Journal Auto Reversal

Journal Auto Reversal
An Oracle White Paper December 2002
1. Business purpose........................................................................................... 3 2. introduction ................................................................................................... 4 3. FUNCTIONALITY OF JOURNAL AUTO REVERSAL .................. 5 3.1 Setup required ......................................................................................... 5 3.1.1 Journal Reversal Criteria ................................................................ 5 3.1.2 Standard Sets of Books.................................................................. 5 3.1.3 ADB Non Consolidation Sets of Books ..................................... 6 3.1.4 Derivation of Default Reversal Period and Date....................... 8 3.2 Test Cases.............................................................................................. 12 3.2.1 Standard Set of Books.................................................................. 12 3.2.2 ADB Set of Books........................................................................ 16 Example .......................................................................................................... 16 4. Technical Part.............................................................................................. 31 4.1 Forms ..................................................................................................... 31 4.2 Program ................................................................................................. 33 4.2.1 Program Auto Reversal ............................................................ 33 4.2.2 Open Periods Program ................................................................ 33 4.2.3 AutoReversal Upgrade Script (glustaro.sql).............................. 34 4.3 Data Model............................................................................................ 34
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1. BUSINESS PURPOSE Many customers need to reverse large numbers of journals periodically due to their accounting practices. They find the current journal reversal process cumbersome because it requires each individual journal to be selected before reversing. Therefore, in Release 11.5 of Oracle General Ledger, we introduce the automatic journal reversal function which enables automatic generation and posting of reversed journals.
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2. INTRODUCTION
2.1 Objective The purpose of this paper is to provide a clear idea and explanation, about the logic used by Auto Reversal and how Users should be able to select journals of balance type Actual to be automatically reversed by journal category. 2.2 Scope Setup required for Journal Auto Reversal has been explained. The paper tries to bring forth the various combinations of setups that could be done for a Journal Category and their effect on creating Reversal Journals and the accounting entries created. 2.3 Layout of the document To begin with, the functionality of the Journal Auto Reversal has been explained. Then the various setup required has been explained. Then how to generate the reversal entries and the various methods of creating reversal journals has been explained. The simulations done on various combinations of setup for a Journal Category, their functioning and the accounting entries created has also been explained. Then the technical side of the Journal Auto Reversal, that is the Forms, Concurrent Programs and the database tables has also been explained.
BUSINESS INTRODUCTION
FUNCTIONALITY SETUP DERIVATION OF DEFAULT REVERSAL TEST CASES TECHNICAL TROUBLE SHOOTING
Journal Auto Reversal Page 4
3. FUNCTIONALITY OF JOURNAL AUTO REVERSAL Users should be able to select journals of balance type Actual to be automatically reversed by journal category. They can also choose to automatically post the reversals if desired. Automatic Journal Reversal involves three basic steps: The users must define the automatic journal reversal criteria. The system automatically populates the journal reversal period and date according to the reversal criteria.
After the source journals are posted, the users can either launch a reversal program, which generates and posts all the reversals by the reversal criteria, or allow the system to run this program automatically each time a period is opened. Users should still be able to manually reverse journals even if they have not selected autoreversal for the journal category. They can also define the reversal criteria to only automatically default the reversal periods and dates, and then manually reverse each journal if desired. General Ledger will generate and post reversals for journals only if it satisfies the following conditions: The journal balance type is Actual. The journal category is enabled to be Autoreversed. The journal is posted but not yet reversed. The journal reversal period is open or future enterable.
3.1 Setup required

3.1.1 Journal Reversal Criteria
Oracle General Ledger provides a new form in Release 11.5 for users to define reversal criteria by journal category. Each set of books has its own reversal criteria. Therefore, the users can control the reversal process for each set of books. In the Reversal Criteria form, users must set up reversal options for each journal categories. The options are different for Standard sets of books (Non-ADB or Consolidation) and ADB Non-Consolidation sets of books.
