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Reversal Entry for Intercompany General Journal

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Posted on by Community Member Microsoft Employee

Hello,

We are facing issue for Intercompany daily Journal. Dynamics 365 F&O does not reverse exact same general journal entry when using the Reversal entry and Reversal date functionality. Mainly issue is getting created due to Intercompany Posting Profile.

For Example, Company A wants to allocate expense from GL 73330 of $100 to Company B in the month of April 21 and it should be reversed on the 1st day of the next month.

Original Entry posted to general journal for Source Company -

Entry Description	Dr.	Cr.
I/C Receivable Account (IC Posting profile)	100
Expense GL 73330		100

Reversal Entry for Source Company -

Entry Description	Dr.	Cr.
I/C Payable Account (IC Posting profile)		100
Expense GL 73330	100

My Main Issue is with Reversal entry whereby I/C Receivable Account should have been credited instead of I/C Payable Account. and Same kind of reversal effect should have been given for destination company as well.

Is there any way to handle this situation ?

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Community Member Microsoft Employee on at

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RE: Reversal Entry for Intercompany General Journal

Hi All,

We have resolved the issue with additional Customization where we are copying the Original lines with (-) sign in the same Journal rather using Reversal Entry functionality. For Example, If Original line 1 is having debit value then we put (-) sign before value in reversal lines which will exactly reverse the intercompany Journal too.

Thank you !!

Regards,

Viral Thaker
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Ludwig Reinhard Microsoft Employee on at

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RE: Reversal Entry for Intercompany General Journal

Hello Viral,

Thanks for the update.

When you deal with IC transactions then companies often create and post invoices.

You can of course do 'internal' allocations in the way illustrated but those allocations should typically be done on statistical account, i.e. those that are not included in your external financial reports that you submit to authorities.

Irrespective of that, what might help in your case is PowerAutomate.

I once did a blog for IC free text invoices.

The same principle can be applied for IC journals.

With journals things should actually be much easier.

Maybe have a look at this post to get an idea how things might work for your scenario.

dynamicsax-fico.com/.../

Best regards,

Ludwig
Community Member Microsoft Employee on at

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RE: Reversal Entry for Intercompany General Journal

Hi Ludwig,

Thanks for the feedback !!

I have used the following standard available feature for Auto Reversal of Intercompany Journal. It works well within company but is failing when Intercompany is involved.

Can you please provide more details with regard to your Power Automate suggestion ? That will help.

Regards,

Viral Thaker
Community Member Microsoft Employee on at

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RE: Reversal Entry for Intercompany General Journal

Hi Momen,

I have already raised a Service ticket with Microsoft Support.

Thanks for Advice !!

Viral Thaker
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Ludwig Reinhard Microsoft Employee on at

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RE: Reversal Entry for Intercompany General Journal

Hi Viral,

Don't you need proper invoices to 'allocate' costs among different legal entities?

In case you don't, have you tried the reversal entry functionality? I have not tested this for IC GL journal transactions. Would be great if you could check if this does the job for you.

Alternatively, have a look at PowerAutomate to create the allocations and reversals. This should work in any case.

Best regards,

Ludwig
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MM-20051452-0 on at

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RE: Reversal Entry for Intercompany General Journal

Hi Viral,

Thanks for submitting your question, I would recommend to open a Service Request directly with Microsoft Support so the reported issue can be assessed by our Program Managers.

Thanks in advance.

Regards,

Momen Mansour