Reverse Journal Posting in Dynamics 365 for Finance

Posted on: August 11, 2021 | By: Jarrod Kraemer | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing

Have you ever tried to reverse what you have posted in the General journal, only to realize that the transactions had to be reversed one by one? Or have you ever posted a Vendor invoice journal and then realized it needed to be reversed? Reverse journal posting in D365 for Finance allows you to reverse an entire posted journal or to reverse multiple vouchers regardless of origin. The feature “Mass reversals for multiple documents”, otherwise known as “Reverse journal posting”, enables users to reverse multiple lines, or all lines, in a general journal, making General journal operations much more efficient to complete.

Auto Reverse in D365 Finance

D365‘s feature, Mass reversals for multiple documents, allows users to reverse multiple transactions for a journal. You can also reverse journals from the voucher transaction list without going to the sub-ledger.

Required setups:

  1. Enable the feature in Feature management
  2. Go to General Ledger->Ledger Setup->General Ledger parameters->Number sequences
    • Right-click on the Number sequence code for Trace number Reference->Select View details
      • Under the General tab change Continuous to Yes and Save
    • Right-click on the Number sequence code for Transaction Reversal Reference->Select View details
      • Under the General tab change Continuous to Yes and Save
    • You may need to refresh D365 to see the changes

Reversing Journals

You can reverse journal lines individually. With reverse journal posting, you can also reverse an entire financial journal. To reverse a journal:

Reversing the entire Journal:

  1. Go to General Ledger->Journal entries->General Journal->Open a “Posted” Journal that you want to reverse->Go to Lines You will now see a Reverse entire journal option
  2. Click on the Reverse entire journal: Select either existing Date or new Date
  3. Enter a comment that you want to be added to the reversal transaction.
  4. Select the Reverse button.

The transactions will be reversed.

If the voucher contains more than 100 lines, the reversal process will run using the batch process. You can review the results by viewing the comments in the batch job. Any transactions that couldn’t be reversed will be listed in the batch job history.

If the voucher contains 100 lines or fewer, the reversal process will run immediately. The results will be presented in a dialog box that shows any voucher that could not be reversed, along with the reason why it could not be reversed. Select OK to close the dialog box.

Reversing Vouchers from the Voucher Transaction List

You can also reverse vouchers from the Voucher transaction list across all sub-ledgers. In addition, you can reverse more than one voucher at a time.

To reverse one or more vouchers:

  1. Go to General Ledger->Inquiries and reports->Voucher transactions->Enter the voucher#
  2. Select the Reverse menu at the top of the page
  3. You will see the total number of vouchers and voucher lines as well as the total amount of the lines being reversed.
  4. Select Yes to use the existing transaction dates or No to enter a new one. In some cases, the period of the original transaction may be closed and you must enter a new transaction date to reverse it.
    • If you select No, enter a transaction date for the reversal.
  5. Enter a comment to describe the reversal transaction.
  6. Select the Reverse button.

To view the reversing entry, click on Reversed tracing.

To view reversals that have failed, click on View reversal failures.

Next Steps

If you are interested in learning more about the reverse journal posting as well as maximizing the use of Microsoft Dynamics 365 for Finance and Supply Chain Management contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.