Zumzum Financials Knowledge Base
Overview:
If you’ve entered a bank payment or receipt to the wrong bank account, you can correct it using one of two methods. First, you can reverse the transaction by entering a new bank transaction—either a Bank Receipt for an incorrect payment or a Bank Payment for an incorrect receipt—matching the original details such as transaction date, VAT rate, bank account, and amount. Both transactions should be included in your Bank Reconciliation process. Alternatively, you can use a manual journal entry: create a new journal entry with the same date as the original transaction, then debit the incorrect account and credit the correct one (or vice versa for a receipt error). Ensure the No VAT tax rate is applied to each journal line item and include both transactions in your bank reconciliation. This approach ensures accurate financial records and proper alignment of bank account balances.
How do I Correct A Bank Payment/Receipt Entered To The Wrong Bank Account?
If you have entered a bank transaction for a payment or receipt to the wrong bank account, to reverse the transaction, you have the following options for entering corrections:
Reverse An Incorrect Bank Receipt or Bank Payment Transaction
| Bank Transaction | Reverse With |
|---|---|
| Bank Payment | Bank Receipt or Manual Journal |
| Bank Receipt | Bank Payment or Manual Journal |
Correct a Bank Payment to the wrong bank account with a Bank Receipt.
Please follow the instructions on the new Bank Receipt article to enter a bank receipt with the same details for the Bank Payment you wish to reverse. Please ensure you match the original transaction with
- Transaction Date
- VAT Rate
- Bank Account
- Amount
Note: Both transactions should be included in your Bank Reconciliation process.
Correct a Bank Payment to the wrong bank account with a manual Journal entry
- Find the Journal tab
- Click New to create a new journal entry
- Ensure your Date is set to the same date as the transaction you wish to reverse.
- Enter the first journal line item as a Debit and select the nominal code of the bank account with the incorrect transaction recorded against it.
- Enter the second journal line item as a Credit and select the nominal code of the bank account to which you wish to transfer the amount to.
- Click the Save button if you wish to save a draft of the journal or Save and Post button if you wish to post the transaction to the ledger.
Correct a Bank Receipt to the wrong bank account with a Bank Payment.
Please follow the instructions on the new Bank Payment article to enter a bank receipt with the same details for the Bank Payment you wish to reverse. Please ensure you match the original transaction with
- Transaction Date
- VAT Rate
- Bank Account
- Amount
Note: Both transactions should be included in your Bank Reconciliation process.
Correct a Bank Receipt to the wrong bank account with a manual Journal entry
- Find the Journal tab
- Click New to create a new journal entry
- Ensure your Date is set to the same date as the transaction you wish to reverse.
- Enter the first journal line item as a Credit and select the nominal code of the bank account with the incorrect transaction recorded against it.
- Enter the second journal line item as a Debit and select the nominal code of the bank account to which you wish to transfer the amount to.
- Click the Save button if you wish to save a draft of the journal or Save and Post button if you wish to post the transaction to the ledger.