Creating Auto-reversing Journal Entries


Purpose


This tutorial covers creating and reviewing auto-reversing journal entries.

Time to Complete


Approximately 30 minutes.

Topics


This tutorial covers the following topics:

 Overview
 Scenario
 Prerequisites
 Creating Auto-reversing Journal Entries
 Reviewing Auto-reversing Journal Entries
 Summary
 Related information

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Overview


This tutorial covers creating auto-reversing journal entries and reviewing the entries in the following period.

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Scenario


You create auto-reversing journals to enter adjustments that you want to reverse in the next period. For example, your company mistakenly booked February revenue in January. You can create an auto-reversing journal entry to debit the revenue in January. The journal entry reverses in February, and credits revenue in the correct period.

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Prerequisites


Before starting this tutorial, you should:

1.

Have access to or have installed Oracle® Hyperion Financial Management, Fusion Edition 11.1.1.0.0

2.

Have installed and opened a Financial Management application

3. Have created a child entity (WestSales is used for this tutorial)
4. Opened the periods for which you are generating and reviewing auto-reversing journal entries

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Creating Auto-reversing Journal Entries


In this part of the tutorial, you create an auto-reversing journal entry in the WestSales entity. The entry is for February revenue that was incorrectly credited in January 2008.

1.

Open your Financial Management application, and In the Browser View pane, navigate to Tasks > Journal Tasks > Process Journals.

 

2.

On the POV bar, select Scenario: Actual, Year:2008, Period: January, Value: <Entity Curr Adjs>, and click New.

 

3.

Select Start with blank Journal. Under Type, select Auto-reversing. Click OK.

 

4.

In the POV for Entity, select California.WestSales, and click OK.

 

5.

Under Edit Auto-reversing Journal, enter the following information:

Label Balance Type Security Description
AutoRev J1 Balanced US Revenue Adjustments for Jan - Auto-reversing

 

 

6.

Place your cursor in the first cell in the Account column, click Pick Members, and enter the following member information:

Account ICP Business Markets Grades Unit/Flows Debit Credit
LongTermRec [ICP None] [None] [None] [None] Decreases   5000
OtherRevenues [ICP None] [None] [None] [None] [None] 5000  

 

 

7.

Click Save.

 

8.

Select Process > Submit to submit the journal entry for approval and posting.

 

9.

Click Close to return to the Process Journals window.

The journal is displayed in the list. The status is Submitted.

 

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Reviewing Auto-reversing Journal Entries


After the auto-reversing journal entry is approved and posted, you can review it in the next period (February) to ensure that it was reversed correctly.

1.

In the Browser View pane, navigate to Tasks > Journal Tasks > Process Journals.

The journal is displayed in the list. The status is Posted.

 

2.

In the POV for Period, select February, and click OK.

The status of the journal for February is automatically set to Approved.


 

3.

Select the check box to the left of AutoRev J1, and click Open.

 

4.

Perfrom the following actions:

a. Review the journal.

The journal is reversed in February and is ready to be posted.

b. Click Close.

 

5.

Select the check box to the left of AutoRev J1, and select Process > Post.

 

6.

In the Browser View pane, navigate to Data Grids > P and L.

 

7.

In the POV, select the following POV:

POV Value
Scenario Actual
Year 2008
View <Scenario View>
Entity California.WestSales
Value <Entity Curr Adjs>
ICP [ICP None]
LIneOfBusiness [None]
Markets [None]
Grades [None]
UnitsFlow [None]

 

The account OtherRevenues is debited in January and credited in February. Similarly, the account ShortTermRec is credited in January and debited in February.

 

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Summary


In this tutorial, you learned how to:

 Create auto-reversing journal entries
 Review auto-reversing journal entries

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Related Information


To learn more about Financial Management, refer to additional OBEs.

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