Ledger Adjustment Transactions | Journal Entry
Accounting tasks are simple in Rentec Direct.
When a transaction has been entered incorrectly, it can quickly be edited or deleted and re-entered. But what if the transaction has been reconciled and you need to correct a category or other data? In the accounting world, the term used for this type of adjustment is a journal entry.
Ledger Adjustment - Journal Entry Instructions
In our sample scenario, a property manager purchased $100 in supplies for a property. They posted the transaction and allocated it all to Repairs. In the next month, they realize that they made a mistake - some of the expense should have been earmarked to painting instead.
Because they had reconciled the previous transaction, they didn't want to edit the original transaction, so they created an adjustment transaction with these steps.
In your Rentec Direct account:
- Click on Banking
- Click on the account balance where the original transaction was posted to access the ledger
- Click on Post Expense
- Click on Split-Transaction so you have two transaction lines
- Enter a negative dollar amount (-24.75) using the category from the original transaction (in this example, 6200 Repairs)
- Enter the dollar amount of the expense using the correct category (in this example, 8920 Painting)
- Click on Post Expense
The net effect in this example is $0; however, there is now a paper trail, per se. The examples below display how these transactions look in the financial reports.
Property Account Ledger B Report
Income and Expense Statement
