NetLease - Reversing Journal Entries Booked in Error
OVERVIEW
Use Case: If journal entries are incorrectly booked in a closed period, the user is able to reverse past entries and modify lease for the period closed. This may occur when journal entries have been booked in error, and need to be reversed and not deleted.
STEP BY STEP PROCESS
- Navigate to the desired lease to be reversed
- Select the journal entry that is connected to the lease
- Make a copy of the transaction (screenshot below)
- Reverse out the debits and credits by selecting Edit and adding a negative sign to each of the debits and credits (i.e. - 4,624.86). Please note: this will net out the journal entries for the period selected
- Save the new copy and go to the lease record home page
- From the lease record go to the amortization line item that you are wanting to run entries again for and select edit
- Click edit and then Change the form to the "Standard Form"
- Delete the journal entry link in the highlighted field below and make sure it says "<Type then tab>". Once it says this click save
- Once these steps are completed, it will open the prior period(s) to make modifications (i.e. Modifications in prior periods or removing the lease entirely). See our guide to make modifications or terminating a lease for these processes.
- If modifying, the modification will occur in the first month without a journal entry (this is why we remove the link in the schedule line). The amortization schedule will update once the modification is processed, and journal entries can be ran like normal. The system will re-book the journals for the prior periods using the modified amounts.