Remember that subsidiary ledgers, such as Payables, operate separately from your GL. To correct a transaction in a subsidiary ledger, you’ll need to verify that your General Ledger Setup allows for voiding or correcting subsidiary transactions.
You can locate this option by following these steps:
- Click on the Microsoft Dynamics GP button.
- Navigate to Tools > Setup > Financial > General Ledger.
Step 2: Creating a Correcting Journal Entry
Navigate to the Transaction Entry window by following these steps:
- Transactions > Financial > General Entry.
Once you’ve reached the Transaction Entry window, click the ‘Correct’ button. In the Action field, select ‘Back Out a Journal Entry and Create a Correcting Entry’ from the dropdown, then input the original entry number or search for the entry you need to correct using the lookup function.
Two new journal entries will be created. The first will be a ‘Back Out’ entry, reversing the original mistake. Ensure the related period is open for this transaction. Post this entry as it is.
Following this, a ‘Correct’ entry appears, labeled as ‘Correct Journal Entry ####.’ Before posting, adjust the Transaction Date to the appropriate period or make any necessary account changes.
By following these steps, you will have corrected the incorrect journal entry while also ensuring audit codes get assigned to the changes you have made. These audit codes will ensure that your Back Out entry and your corrected entry are related to one another in your GL.
Points to Remember
Certain transactions cannot be backed out in Dynamics GP, including voided, consolidated, or year-end transactions, those posted to a historical year, or clearing entries in multiple currencies.
If you are still facing challenges or complexities while correcting transactions in your General Ledger, don’t hesitate to seek help. At Innovative Cloud Solutions, we specialize in Dynamics GP and can provide expert guidance and support to help you navigate any issues you may encounter.
Our team is here to ensure that your financial processes run smoothly and efficiently. Feel free to reach out to us for personalized assistance and solutions tailored to your specific needs. Your financial well-being is our priority, and we’re ready to assist you on your journey to financial accuracy and success.
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