Tag Archives: Cancel Transaction

Cancel Transaction

Posting is a fraud control feature in MoneyWorks to prevent editing once the account has finalised. You cannot modify the transaction once posted. However, you can use the Cancel Transaction feature (from the Command menu) to correct the error.

Cancel Transaction in MoneyWorks
Cancel Transaction

By cancelling, it does not delete the transaction. Instead, it creates a reverse entry to correct the mistake.

For example, you entered a purchase invoice twice. You can use the cancel transaction method if the error is still within the current period. What the system does is that it creates a reverse transaction to correct the duplicate error.

Correct duplicated error
Correct duplicated error

However, if the mistake is fall in the past period, then you should consider entering a credit note or journal in the current period to correct an error made in the past.

How to hide cancelled entries from the transaction list in MoneyWorks accounting solution?

Software: MoneyWorks accounting solution

MoneyWorks creates a reversed entry if you try to ‘cancel’ a posted transaction. For example, you have wrongly recorded a sales invoice and posted it accidentally. MoneyWorks created a reversed sales invoice instead of removing it from the sales invoice list once you ‘cancelled’. It leaves an audit trail in the ledger, showing both the positive and negative sales invoice contra against each other; this prevents intentional manipulation of financial data. MoneyWorks is a better accounting system for small businesses in preventing accounting fraud.

MoneyWorks Cancelled entries

You can change the colour (such as red colour) of the cancelled transaction to reduce confusion.

Change colour

You can also temporarily hide the cancelled transactions (in Red) from showing (it still in the ledger) by adding a filter to the transaction list. Add the expression to the calculation box of the filter:

Colour <> “Red”

The ‘Colour’ is referring to the colour field of the transaction and ‘< >’ is ‘Not Equal to’.

Filter.png

Then, turn on the filter as and when you need to omit cancelled transaction from the list.

show filter.png

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Cancel Transaction or Write Off

Software: MoneyWorks #accounting software

Both “Cancel Transaction” and “Write Off” of an invoice generates a Credit Note to knock off an amount owing. So, what’s the different between the two?

When a mistake made in a sales invoice or a return of goods and services you can use a cancel transaction (under the Command menu > Adjustments). MoneyWorks creates a reverse transaction to adjust the income, tax, receivable, and the quantity sold.

When an invoice has turned into bad debts, write off is used. A write-off entry debits the expense and credit the accounts receivable.

written-off-vs-cancel

You can refer to the MoneyWorks v7 user guide page 155, Adjustments, to have a better understanding of when and how to use the adjustment function such as Cancel Transaction, Contra, and Write Off.