Creating Auto-reversing Journals

You create auto-reversing journals to enter adjustments that you want to reverse in the next period, for example, sales or expenses that are collected and paid in the next period. Auto-reversing journals affect two periods of data. You post an auto-reversing journal to adjust values in one period. When you post the auto-reversing journal, the system automatically creates a journal that would reverse those adjustments for the next period. The journal created in the following period has the Approved status. You can post this Approved journal for the reversal to take effect.

For example, you can create and post an auto-reversing journal in January that adjusts the Sales accounts for France. The system creates a journal that reverses those adjustments for February.

The status of the auto-reversal journal is Approved. You post this Approved journal for the reversal to take effect. When you unpost an auto-reversal journal, the status of that journal changes back to Approved.

You can edit, reject, post, or unpost an auto-reversing journal. When you unpost an auto-reversing journal, the system-generated auto-reversal journal in the next period is deleted. You cannot unpost an auto-reversing journal after its auto-reversal has been posted. If necessary, you can reject, edit, unpost, and delete the auto-reversal journal.

Web Procedure

  To create auto-reversing journals:

  1. In the Browser View, expand Tasks, and select Journal Tasks.

  2. Select Process Journals.

  3. Set the journal point of view and click New.

  4. Click Auto-reversing, and select an option:

    • To create a journal from a template, click Create from a template, select the template from the list, and click OK.

    • If you are not creating a journal from a template, select Start with Blank Journal, and click OK.

    • To create a journal for one entity, select Create as Single Entity Journal, and click OK.

  5. Enter a journal label.

    Note:

    The label can contain a maximum of 80 characters. Do not use these characters: . + - */ # {} ; , @ ”

  6. Optional: From Group, select a group for the journal.

    Note:

    The journal group that you assign must exist in the application.

  7. From Balance Type, select a balance type: Balanced, Unbalanced, or Balanced by Entity.

  8. Optional: From Security class, select a security class.

  9. Optional: Enter a journal description.

  10. For each dimension, enter a member or click Pick Members to select members.

    Tip:

    You can also double-click the dimension to display the Pick Members dialog box, or you can right-click and select Pick Members. When you select an account, only the valid ICP or Custom members for that account are displayed.

  11. Enter an adjustment in the Debit or Credit column.

    Note:

    If you made any changes, save your changes before you take the following step.

  12. Optional: To scan the detail lines and ensure that the lines are valid, click Scan.

  13. Take one of these actions:

    • To add rows to the journal, click Add Rows. Rows are added to the bottom of the grid.

    • To save the journal, click Save.

    • To restore the last saved version of the journal, click Reset.