1. Implementing Accounting Hub
  2. Transaction Reversal

Transaction Reversal

You can import a new transaction record to Accounting Hub to reverse the accounting of a transaction in the same batch or an existing transaction.

Make sure that the new transaction record includes these values:

  • The same transaction number as the transaction you want to reverse.

  • The value of the reversal indicator as Y.

Here's what happens when you import the new transaction record. Accounting Hub generates a reversal accounting that offsets the accounting of the original transaction.

Note:
  • Line record is not needed when importing reversal records.
  • The GL date for the reversal should be prior to or the same as the GL date of the non-reversal journal entry.

Example of Transaction Reversal

Let's say that an accounting transaction with transaction number 1001 is imported and accounted in Accounting Hub successfully. Later, this transaction is canceled in the source system.

To reverse the accounting transaction created in Accounting Hub, you import a new accounting transaction with the same transaction number 1001 and set the reversal indicator as Y. After the new accounting transaction record is imported, Accounting Hub creates journal entries to offset the accounting effect from the original transaction.

Before You Start

Here are some of the things you must do before you can start using transaction reversals:

  • Enable the Flexible Configuration of the Accounting Flow feature.

  • Opt in to enable this feature.

  • Enable transaction reversal for subledgers that use this feature.

  • Download and use the latest transaction template for the subledger.

Other Implementation Considerations

You might be wondering how to reverse a multiperiod accounting transaction. In such a case, make sure that the transaction date for the reversal record is on or after the accounting date of the last multiperiod accounting entry of the transaction being reversed.

Import Accounting Hub Reversal Transactions with User-Specified Reversal Date

You can configure an accounting rule to use a user-specified source as the reversal accounting date for Accounting Hub transactions. This provides you with the flexibility to use other date sources as the accounting date for both original and reversal transactions.

You can configure the accounting date of subledger journal entries to not depend on the transaction date and use the accounting date for reversal transactions too.

This feature lets you account for backdated transactions. Make sure you account for backdated transactions in the current period by keeping the original transaction date for reference. If you choose to do this, you'll need to select a date source other than the predefined Transaction Date source for the Accounting Date accounting attribute.

Note: There's no need to import reversal in any specific order. If the reversal record is imported before the non-reversal record, the reversal will be held in the interface table. When the non-reversal record is imported, the Import Accounting Transaction process checks the interface table and processes the reversal record with the same transaction number.