How to Edit Journal Entries?

Wafeq includes automatic journal entries that are created automatically based on your transactions, which can be found in the general ledger. Additionally, there are manual journal entries that you add yourself to the system. 

The ability to modify these entries depends on certain conditions, and you may or may not be allowed to edit them. We’ll review these conditions and the methods for editing below.

Editing Manual Entries

Manual entries in the "Draft" state (not yet finalized) can be edited. However, for approved entries, special procedures are required to modify them, such as creating a reversing entry.

How to Edit Draft Manual Entries?

1. Click on "For accountants" from the main menu.

2. Select "Manual Journals".

3. Click "Click for form view".

4. Edit the details you need to modify.

5. Click "Save" to save the changes.

How to Edit Finalized Manual Entries?

Finalized journal entries are the ones that have been recorded in the system and are considered official. These entries cannot be directly edited. If there is a need to modify an approved entry, the following steps should be followed:

1. Create a Reversing Entry: A reversing entry is created to negate the effect of the original entry.

2. Create a Correct Entry: After creating the reversing entry, you can create a new, correct entry to replace the original one.

Steps to Edit an Approved Journal Entry

1. Click on "For accountants" from the main menu.

2. Select "Manual Journals".

3. Create a reversing entry as a new manual entry, including the relevant information from the original entry (such as affected accounts) but reversing the amounts or accounts.

4. Create a correct new entry to replace the old one, or just use the reversing entry if you only want to cancel the old entry.

Editing Automatic Entries

Automatic entries are processed in the general ledger and cannot be edited directly. However, you can modify the underlying transaction that caused the automatic entry by clicking on the "Source" field in the automatic entry.

It is important to note that editing these transactions may cause changes in previously processed accounting transactions. Tax authorities such as ZATCA (the Saudi Tax & Customs Authority) or the Federal Tax Authority in UAE emphasize that accounting transactions should not be modified after they are approved and sent to the relevant tax authority, especially if the transactions are linked to e-invoicing, to avoid conflicts with tax laws and procedures.

Therefore, ensure that you follow the correct method, as per tax authority guidelines, when modifying approved accounting transactions in a legally compliant manner, whether through credit and debit notes, reversing entries, or other accepted methods.