Creating Auto-reversing Journals in Oracle® Hyperion Financial Management 11.1.2.4


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Before You Begin

Purpose

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

Time to Complete

Approximately 30 minutes.

Background

Auto-reversing journals affect two periods of data. You post an auto-reversing journal to adjust values in one period; the system automatically creates a journal that reverses those adjustments for the next period. The journal created in the following period has the Approved status. You can then post this approved journal for the reversal to take effect.

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.

What Do You Need?

Before starting this tutorial, you should:

  1. Have access to or have installed Financial Management
  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

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 2016.

  1. Open your Financial Management application, and in the Application Tasks pane, under Journals, double-click Manage.

  2. On the point of view (POV) bar, select the following:

    • Scenario: Actual
    • Year:2016
    • Period: Jan
    • Value: <Entity Curr Adjs>

  3. On the Manage Journals toolbar, click New , and select Journal.

    An empty Journal opens in a new tab.

  4. In the POV, change the member selection for Entity to California.WestSales.

  5. Enter the following information:

    Label: AutoRev J01

    Balanced Type: Balanced

    Type: Auto-reversing

    Security Class: US

    Description: Revenue Adjustments for Jan - Auto-reversing

  6. Place the cursor in the first cell of the Account column, select Actions, and then Pick Members.

    The Member Selection dialog box is displayed.

  7. In the Member Selection dialog box, select Member for each dimension and click OK.

    Account ICP LineOfBusiness Markets Grades Flows Debit Credit
    LongTermRec [ICP None] [None] [None] [None] Decreases   5000

  8. In the Credit field, enter 5000 for row1.

  9. Repeat steps 6 through 8 to create an another row with the information below.

    Account ICP LineOfBusiness Markets Grades Flows Debit Credit
    OtherRevenues [ICP None] [None] [None] [None] [None] 5000  

  10. Click Save and close AutoRev J01 journal tab.

  11. On the Manage Journals tab, select the AutoRev J01 journal.

  12. Select Actions, and then select Submit.

    The Journal Status is changed to Submitted.

  13. On the Manage Journals tab, select the AutoRev J01 journal.

  14. Select Actions, and then select Approve.

    The Journal Status is changed to Approved.

  15. On the Manage Journals tab, select the AutoRev J01 journal.

  16. Select Actions, and then select Post.

    The Journal Status is changed to Posted.

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 Application Tasks pane, under Journals, double-click Manage.

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

  2. In the POV for Period, select Feb, and click OK.

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

  3. Select AutoRev J01, and click Edit.

  4. Perform the following actions:

    1. Review the journal.

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

    2. Click Close Tab to close the AutoRev J01.

  5. On the Manage Journals tab, select the AutoRev J01 journal and select Actions > Post.

  6. In the Application Tasks pane, double-click Documents.

  7. On the Documents tab, double-click the GrossMargin data grid.

  8. In the Gross Margin POV, select the following:

    POV Value
    Scenario Actual
    Year 2016
    View <Scenario View>
    Entity California.WestSales
    Value <Entity Curr Adjs>
    ICP [ICP None]
    LIneOfBusiness [None]
    Markets [None]
    Grades [None]
    Flow [None]

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