How to correct a deposit
A deposit records a debit to the bank account and an offsetting credit to one of the following account types:
- Income Account
- Dedicated Account
Depending on the error you want to correct, the state of the transaction, and your account privileges, there are different instructions for how to correct a deposit.
- Deposit date is in the current accounting month and the deposit has not yet been marked on a reconciliation
- Deposit date is in a prior accounting month
Deposit date is in the current accounting month and the deposit has not yet been marked on a reconciliation
You may make corrections on fields designated with 1-3 if the deposit date is in the current accounting month clicking into the field and clearing it, then entering the correct information. The delete button (4) requires delete privileges
Deposit date is in a prior accounting month or the deposit has been marked on a bank reconciliation
Once the transaction month has passed, the only way to update any of the fields in a deposit is through a journal entry. For the following correcting transactions to make sense, keep in mind how the original transaction affected the general ledger.
The most common mistake made on a deposit is selecting the wrong distribution account.
This mistake may be corrected by adding a journal entry using the same date as the original transaction (journal entries may be dated in a closed month), and using the following principles:
- Reverse the original line item(s) (so debit the line item(s))
- Credit the correct line item(s).
- This may be followed even if the line item with the mistake was a bank account.
Another mistake might be entering the wrong date.
Fixing a date error on a transaction requires two journal entries. See the image of the original deposit above to remember how the original transaction affected the general ledger.
The journal entries must:
- Reverse the original transaction on the wrong date.
- Re-enter the original transaction on the correct date.
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