LA GL - Deposits: Reversing a deposit made via deposit assistant

You actually cannot void a deposit made through Deposit Assistant. You must reverse it by doing a General Ledger CR journal entry.

How to date the transaction

Determine the statement date of the last closed Bank Reconciliation. If the original deposit date is after that date, you may use use the deposit date in your reversing transaction. If the deposit was made prior to that date, you must date the new transaction a day after the last closed Bank Reconciliation statement date. 

An example of such a transaction is shown below.

The first example is the deposit through deposit assistant. In this example, the Income account is credited and the bank account (2) is debited.

This deposit puts money in Checking Account #2 and Credits Income Account 3001-03.

Below is an example of the reversing transaction using the General Ledger, Individual Transactions. The reversing transaction Credits Checking (Cash) and Debits Income. Note: the same deposit slip number is used for this reversing transaction as was used in the deposit. Also, since the Bank Reconciliation had not been closed for March, the same date is used in this example.



How to create the reversing entry:

  1. Go into General Ledger, Individual Transactions
  2. Select Journal Type CR.
  3. Use the Bank Account which was used in the original deposit and enter it as a negative amount. Tab through and enter any pertinent information in each field. Use the same deposit slip number as was used for the deposit. Tab until the item you just entered shows in the grid (below). 
  4. Now, use the Income Account which was used in the original deposit and enter it as a positive amount. Tab through and let the default values remain, including the deposit slip number. Tab until the item shows in the grid.
  5. Using the same deposit slip number as the original deposit will create a wash affect in the Bank Reconciliation and will sum all transactions made for the same deposit slip number which will likely sum to zero.

NOTE: If you are reversing this deposit due to NSF, you may want to add letters to the end of the Deposit Slip Number 277NSF and date the transaction when the Bank reported the issue. This way the deposit will show in the Bank reconciliation as it does on the Bank Statement, and the returned check will show separately on the Bank Reconciliation as it does on the Bank Statement.

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