Reversing journal entries are made at the beginning of an accounting period. Their purpose is to reverse or cancel out an adjusting GL Journal entry that was made at the end of the previous accounting period.
The following steps will walk through how to setup a recurring entry and reverse it using Sage X3.
Create the GL Journal Entry that will later be reversed
- Go to Financials > Journals > Journal entry
- Create a new GL Journal entry that will be reversed next month.
- Select “Yes” in the Reversal drop down and enter the ‘Reversal date’.
- Click the Create button when finished.
Create the reversing entry
- Within the GL Journal entry task, select the ‘Reversing’ option from the Zooms menu in the right list.
- 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’
- Once you click OK the newly created reversal entry will appear on the screen
- The ‘Default description’ field will show the original GL Journal number.
- Users can also reverse a single or multiple entries by using the Reversals function located at Financials > Current Processings > Reversals.
- Additional criteria filters are available for selection
- Once you click ‘OK’ a log will display showing the new entries