Reversing Journal Entries allow a User to create a second duplicate transaction where the debits and credits are reversed to help with month-end accrual transactions.
It is important to note that Journal Entries will not be automatically approved when manually entered and saved in the system. When the JE is approved, the reversing entry, if created, will post as well. When reversing an approved Journal Entry, an unapproved Reversal Journal Entry will be created when the JE screen is closed.
Reversing Journal Entries can be done in one of two ways: an existing Journal Entry or the Import Tool.
Existing Journal Entry
Open the Journal Entry record by navigating to the 'Journal Entries' list under 'General Ledger' in the Accounting module and selecting the Journal Entry.
When the Journal Entry opens, hover over the 'Action' menu and click 'Reverse'. A prompt will appear where the User must select the date of the reversing entry.
- Note: When reversing an approved Journal Entry, this pop-up window will notify you that an unapproved Reversal Journal Entry will be created when the JE screen is closed.
1) Reversal Date Type - This drop-down menu displays the four different date type options. Ensure that the date selected is in an open fiscal period. If it is not, navigate to the Advanced Close Maintenance Screen and open that period. The four options include:
- Start of Next Period - The date of the reversing entry will be the beginning of the fiscal period immediately following the fiscal period of the date entered for the Journal Entry
- End of Next Period - The date of the reversing entry that will be the end of the fiscal period immediately following the fiscal period of the date entered for the Journal Entry
- Custom - The User can enter the desired date using the date field
- None - This will clear the reversal date
- Note: This option works similarly to a 'reset' button. If a reversal date has been set previously, a User can go back in before the JE is approved and change the date type to 'None' to ensure that no Reversal JE is created
2) Reversal Date - The specific date that the Journal Entry will be reversed
3) Cancel - This will close out the Reverse pop-up modal
4) Ok - This will create a Reverse Journal Entry for the selected date
The system will then create the reversed entry. Note that on the Reversing Journal Entry the transaction 'Name' that is assigned to the reversing entry and signified by the letter 'R.' This notation makes it easy to find these types of transaction in lists and searches.
If a Reversal Journal Entry has been created from an unapproved Journal Entry, it will not be approved until the Journal Entry is approved. Therefore, the reversal date can be updated at any point before the JE is approved.
Reversal Journal Entries can also be made via the Import Tool.
This can be accessed by hovering over 'Account' in the top ribbon and clicking 'Import Journal Entry'. It is important to note that the import will reject a reversal date in a closed period.
A new window will open with the Import options. Ensure that your import file follows the JE Import Template Guidelines before clicking 'Select Files' and importing your Journal Entry.
- Note: The import will reject a Journal Entry with a reversal date in a closed period.