Performing a GL-level deposit reversal is necessary when the deposit amount itself needs to be backed out, due to an incorrect entry. By following these steps, your books will stay accurate.

Why Reverse the Deposit Instead of Deleting It?

Reversing instead of deleting the GL entry helps keep your financial records aligned. It creates a clean audit trail (compared to deleting the original transaction) and makes bank reconciliation easier later, because the reversal records the offsetting amount rather than removing the transaction history.

Note: this reversal method assumes the deposit is not already finalized in your bank reconciliation module. If so, a separate bank rec adjustment may be necessary.

How to Reverse a Deposit in Sage 100

This process isn’t hard. As a quick overview: you’ll enter a new deposit as a negative amount that offsets the original deposit in your General Ledger.

In this example, we’ll be using the deposit below as the original Cash Receipt Journal you want to reverse. Pay attention to the highlighted details because we’ll be using them throughout the steps below. You may want to refer back to these highlights as you follow the steps.

Here are the step-by-step instructions:

1. Begin this process from Cash Receipts Entry.

To get to this screen:

Open Accounts Receivable.
Navigate to the Main menu.
Select Cash Receipts Entry.

2. Create the negative deposit.

In the Cash Receipts Deposit window, fill in the fields:

Enter the same deposit date as the original.
Enter a negative number to offset the Cash Deposit Amount you wish to reverse.
Click Accept.

Note: the Cash Deposit Amount field will only be available if the Require Deposit Amount checkbox is selected in Accounts Receivable Options.

3. Enter the header information.

In the Cash Receipts Entry window, fill in:

The customer number on the original deposit (since it was a deposit, the customer is probably your CASH clearing account).
The check number.
A negative amount for the amount received.

4. Click the Lines tab, then:

Enter the negative amount in the Amount Posted field.
Confirm that the GL clearing account it will apply to is correct.

5. Accept, print, and update the Cash Receipts Journal.

Good job! You have now reversed the original deposit while maintaining a clean audit trail.

Keep Your Books Error-Free and Stress-Free

Whether you catch the deposit error yourself or it shows up during the month-end close, bookmarking these steps will help you reverse the error quickly, easily, and stress-free.

But we know that sometimes knowing one process leads to questions about others.

Questions? Ardent Consulting Has Answers.

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If you have questions about reversing deposits or cash receipts in Sage 100, Ardent Consulting is here to help. Whether you need assistance with AR, other Sage 100 modules, or broader system optimization, our expert team will make sure you're getting the most out of your Sage setup.

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