Reverse a bank transfer or cash deposit

Summary

How to reverse a bank transfer or cash deposit when entered in error in Sage Accounting.

Resolution

Once you have reconciled a bank transfer for either bank account, you cannot edit or delete it.

A cash deposit is when you transfer money from your cash account to another bank account.

If you have entered a bank transfer in error or need to change it:

Enter another opposite transfer. This cancels the original transfer and updates your bank account balances. You'll have two new bank transfers. One for each bank account
Don't forget to reconcile both new transfers. This will make sure your starting balances are correct

How this works

A bank transfer affects two bank accounts. When you reconcile one of the banks, we mark the transfer as reconciled and you cannot edit or delete it.

A reverse transfer updates your bank balances with the opposite amounts.

See an example

Your current account balance is £500. Your savings account balance is £100.

You transfer £100 from your current account to your savings account. This reduces you current account balance by £100, leaving a balance of £400. Your savings account balance increases to £200.

You realise that you cancelled this transfer and now need to delete it. However you already reconciled your current account and included this transfer in error.

You create a new transfer in the opposite direction.
- Transfer from = Savings account
- Transfer to = Current account
- Amount = 100
You check your bank balances. Your current account balance increases to £500. Your savings account balance reduces to £100.
You reconcile both accounts. The starting balance of your current account is £400. The starting balance of your savings account is £200.

You reconcile the bank transfer for each bank account.

Your starting balances are now correct and ready for you to reconcile again.