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how to reverse a prepayment schedule in general ledger

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Posted on by jerhsysacct

we use ledger accruals for setting up prepayment schedules in the GL module. For example, a 12 mth prepayment schedule to release cost over a year. We are updating our chart of accounts and using new cost centres and we need to reverse the some future dated transactions.

When trying to do this, we are told we cannot reverse for the account. However when we post a single journal line to this account and then reverse, we can do so fine so I do not think the message below is do with the GL account but an issue with it being related to a ledger accrual.

Can someone advise? many thanks

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Ludwig Reinhard Microsoft Employee on at

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RE: how to reverse a prepayment schedule in general ledger

Hello Joe,

I think the problem is the complexity of the ledger accrual function and that one single journal line creates multiple 'derived' lines - in future periods - that are created and posted at the time the journal is posted originally.

The reversal feature does not work everywhere and if it does not work for you there might be no other option available than making use of one of the workarounds.

Best regards,

Ludwig
jerhsysacct 67 on at

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RE: how to reverse a prepayment schedule in general ledger

Hi Ludwig

Thanks for the reply. Yes we could do either of those. Is the cause of not being able to reverse each transaction related to the journals being posted from the ledger accruals functionality or something else? There are a number of transactions and I think it might be quicker to reverse them and then set new ledger accrual postings on the new cost centres.

Thanks

Joe
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Ludwig Reinhard Microsoft Employee on at

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RE: how to reverse a prepayment schedule in general ledger

Hi,

Can't you simply post a correction of the transaction with the old cost center?

Something like:

DR: account & new cost center

CR: account & old cost center

If many transactions are affected you can possibly upload the corrections via Excel or alternatively use ledger allocation rules to achieve this corrective posting between the old and new cost centers.

Best regards,

Ludwig