Journal Auto Reversal

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Journal Auto Reversal

An Oracle White Paper

December 2002


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Journal Auto Reversal Page 2


1. Business purpose........................................................................................... 32. introduction ................................................................................................... 43. FUNCTIONALITY OF JOURNAL AUTO REVERSAL .................. 5

3.1 Setup required......................................................................................... 53.1.1 Journal Reversal Criteria ................................................................ 53.1.2 Standard Sets of Books.................................................................. 53.1.3 ADB Non Consolidation Sets of Books ..................................... 6

3.1.4 Derivation of Default Reversal Period and Date....................... 8

3.2 Test Cases.............................................................................................. 123.2.1 Standard Set of Books.................................................................. 123.2.2 ADB Set of Books........................................................................ 16

Example.......................................................................................................... 164. Technical Part.............................................................................................. 31

4.1 Forms..................................................................................................... 314.2 Program ................................................................................................. 33

4.2.1 Program Auto Reversal ............................................................ 334.2.2 Open Periods Program................................................................ 334.2.3 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 findthe current journal reversal process cumbersome because it requires each individual journal to be selected beforereversing. Therefore, in Release 11.5 of Oracle General Ledger, we introduce the automatic journal reversal functionwhich 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 OFDEFAULT REVERSAL

TEST CASES

TECHNICAL

TROUBLE SHOOTING


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3. FUNCTIONALITY OF JOURNAL AUTO REVERSAL

Users should be able to select journals of balance type Actual to be automatically reversed by journal category. Theycan 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 postsall the reversals by the reversal criteria, or allow the system to run this program automatically each time a period isopened.

Users should still be able to manually reverse journals even if they have not selected autoreversal for the journalcategory. They can also define the reversal criteria to only automatically default the reversal periods and dates, andthen 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 ofbooks.

In the Reversal Criteria form, users must set up reversal options for each journal categories. The options are differentfor 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 movedfrom 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 postreversals 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 onlychoices are marked with an asterisk below. There are five reversal options the users must specify for each journalcategory:

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 ReversalPeriod 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 optiondetermines 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 Defaultis chosen for a journal category, Oracle General Ledger willdefault 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 THE PERIOD OF REVERSAL WILL BE THE

No Default Reversal period we define when we manually enter the original Journal

Same Period Same Period of the Original Journal Entry

Next Period Period following the period of the Original Journal Entry

Next Non-Adjusting Period 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 Periodas the Default Reversal PeriodRule, OGL will first determine the reversal period, and then choose a reversal date within that periodaccording to the Default Reversal Date Rule. For example, when the period rule is Next Period and the daterule 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 theEffective 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 DateRule is Next Day or First Day.

Rolling backward up to the journals effective date if the Default Reversal Date Ruleis Last Day

If a Business day is still not found, OGL will not default the reversal period anddate.

When the user specifies Next Dayas the Default Reversal Period Rule, Oracle General Ledger will determinethe reversal date first, and then derive the reversal period. It will choose the day after the journals effectivedate 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 theoriginal 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 periodas 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:

DefaultReversalPeriod Rule

DefaultReversalDate

Rule

ReversalPeriod

Reversal Date(4)

Reversal Date Adjustment when (4) is not a businessday (5)

JE SourceEffective DateRule

Reset the Reversal Date

Same Period Next Day Same as thejournals period

The day afterthe journalseffective day

Fail

Leave Alone

Roll Date

Dont default

Leave as is

Roll forward to find the nextbusiness day within the reversal

period

Last Day Same as thejournals period

The last day ofthe reversalperiod

Fail

Leave Alone

Roll Date

Dont default

Leave as is

Roll backward from the last day ofthe reversal period to the journals


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effective date to find a business day

Next Period/

Next Non-AdjustingPeriod

First Day The period (ornon-adjusting

period) afterthe journalsperiod

The first dayof the reversal

period

Fail

Leave Alone

Roll Date

Dont default

Leave as is

Roll forward to find a business daywithin the reversal period

Last Day The period (ornon-adjustingperiod) afterthe journalsperiod

The last day ofthe reversalperiod

Fail

Leave Alone

Roll Date

Dont default

Leave as is

Roll backward from the last day ofthe reversal period to the journalseffective date to find a business day.

