Journals - Auto-Reversing Journals
Auto-Reversing Journals
Introduction
The ‘Auto-Reversing Journal’ feature allows end of period revenue and expense adjustments to be managed by creating journals to automatically reverse in a future financial period.
When creating either multi-line or single line auto reversing journals, BCE by default, will automatically create a reversing journal in the next financial period.
Auto-reversing journals are automatically triggered when closing the current financial period and therefore require the system setting for ‘Financial Period Management’ to be enabled.
A pdf version of this document can be downloaded from here
Purpose of this document
This document informs the user how to complete and manage automatic reversing journals in BCE and describes each of the features.
Creating Auto-Reversing Journals
Auto-reversing journals can be created for both single line and multi-line journals.
From the ‘Accounts’ menu option, select ‘Journals’ to open the ‘Journals’ list screen:
All Journals are created using the ‘+NEW’ menu button that provides the following menu options:
- Single Line Journal
- Multi Line Journal
- Opening Balance Journal
For single line journals the following ‘New General Journal Transaction’ screen opens:
For multi-line journals the following ‘New Multi Line Journal’ screen opens:
Auto Reverse (Year/Period)
To set the journal as an auto-reversing journal, tick the ‘Auto Reverse (Year/Period)’ tick box.
By default, the year and period will be set to the next financial period. If required, the year and period can be set to any future financial period for the reversing journal.
When selecting the financial year and period for a reversing journal, the start and end calendar dates relative to the selected period are displayed informing the user of the dates for reversing journal:
The actual date of the reversing journal will be always be the first day of the target period and this is relative to how the financial periods are setup within BCE.
Managing Auto-Reversing Journals
From the new ‘Journals’ list screen all journal types are listed.
An ‘Advanced Search’ option allows auto-reversing journals to be listed by their pending or completed status:
Auto reversing journals with a ‘pending’ status (not yet run) can be edited and the auto reversal period and year can be changed by selecting an alternative future financial period.
The reversing journal of a pending auto reversing journal can be cancelled by unticking the ‘Auto Reverse’ check box.
When an auto reversing journal is created on closing a financial period, the originating journal’s status is updated from ‘Pending‘ to ‘Completed’.
When an auto reversing journal is created on closing a financial period:
- The originating journal’s status is updated from ‘Pending‘ to ‘Completed’
- The new reversed journal’s reference field is updated with details of the original journal that was reversed
Financial Periods
Journals with a completed status will not rerun, even in the event of a past period being reopened and closed.
In the event of changes to the BCE financial periods the system will respect the status of auto-reversing journals as follows:
Changes to the financial period dates that invalidate the reversal date will leave any auto-reversing journal as pending and they will need to be managed manually.
Changes to the financial period dates that maintain a valid reversal date will not interrupt the auto reversing journal.
If the financial periods are deleted the auto reversing journal status will leave any auto-reversing journal as pending and they will need to be managed manually.
