Use reversing journal entries to reverse accruals, estimates, errors, or temporary adjustments and reclassifications.
Assign a reversal period and, if average balances is enabled, a reversal effective date to a journal entry if you want to generate a reversing entry from the Enter Journals window, or later from the Reverse Journals window. You can enter a reversal period and effective date at any time, even after the journal is posted. However, you cannot reverse batches and journals that you have already reversed.
You can also reverse a journal or batch from the Enter Journals window, even if you have not assigned a reversal period and effective date.
If you use Reporting Currencies (Journal or Subledger Level) and reverse a journal entry in your source ledger, General Ledger also reverses the corresponding entry in your reporting currencies if they are in the same batch as the source ledger's journal entry. The journal in your reporting currency is reversed using the same conversion rate that was used to create the original journal entry.
Ledgers with reporting currencies (journal and subledger level) assigned must post the original journal in the ledger before the journal can be reversed.
The reversing journals for the reporting currencies are created in the same batch as the reversed primary ledger's batch.
Navigate to the Enter Journals window.
Query the batch and journal within the batch for which you want to assign a reversal period.
You must have read and write access to the ledger or read and write access to the journal's balancing segment values or management segment values.
From the Enter Journals window, choose Review Journal.
The Journals window appears.
In the Reverse region, select a period from the Period list of values for the reversing entry. If average balances is enabled, you must also enter the Effective Date.
In the Reverse region, select a reversal method from the Method drop-down list.
Switch Dr/Cr: General Ledger creates your reversing journal by switching the debit and credit amounts of the original journal entry. This method is often used when reversing accruals.
Change Sign: General Ledger creates your reversing journal by changing the sign of your original journal amounts from positive to negative. This reversal method is often used when reversing journals to correct data entry mistakes.
Once you enter the effective date, reversing period, and reversal method, the journal entry is marked for reversal and will appear in the Reverse Journals window.
Generate the reversing entry from the Enter Journals window by choosing Reverse Batch or from the Reverse Journals window by choosing Reverse.
Note: You must have read and write access to the ledger or read and write access to all of the journal's balancing segment values or management segment values to reverse the journal.