3.1.2 Standard Sets of Books
There are four reversal options users must specify for each journal category: 1. Reversal Method: This option determines how the reversal amount offsets the original journal amount. The option is moved from the Journal Categories form in prior releases to this form. The choices are: Switch DR/CR Change Sign
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2. Default Reversal Period Rule: This option determines the default reversal period for each journal. No Default Same Period (as the journal period) Next Period Next Non-Adjusting period
3. AutoReverse: This option determines whether to automatically reverse the journals. 4. AutoPost Reversals: This option determines whether to automatically post the reversals. Users can choose to automatically post reversals if and only if they have chosen to automatically reverse journals
3.1.3 ADB Non Consolidation Sets of Books
ADB Non Consolidation sets of books provide additional options for users to select reversal dates. The ADB only choices are marked with an asterisk below. There are five reversal options the users must specify for each journal category: 1. Reversal Method: (Same as Standard sets of books) 2. Default Reversal Period Rule:
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No Default Same Period (as the journal period) Next Period Next Non-Adjusting period Next Day *
This choice determines the reversal date as well as the reversal period. (For detail see the Default Reversal Period and Date section.) 3. Default Reversal Date Rule: * When the user chooses a Default Reversal Period Rule other than Next Day or No Default, this option determines the reversal journals effective date. The choices available depend on the Default Reversal Period Rule. When Same Period is chosen, users can select from: Next Day (from the original journals effective date) Last Day (of the reversal period)
When Next Period or Next Non-Adjusting Period is chosen, users can select from: First Day Last Day
4. AutoReverse (Same as Standard sets of books) 5. AutoPost Reversals (Same as Standard sets of books)
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3.1.4 Derivation of Default Reversal Period and Date
Once a Default Reversal Period Rule other than No Default is chosen for a journal category, Oracle General Ledger will default the reversal period and the reversal date when it creates a new journal with that category in the set of books. The defaulting rules are different for Standard sets of books and ADB Non-Consolidation sets of books. 1. Standard Sets of Books Oracle General Ledger will choose a reversal period based on the Default Reversal Period Rule, and from the reversal period, it will assign a date closest to the journals effective date as the reversal date.
REVERSAL PERIOD RULE No Default Same Period Next Period Next Non-Adjusting Period
THE PERIOD OF REVERSAL WILL BE THE Reversal period we define when we manually enter the original Journal Same Period of the Original Journal Entry Period following the period of the Original Journal Entry Non-Adjusting period following the period of the Original Journal Entry
2. ADB Non-Consolidation Sets of Books
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When the user selects Same Period, Next Period, or Next Non-Adjusting Period as the Default Reversal Period Rule, OGL will first determine the reversal period, and then choose a reversal date within that period according to the Default Reversal Date Rule. For example, when the period rule is Next Period and the date rule is First Day, for a journal entered in Jan-98, OGL will create a reversal in Feb-98 with journal effective date 01-Feb-98 (assuming a monthly calendar is used). However, if the reversal date is not a Business day, OGL may reset the reversal date depending on the Effective Date Rule defined for the journal source in the Journal Sources form. When the Effective Date Rule is Fail, OGL will not default the reversal period and date. When the Effective Date Rule is Leave Alone, OGL leaves the reversal date as is. When the Effective Date Rule is Roll, OGL will find a business day by Rolling forward up to the end of the reversal period if the Default Reversal Date Rule is Next Day or First Day. Rolling backward up to the journals effective date if the Default Reversal Date Rule is Last Day If a Business day is still not found, OGL will not default the reversal period and date. When the user specifies Next Day as the Default Reversal Period Rule, Oracle General Ledger will determine the reversal date first, and then derive the reversal period. It will choose the day after the journals effective date as the reversal date. However, if this day is not a business day, it will reset the reversal date based on the journal sources Effective Date Rule: When the Effective Date Rule is Fail, OGL will not default the reversal period and date. When the Effective Date Rule is Leave Alone, OGL leaves the reversal date as is. When the Effective Date Rule is Roll, OGL will find a business day by rolling forward.
If the reversal date obtained falls into a subsequent period, OGL will reverse into a different period from the original journals period. Once the reversal date is determined, OGL chooses the reversal period by the following rules: If the reversal date falls in only one GL period, use this period as the reversal period. If the reversal date falls in two or more GL periods (a non-adjusting and one or more adjusting periods), It chooses the period of the original journal if the reversal date is in the same period as its original journal. Otherwise, it chooses the non-adjusting period if its open and future enterable. If the Non-Adjusting period is not open or future enterable, OGL will not default the reversal period and date.