Next Day N/A Find a periodbased on thereversal datefrom column(5)

The day afterthe journalseffective day

Fail

Leave Alone

Roll Date

Dont default

Leave as is

Roll forward to find the nextbusiness day (may go into the nextperiod)

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.

REVERSALMETHOD

REVERSAL PERIOD RULE AUTOREVERSE

AUTOPOST

Example SwitchDr/Cr

Change Sign

SamePeriod

NextPeriod

Next-Non-Adjusting Period

Default

AutoReverseCheckBox

AutoPostCheckBox

1 Y Y Y N2 Y Y Y Y3 Y Y Y Y4 Y Y Y Y5 Y Y Y Y6 Y Y Y Y

Example 1

Setup Journal Reversal Criteria for the Journal Category Adjustments as follows:

Method: Switch Dr/Cr

Reversal Period: Same PeriodAuto Reverse Check Box: CheckedAuto Post Reversal Check Box: Unchecked

Step 1

Enter and post Journal to the period Dec-02

Account Account Type Debit Credit

01-110-7110-0000-000 Expense 7500

01-000-1110-0000-000 Cash 7500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will create aunposted Reversal Journal in Dec-02 of the above Journal as follows:



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01-110-7110-0000-000 Expense 7500

01-000-1110-0000-000 Cash 7500

Example 2


Method: Switch Dr/CrReversal Period: Same PeriodAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked

Step 1



01-110-7110-0000-000 Expense 7500

01-000-1110-0000-000 Cash 7500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Dec-02 of the above as follows:

Account Account Type Debit Credit01-110-7110-0000-000 Expense 7500

01-000-1110-0000-000 Cash 7500

Example 3


Method: Change signReversal Period: Same Period

Auto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked

Step 1



01-110-7110-0000-000 Expense 8500


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01-000-1110-0000-000 Cash 8500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Dec-02 of the above as follows:


01-110-7110-0000-000 Expense

01-000-1110-0000-000 Cash

The only difference between the previous example and this example is that the Reversal Journal has the Method ofChange Sign and the sign of the amount in the reversed journal has been changed.

Example 4


Method: Switch Dr/CrReversal Period: Next PeriodAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked

Step 1



01-110-7110-0000-000 Expense 10000

01-000-1110-0000-000 Cash 10000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Adj-02, which is the next period as follows:


01-110-7110-0000-000 Expense 1000001-000-1110-0000-000 Cash 10000

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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Method: Switch Dr/CrReversal Period: Next Non-adjusting


Step 1



01-110-7110-0000-000 Expense 12500

01-000-1110-0000-000 Cash 12500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Dec-02. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Jan-03, which is the next Non-adjusting period as follows:


01-110-7110-0000-000 Expense 12500

01-000-1110-0000-000 Cash 12500


Example 6

If the Reversal Period is No Default, then no reversal entries will be created when you submit the ConcurrentProgram 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.

REVERSALMETHOD

REVERSAL PERIOD RULE REVERSALDATE RULE

AUTOREVERSE

AUTOPOST

JE SOURCEEFFECTIVEDATE RULE

Example

SwitchDr/Cr

Change Sign

SamePeriod

NextPeriod

Next-Non-Adjusting Period

NextDay

FirstDay

NextDay

LastDay

AutoReverseCheckBox

AutoPostCheckBox

RollDate

LeaveAlone

Fail

1 Y Y Y Y Y Y

2 Y Y Y Y Y Y

3 Y Y Y Y Y Y

4 Y Y Y Y Y Y5 Y Y Y Y Y Y

6 Y Y Y Y Y Y

7 Y Y Y Y Y Y

8 Y Y Y Y Y Y

9 Y Y Y Y Y Y

10 Y Y Y Y Y Y

11 Y Y Y Y Y Y

12 Y Y Y Y Y Y

13 Y Y Y Y Y Y

14 Y Y Y Y Y Y

15 Y Y Y Y Y Y

16 Y Y Y Y Y Y

17 Y Y Y Y Y

18 Y Y Y Y Y

19 Y Y Y Y Y

20 Y Y Y Y Y

21 Y Y Y Y Y

Example 1


Method: Switch Dr/CrReversal Period: Same PeriodReversal Date: Next DayAuto Reverse Check Box: CheckedAuto 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


