Reversing Entries

To maintain a complete audit trail, Bamboo does not allow entries to be edited or deleted. Instead, you correct mistakes by creating a reversal—a new entry that negates the original.

Why Reversals?

Reversals provide:

• Complete audit trail - Both entries are preserved
• Regulatory compliance - Shows what happened and the correction
• Historical accuracy - Past reports remain valid

Note

This is how professional accounting systems work. Auditors can see exactly what was corrected and when.

When to Reverse

Use reversals when:

• ✅ Wrong amount was entered
• ✅ Wrong accounts were used
• ✅ Entry was a duplicate
• ✅ Transaction didn’t happen

How to Reverse an Entry

1. Find the Entry

   Go to Journal Entries in the sidebar and locate the entry to reverse.

2. Click “Reverse”

   Open the entry details and click the “Reverse Entry” button.

3. Provide a Reason

   Enter the reason for reversal (required for audit trail).

4. Confirm

   Click “Confirm Reversal” to create the reversing entry.

What Happens During Reversal

The system creates a new entry with:

• Same date as the original (or current date, depending on settings)
• Flipped amounts - Debits become credits, credits become debits
• Reference to the original entry
• Reversal reason you provided

Example

Original Entry (Entry #1001):

Account	Debit	Credit
Rent Expense	$500
Cash		$500

Reversal Entry (Entry #1002):

Account	Debit	Credit
Cash	$500
Rent Expense		$500

Net Effect: Zero—the two entries cancel out.

After Reversal

Both entries remain visible:

Entry	Status	Description
#1001	Reversed	Monthly rent (Reversed by #1002)
#1002	Posted	Reversal of #1001: Entered wrong amount

Re-entering Correct Data

After reversing, create a new entry with the correct information:

1. Reverse the incorrect entry
2. Create a new entry with correct amounts/accounts
3. The net result is the correct transaction

Reversals and Closed Periods

Caution

You cannot reverse entries in closed periods. The period must be reopened first.

To reverse an entry in a closed period:

1. Reopen the fiscal period
2. Reverse the entry
3. Create corrected entry if needed
4. Close the period again

Audit Trail

The reversal creates a complete audit record:

• Original entry is marked as “Reversed”
• Reversal entry links to original
• Reason is preserved
• User and timestamp recorded

This satisfies audit requirements by showing:

• What the error was
• Who corrected it
• When it was corrected
• Why it was corrected