Correcting Journal Entries in Microsoft Dynamics GP

Posted by Misty Galbreth, Support Analyst on June 27, 2016


Everyone’s done it.  You’re reviewing your financials or reconciling your books for the month and you find an entry that is incorrect or doesn’t belong at all.  The questions is, what do you do to easily fix that entry?  If it’s a General Ledger entry in Dynamics GP, read on for further instructions!

Overview

In Dynamics GP, there is a unique journal entry number assigned to every General Ledger posting.  You can see the journal entry number highlighted in this Financial Detail Inquiry window screen shot. The journal entry number in this example is 3659.  When you correct a journal entry, you will need the journal entry number.  

Additionally, this entry originated in the General Ledger, since the Audit Trail Code begins with a GLTRX.  If the transaction originated in another module, such as Purchasing or Sales, you will want to correct the entry in that module, and let the correction flow to the General Ledger as the original transition did. 

Since this transaction originated in General Ledger, we will correct this transaction in General Ledger using these instructions.  If your transaction has an Audit Trail Code that begins with anything other than GLTRX, do not use these instructions to correct your GL journal entry transaction.

Instructions to Correct a Journal Entry

There generally are two different scenarios we run into; either you want to completely reverse the Journal Entry, or you want to Reverse the Journal Entry and reenter the correct Journal Entry.  These instructions will go through both options.  

Option #1 –Reverse a Journal Entry

  • Go to Financial > Transactions > General
  • The regular Transaction Entry window opens, but do not begin to enter your reversing information, as there is an easier way to reverse your entry than manually entering the information.
  • Click the Correct button at the top of the Transaction entry window. 
  • Select ‘Back Out a Journal Entry’ from the Action dropdown menu.
  • Select the proper year your Journal Entry is in, using the dropdown menu.
  • Enter the Original Journal Entry number.  This is the number that can be found in the Financial Detail Inquiry window.

  • Clicking OK will bring up the correcting entry, already completed for you, with a reference prefilled “Back Out of Journal Entry #####” where ##### represents your original Journal Entry number.  You can leave this Reference, or change it to something else.  You may post the reversal at this point by clicking the Post button.

  • Here is the Financial Detail Inquiry after the correcting entry has been posted through:

Option #2 – Reverse a Journal entry and Enter a Correcting Journal Entry

  • Here we have a journal entry that was posted to an incorrect account:

  • Journal entry #3661 should have been posted to GL 000-6780-00, but was accidentally posted to 000-6790-00.  We could create an entry to move this amount from the incorrect GL to the correct GL, but that will make research more difficult later on, and if you have lots of GLs and entries, it may be better to correct the original incorrect entry and make a proper Journal Entry. 
  • Go to Financial > Transactions > General.
  • The regular Transaction Entry window opens, but do not begin to enter your reversing information, as there is an easier way to reverse your entry than manually entering the information.
  • Click the Correct button at the top of the Transaction entry window. 
  • Select ‘Back Out a Journal Entry and Create a Correcting Entry’ from the Action dropdown menu.
  • Select the proper year your Journal Entry is in, using the dropdown menu.
  • Enter the Original Journal Entry number.  This is the number that can be found in the Financial Detail Inquiry window.

  • Clicking OK will bring up the correcting entry, already completed for you, with a reference prefilled “Back Out of Journal Entry #####” where ##### represents your original Journal Entry number.  You can leave this Reference, or change it to something else.  You may post the reversal at this point by clicking the Post button.


  • After posting the reversing entry, another entry will appear, with your original entry.  Do not post this entry without first making your corrections!  We had an incorrect GL in this example, verified by the Journal Entry that appears, with a Reference of ‘Correct Journal entry 3661’.

  • Now we will replace incorrect GL 000-6790-00 with the correct one of 000-6780-00 and then Post this entry.

  • Here is the Financial Detail Inquiries after the correcting entry has been posted through:
  • GL 000-6790-00 (Incorrect GL):

  • GL 000-6780-00 (Correct GL):

 

If you need help or have questions with this process, Crestwood Support is here to assist you call 847-394-8820 or email Support@Crestwood.com


Share this:
 
 

Comments:

Add your comment: