If you routinely generate and post large numbers of journal reversals as part of your month end closing and opening procedures, you can save time and reduce entry errors by using Automatic Journal Reversal to automatically generate and post your journal reversals.
You define journal reversal criteria sets for journal categories. Journal reversal criteria lets you specify the reversal period, date, and method for each journal category. You assign journal reversal criteria sets to ledgers. The same journal reversal criteria set can be shared and assigned to multiple ledgers. A ledger that does not have a journal reversal criteria set assigned to it will not be able to automatically reverse journals. You can assign and change the journal reversal criteria set assignment to a ledger at any time. Changes only impact journals that are created after the change.
Note: The reversal method for a journal is defaulted from the method defined for the journal category in the Journal Reversal Criteria Set that is attached to the corresponding ledger.
You can also choose to enable automatic posting of reversed journals.
In a ledger that has a journal reversal criteria set assigned, once you have posted journals using journal categories that have AutoReverse enabled, you can:
automatically generate reversals when a new period is opened.
manually launch a reversal program which finds and generates all journals marked for reversal for a specific period, including any journals that were manually selected for reversal.
automatically post any reversal journals including reversals that were not automatically generated.
Note: Automatic Journal Reversal reverses posted journals of the balance type Actual. You cannot use this feature to automate budget or encumbrance journal reversals.
Prerequisites
General Ledger generates and posts reversals for journals that satisfy the following conditions:
The journal balance type is Actual.
The journal category is enabled to be Autoreversed.
The journal is posted but not yet reversed.
The journal reversal period is open or future enterable.
To create a Journal Reversal Criteria Set, perform the following steps.
Navigate to the Journal Reversal Criteria Set window.
Enter a Criteria Set name and Description.
(Optional) Select the Enable Security checkbox to secure the Journal Reversal Criteria Set to prevent some users from viewing or making changes to it. For information on definition access sets, see: Definition Access Sets.
If you do not enable security, all users who have access to this journal reversal criteria set will be able to use, view, and modify the criteria set.
If the Assign Access function is available for your responsibility, the Assign Access button is enabled once you check the Enable Security check box. Choose the Assign Access button to assign the journal reversal criteria set to one or more Definition Access Sets with the desired privileges. For information on definition access sets, see Definition Access Sets.
If the Assign Access function has been excluded from your responsibility, you will not be able to view the Assign Access button in the Journal Reversal Criteria Set window. You can still secure the Journal Reversal Criteria Set by checking the Enable Security check box, but only Definition Access Sets that are AutoAssigned will be automatically assigned to this Journal Reversal Criteria Set. See your System Administrator for more information on Function Security.
Save the new journal reversal criteria set. This automatically displays all of the journal categories with their default values in the Journal Reversal Criteria region. For information on journal reversal criteria sets, see: Default Reversal Criteria for Seeded Journal Categories.
Select a journal category for which you want to modify the reversal criteria. For each journal category defined in General Ledger, you can select journal reversal criteria to control how and when your journals are reversed.
Note: You can query and modify the AutoReverse attributes for existing categories, but you cannot create new journal categories in this window. For information on defining journal categories, see: Defining Journal Categories.
Select a Reversal Period from the poplist. Choose from No Default, Same Period, Next Period, Next Non - Adjusting, or Next Day.
Note: The Next Day option is only applicable to average daily balance ledgers. Non-average daily balance ledgers and consolidation average daily balance ledgers with a journal reversal criteria set that includes the Next Day option will ignore the reversal period information and treat the Next Day option in the same manner as the No Default option.
Use the following table as a guide for selecting an appropriate reversal period.
Periods with Corresponding Reversal Periods
| When you select this period... | The reversal period is... |
|---|---|
| No Default | the reversal period you define when you manually enter your original journal entry |
| Same Period | the same period of the original journal entry |
| Next Period | the period following the period of the original journal entry |
| Next Non - Adjusting | the non - adjusting period following the period of the original journal entry |
| Next Day | the period into which the effective date of the journal entry falls; this option is only applicable for average daily balance ledgers |
Select a Reversal Date from the poplist if you have an average daily balance ledger. The Reversal Date is only applicable to average daily balance ledgers. Non-average daily balance ledgers and consolidation average daily balance ledgers with a journal reversal criteria set that includes a Reversal Date will ignore the Reversal Date information
Note: The available choices in the Reversal Date field are dependant on the Reversal Period selected. See the table below for available options and exception cases for non-consolidation ledgers with average daily balance enabled.
The following table describes how AutoReversal determines the reversal date based on the Reversal Period, Reversal Date, and Effective Date Rule defined for journal sources other than Manual.
Note: AutoReversal will always roll the reversal date to a valid business day for Manual journal sources, regardless of the Effective Date Rule assigned.
Journal Reversal - Average Daily Balance Non-Consolidated Ledger
| When you select this reversal period | and this reversal date | the period of your journal reversal is | the date of your journal reversal is | if the Effective Date Rule in the Journal Sources form is set to | and the reversal date is not a business day.... the following action will take place |
|---|---|---|---|---|---|
| Same Period | Next Day | same as the journal's period | the day after the journal's effective day | Fail | no default will be provided for the reversal date |
| Leave Alone | the reversal date will remain as is | ||||
| Roll | the reversal date will roll forward to the next business day within the reversal period | ||||
| Last Day | same as the journal's period | the last day of the reversal period | Fail | no default will be provided for the reversal date | |
| Leave Alone | the reversal date will remain as is | ||||
| Roll | the reversal date will roll backward from the last day of the reversal period to find a valid business day | ||||
| Next Period/Next Non-Adjusting Period | First Day | the period (or non-adjusting period) after the journal's period | the first day of the reversal period | Fail | no default will be provided for the reversal date |
| Leave Alone | the reversal date will remain as is | ||||
| Roll | the reversal date will roll forward to find the next business day within the reversal period | ||||
| Last Day | The period (or non-adjusting period) after the journal's period | the last day of the reversal period | Fail | no default will be provided as the reversal date | |
| Leave Alone | the reversal date will remain as is | ||||
| Roll | the reversal date will roll backward from the last day of the reversal period to find a valid business day | ||||
| Next Day | N/A | refer to last column | the day after the journal's effective date | Fail | no default will be provided for the reversal date |
| Leave Alone | the reversal date will remain as is | ||||
| Roll | the reversal date will roll forward to find the next business day (may go into the next period) |
Select a reversal method from the poplist:
Switch DR/CR: reverses journals by changing the debits and credits of your originating journals.
Change Sign: reverses journals by changing the sign of your originating journals.
Mark the AutoReverse checkbox to enable AutoReversal for this category. The default is disabled.
Mark the AutoPost checkbox to enable AutoPost for this category. The default is disabled.
Note: AutoPost will operate only if AutoReverse is enabled. Even reversal journals that were manually reversed (not automatically generated) are selected for automatic posting when this option is selected.
Save your work.