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Overview
This tutorial covers creating auto-reversing journal entries and reviewing the entries in the following period.
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.
In this part of the tutorial, you create an auto-reversing journal entry in the WestSales entity, for February revenue wrongly credited in January 2006.
1.
In the Browser View pane, navigate to Tasks > Journal Tasks > Process Journals.
2.
On the POV bar, select Scenario: Actual, Year:2006, Period: January, Value: <Entity Curr Adjs>, and click New.
3.
Select Start with blank Journal and under Type, select Auto-reversing. Click OK.
4.
In the POV for Entity, select 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.
Click PickMembers, 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.
After the auto-reversing journal entry is approved and posted, you can review it in the next period (February) to ensure that it 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.
Review the journal.
The journal is reversed in February and is ready to be posted.
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
2006
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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