01-110-7110-0000-000 Expense 5000

01-000-1110-0000-000 Cash 5000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Feb-99, which is the same period with effective date 26-FEB-1999 which is the next day of theOriginal Journal as follows:


01-110-7110-0000-000 Expense 5000

01-000-1110-0000-000 Cash 5000


Example 2


Method: Switch Dr/CrReversal Period: Same PeriodReversal Date: Next DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


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 arenot business days)


01-110-7110-0000-000 Expense 6500

01-000-1110-0000-000 Cash 6500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in Posted


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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 businessdays) which is the next day of the Original Journal as follows:


01-110-7110-0000-000 Expense 650001-000-1110-0000-000 Cash 6500


Example 3



Reversal Period: Same PeriodReversal Date: Next DayAuto Reverse Check Box: CheckedAuto 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 arenot business days)


01-110-7110-0000-000 Expense 800001-000-1110-0000-000 Cash 8000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Feb-99, which is the same period with effective date 22-FEB-1999 (since 20 & 21 are not businessdays) which is the next day of the Original Journal as follows:


01-110-7110-0000-000 Expense 8000

01-000-1110-0000-000 Cash 8000


There is no difference between the JE Source Effective Date Rule of Leave Alone and Roll Date, which is clearlyexplained, in the above examples.

Example 4


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Reversal Period: Same PeriodReversal Date: Next DayAuto Reverse Check Box: CheckedAuto 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.


01-110-7110-0000-000 Expense 8000

01-000-1110-0000-000 Cash 8000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Feb-99, which is the same period with effective date 22-FEB-1999 which is the next business day ofthe Original Journal as follows:


01-110-7110-0000-000 Expense 8000

01-000-1110-0000-000 Cash 8000


There is no difference between the JE Source Effective Date Rule of Leave Alone, Roll Date and Fail, which is clearlyexplained, in the above examples.

Example 5


Method: Switch Dr/CrReversal Period: Same PeriodReversal Date: Last DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked



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Step 1



01-000-1110-0000-000 Cash 9000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Feb-99, which is the same period with effective date 26-FEB-1999 which is the last business day ofthe Month Feb-99 as follows:


01-110-7110-0000-000 Expense 900001-000-1110-0000-000 Cash 9000


Example 6



Reversal Period: Same PeriodReversal Date: Last DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1



01-110-7110-0000-000 Expense 10000

01-000-1110-0000-000 Cash 10000

Step 2



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01-110-7110-0000-000 Expense 10000

01-000-1110-0000-000 Cash 10000


Example 7


Method: Switch Dr/CrReversal Period: Same PeriodReversal Date: Last DayAuto Reverse Check Box: Checked

Auto post Reversal Check Box: CheckedJE Source Effective Date Rule: Fail

Step 1



01-110-7110-0000-000 Expense 12000

01-000-1110-0000-000 Cash 12000

Step 2



01-110-7110-0000-000 Expense 12000

01-000-1110-0000-000 Cash 12000


The last three examples show that there is no difference between JE Source Effective Date Rule being Roll Date, LeaveAlone or Fail.

Example 8




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Reversal Period: Next PeriodReversal Date: First DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1



01-110-7110-0000-000 Expense 12500

01-000-1110-0000-000 Cash 12500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Mar-99, which is the Next period with effective date 01-MAR-1999 which is the first business dayof the Month Mar-99 as follows:


01-110-7110-0000-000 Expense 12500

01-000-1110-0000-000 Cash 12500


Example 9


Method: Switch Dr/CrReversal Period: Next PeriodReversal Date: First DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1



01-110-7110-0000-000 Expense 13000

01-000-1110-0000-000 Cash 13000


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Step 2


Reversal Journal in Mar-99, which is the Next period with effective date 01-MAR-1999 which is the first business dayof the Month Mar-99 as follows:


