How do I post an accrual that reverses itself?
Post the accrual on General Entry as usual, tick Auto Reverse and give the Reversal Date, normally the first day of next month. On the night of that date the system reverses the voucher by itself, exactly as the Reverse button would.
An accrual books a cost (or income) in the month it belongs to, before the invoice arrives. Next month the real invoice posts the full amount, so the accrual must come out again. Auto Reverse takes it out for you. This is the "Reverse" tick with a reversal date on an SAP Business One journal entry.
Steps
- On General Entry, enter the accrual: Posting Date the last day of the month, Posting Status Posted, debit the expense, credit the accrued liability.
- Tick Auto Reverse and give the Reversal Date, for example the 1st of next month. It must be after the Posting Date.
- Save.
Check it worked
- On the morning after the Reversal Date the voucher shows a Reverse Voucher No, Reverse Date = the Reversal Date and Remarks "Auto reverse".
- The reversal voucher sits in the month of the Reversal Date, so last month keeps the accrual and this month starts clean.
What posts
| Document | When | Debit | Credit |
|---|---|---|---|
| General Entry | Save | Expense | Accrued liability |
| Reversal voucher | The night of the Reversal Date | Accrued liability | Expense |
Example
Electricity for October is about 50,000; the bill comes in November.
| Date | Voucher | Debit | Credit |
|---|---|---|---|
| 31-Oct | General Entry, Auto Reverse, Reversal Date 01-Nov | Electricity expense 50,000 | Accrued expenses 50,000 |
| 01-Nov | Reversal, posted by itself | Accrued expenses 50,000 | Electricity expense 50,000 |
| 12-Nov | Vendor invoice 52,000 | Electricity expense 52,000 | Vendor 52,000 |
October carries 50,000 of cost. November carries only the 2,000 difference.
Good to know
- Only a voucher typed on General Entry reverses itself. A voucher made by an invoice, payment or stock document is reversed by reversing that document.
- Only a Posted voucher reverses. A parked voucher waits until it is posted on Batch Posting. If its Reversal Date has already passed, it reverses that night.
- Changed your mind? A posted voucher cannot be edited, so Auto Reverse stays. Reverse it by hand earlier with the Reverse button, and the automatic reversal does not run. A parked voucher can still be edited to untick it.
- The month of the Reversal Date is closed. The reversal does not post and the voucher stays as it is. Every night the system tries again, until the period is opened or you reverse the voucher by hand.
- A reversal voucher never carries Auto Reverse itself.
If something looks wrong
- "Auto Reverse - Reversal Date is required" Auto Reverse is ticked but the date is empty.
- "Auto Reverse - Reversal Date ... must be after the Posting Date ..." Pick a later date. A voucher cannot reverse on the day it is posted.
- The Reversal Date has passed and the voucher is not reversed. Check that the voucher is Posted, not Park, and that the period of the Reversal Date is open.