Purpose
The purpose of this Quick Reference Guide (QRG) is to provide General Ledger (GL) Journal Entry users with step-by-step instructions on how to reverse a journal entry in the North Carolina Financial System (NCFS).
Overview and Introduction
Journal Entry users may need to update a transaction or remove a transaction all together once a transaction has been approved and posted. In this case, the user needs to reverse a journal entry. Reversing a journal entry updates the GL account balances and can be accessed via the General Accounting Module.
Key Terms
| Key Terms | Description | |
| Journal Entry | A tool to record financial transactions to the system's general ledger. Journal creation, posting, and editing work together in the recording process to produce accurate financial records. | |
| Journal Batches | A Journal Batch is a single or group of journal entries processed under a combined header. | |
| Journal Category | Journal categories are used to differentiate journal entries by purpose or type, such as accruals, payments, or receipts. | |
| Ledger | Ledger is the main record-keeping ledger. It records transactional balances by using a chart of accounts with a consistent calendar and currency, and accounting rules implemented in an accounting method. | |
| Reversal | A reversing entry is a journal entry to undo a posted entry. |
Information needed to complete this Process
- Journal Batch Name
- Journal Number
Output of this Process
- Reversed Journal
Reversing a Journal Entry
To reverse a journal entry, please follow the steps below. There are 15 steps to complete this process.
Step 1. Access the Home page and click the General Accounting icon.
Step 2. Click the Journals app.
Step 3. Click the Task List to open the task list.
Step 4. From the task list, click Manage Journals under the Journal section.
Step 5. Enter the desired search criteria and select Search.
User Tip
Users can only reverse a journal entry that has been posted so be sure to include this in the journal search.
Step 6. Select the journal by clicking the Journal Hyperlink.
Step 7. Click Batch Actions. Select Reverse from the drop-down.
Step 8. Enter the Reversal Period and Reversal Method. Click OK.
User Tip
The OSC preferred Reversal Method is "Switch DR or CR".
Step 9. A pop-up appears that confirms the process has been submitted. Click OK. Then click Cancel.
Step 10. Enter the Journal Batch Name and then click Search.
Step 11. Click Show More in the Journal Section.
Step 12. Click the Reversal tab and click the Reverse Journal Hyperlink.
Step 13. Scroll up and click Batch Actions.
Step 14. Click Request Approval.
Step 15. A pop-up appears. Click OK. Then click Cancel to return to the home screen.
Wrap Up
A user can reverse a posted journal by following the steps above. Once a reversal journal entry is submitted for approval and approved, it is posted in the next AutoPost run. Once this transaction is posted, the GL balances will be updated.
Additional Resources
- Instructor Led Training (ILT)