Reversing Journal Entries

Reversal journal entries are entries made to reverse or negate a previous journal entry. These entries are typically used to ensure that accruals or deferrals from a previous period do not affect the current period's financial statements.

A common example of reversal journal entries is for accrued expenses at month end for any expenses which have been incurred, but no invoice or bill has been received.

To create a reversal journal entry in Rillet, navigate to New Journal Entry in the Command Palette (Ctrl+K or Cmd+K)

Once in the journal entry form, input the standard information and set the Reversal Date to the day you would like to create the entry which will completely reverse

When saved, this journal entry will create a second entry where the debits and credits are exactly the opposite of the original entry. You will see that the original journal entry is also linked in the Related items on the Reversal JE.

If the original journal entry is updated, the reversal JE is also update. Therefore in order to edit the reversal JE, you must update the original JE.