Reversing Transactions: General Information

An incorrect batch with the On Hold or Balanced status can be corrected or deleted in the system. After a batch has been released, it cannot be corrected or deleted. If a batch with the Unposted or Posted status is incorrect, you can reverse the batch and enter a correct one.

Tip: If the batch was posted to the wrong GL account, subaccount, or branch, to correct it, you can reclassify the batch on the Reclassify Transactions (GL506000) form. For details, see Reclassifying Transactions: General Information. If a part of the batch amount was posted to the wrong GL account, subaccount, or branch, you can split the batch. For details, see Splitting Transactions: General Information.

Learning Objectives

You will learn how to reverse a GL batch in the system.

Applicable Scenarios

You reverse a batch if some of the details other than GL account, subaccount, or branch were entered incorrectly and the batch has been released.

Generation of a Reversing Batch

To generate a reversing batch, on the Journal Transactions (GL301000) form, you select the batch that you want to reverse and on the More menu (under Corrections), you click Reverse. The system creates a batch with the transactions reversed—that is, a debit entry is reversed as a credit entry and a credit entry is reversed as a debit entry.
Note: For the reversing batches, the Reversing Entry check box is selected in the Summary area of the Journal Transactions form.
Depending on the setting of the Hold Batches on Entry check box on the General Ledger Preferences (GL102000) form, the reversing batch gets one of the following statuses:
  • Balanced: If the Hold Batches on Entry check box is cleared.
  • On Hold: If the Hold Batches on Entry check box is selected.

You can then release and post this batch. For details on processing batches, see GL Transactions: General Information.

While you are viewing the reversing batch on the Journal Transactions form, you can quickly view the original batch by clicking the number in the Orig. Batch Number box in the Summary area.

You can reverse a batch multiple times. To view the list of the related reversing batches, you click the link in the Reversing Batches box of the Journal Transactions form. The system opens the GL Reversing Batches (GL690010) report with the list of batches and their details.

Overview of the Reversing Process

The typical processing workflow of reversing batches involves the actions and generated batches shown in the following diagram.

Figure 1. Processing workflow for reversing a transaction