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The following chart summarizes the default reversal period and date logic for ADB Non-Consolidation sets of books: Default Reversal Period Rule Default Reversal Date Rule Reversal Period Reversal Date (4) Reversal Date Adjustment when (4) is not a business day (5)
JE Source Effective Date Rule Same Period Next Day Same as the journals period The day after the journals effective day Fail Leave Alone Roll Date
Reset the Reversal Date
Dont default Leave as is Roll forward to find the next business day within the reversal period Dont default Leave as is Roll backward from the last day of the reversal period to the journals
Last Day
Same as the journals period
The last day of the reversal period
Fail Leave Alone Roll Date
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effective date to find a business day Next Period/ Next NonAdjusting Period First Day The period (or non-adjusting period) after the journals period The period (or non-adjusting period) after the journals period The first day of the reversal period Fail Leave Alone Roll Date Dont default Leave as is Roll forward to find a business day within the reversal period Dont default Leave as is Roll backward from the last day of the reversal period to the journals effective date to find a business day. Dont default Leave as is Roll forward to find the next business day (may go into the next period)
Last Day
The last day of the reversal period
Next Day
N/A
Find a period based on the reversal date from column (5)
The day after the journals effective day
Suggestion: When Concurrent Program Program Automatic Reversal is submitted, the value for the period parameter should be the period in which the original journal is entered.
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3.2 Test Cases

3.2.1 Standard Set of Books
The following simulation has been done in Non ADB Set of Books.
REVERSAL METHOD Example Switc h Dr/Cr Chang e Sign
REVERSAL PERIOD RULE Same Perio d Y Next Perio d NextNonAdjustin g Period Defaul t
AUTO REVERSE Auto Reverse Check Box
AUTO POST Auto Post Check Box
1 2 3 4 5 6
Example 1
Y Y Y Y Y Y
Y Y Y Y Y
Y Y Y Y Y Y
N Y Y Y Y Y
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Auto Reverse Check Box: Checked Auto Post Reversal Check Box: Unchecked
Step 1 Enter and post Journal to the period Dec-02 Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 7500 7500 Credit
Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will create a unposted Reversal Journal in Dec-02 of the above Journal as follows: Account Account Type Debit Credit
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01-110-7110-0000-000 01-000-1110-0000-000
Expense Cash
7500 7500
Example 2
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked Step 1 Enter and post Journal to the period Dec-02 Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Dec-02 of the above as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 7500 Credit 7500 Account Type Expense Cash Debit 7500 7500 Credit
Example 3
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Change sign Reversal Period: Same Period Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked Step 1 Enter and post Journal to the period Dec-02 Account 01-110-7110-0000-000 Account Type Expense Debit 8500 Credit
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01-000-1110-0000-000 Step 2
Cash
8500
Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Dec-02 of the above as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit <8500> <8500> Credit
The only difference between the previous example and this example is that the Reversal Journal has the Method of Change Sign and the sign of the amount in the reversed journal has been changed. Example 4
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Period Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked Step 1 Enter and post Journal to the period Dec-02 Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Adj-02, which is the next period as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 10000 Credit 10000 Account Type Expense Cash Debit 10000 10000 Credit
The period in which the reversed journal is created should be open in order to Auto post the reversed Journal.
Example 5
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Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Non-adjusting Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked Step 1 Enter and post Journal to the period Dec-02 Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Jan-03, which is the next Non-adjusting period as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 12500 Credit 12500 Account Type Expense Cash Debit 12500 12500 Credit
The period in which the reversed journal is created should be open in order to Auto post the reversed Journal. Example 6 If the Reversal Period is No Default, then no reversal entries will be created when you submit the Concurrent Program Program Auto Reversal. We have to manually reverse these journal entries.
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3.2.2 ADB Set of Books
The following simulation has been done in ADB Set of Books.
