Defining Reverse Journal Entries

Use reversing journal entries to reverse accruals, estimates, errors or temporary adjustments and reclassifications.

Assign a reversal period and, if average balances is enabled, a reversal effective date to a journal entry if you want to generate a reversing entry from the Enter Journals window, or later from the Reverse Journals form. You can enter a reversal period and effective date at any time, even after the journal is posted. However, you cannot reverse batches and journals that you have already reversed.

You can also reverse a journal or batch from the Enter Journals window, even if you have not assigned a reversal period and effective date.


Multiple Reporting Currencies

If you use Multiple Reporting Currencies and reverse a journal entry in your primary set of books, General Ledger will also reverse the corresponding entry in your reporting sets of books. The reporting currency journal is reversed using the same conversion rate that was used to create the original journal entry.


To assign a reversal period and effective date to a journal entry:

1. Navigate to the Enter Journals window.

2. Query the batch and journal within the batch for which you want to assign a reversal period. Note that the reversal effective date is only necessary when you have average balances enabled for your set of books.

3. Choose Review Journal.

4. Choose More Details.

5. Enter the Period for the reversing entry. If average balances is enabled, you must also enter the effective Date.

6. Select a reversal Method:Switch Dr/Cr: General Ledger creates your reversing journal by switching the debit and credit amounts of the original journal entry. This method is often used when reversing accruals.Change Sign: General Ledger creates your reversing journal by changing the sign of your original journal amounts from positive to negative. This reversal method is often used when reversing journals to correct data entry mistakes.Once you enter the effective date, reversing period, and reversal method, the journal entry is marked for reversal and will appear in the Reverse Journals window.

7. Generate the reversing entry from the Enter Journals window, or from the Reverse Journals window.