From an accounting point of view what is the best policy to correct errors on invoices, bills, journal entries etc..?
a) By reversing the accounting item itself and recreate it correctly.
b) By modifying the wrong accounting item itself
What is the industrial standard please? Our concern with b) is that if we have auditors looking at our system we will not be able to show exactly what happened and the causes of it. In the other hand b) is simpler.
In short by "a" we can go back to the system as it was at any point in time while "b"
erase that oportunity altogether.
With our current system we have the opportunity of doing both. Which one should we pick please?