9.2 Creating and Reviewing a Journal Entry Reversal

Purpose:  Use this as a reference to create and/or review a journal entry reversals using ctcLink.

Audience: Finance Staff/Supervisors.

You must have at least one of these local college managed security roles:

  • ZZ GL Journal Entry

You must also set these User Preference Definitions:

If you need assistance with the above security roles or User Preference Definitions, please contact your local college supervisor or IT Admin to request role access.

Reversals are created when you post the source journal and are marked valid and ready to post.  Journals created by the reversal process cannot be changed or deleted.

The Journal Edit process provides a check on the journal key fields and a notification of conflict with planned reversal journals that have not yet been posted.  Potential duplicates are identified at journal creation with a message, providing the opportunity to update the journal and prevent process failure.  This applies to online journal entry as well as for journals that are imported through the flat file and spreadsheet (online and batch) processes.

The Reversal Journal must be within an open period.

Creating a Journal Entry Reversal

Navigation: General Ledger > Journals > Journal Entry > Create/Update Journal Entries

  1. The Create/Update Journal Entries page displays. Use the Add a New Value tab to add a new journal entry. 
  2. The Business Unit field may already contain data. You can edit this field to enter the business unit to which you want to post a journal entry.
  3. Select the Add button.
  4. Enter the desired information into the Long Description field.
  5. Use the Ledger Group field to enter the appropriate data to which you want to post the journal.  Please note this is a required field.
  6. Select the Source field.  Enter the desired information into the Source field.  Please note this is a required field.
  7. Select the Reversal: Do Not Generate Reversal link.

Use the Reversal: link to specify the reversal options of an automatically-generated reversal entry.  Here are the options along with a brief summary of what each means.

  • The Do Not Generate Reversal option assumes no automatic reversal of this entry.  This is the default.
  • Use the Beginning of Next Period option to create a reversing entry dated the first business day of the next accounting period . It uses the holiday list ID that you assigned to the business unit on the General Ledger Definition - Definition page to determine the first business day.  If the business unit is not assigned a holiday list ID, the reversing entry is dated the first day of the next accounting period.
  • The End of Next Period option is the option that was selected when creating this original journal entry.  This option creates a reversal entry dated the last business day of the next  accounting period.  It uses the holiday list ID that you assigned to the business unit on the General Ledger Definition - Definition page to determine the last business day.  If the business unit is not assigned a holiday list ID, the reversal entry is dated the last day of the next accounting period.  If the journal is an adjusting journal, the reversal entry is dated the last business day of the first accounting period of the next fiscal year.
  • Use the Next Day option to create a reversal entry dated the next business day . It uses the holiday list ID that you assigned to the business unit on the General Ledger Definition - Definition page to determine the next business day.  If the business unit is not assigned a holiday list ID, the reversal entry is dated the next day.
  • Use the Adjustment Period option to create a reversal entry to the adjustment period that you select.  When you select this option, enter the adjustment period and reversal date.  Enter these values in the corresponding Adjustment Period and Reversal Date fields.  The system uses the reversal date to populate the journal date and fiscal year of the reversing entry.  If you enter a date on a nonworking day and there is a holiday list ID assigned to the business unit, you'll receive an error message.  The system does not reset the reversal date, and you must reenter a date that is a working day.
  • Use the On Date Specified By User option to select any date in the calendar.  When you select this option, you must also enter the reversal date.  If you enter a date on a nonworking day, and there is a holiday list ID assigned to the business unit, you'll receive an error message.  The system will not reset the reversal date; you must reenter a date that is a working day.
  • If the ledger group supports average daily balance reporting, you must select the method that is used to populate the ADB date of the reversal entry.  Use the Same as Journal Reversal option to create a reversal entry with the same ADB date as the one selected in the Reversal group box, so that the journal date and ADB date of the reversal entry are the same.
  • Use the On Date Specified by User option to select any date in the calendar.  When you select this option, you must also enter a value in the ADB Reversal Date field.  If you enter a date on a nonworking day, and there is a holiday list ID assigned to the business unit, you receive an error message.  The system does not reset the ADB reversal date for you; you must reenter a date that is a working day.  If you specify an ADB reversal date that is on or before the ADB date, you will receive an error message.
  1. The Journal Entry Reversal window displays.  Select the End of Next Period button.
  2. Select the OK button.
Reversal - End of Next Period

Alternative Journal Entry Reversal (recommended by SBCTC Accounting):  Select the On Date Specified By User radio icon, leave the Adjustment Period blank (unless instructed by SBCTC), and enter the Reversal Date. Note the reversal needs to be created in an open period. Select the OK button.

Reversal - on date specified by user
  1. The Journal Entry Reversal window disappears. Note the Reversal changes from 'Do Not Generate Reversal' to option selected, i.e. 'End of Next Period'. Select the Lines tab.
Select Lines tab
  1. The Create/Update Journal Entries page displays. Enter or lookup valid values into the following fields, such as:
    1. Account
    2. Operating Unit
    3. Amount
    4. Fund
    5. Appropriation
    6. Department
    7. Class
    8. State Purpose
  2. In the Lines to Add box enter a '1' (or number of lines to add) and then select the plus icon [+] to add a new row(s).
  3. The journal line copy down feature populates the new row with data from previous line. Enter the reversal Account. The Amount will automatically be entered with the amount needed to balance the journal. Add additional lines as needed.
  4. Select the Save button to generate the Journal ID number.
Lines page
  1. A 'saved' Message box displays the Journal ID number. Select OK.
Select ok
  1. The Message box disappears. Select the Process button to initiate the Journal Edit process. A window displays and select OK to continue the process. You may receive a message asking if you'd like to wait for confirmation that the Edit process has completed, select the Yes button.
Select Process
  1. Notice that the Journal Status and Budget Status fields change to V after the journal is edited, where V stands for Valid. From the Process drop down menu select the Submit Journal list item.
  2. Select the Process button to submit journal for approval.
  3. Select the Approval tab. 

The Reversal Journal is not created until the Original Journal is posted.

Submit for approval

The Approval tab allows you to review status and Approval History. At this point a supervisor with approval authority may sign in and execute Approval and Post the journal.

Approval tab
Reviewing a Journal Entry Reversal

We now need to return to the Journal search page to locate the reversal Journal.  Navigate back to the Create/Update Journal Entries Menu.  You should be able to see your navigation at the top of whatever page you are on.  Select the Create/Update Journal Entries Menu.  Otherwise, initiate the navigation process to get back to the Create/Update Journal Entries Menu.

Navigation:  General Ledger > Journals > Journal Entry > Create/Update Journal Entries

  1. Select the Find an Existing Value tab.
  2. Select the Clear button.
  3. Enter the Business Unit.
  4. Enter the Journal ID created earlier into the Journal ID field.
  5. Select Search.
Find existing value page
  1. The Reversal Journal displays. When you access the reversal journal, you may receive a message that the reversal entry cannot be modified, deleted, or edited.  Select the OK button.
  2. The Reversal Entry displays a reversal option of Reversal: Created by Reversal Process on the Header page.
  3. Review the journal lines of the reversal journal.
Select lines tab
  1. Select the Lines tab. The reversal journal entry lines are, by definition, generated with the opposite signs of the originating journal lines.  
  2. The reversal journal Journal Date corresponds with the option from the original journal Reversal: End of Next Period.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

VIDEO COMING SOON!

Video Tutorial via Panopto

View the external link to Creating and Reviewing a Journal Entry Reversal. This link will open in a new tab/window.

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