R12- General Ledger

Automatic Journal Reversal Overview

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.
You define journal reversal criteria sets for journal categories. Journal
reversal criteria let you specify the reversal period, date, and method for
each journal category. You assign journal reversal criteria sets to ledgers.
The same journal reversal criteria set can be shared and assigned to
multiple ledgers. A ledger that does not have journal reversal criteria set
assigned to it will not be able to automatically reverse journals. You can
assign and change the journal reversal criteria set assignment to a ledger
at any time. Changes only impact journals that are created after the
change.
Note: The reversal method for a journal is defaulted from the method
defined for the journal category in the Journal Reversal Criteria Set that is
attached to the corresponding ledger.
You can also choose to enable automatic posting of reversed journals.
In a ledger that has journal reversal criteria set assigned, once you have
posted journals using journal categories that have AutoReverse enabled,
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.

Prerequisites
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.

To create a Journal Reversal Criteria Set:

To create a Journal Reversal Criteria Set, perform the following steps.

1. Navigate to the Journal Reversal Criteria Set window.
2. Enter a Criteria Set name and Description.
3. (Optional) Select the Enable Security checkbox to secure the Journal
Reversal Criteria Set to prevent some users from viewing or making
changes to it.
4. If you do not enable security, all users who have access to this
journal reversal criteria set will be able to use, view, and modify the
criteria set.
If the Assign Access function is available for your responsibility, the
Assign Access button is enabled once you check the Enable Security
check box. Choose the Assign Access button to assign the journal
reversal criteria set to one or more Definition Access Sets with the
desired privileges.
If the Assign Access function has been excluded from your
responsibility, you will not be able to view the Assign Access button
in the Journal Reversal Criteria Set window. You can still secure the
Journal Reversal Criteria Set by checking the Enable Security check
box, but only Definition Access Sets that are AutoAssigned will be
automatically assigned to this Journal Reversal Criteria Set. See your
System Administrator for more information on Function Security.
5. Save the new journal reversal criteria set. This automatically
displays all of the journal categories with their default values in the
Journal Reversal Criteria region. Select a journal category for which
you want to modify the reversal criteria. For each journal category
defined in General Ledger, you can select journal reversal criteria to
control how and when your journals are reversed.
Note: You can query and modify the AutoReverse attributes for
existing categories, but you cannot create new journal categories in
this window
Select a Reversal Period from the poplist. Choose from No Default,
Same Period, Next Period, Next NonAdjusting, or Next Day.

Note: The Next Day option is only applicable to average daily

balance ledgers. Non-average daily balance ledgers and
consolidation average daily balance ledgers with a journal reversal
criteria set that includes the Next Day option will ignore the reversal
period information and treat the Next Day option in the same
manner as the No Default option.
Use the following table as a guide for selecting an appropriate
reversal period.

Periods with Corresponding Reversal Periods

When you select
this period...

The reversal period is...

No Default

the reversal period you define when you manually enter your original
journal entry

Same Period

the same period of the original journal entry

Next Period

the period following the period of the original journal entry

Next NonAdjusting the nonadjusting period following the period of the original journal
entry
Next Day

the period into which the effective date of the journal entry falls; this
option is only applicable for average daily balance ledgers

6. Select a Reversal Date from the poplist if you have an average daily
balance ledger. The Reversal Date is only applicable to average
daily balance ledgers. Non-average daily balance ledgers and
consolidation average daily balance ledgers with a journal reversal
criteria set that includes a Reversal Date will ignore the Reversal
Date information
Note: The available choices in the Reversal Date field are
dependant on the Reversal Period selected. See the table below for
available options and exception cases for non-consolidation ledgers
with average daily balance enabled.
The following table describes how AutoReversal determines the
reversal date based on the Reversal Period, Reversal Date, and
Effective Date Rule defined for journal sources other than Manual.
Note: AutoReversal will always roll the reversal date to a valid
business day for Manual journal sources, regardless of the Effective
Date Rule assigned.

Journal Reversal - Average Daily Balance Non-Consolidated Ledger

When you
select this
reversal
period
Same Period

and this
reversal
date

if the
Effective
the date of Date Rule in
the period of your
the Journal
your journal journal
Sources form
reversal is
reversal is is set to

Next Day same as the

journal's
period

Last Day

Next
First Day
Period/Next
Non-Adjusting
Period

same as the
journal's
period

the period (or

non-adjusting
period) after
the journal's
period

the day
after the
journal's
effective
day

Fail

no default will be
provided for the
reversal date

Leave Alone

the reversal date

will remain as is

Roll

the reversal date

will roll forward
to the next
business day
within the
reversal period

the last day Fail

of the
reversal
period

the first
day of the
reversal
period

and the reversal

date is not a
business day....
the following
action will take
place

no default will be
provided for the
reversal date

Leave Alone

the reversal date

will remain as is

Roll

the reversal date

will roll
backward from
the last day of the
reversal period to
find a valid
business day

Fail

no default will be
provided for the
reversal date

Leave Alone

the reversal date

will remain as is

Roll

the reversal date

will roll forward
to find the next

business day
within the
reversal period
Last Day

Next Day

N/A

The period
(or nonadjusting
period) after
the journal's
period

refer to last
column

the last day Fail

of the
reversal
period

the day
after the
journal's
effective
date

no default will be
provided as the
reversal date

Leave Alone

the reversal date

will remain as is

Roll

the reversal date

will roll
backward from
the last day of the
reversal period to
find a valid
business day

Fail

no default will be
provided for the
reversal date

Leave Alone

the reversal date

will remain as is

Roll

the reversal date

will roll forward
to find the next
business day
(may go into the
next period)

7. Select a reversal method from the poplist:

o Switch DR/CR: reverses journals by changing the debits and
credits of your originating journals.
o Change Sign: reverses journals by changing the sign of your
originating journals.
8. Mark the AutoReverse checkbox to enable AutoReversal for this
category. The default is disabled.
9. Mark the AutoPost checkbox to enable AutoPost for this category.
The default is disabled.

Note: AutoPost will operate only if AutoReverse is enabled. Even

reversal journals that were manually reversed (not automatically
generated) are selected for automatic posting when this option is
selected.
10.

Save your work.