LA GL - Journal Entry: To fix Check Transaction with Incorrect Accounts

How to fix transactions where the wrong account was used

When you have written a check and used an incorrect bank account or distribution account, you may correct this error with a Journal Entry.

When possible, use the date of the original transaction for the Journal Entry. Do not use the Transaction date if it falls in a closed Bank Reconciliation Period. Then, simply use the first date of the open Bank Reconciliation Period.

In the General Ledger, go into Individual Transactions.

If the incorrect Account used was a Bank Account, you must use Journal Type CD in your new journal entry. If it was not the Bank Account, you may use a GJ entry. 

 

So, when the Bank Account was wrong, use a CD entry (Cash Disbursements) type to Debit the wrong Bank Account and Credit the Correct Bank account.

When the expense or liability line item in the check is incorrect, use a GJ (General Journal) entry to Credit the wrong account and to Debit the correct account.

If both were incorrect, you may use the CD type for all four in the same batch.

 

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