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.
- First you define journal reversal criteria for journal categories. Journal reversal criteria lets you specify the reversal method, period and date. You can also choose to enable automatic generation and posting of journals.
- When you create a journal entry you want to automatically reverse, specify a journal category that has assigned reversal criteria. Your journal will be reversed based on the method, period and date criteria you defined for that journal category.
Once you have posted journals using journal categories associated with journal reversal criteria, 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.
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.
Once reversals are generated, General Ledger posts all reversed journals that satisfy the following conditions:
- The journal category is enabled to AutoPost reversals.
- The reversal period is open or future enterable.
Note: General Ledger automatically submits the AutoReverse program when a new period is first opened in the Open and Close Periods window. You can also launch AutoReverse at any time through the Submit Request window. If you do not want reversals to be generated when a period is opened, set the Profile Option, GL: Launch AutoReverse After Open Period, to No.
To automatically reverse journals
1. Define reversal criteria by journal category in the Journal Reversal Criteria window.
2. Enter and post Actual journals with journal categories that have reversal criteria defined.
3. Choose one of the following to reverse your journals:
- Run the Open Period program to launch the Automatic Reversal program.
- Navigate to the Submit Request window and select the program, Automatic Reversal.
All reversal journals with AutoReverse and AutoPost enabled will be generated and posted according to the reversal criteria you defined.