REVERSAL METHOD Ex am pl e Switch Dr/Cr Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Chang e Sign
REVERSAL PERIOD RULE Same Period Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Next Perio d NextNonAdjustin g Period Nex t Day
REVERSAL DATE RULE First Day Nex t Day Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Last Day
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
AUTO REVER SE Auto Reverse Check Box Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
AUTO POST Auto Post Check Box Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
JE SOURCE EFFECTIVE DATE RULE Ro Leav Fail ll e Da Alon te e Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Example 1
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Reversal Date: Next Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked
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JE Source Effective Date Rule: Roll Date Step 1 Enter and post Journal to the period Feb-99 with Effective Date 25-FEB-1999 Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Feb-99, which is the same period with effective date 26-FEB-1999 which is the next day of the Original Journal as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 5000 Credit 5000 Account Type Expense Cash Debit 5000 5000 Credit
Example 2
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Reversal Date: Next Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Roll Date Step 1 Enter and post Journal to the period Feb-99 with Effective Date 19-FEB-1999 (Important thing is 20 & 21 of Feb 99 are not business days) Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Account Type Expense Cash Debit 6500 6500 Credit
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Reversal Journal in Feb-99, which is the same period with effective date 22-FEB-1999 (since 20 & 21 are not business days) which is the next day of the Original Journal as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 6500 Credit 6500
Example 3
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Reversal Date: Next Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Leave Alone Step 1 Enter and post Journal to the period Feb-99 with Effective Date 19-FEB-1999 (Important thing is 20 & 21 of Feb 99 are not business days) Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Feb-99, which is the same period with effective date 22-FEB-1999 (since 20 & 21 are not business days) which is the next day of the Original Journal as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 8000 Credit 8000 Account Type Expense Cash Debit 8000 8000 Credit
The period in which the reversed journal is created should be open in order to Auto post the reversed Journal. There is no difference between the JE Source Effective Date Rule of Leave Alone and Roll Date, which is clearly explained, in the above examples. Example 4
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Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Reversal Date: Next Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Fail Step 1 Enter and post Journal to the period Feb-99 with Effective Date 19-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Feb-99, which is the same period with effective date 22-FEB-1999 which is the next business day of the Original Journal as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 8000 Credit 8000 Account Type Expense Cash Debit 8000 8000 Credit
The period in which the reversed journal is created should be open in order to Auto post the reversed Journal. There is no difference between the JE Source Effective Date Rule of Leave Alone, Roll Date and Fail, which is clearly explained, in the above examples.
Example 5
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Reversal Date: Last Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Roll Date
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Step 1 Enter and post Journal to the period Feb-99 with Effective Date 18-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Feb-99, which is the same period with effective date 26-FEB-1999 which is the last business day of the Month Feb-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 9000 Credit 9000 Account Type Expense Cash Debit 9000 9000 Credit
Example 6
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Reversal Date: Last Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Leave Alone Step 1 Enter and post Journal to the period Feb-99 with Effective Date 19-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Feb-99, which is the same period with effective date 26-FEB-1999 which is the last business day of the Month Feb-99 as follows: Account Type Expense Cash Debit 10000 10000 Credit
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Account 01-110-7110-0000-000 01-000-1110-0000-000
Account Type Expense Cash
Debit 10000
Credit 10000
Example 7
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Same Period Reversal Date: Last Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Fail Step 1 Enter and post Journal to the period Feb-99 with Effective Date 19-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Feb-99, which is the same period with effective date 26-FEB-1999 which is the last business day of the Month Feb-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 12000 Credit 12000 Account Type Expense Cash Debit 12000 12000 Credit
The period in which the reversed journal is created should be open in order to Auto post the reversed Journal. The last three examples show that there is no difference between JE Source Effective Date Rule being Roll Date, Leave Alone or Fail. Example 8
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr
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Reversal Period: Next Period Reversal Date: First Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Roll Date Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Mar-99, which is the Next period with effective date 01-MAR-1999 which is the first business day of the Month Mar-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 12500 Credit 12500 Account Type Expense Cash Debit 12500 12500 Credit
Example 9
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Period Reversal Date: First Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Leave Alone Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 13000 13000 Credit
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Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Mar-99, which is the Next period with effective date 01-MAR-1999 which is the first business day of the Month Mar-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 13000 Credit 13000
The period in which the reversed journal is created should be open in order to Auto post the reversed Journal. Example 10
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Period Reversal Date: First Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Fail Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Mar-99, which is the Next period with effective date 01-MAR-1999 which is the first business day of the Month Mar-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 13500 Credit 13500 Account Type Expense Cash Debit 13500 13500 Credit
