Reverse entries are entries that reverse the effects of a previous transaction.
For example, let’s say you create a transaction where the source account is Primary Checking Account, and the destination account is Cash on Hand, and the amount is $90. Let’s assume that for some reason that transaction didn’t occur. You could simply delete the transaction, or you could create a reverse entry.
To create a reverse entry:
Under the Accounting tab, click Ledger. The Ledger page appears.
Hover over Create Transaction.
Then, select Other Transaction. The Transaction window appears.
Enter the Date and Amount. For the From Account field, use the account that was the To Account of the transaction you want to reverse. For the To Account use the From Account of the transaction you want to reverse. Then click Save.
You've successfully created a reverse entry.