01-110-7110-0000-000 Expense 13000

01-000-1110-0000-000 Cash 13000


Example 10


Method: Switch Dr/CrReversal Period: Next PeriodReversal Date: First DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1



01-110-7110-0000-000 Expense 13500

01-000-1110-0000-000 Cash 13500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Mar-99, which is the Next period with effective date 01-MAR-1999 which is the first business dayof the Month Mar-99 as follows:


01-110-7110-0000-000 Expense 13500

01-000-1110-0000-000 Cash 13500


Example 11


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Reversal Period: Next PeriodReversal Date: Last DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1



01-110-7110-0000-000 Expense 14000

01-000-1110-0000-000 Cash 14000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Mar-99, which is the Next period with effective date 31-MAR-1999 which is the last business dayof the Month Mar-99 as follows:


01-110-7110-0000-000 Expense 14000

01-000-1110-0000-000 Cash 14000


Example 12


Method: Switch Dr/CrReversal Period: Next PeriodReversal Date: Last Day

Auto Reverse Check Box: CheckedAuto post Reversal Check Box: CheckedJE Source Effective Date Rule: Leave Alone

Step 1




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01-110-7110-0000-000 Expense 14500

01-000-1110-0000-000 Cash 14500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Mar-99, which is the Next period with effective date 31-MAR-1999 which is the last business dayof the Month Mar-99 as follows:


01-110-7110-0000-000 Expense 14500

01-000-1110-0000-000 Cash 14500


Example 13


Method: Switch Dr/CrReversal Period: Next PeriodReversal Date: Last DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1



01-110-7110-0000-000 Expense 15000

01-000-1110-0000-000 Cash 15000

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 PostedReversal Journal in Mar-99, which is the Next period with effective date 31-MAR-1999 which is the last business dayof the Month Mar-99 as follows:


01-110-7110-0000-000 Expense 15000

01-000-1110-0000-000 Cash 15000



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Example 14


Method: Switch Dr/CrReversal Period: Next Non-adjusting PeriodReversal Date: First DayAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1

Enter and post Journal to the period Dec-98 with Effective Date 31-DEC-1998.


01-110-7110-0000-000 Expense 15500

01-000-1110-0000-000 Cash 15500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Dec-98. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in Jan-99, which is the Next Non-adjusting period with effective date 01-JAN-1999 which is the firstbusiness day of the Month Jan-99 as follows:


01-110-7110-0000-000 Expense 15500

01-000-1110-0000-000 Cash 15500


Example 15





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Step 1



01-000-1110-0000-000 Cash 16000

Step 2



01-110-7110-0000-000 Expense 1600001-000-1110-0000-000 Cash 16000


Example 16




Step 1



01-110-7110-0000-000 Expense 16500

01-000-1110-0000-000 Cash 16500

Step 2



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01-110-7110-0000-000 Expense 16500

01-000-1110-0000-000 Cash 16500


Example 17


Method: Switch Dr/CrReversal Period: Next DayReversal Date: Not ApplicableAuto Reverse Check Box: Checked

Auto post Reversal Check Box: CheckedJE 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.


01-110-7110-0000-000 Expense 17000

01-000-1110-0000-000 Cash 17000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in 01-Mar-99, which is the Next business day as follows:


01-110-7110-0000-000 Expense 17000

01-000-1110-0000-000 Cash 17000


Example 18


Method: Switch Dr/CrReversal Period: Next DayReversal Date: Not ApplicableAuto Reverse Check Box: Checked


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Auto post Reversal Check Box: CheckedJE Source Effective Date Rule: Roll Date

Step 1



01-110-7110-0000-000 Expense 17500

01-000-1110-0000-000 Cash 17500

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in 25-Feb-99, which is the Next business day as follows:


01-110-7110-0000-000 Expense 17500

01-000-1110-0000-000 Cash 17500


Example 19


Method: Switch Dr/CrReversal Period: Next DayReversal Date: Not ApplicableAuto Reverse Check Box: CheckedAuto post Reversal Check Box: Checked


Step 1



01-000-1110-0000-000 Cash 18000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in 25-Feb-99, which is the Next business day as follows:


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01-110-7110-0000-000 Expense 18000

