Correct a Posted Internal Sales Journal
How do you correct an Internal Sales Journal (ISJ) that was previously approved and posted to the General Ledger with a mistake in it?
Corrections are a three-step process for which the seller is responsible.
- Step 1: Find and copy the original posted journal.
- Step 2: In the copy, reverse the mistakes of the original journal.
- Step 3: Create a new Internal Sales Journal (ISJ) to correctly record the sale.
You must have the Original Journal ID of the journal to be corrected. Find it in NUFinanicials Budget Inquiries or on the GL008 Revenue and Expense Activity Report in the period the transaction was posted to the General Ledger.
Search for the original journal from the NUPortal or from NUFinancials. It is not necessary to copy the original journal, but it is recommended in order to see the original charges to be reversed in step 5. From the Actuals Journal Search on the NU Portal, or the Journal Search in NUFinancials, search for the original journal using the Journal ID from the GL008 or other source.
- Enter the Journal ID.
- Click Search. Result: the original journal appears. Scroll down to find the Copy button.
- Click Copy. Result: a new journal is created, an editable copy of the original.
- In Journal Purpose, click Correction to Sale or Service.
- In Original Journal Detail, enter the Original Journal ID and press <Tab>. Result: the Posted Date of the journal appears.
- In the Reason / Description field, explain the correction.
Reverse the signs of expense and revenue amounts.
In Journal Lines, reverse the signs of the amounts on the incorrect lines to zero-out the amounts.
- Reverse the sign on the revenue line. The result is it is a debit (+), shown below.
- Reverse the sign on the expense line. The result is a credit (-), shown below.
- In the Reference fields, you may also want to type "REVERSAL" for easier recognition on reports.
Validate and submit the journal to workflow.
- Verify that Total Debits equal Total Credits. The journal must balance.
- Click Save & Edit.
- Click Save & Submit.
The approvers of each chart string review and approve the reversal. The word "REVERSAL" appears with the transaction on the GL008 Revenue and Expense Activity Report.
Step 3: Create a new Internal Sales Journal (ISJ) to correctly record the sale
Create a new Internal Sales Journal (ISJ) that records the sale correctly. For help with that procedure, refer to Create an Internal Sales Journal. For help with more complex scenarios, visit NUFinancials trainers in an Open Lab.
Why did the preceding example not reverse the mistake and make the correct charges in the same correction ISJ?
- Following this process creates history that is easy to follow and that satisfies the needs of Accounting Services for financial reporting and control. You see a complete transaction trail on the GL008 Revenue and Expense Activity Report.
- In summary, this process:
- Preserves the original journal lines
- Isolates the reversal in a separate transaction that is separately trackable, and
- Isolates a correct transaction in a separate ISJ that is also separately trackable.