Creating Consolidation Auto-reversing Journals

You create Consolidation 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.

Table 9-2 Example: Auto-reversing journal

Account	Movement	Product	Credit	Debit
Common Stock	No Movement	No Product	199
Surplus	No Movement	No Product		199
			199	199

Table 9-3 Example: System-generated Auto-reversal journal

Account	Movement	Product	Credit	Debit
Common Stock	No Movement	No Product		199
Surplus	No Movement	No Product	199
			199	199

Because the auto-reversal journal is generated automatically by the system, it can only be posted or unposted, but not edited. 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 in the next period. You cannot unpost an auto-reversing journal after its auto-reversal journal has been posted.

To create auto-reversing journals:

1. On the Home page, click Consolidation Journals.
2. Click Create.
3. For Label, enter a journal label.

   Note:

   The label can contain a maximum of 50 characters. Do not use these characters: . + - */ # {} ; , @, or quotation marks.

4. Optional: For Description, enter a journal description.
5. From Journal Type, select Auto Reversing.
6. Optional: From Group, select a group for the journal.

   Note:

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

7. From Data Source, select a Data Source member.

   The Currency information is populated from the Source Currency type that you specified when creating the Data Source member and is read-only.

8. From Balance Type, select Balanced or Unbalanced. This option is only available if Unbalanced Journals is enabled.
9. To select dimension members, use one of these methods:

   • Enter the member name in the text box.

   • Select a row in the line item table and from the Actions icon, click Pick Members to open the Member Selector, select members for the dimensions on that row, and then click OK.

   • Select an existing row, click Copy Row, then select another row and click Paste Row.

   When you create line items, you can add a line item description of 100 characters maximum.
10. Enter an adjustment in the Debit or Credit column.
11. Optional: Scan the journal and verify that the entries are valid. From Actions, click Scan.
12. To save the journal, click Save.