Learn how to reverse a transaction in QB
To reverse a transaction means to turn the transaction around, and make it’s effect zero in the financial records. It is not the same as voiding or deleting.
We make reversing entries to negate transactions in closed accounting periods, and we make the reversing entry in the open period.
For example, to reverse a check in an closed accounting period, ADD the money to the register by using the Make Deposits screen in the open accounting period. To reverse a deposit in a closed accounting period, REMOVE the money from the register by using the Write Checks screen in the open accounting period. If the check was for an expense, for the offset, use the same expense account as shown on the original check.
Reversing can be tricky when dealing with accounts payable, payroll, sales tax liability, or other accrual based checks. If you need to reverse one of these, get professional advice.
Key to Reversing: make reversing entries in the open (current) accounting period for transactions in closed accounting periods. When you need to negate a closed-period transaction, make the reversing entry whether the original transaction actually happened or not (as described in void a transaction and delete a transaction). As far as the accounting records are concerned, the original transaction DID happen.