cancel
Showing results for 
Search instead for 
Did you mean: 

What is the most appropriate way to do reversal and reconcile the reversed

Former Member
0 Kudos

Dear All,

I am facing a problem to reconcile reversal transaction. The scenario as below:

Date 28.04.2008 Company A issue billing to Customer XYZ amount 3,000 MYR

Date 30.04.2008 Company A want to reverse the above transaction.

Questions:

1.Where is the most appropriate menu path to do the reversal?

2. If the reversal needs to be done via menu path: Financial module à Reversal Transaction, then how to reconcile both items to ensure system will read as cleared items?

3.The purpose of Question no.2 due to have same result upon executing customer ageing report regardless using Journal Posting tab or

using Sales Document tab.

Thank you in advance for your kindly reply.

Accepted Solutions (0)

Answers (3)

Answers (3)

K_Pauquet
Advisor
Advisor
0 Kudos

Hi Muhd,

please have a look at the document 'Canceling Documents in Release 6.5'. You'll find it in the Documentation Resource Centre under the 6.5 documentation.

As a rule, as long as a target document is fully based on a base document, e.g. AR Credit memo for 100 unit currency created from AR invoice over 100 unit currency, both documents & journals are automatically reconciled & require no further action from the user.

Regarding the ageing reports, please note that the results of running it by marketing documents or journal entries may vary due to the duality of the separate reconciliation engines. We recommend to run the report on journal entry level.

All the best,

Kerstin

helen_sun
Active Participant
0 Kudos

For the function you mentioned :reverse transaction

under the Financial module

you could refer to note:1004113 for more detailed information

To update a journal entry such that it will auto-reverse at a later date follow the steps below:

1. Go to Financials -> Journal Entry.

2. Open the journal entry that needs to be reversed.

3. Place a tick in the box 'Reverse' and a new field for the reversal

date will be displayed.

4. Enter the date when this journal enrty is to be reversed and click

on 'Update'.

For the customer aging report ,there is one case that could explain the difference between 'by journal posting' and 'by sales document':

In case an Invoice has been partially cleared by an Incoming

Payment, the transactions created by these documents will be displayed

as fully open when you run the report using Due Date by Journal Post.

However, if you run the report using Due Date by Sales Doc., the Invoice

will be displayed with its open amount only.

A common occurrence is that exchange rate differences and/or conversion differences were posted without the user having specified to reverse them at a particular date.

Could you explain more about your case?

Best Regards

Helen Sun

former_member408229
Active Participant
0 Kudos

Hello,

If the 'billing' means post invoices, you can easily reverse it by creating credit note based on the invoice.

If it means payment, to cancel/reverse it, the method depends on what kind of payment means is used in this payment.

Reverse transactions under Financial module is used for the

periodic reverse transactions.

You also can use Reconciliation function to reconcile two documents/journal. For example an invoice and an independent

credit memo can be reconciled.

Regards,

maggie An

Edited by: Maggie An on Jun 5, 2008 9:42 AM