Reverse-on-date journals are useful to record prepayments and accrual expenses that will be automatically reversed on the given date.

Step 1.

The reverse journals option is a toggle feature which can be turned on by going to Settings > Configure system > Toggle Features and then Accounting on the left. Click on the checkbox next to Reverse-on-date journals.

Step 2.

This will give further options when you are making a journal for any adjustments. To make a journal, navigate to Tools > Journals > All journals > Create Journal.

Step 3.

Fill in the details of the prepayment or accrual with the relevant account codes. Please note that you can have more than two entries if you want. You will see an example of a prepayment below of £500 on Insurance. It is advised that you consult an accountant if you are unsure which debits and credits to use.

Step 4.

To confirm the dates and the reversal, please go to Reports > Popular reports > Transactions and run a transaction report for the account code you used in the journal. In this example, the accounting date was the 17th of October but the reversal is on the 17th of November as you can see in the Transactions report.

Please note: you will need to know the correct debit or credit for the accruals and prepayments in order to get the best use of this feature.