Overview

NorthScope allows users to reverse and correct journal entries for transactions that have been posted. A reversing journal creates a new version of the journal entry in Reverse status, reversing the original debit and credit amounts. Reversing & Correct journal entries does the same and creates a new version in New status.

Prerequisites

Required Prerequisites

Financial Account setup

Optional Prerequisites

Multi-Currency setup
Project setup

Step 1: Selecting a Journal Entry to Reverse / Reverse & Correct

From NorthScope, expand the Financial Module on the navigation menu and select “Journal Entries”. This will open the Journal Entries List View with all Journal Entries with the status of New, Approved and Ready to Post. Select the More Actions dropdown from the toolbar and choose Reverse/Correct.

Completing the header fields

The page opens with the following fields:

Action: This field allows users to determine if the transactions should be reversed or reversed & corrected.
Correcting Date: Enter the date the transaction is to be corrected on. This field is only visible when the Action of Reverse & Correct is selected and defaults to the current date. Note: The date must be within an open fiscal period.
Date From: This date field is to enter a From Date to filter transactions displayed in the grid section. This field is required.
Date To: This date field is to enter a To Date to filter transactions displayed in the grid section. This field is required.
GL Account: Displays a multi selection drop-down menu of all the available GL Accounts to filter transactions displayed in the grid section.
Journal: This field allows the user to enter a Journal ID to filter transactions displayed in the grid section.
Transaction Type: Displays a drop-down menu to select the type of transaction to filter transactions displayed in the grid section. This field value defaults to 'Manual'.

Once the header fields are complete, click ‘Refresh Data’. All the Journals to be Reversed or Reversed & Corrected will be displayed in the grid section. Click here for more information on the grid section fields.

Select the Journals to be Reversed or Reversed & Corrected and click ‘Process’. The selected journals will disappear from the grid section, close the Reverse/Correct page which takes you back to the Journal Entries List View.

Step 2: Reviewing a Reverse Journal Entry (Optional)

After selecting and processing a Reverse type journal entry from Step 1 above, expand the Financial module and select Journal Entries. The reversed journal is visible in the list view with a new journal ID. Open the record, the Journal Type in the header should display ‘Reverse’. The Debit and Credit amount details should be displayed as the reverse from the original journal entry. For example, the Debit amount that was entered in the original journal should now be displayed in the Credit amount field. The journal should display the status Ready to Post and is for information only.

Note: The Reversed Journal Entry is only displayed in the Journal Entry List View if the integration setup for Journals is set to immediate or timed. Otherwise, the Journal Entry is posted and can be reviewed from the Inquiry.

Step 3: Reviewing a Reverse & Correct Journal Entry

After selecting and processing a Reverse & Correct type journal entry from Step 1 above, expand the Financial module and select Journal Entries. Two journal entries should be visible in the list view with new Journal ID’s. There should be a Reverse type journal and a Correct type journal, the Reverse journal displays the status of Ready to Post and the Correct journal displays the status as New. The Reverse journal displays all the line amounts reversed from the original line amounts, for example the Debit amount from the original journal entry should now be displayed in the Credit amount for that line item. The Reverse journal is for information only and is not editable.

Note: The Reversed Journal Entry is only displayed in the Journal Entry List View if the integration setup for Journals is set to immediate or timed. Otherwise, the Journal Entry is posted and can be reviewed from the Inquiry.

Open the new Correct journal to edit and update the details that need to be corrected. Save the journal either as New, Approved or Ready to Post status. For more information on how to complete a journal entry, click here.