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Julians15
August 30, 2024
Question

How can I delete or amend a Journal Entry transaction is it's already been reconciled?

  • August 30, 2024
  • 1 reply
  • 0 views

How can we amend a JE transaction (e.g.: one that should be a payment from a customer for an invoice) if it has already been reconciled? 

 

We are still working through problems caused by the migration from QB desktop to QB online. One main problem is our foreign currency customers and accounts because we were not informed about Multicurrency before the change, so all our accounts and transactions were migrated from QBD to QBO in GBP£, messing with our figures and causing multiple Journal Entries which are incorrect and/or misleading. We have now activated Multicurrency, but all our Euro customer accounts still show as GBP.

 

We were advised to duplicate the customer accounts which are incorrectly showing as GBP, copy all existing invoices and transactions in the correct currency for the 'new' account (in this case, EUR€), then delete the original/incorrect account and all transactions. Then we can apparently just reconcile our EUR bank account with the new/duplicated EUR transactions.

 

However all the existing transactions are shown as a Journal Entry instead of their correct status (such as a Payment). This would be ok, kind of, but for this particular customer they made an error with their last payment and actually paid it into our GBP account instead of EUR, and the GBP account has been reconciled already (EUR account was reconciled from April 2023, then it had to be 'undone' when trying to unravel all this confusion). 

 

If we just delete the payment transaction Journal Entry, then duplicate it in the EUR customer account as an actual payment (but into the GBP currency bank account), will this mess up the reconciliation? This particular transaction is from Feb 2022. Also, because QB thought that all the transactions in EUR were actually GBP, it has entered an exchange rate gain/loss as well. Presumably we can also just get rid of these? 

 

We are hoping that all their other past EUR transactions and invoices can just be duplicated and the payments re-logged into the EUR bank account, because the EUR bank account isn't yet reconciled. 

 

I hope this makes sense. Thank you.

1 reply

G
GeorgiaC
August 30, 2024

Hello and welcome to the Community, Julians15

 

You can create a reverse journal if you need to reverse the transaction. This simply reverses the debits and credits in the accounts without deleting the original transaction. Here's how:

 

1. Select Settings ⚙️ and then Chart of accounts.
2. Find the account you created the journal entry for. Then select Account history.
3. Find the journal entry in the account register. The word "Journal" should be in the Ref No. or Type column.
4. Select the journal entry to expand the view. Then select Edit.
5. Select Reverse.
6. Select Save.

 

Please note, if VAT is included and the JE is dated within a prior filed VAT period, a VAT exception will be created on your open return. 

 

We recommend working alongside your accountant when handling transactions in a previous financial year. If you don't already have an accountant, you can find a QuickBooks certified advisor near you on our online directory.

 

Thanks again for reaching Intuit support. We're just a post away if you have further questions or require additional assistance. 

    J
    Julians15Author
    September 6, 2024

    Hello,

     

    Thank you for the reply, but I have some further questions/points.

     

    What would happen to the exchange rate profit/loss transactions that were generated by QB online?

     

    As mentioned, all the journal entries were created automatically by QB online when we migrated over from QB desktop (via Move My Books), because we were not told about the Multicurrency setting. All our Euro customers - and our Euro bank account, and all Euro transactions (e.g.: invoices and payments) - were automatically converted into GBP by Quickbooks desktop, creating incorrect transaction amounts and also creating additional transactions (exchange rate profit/loss). 

     

    If we duplicate all Euro customer accounts into actual Euro accounts, then replicate all previous invoice and payment transactions, will we be able to delete the 'original' incorrect ones from QB? 

     

    For example, lets say we have a customer called "Spanish Data Company" whose previous account and all invoice/payment transactions were made in Euro on QBD. All their data is now showing in QBO as GBP, including payments in 'GBP' into our Euro account (which QB thinks is GBP). If we make a 'new' customer called "Spanish Data Company EUR", set their currency to EUR, then replicate all existing Invoices and payments in the correct currency (EUR), into our EUR currency account (we created a 'new' EUR currency account), can we safely delete all the incorrect 'GBP' data info, including the customer account and invoices/payments? What would happen to the exchange rate profit/loss transactions? 

     

    I hope this is clear. 

     

    I look forward to hearing from you.

     

    Thank you

    P
    payment after leaving
    September 6, 2024

    Hi Julian We have included an article that references post-conversion steps, specifically refer to the 'Tidy foreign currency' section. https://intuit.me/3QbO1yq 

     

    If you follow the steps in the article, you'd then also have to re-create the existing/active customers in the correct currency for future invoices. 

    If you don't want to follow the steps in the article you could delete all the transactions that are now showing in GBP, make the customers inactive and re-create the customers and transactions in the correct currency.

     

    In relation to the exchange rate profit/loss transactions that were generated by QB online; the foreign accounts will show in GBP but as an amount that was in the foreign currency. We recommend that you contact an accountant to establish the best method to convert this into the correct value on the reports, possibly by journal entry after following the steps in the article.

     

    We would strongly recommend that you contact an accountant before undertaking the above.

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