Example 11
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Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Period Reversal Date: Last Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Roll Date Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Mar-99, which is the Next period with effective date 31-MAR-1999 which is the last business day of the Month Mar-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 14000 Credit 14000 Account Type Expense Cash Debit 14000 14000 Credit
Example 12
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Period Reversal Date: Last Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Leave Alone Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999. Account Account Type Debit Credit
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01-110-7110-0000-000 01-000-1110-0000-000 Step 2
Expense Cash
14500 14500
Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Mar-99, which is the Next period with effective date 31-MAR-1999 which is the last business day of the Month Mar-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 14500 Credit 14500
Example 13
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Period Reversal Date: Last Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Fail Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Mar-99, which is the Next period with effective date 31-MAR-1999 which is the last business day of the Month Mar-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 15000 Credit 15000 Account Type Expense Cash Debit 15000 15000 Credit
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Example 14
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Non-adjusting Period Reversal Date: First Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Roll Date Step 1 Enter and post Journal to the period Dec-98 with Effective Date 31-DEC-1998. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Dec-98. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Jan-99, which is the Next Non-adjusting period with effective date 01-JAN-1999 which is the first business day of the Month Jan-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 15500 Credit 15500 Account Type Expense Cash Debit 15500 15500 Credit
Example 15
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Non-adjusting Period Reversal Date: First Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Leave Alone
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Step 1 Enter and post Journal to the period Dec-98 with Effective Date 24-DEC-1998. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Dec-98. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Jan-99, which is the Next Non-adjusting period with effective date 01-JAN-1999 which is the first business day of the Month Jan-99 as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 16000 Credit 16000 Account Type Expense Cash Debit 16000 16000 Credit
Example 16
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Non-adjusting Period Reversal Date: First Day Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Fail Step 1 Enter and post Journal to the period Dec-98 with Effective Date 09-DEC-1998. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Dec-98. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in Jan-99, which is the Next Non-adjusting period with effective date 01-JAN-1999 which is the first business day of the Month Jan-99 as follows: Account Type Expense Cash Debit 16500 16500 Credit
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Account 01-110-7110-0000-000 01-000-1110-0000-000
Debit 16500
Credit 16500
Example 17
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Day Reversal Date: Not Applicable Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Roll Date Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999, which is the last business day of Feb-99. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in 01-Mar-99, which is the Next business day as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 17000 Credit 17000 Account Type Expense Cash Debit 17000 17000 Credit
Example 18
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Day Reversal Date: Not Applicable Auto Reverse Check Box: Checked
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Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Roll Date Step 1 Enter and post Journal to the period Feb-99 with Effective Date 24-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in 25-Feb-99, which is the Next business day as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 17500 Credit 17500 Account Type Expense Cash Debit 17500 17500 Credit
Example 19
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Day Reversal Date: Not Applicable Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Leave Alone Step 1 Enter and post Journal to the period Feb-99 with Effective Date 24-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in 25-Feb-99, which is the Next business day as follows: Account Type Expense Cash Debit 18000 Credit 18000
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Account 01-110-7110-0000-000 01-000-1110-0000-000
Debit 18000
Credit 18000
Example 20
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Day Reversal Date: Not Applicable Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Fail Step 1 Enter and post Journal to the period Feb-99 with Effective Date 24-FEB-1999. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in 25-Feb-99, which is the Next next business day as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 18000 Credit 18000 Account Type Expense Cash Debit 18000 Credit 18000
Example 21
Setup Journal Reversal Criteria for the Journal Category Adjustments as follows: Method: Switch Dr/Cr Reversal Period: Next Day Reversal Date: Not Applicable
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Auto Reverse Check Box: Checked Auto post Reversal Check Box: Checked JE Source Effective Date Rule: Fail Step 1 Enter and post Journal to the period Feb-99 with Effective Date 26-FEB-1999, which is the last business day of Feb-99. Account 01-110-7110-0000-000 01-000-1110-0000-000 Step 2 Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn trigger the Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted Reversal Journal in 01-MAR-99, which is the Next business day as follows: Account 01-110-7110-0000-000 01-000-1110-0000-000 Account Type Expense Cash Debit 18500 Credit 18500 Account Type Expense Cash Debit 18500 Credit 18500
The period in which the reversed journal is created should be open in order to Auto post the reversed Journal. For ADB Set of Books, JE Source Effective Date Rule for the value Fail and Leave alone is not working as given in GL User Guide Page 1-178. For both these values, it is functioning like Roll Date. This is the intended functionality and to change the relevant portion of the User Guide, logged a Documentation Bug 2595748.
