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Ledger Transaction Reversal


Hi Friends,

The purpose of this post is to discuss the transaction reversal and correction in AX.

Generally, transactions are posted from different modules like Daily journals from GL, FA Depreciations/Acquisition from Fixed Assets, AP Invoice/Payment  in Accounts payable and so on. Almost all these transactions hits ledger in a way or other.

During general business practice, it is very common to post a transactions with some wrong value. Example can be a journal entry is posted to wrong ledger account, amount can be wrong or even date can also be entered wrong.

If any user has done any such mistake, then the correction approach would be to first reverse the wrong transactions posted and then re-post transactions with correct data.

I will be focusing on transactions reversals and correction in this post and coming few posts. The starting point will be ledger transaction reversal posted using general journal.

Journal Transaction Reversal

Transactions are posted using Daily type of journal very frequently. General journals are created and posted frequently. Consider following journal is posted in system that needs to be reversed:

J1

 

 

There are 3 lines on journal and this a typical expense booking. The transaction is posted on 11/16/2013. After posting user realized that the date was entered wrong. The transactions should be posted on 10/16/2013.  As stated, the above posted transaction needs to be first reversed and then correct transaction needs to be posted.

The transactions can be reversed in following 3 different ways:

1. Reversal from Ledger Transaction:

 

On the main account, select the ledger account whose transaction needs to be reversed. Click on Posted to check the posted transactions. On the posted transaction, you need to locate the appropriate transaction and the click on Reverse transactions.

J2

 

When you click on Reverse transaction, system will ask for Reversal date. By default it will be transaction date. It is strongly recommended to use the reversal date as transaction date only.

J3

 

Clicking on OK will reverse the transaction.

2. Reversal using Load ledger transaction:

This feature is used in case the voucher has many lines. Create a new journal. On the journal lines, click on function and then select Load ledger transactions. You need to enter the voucher number using the select feature. Voucher should be set as New voucher number per voucher and Invert sign should be checked:

J4

Clicking on OK will copy journal lines as in voucher specified. The amount will have negative sign. This simply means negative debit is same as credit. Note the description on journal line, it states that voucher is being voided.

J5

Click on Post to Post the reversal entry.

3. Manual Entry:

Third and tradational approach is to post a manual entry. All you need to do is to create a new journals and key in date, amount manually. The manual entry is generally used when there is some correction in amount.  For example, in the above case, total voucher value posted was 1500. If it was required to post voucher for 2000 then additional entry can be posted. Similarly if the voucher was  required to be posted for 1000, then 500 debit transaction can be posted to credit account and vice versa.

Correction Entry:

Now that the original entry is reversed, the user must post correction entry. The correction entry can be key in manually or user can also use the load transaction functionality. When load transaction functionality is used, invert sign shouldn’t be used.

J6

When the transaction is loaded, you need to change the date as correct transaction date. Note that the description is also copied as in original voucher. User can do some editing as required and post the transaction.

At this point, the original transaction is reversed and correction entry is posted.

Please let me know if you have any question. Your feedback will be highly appreciated.

Thanks.

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2 Comments

  1. Angus says:

    Pranav – excellent simple guidance on how to reverse a posted Journal. Was struggling till I found this. Just implementing AX2012 in Dundee Scotland. Many thanks from angus

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