How to create a Reversing GL journal Entry in X3

By | May 26, 2021
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Journal entries are records of financial transactions flowing in and out of the business. Journal entries are used to make transfers between nominal accounts. These transactions all get recorded in the book, called the general journal.

Transactions are listed in an accounting journal that shows a company’s debit and credit balances.

Journal entries includes the following main elements like a reference number, a date of journal entry, account name, two separate amount for debit and credit.

Reversing Journals are special journals that are automatically reversed after a specified date. They exist only till that date specified

The purpose of reversing entries is to cancel out certain adjusting entries that were recorded in the previous accounting period.

Create the GL Journal Entry that will be reversed.

  • Go to Financials > Journals > Journal entry
  • Create a new GL Journal entry that will be reversed after some days.
  • Select “Yes” in the Reversal drop down and enter the ‘Reversal date’.
  • Click the Create button when finished. Refer Fig 1.1.

Create the reversing entry:

STEP I: 1. Within the GL Journal entry task, select the ‘Reversing’ option from the   Zooms menu in the right list.

2.Select the Debit / Credit option to post the reversing entry as reversed debits and credits or select Amount / Negative Amount to post the reversing entry as a negative debit and credit.

  • Enter the ‘Reversal Date’
  • Click ‘OK’. Refer Fig 2.2

3.Once you click OK the newly created reversal entry will appear on the screen and the ‘Default description’ field will show the original GL Journal number as shown in Fig 2.3

4. And original Journal entry changed its status as ‘Reversed’ as in Fig 2.4

STEP II:Users can also reverse a single or multiple entries by using the Reversals function

Navigational Path: Financials > Current Processing’s > Reversals.

This blog helps us to understand how to perform reversing journal entries and  two benefits of using reversing entries are:

  • It greatly reduces the chance of double counting revenues and/or expenses
  • It allows for more efficient processing of the actual invoices that will be processed in the new accounting period.

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