There is only one simple definition of a chargeback, which is: “a chargeback is a posting intended to cancel or rectify another, or to fill a gap”. That is, when we make a mistake in one of the accounting processes (diary or reason) we have to amend it with a chargeback. There are several reasons that lead to a chargeback, such as:

  • Omission of launch (when we forget to make a journal entry, for example.);
  • Launch duplication (when we launch the same event two or more times);
  • Account inversion (for example, when we debit an amount that should have been credited to an account, or the other way around);
  • Amount change (when we post a different amount than we should have posted).

In these cases presented, we cannot simply erase what we did wrong, we have to make a reversal in order to correct the error made.

When the error is made in the diary, the chargeback appears to us in the simplest way, that is, we make the entry contrary to the one that is wrong and so it is as if we had canceled the error. Afterwards, we must not forget to make the correct launch.

In the Ledger, two types of errors can be made, we can pass an error from the diary to the ledger or only in the ledger. In the first case, we must be careful to amend the error of the two documents or to amend when we are passing the information from the diary to the ledger. In the second case, the rectification is done only in the ratio, this rectification will be carried out by means of a paint stroke with a different color on the incorrect elements, and with the same paint the corresponding element is matched.

Leave a Comment