Storno

Storno, primarily used in German-speaking countries and related fields, refers to a cancellation, reversal, or correction of a previously recorded transaction, entry, or event. The term is most frequently encountered in the context of accounting and banking, but can also be used in other areas such as shipping and logistics.

In accounting, a "Storno" entry serves to nullify or negate the effect of an incorrect or unwanted previous posting. This is typically achieved by creating a new entry that mirrors the original entry but with the opposite sign (e.g., a debit becomes a credit, and vice versa). This maintains an audit trail, clearly demonstrating the original mistake and its correction. Instead of simply deleting the original entry, which could obscure the history of transactions, the "Storno" method provides transparency and accountability.

In banking, "Storno" can refer to the reversal of a payment, often due to insufficient funds, fraud, or a dispute. The original transaction is effectively cancelled, and the funds are returned to the payer. The reason for the "Storno" is usually indicated in the transaction details.

The use of "Storno" entries is essential for maintaining accurate financial records and ensuring compliance with accounting regulations. Proper documentation of the reason for the "Storno" is crucial for audit purposes.