Why do we have two methods of error correction in accounting?

Question

Why do we have two methods of error correction in accounting? 1) Void the original transaction and then record the original transaction correctly. 2) Record a transaction to reverse the effect of the original transaction and then record the original transaction correctly. Why do we have two different methods and how does it each serves its purpose in what occasion? Thank you

Answer 1

Voiding the transaction is the automatic process of reversing the entry, rather than manually. The first method uses an ERP system, the second accomplishes it simply with an manual journal entry. Good luck. They are not really different methods, they are the same just accomplished through different means.