Example: Reversing Revenue Entries

This example shows the original G/L entries and the adjusting entries.

The original G/L entries (EU document type) are:

Document Type	Account	Amount
EU	Revenue	2,222.00–
EU	Unbilled A/R	2,222.00
EU	Work in Progress	2,222.00–
EU	Cost of Goods Sold	2,222.00

The reversing entries that the system creates after the eligibility code in the workfile has been changed (AJ document type) are:

Document Type	Account	Amount
AJ	Revenue	2,222.00
AJ	Unbilled A/R	2,222.00–
AJ	Work in Progress	2,222.00
AJ	Cost of Goods Sold	2,222.00–

Important: The EU entries for the Work in Progress and Cost of Goods Sold accounts are created when the cost automatic accounting instructions (AAIs) 4841 (Work in Process - Credit) and 4842 (Cost of Goods Sold - Debit) are set up at the time that you first run the Journal Generation program (R48132). If the costing AAIs are set up after the workfile transaction has been processed to the G/L for the first time, the correcting AJ entries are still created for the 4841 and 4842 accounts even though no original EU entries exist for the 4841 and 4842 accounts.