01-000-1110-0000-000 Cash 18000


Example 20


Method: Switch Dr/CrReversal Period: Next DayReversal Date: Not Applicable



Step 1



01-110-7110-0000-000 Expense 18000

01-000-1110-0000-000 Cash 18000

Step 2

Run Concurrent Program Program Automatic Reversal with period parameter as Feb-99. This will in turn triggerthe Posting Process of the Journal since the Auto Post Reversal Check box is created. This will result in PostedReversal Journal in 25-Feb-99, which is the Next next business day as follows:


01-110-7110-0000-000 Expense 18000

01-000-1110-0000-000 Cash 18000


Example 21


Method: Switch Dr/CrReversal Period: Next DayReversal Date: Not Applicable


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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.


01-110-7110-0000-000 Expense 18500

01-000-1110-0000-000 Cash 18500

Step 2


Reversal Journal in 01-MAR-99, which is the Next business day as follows:


01-110-7110-0000-000 Expense 18500

01-000-1110-0000-000 Cash 18500


For ADB Set of Books, JE Source Effective Date Rule for the value Fail and Leave alone is not working as givenin GL User Guide Page 1-178. For both these values, it is functioning like Roll Date. This is the intended functionalityand 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 willnot be able to enter new rows. OGL automatically inserts journal categories with default reversal options to this formwhen new categories are created in the Journal Categories form. The default values for each reversal options aremarked 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 poplist value depends on the Default Reversal Period Rule:Default Reversal Period Rule Default Reversal Date Rule value

No default N/A *Same Period Next Day, Last DayNext Period First Day, Last Day


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Next Non-Adjusting Period First Day, Last DayNext Day N/A

AutoReversal checkbox (* Default to unchecked) AutoPost checkbox (* Default to unchecked)

Enter Journals Form (GLXJEENT)

When a new journal is created, default the Reversal Period and Date according to the journal categorysDefault 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 getadded 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 SubmitRequest form and the Open Periods program.

It performs the following:

Generates reversalsGenerates reversals for all Actual journals with their categories enabled for AutoReversal and withreversal periods in open or future enterable periods.

Posts all reversed journals in open periods with category enabled to AutoPost Reversals. This is doneby

1. Marking all qualified journals with a new posting run id2. 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: LaunchAutoReverse after Open Periodis yes. Users will be able to view the AutoReverse program along with the other OpenPeriods 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 tablesfor 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 JournalCategory in the Journal Reversal Criteria Form (GLXSTARV)

Table Name & Description Columns Description Source Table

GL_AUTOREVERSE_OPTIONS

SET_OF_BOOKS_ID (PK)

JE_CATEGORY_NAME

METHOD_CODE (QuickCode)

Quick Code Type

REVERSAL_OPTION_COD

E

REVERSAL_PERIOD_CODE

AUTOREVERSE_FLAG(Quick Code)

Quick Code Type

Yes/No

AUTOPOST_REVERSAL_FLAG (Quick Code)

Quick Code Type

Accounting booksdefining column

Journal entry categoryname

Reversal method

Rule used to defaultthe reversal period

Indicates if automaticreversal is enabled

Indicates if reversalsare to beautomatically posted

GL_SET_OF_BOOKS

GL_JE_CATEGORIES

GL_LOOKUPS

GL_LOOKUPS


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Yes/No

REVERSAL_DATE_CODE

Rule used to defaultthe reversal date

When the Concurrent Program - Automatic Reversal completes successfully, the following tables and thecolumns will get updated.

Table Name Important Columns Description of the Column

GL_JE_HEADERS ACCRUAL_REV_FLAG

ACCRUAL_REV_EFFECTIVE_DATE

ACCRUAL_REV_PERIOD_NAME

ACCRUAL_REV_STATUS

ACCRUAL_REV_JE_HEADER_ID

ACCRUAL_REV_CHANGE_SIGN_FLAG

Reversed journal entry flag

Reversed journal entry effectivedate

Reversed journal entry reversalperiod

Reversed journal entry status

Reversed journal entry definingcolumn

Type of reversal (Change Sign orSwitch Dr/Cr)


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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

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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.

Journal Auto Reversal

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