If you need to cancel a Transaction in the current financial year you need Method 1, if you need to cancel a Income or Expenditure Transaction processed in a closed financial period you will need to use Method 2.
Note: You cannot cancel a transaction that has already been submitted to HMRC for Gift Aid, or a transaction that has been included in the VAT 100 report..
Method 1 - Cancel Income or Expenditure Transaction in the current financial year
Select Transactions > Cancel Income or Expenditure Transaction.
Select the transaction you want to cancel.
Select the Income or Expenditure Transaction/s you want to cancel.
On the Confirm Cancellation screen which appears, review the transactions you have selected to ensure you are cancelling the transactions you want to cancel.
Enter a Reason for Cancellation.
Click Cancel Transaction(s).
Method 2 - Cancel Income or Expenditure Transaction from a previous year
If you have uncashed cheques or direct debits, a paying-in slip or direct credits left over from a closed period and you want to clear these from the reconciliation page and retain a trail for audit purposes, you can enter a contra-entry transaction. This has the effect of reversing the original transaction.
To enter an Expenditure contra-entry:
Select Transactions > Enter Income as a Direct Credit against the appropriate Bank Account.
To enter an Income contra-entry:
Select Transactions > Record Payment as a Direct Debit against the appropriate Bank Account.
Once you save those transactions, you will have your the original transactions on your bank reconciliation screen along with the matching contra-entry transactions.
You can then reconcile these together and they will be cleared from the reconciliation screen.
If you need to include these contra-entry transactions in a year that you want to close, you will need to reconcile these to the last bank statement of the year you are closing with appropriate end of year dates.