entries in QuickBooks Online?
Here are the steps to delete multiple journal entries:
- Open QuickBooks and go to the Company menu.
- Select Make General Journal Entries from the list.
- Navigate to the Main tab within the journal entry window.
- Use the left arrow at the top to scroll through and locate previous journal entries.
- Now, select the General Journal Entries (GJEs) you need to remove.
- In case you know the GJE number, use the “Find” function, and enter the number in the relevant field.
How to Restore or Recover a Deleted Journal Entry in QuickBooks Online?
It is not possible to restore or recover a deleted journal entry in QuickBooks Online. Because Once a journal entry is deleted, it’s permanently removed from your books. However, there is a workaround to help you recover or recreate the entry. With Audit Log, you can track all user activity, including deleted transactions, and more. So, let’s get started!
- Click the Gear icon and choose Audit Log from the menu.
- Click Filter, then set the Users field to All Users.
- In the Date field, choose All Dates.
- Under Events, check the box for Transactions.
- In the Show dropdown, select Deleted/Voided Transactions.
- Click Apply to update the results.
- Find the deleted journal entry in the list and click View to see the details.
- Review the activity history and note down the original entry details for manual re-entry.
Here’s how you can recreate the journal entry:
- Click the Create (+ New) button and select Journal Entry.
- Enter the journal date and fill in the required details such as accounts, amounts, and descriptions.
- Once done, click Save and Close to add the entry back to your books.
Conclusion
Managing journal entries in QuickBooks Online is a vital part of maintaining accurate financial records. Whether it’s correcting a simple error or addressing a larger bookkeeping issue, knowing when and how to reverse or delete a journal entry can save you from potential discrepancies and confusion down the line. Reversing a journal entry is ideal when you want to correct an entry while keeping a transparent audit trail. It maintains the integrity of your financial records by showing both the original and offsetting transactions.
On the other hand, deleting a journal entry is appropriate when an entry was made by mistake and needs to be removed entirely from your books. However, it’s important to proceed with caution, as deleting entries can affect your account balances and overall reporting accuracy. If you ever delete an entry by accident, QuickBooks Online’s Audit Log can be your best friend. It lets you track down deleted journal entries and view the original details, giving you everything you need to manually recreate them.
In short, staying on top of your journal entries is key to keeping your books clean and audit-ready. Whether you’re a small business owner or an accountant, understanding these processes will help you manage your QuickBooks file more effectively.
Frequently Asked Questions
Having an incorrect journal entry recorded in QuickBooks Online can affect your financial reports, balances, and tax filings. You can either edit, reverse, or delete the entry depending on the error. To maintain accurate records and ensure your books accurately reflect your business activities, it’s important to correct mistakes right away.
1. Click the “+ New” button.
2. Choose Journal Entry from the list.
3. Swap debits and credits for the original write-off entry, using the same accounts, amounts, and details.
4. Clarify the memo by writing “Reversal of write-off entry.”
5. Choose the current date or the next period’s start.
6. Save and close the window.
Yes, you can delete journal entries in QuickBooks Online, but it should be done with care. Deleting entries is generally appropriate when fixing data entry errors, removing duplicates, or clearing out voided transactions. However, it’s important to ensure that deleting an entry won’t disrupt your financial records or reports. Always consider how the deletion will impact your accounts and try to maintain an accurate audit trail.
To edit a journal entry in QuickBooks Online, follow these steps:
1. Go to the Accounting tab and click on Chart of Accounts.
2. Locate and open the account where the journal entry was recorded.
3. In the register, find the journal entry you want to edit and click on it to open.
4. Make the necessary changes to the details (such as accounts, amounts, or descriptions).
5. Once done, click Save and Close to update the entry.
