PSA L&P - Deposits: How to correct a deposit

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 

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 informaton. The delete button (4) requires delete privileges
Deposit_Information_Screen_Edit.jpg

 

 

 

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.
Deposit_Information_Screen.jpg

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:

  1. Reverse the original line item(s) (so debit the line item(s))
  2. Credit the correct line item(s).
    correcting_line_item_on_same_date.jpg
    • 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:

  1. Reverse the original transaction on the wrong date.
  2. Re-enter the original transaction on the correct date.
    change_date_deposit.jpg
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