Slide 1

Slide notes: An auto or self Reversing Journal is a Journal that is usually created for a temporary effect. For example, if we want to make a provision for an expense in a certain Month, but the expense will actually only occur in the next month, then we can process a self Reversing Journal for example in September, but the journal will only have an effect for September, because in October it will automatically Reverse itself, and then possibly we may be processing the real expense on a new Journal during October.

Slide 2

Slide notes: In this Journal we see an example where we credit the Audit Provision account with a Progress Fee, and we charge it to the Audit Fees expense account.

Slide 3

Slide notes: The journal will be posted for September 2009.

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Slide 6

Slide notes: If we apply the Automatic Reversal option, then the system will by default insert the next month as the self reversing period.

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Slide 9

Slide notes: More often than not, Auto Reversing happens in the 1st following period, but in the case of an exception, we can also apply change by selecting a different reversal period, or in fact remove the Automatic Reversal option.

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Slide 11

Slide notes: So a Self Reversing or Auto Reversing Journal is a Journal with a temporary effect, because it will automatically be Reversed by the system in the designated period.