4. TECHNICAL PART 4.1 Forms Reversal Criteria Form (GLXSTARV)
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This form only allows updates. Users can query up their journal categories, and change the reversal options, but will not be able to enter new rows. OGL automatically inserts journal categories with default reversal options to this form when new categories are created in the Journal Categories form. The default values for each reversal options are marked with an asterisk below. Category field is display only Reversal Method pop list has the following values: Switch DR/CR * Change Sign Default Reversal Period Rule pop list has the following values: No Default * Same Period Next Period Next Non-Adjusting Next Day (Displayed only in ADB Non-Consolidation sets of books) Default Reversal Date Rule pop list is only enabled in ADB Non-Consolidation sets of books. The pop list value depends on the Default Reversal Period Rule:
Default Reversal Period Rule No default Same Period Next Period
Default Reversal Date Rule value N/A * Next Day, Last Day First Day, Last Day
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Next Non-Adjusting Period Next Day

AutoReversal checkbox (* Default to unchecked) AutoPost checkbox (* Default to unchecked)
First Day, Last Day N/A
Enter Journals Form (GLXJEENT) When a new journal is created, default the Reversal Period and Date according to the journal categorys Default Reversal Period Rule and Default Reversal Date Rule. Journal Categories Form (GLXSTCAT) The column Reversal Method has been removed from this form. When a category is added or modified, it get added or modified accordingly in Reversal Criteria form. Reverse Journals Form Add Journal Category to the Query Find Window. 4.2 Program
4.2.1 Program Auto Reversal
This program generates and posts the reversals according to the Reversal Criteria. It can be called from the Submit Request form and the Open Periods program. It performs the following: Generates reversals Generates reversals for all Actual journals with their categories enabled for AutoReversal and with reversal periods in open or future enterable periods. Posts all reversed journals in open periods with category enabled to AutoPost Reversals. This is done by 1. 2. Marking all qualified journals with a new posting run id Calling the Posting program. The Auto Reverse program will pass the Set of Books Id, Chart of Accounts and the Posting Run Id parameters.
This program calls for the following parameters: Period
4.2.2 Open Periods Program
A call to the AutoReverse program will be added at the end of this program if the profile option GL: Launch AutoReverse after Open Period is yes. Users will be able to view the AutoReverse program along with the other Open Periods programs in the View Requests form. Open Periods program can succeed even if AutoReverse fails.
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4.2.3 AutoReversal Upgrade Script (glustaro.sql)
This SQL script will insert all journal categories and their default reversal options into the AutoReverse tables for each set of books. This script will be run by AutoInstall during install or upgrade.
4.3 Data Model Following table and the respective columns will be update when you setup reversal options for every Journal Category in the Journal Reversal Criteria Form (GLXSTARV)
Table Name & Description GL_AUTOREVERSE_OPTIO NS
Columns SET_OF_BOOKS_ID (PK) JE_CATEGORY_NAME METHOD_CODE (Quick Code)

Quick Code Type
Description Accounting books defining column
Source Table GL_SET_OF_BOOKS
Journal entry category GL_JE_CATEGORIES name Reversal method
REVERSAL_OPTION_COD E REVERSAL_PERIOD_COD E AUTOREVERSE_FLAG (Quick Code)

Quick Code Type
Rule used to default the reversal period Indicates if automatic reversal is enabled GL_LOOKUPS
Yes/No AUTOPOST_REVERSAL_FL AG (Quick Code)

Quick Code Type
Indicates if reversals are to be automatically posted
GL_LOOKUPS
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Yes/No REVERSAL_DATE_CODE
Rule used to default the reversal date
When the Concurrent Program - Automatic Reversal completes successfully, the following tables and the columns will get updated.
Table Name GL_JE_HEADERS
Important Columns ACCRUAL_REV_FLAG

ACCRUAL_REV_EFFECTIVE_DATE
Description of the Column Reversed journal entry flag Reversed journal entry effective date Reversed journal entry reversal period Reversed journal entry status Reversed journal entry defining column Type of reversal (Change Sign or Switch Dr/Cr)
ACCRUAL_REV_PERIOD_NAME ACCRUAL_REV_STATUS ACCRUAL_REV_JE_HEADER_ID ACCRUAL_REV_CHANGE_SIGN_ FLAG
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White Paper Title December 2002 Author: Sriram Sundaram
Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 www.oracle.com Oracle is a registered trademark of Oracle Corporation. Various product and service names referenced herein may be trademarks of Oracle Corporation. All other product and service names mentioned may be trademarks of their respective owners. Copyright 2001 Oracle Corporation All rights reserved.

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Journal Auto Reversal

An Oracle White Paper December 2002