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 (called an auto-reversal journal) to reverse those adjustments for the next period, and assigns it Approved status. You post this Approved journal for the reversal to take effect.

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

Because the auto-reversal journal is generated automatically by the system, it can only be posted or unposted. If you unpost an auto-reversal journal, its status changes from Posted back to Approved.

If you unpost the original auto-reversing journal that you created, the system deletes the automatically-generated auto-reversal journal for the next period. You cannot unpost an auto-reversing journal after its auto-reversal journal has been posted.

To create auto-reversing journals:

1. Select Consolidation, then Journals, and then Manage.
2. Select New, and then one of these options:

   • To create a new journal, select Journal.

   • To use a journal template, select Journal From Template, select the template, and click OK.

3. To change the Point of View, click a dimension name and from Member Selection, select dimension members.
4. For Label, enter a journal label.

   Note:

   The label can contain a maximum of 20 characters. Do not use these characters: . + - */ # {} ; , @ ”

5. From Balance Type, select a type: Balanced, Unbalanced, or Balanced by Entity.
6. From Type, select Auto-reversing.
7. Optional: From Group, select a group for the journal.

   Note:

   The journal group that you assign must exist in the application. See Creating Journal Groups.

8. From Security Class, select a security class or use the Default security class.
9. Optional: Enter a journal description.
10. For Account, select an account by using one of these methods and then click OK:

    • Double-click in an Account row

    • Click Pick Members

    • Select Actions and then Pick Members

11. Optional: To move the dimensions from the POV to the table rows, click Move dimensions to Table.

    Tip:

    To move the dimensions selected for rows to the POV, click in the row and click Move dimensions to POV.

12. Enter an adjustment in the Debit or Credit column.
13. Optional: To add rows to the journal, select Actions, and then Add Rows. Rows are added to the bottom of the journal.

    Tip:

    To delete entries, select the rows and click Delete Row, or select Actions, and then Delete Row.

14. Optional: Scan the journal and verify that the entries are valid. Save the journal and click Scan. See Scanning Journals.
15. To save the journal, click Save.