This menu option will allow you to reverse any set of journal entries. For example, assume that each month you accrue all of the accounts payable using journal entries. At the first of the next, you could simply reverse those entries back out by the use of this menu option.
You can select the adjusting entries to reverse by either using the adjustment date or the adjusting entry number. If you have no other adjustments with the same date, this would be the best option.
You can also reverse adjustments after the month has been closed by searching history also. Enter the appropriate adjustment date or reference number in the bottom half of the screen to search from history.