Reverse the transitory entries (adjusting entries)

Reverse the transitory entries (adjusting entries)

Certain transactions, such as advance payments for sales or purchases of materials for future projects, must be recorded in the current fiscal year for cash flow and VAT purposes. They are recorded in accrual or deferred asset accounts to avoid impacting the profit or loss for that year. The following year, these transactions are recognized in the appropriate revenue or expense accounts.

Create a transitional script

In the accounting entry, choose the Transitory journal :

Reversing transitory entries

  1. Open the Loopback page: Configuration menu, Loopback .
  2. On the Looping page, click the Reverse Transient Entries button.



  3. When the action is completed, a green checkmark appears and the columns "Last execution" and "Executed by" are filled in:

    1. Last execution : Date and time of the last execution.
    2. Executed by : Username of the user who performed the last operation.

  4. The reversal entry is created in the new accounting period. The Reversal journal for temporary entries is automatically assigned to the reversed entries.