Hi,
Thanks for the additional screenshot — it clarifies that the reversal process is flagging all entries under Transaction No. 251, including unrelated lines like OCBC Bank – USD, Bank Charges, and Rounding – AR. This confirms you're running into a reversal limitation tied to how BC groups entries and enforces fiscal year boundaries.
Let’s break it down:
1. Why the reversal picks up multiple entries
The reversal is pulling entries from G/L Register 251, not just the specific receipt (RCPAR2402011). In BC, every journal posting creates a register that includes all related entries posted in that session — even if they span multiple modules (G/L, bank, customer ledger).
- Reversing one entry triggers reversal of all lines from the same transaction number
- This includes entries posted together (e.g., AR receipt, bank entry, rounding, etc.)
- You cannot selectively reverse just one line using the standard reversal function
2. Why the reversal fails across fiscal years
Once the system crosses the financial year-end date and that year is closed, BC prevents reversals into those periods.
- If any line in the grouped transaction belongs to a closed fiscal period, the reversal is blocked
- Even if the main receipt line falls into an open period, the presence of closed-period entries causes the failure
- This is to maintain audit integrity and prevent retroactive edits across fiscal boundaries
3. How to reverse the entry correctly
Here are a few ways to handle the reversal:
Option A: Manual reversal using General Journal
- Post a journal entry with reversed signs for the impacted accounts
- Use a current posting date within an open period
- Reference the original transaction in the description or document number for audit traceability
Option B: Temporarily reopen the fiscal year (if policy allows)
- Navigate to Accounting Periods
- Uncheck the “Closed” flag on the relevant fiscal year
- Run the reversal, then re-close the year afterward
Option C: Recurring Journals (for future entries)
- For recurring entries that require periodic reversal (e.g., accruals), use Recurring Journal lines with the Reversing Entry option
- This automates reversal in the next open period
Helpful references:
Reverse posted journal entries – Microsoft Learn
Recurring journals and reversing entries – Microsoft Learn
Year-End closing procedures – Dynamics Community
If you find this helpful, feel free to mark this as the suggested or verified answer.
Cheers
Jeffrey
