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 Overview

To create a reversing journal entry, you must create a journal entry in which debit and credit accounts are posted to the current posting period and then reversed and posted to a later period. Reversing journal entries are typical for entries that record accrued expenses, for example, wages that are accrued during the current period and are payable to employees when payroll checks are printed and posted to future period.

When a reversing journal is updated, the word Reversed precedes the posting comment entered for the account. If a posting comment is not entered, the words Reversing Journal Entry appear.

For information on reversing an existing journal entry, see Reverse a Journal Entry.

 

To create a reversing journal entry

1. Select General Ledger Main menu > General Journal Entry.

2. In the Source Journal field, enter a source journal code. For more information, see General Journal Entry - Fields.

3. In the Entry Number field, enter the number that identifies this journal.

4. Enter the posting date and reversing date.

5. Click the Lines tab, and enter debit and credit account information. Click Accept.

After you perform this procedure and the journal is printed and updated, the following applies:

• On the posting date defined, the original journal entry is posted to the debit and credit accounts entered.

• On the reversing date defined, the debit and credit accounts in the original posted journal are reversed (debits are posted as credits and credits are posted as debits).