---
title: "Reversing entry"
description: "What is a reversing entry? A journal that mirrors an earlier one, swapping debits and credits, to cancel it while keeping the record. See when to use one."
url: https://1flux.ai/glossary/reversing-entry
last_updated: 2026-10-10
---

[Accounting](https://1flux.ai/glossary#accounting)

# Reversing entry

What is a reversing entry, and why is reversing better than editing a posted journal?

Glossary Updated 10 October 2026

Definition

A reversing entry is a journal entry that exactly mirrors an earlier entry, swapping its debits and credits, to cancel its effect on the books.

## What is a reversing entry used for?

Accountants use reversals for two reasons. The first is to correct a posted mistake while keeping the original on record: reverse it, then post the right entry. The second is to undo period-end accruals on the first day of the next period, so the real invoice can be booked normally.

Both the original and the reversal stay visible, which keeps the [audit trail](https://1flux.ai/glossary/audit-trail) intact; deleting or editing a posted entry would hide what happened.

Example: a EUR 7,500 expense posted to the wrong account is reversed, then posted again to the right one, with the two entries linked.

In 1flux

Posted journal lines can’t be edited. Correcting one posts a reversal plus a corrected entry, linked both ways, with a per-entry audit trail. [See the general ledger and journals](https://1flux.ai/products/accounting/general-ledger)

Related

## Keep exploring

### [Journal entry](https://1flux.ai/glossary/journal-entry)

A dated record of a transaction as balancing debits and credits.

### [Posting](https://1flux.ai/glossary/posting)

Recording a transaction permanently in the general ledger.

### [Audit trail](https://1flux.ai/glossary/audit-trail)

A record of who changed what, and when.

### [General ledger and journals](https://1flux.ai/products/accounting/general-ledger)

A chart of accounts in minutes, journals that can't be rewritten and periods that stay closed.

Last updated 10 October 2026