Manage Accounting Reversals

To create an accounting reversal for a transaction or transaction distribution, the transaction objects should include the appropriate header or line level accounting reversal options.

Accounting reversals enables you to reverse the accounting impact of a previously accounted transaction distribution or all existing accounting for a transaction.

Accounting reversal terminology includes the following:

• Reversed (original) Distribution

  • Refers to a transaction distribution that although successfully accounted, is either incorrect or canceled. The transaction distribution is therefore reversed.

• Reversal Distribution

  • Refers to a transaction distribution which reverses the effect of the original distribution on transaction balances. Typically, reversal distributions are identical to the reversed distributions in all respects except for entered (ledger) amounts that reverse the sign of the original.

• Replacement Distribution

  • Refers to a transaction distribution which replaces the reversed distribution with the correct value.

Distribution Examples

This table contains distribution examples.

Invoice Distribution Line Number	Invoice Line Type	Accounting Date	Amount	Description
1	Item	10-Jan-2013	1000	Reversed
2	Item	12-Jan-2013	-1000	Reversal (of line 1)
3	Item	12-Jan-2013	2000	Replacement (of line 1)
Transaction Total			2000

Note that the original accounting impact of the reversed distributions is undone, even if the subledger journal setups or accounting configurations have changed since the original subledger journal entry was generated.