...
When you back out a journal entry, a reversing entry will be created when you post the transaction or save the transaction to a batch (and then post the batch). If you decide to not back out the journal entry, prior to before posting or saving to a batch, you can select the Clear button.
...
When you back out a journal entry, a reversing entry is created when you post the transaction or save the transaction to a batch (and then post the batch). The Signature Transaction Entry window will then populate with the appropriate accounts for you to create the correcting journal entry. If you decide to not back out the journal entry, prior to before posting or saving the "backing out" transaction to a batch, you can select the Clear button.
...