The reversals described here relate to business transactions (BTs) for financial instruments. Reversals for documents created in accounting also have to be triggered in accounting. Similarly, reversals for documents from external BTs have to triggered externally (by the source system). The accounting system does not carry out any plausibility checks for reversals.
External BTs cannot be corrected manually in accounting.
A reversal involves completely resetting an original business transaction. An original posting must exist to which the reversal can refer. The system reads the data from the original posting, reverses the document and posts it again. A reversal is thus the inverse posting of the original posting. The system does not execute the posting rules again. It assumes that the source system delivering the reversal has checked whether the specified original document really is to be reversed. The reason for this is that:
- Errors have to be corrected in the source system, not the accounting system.
- Inconsistencies between the source system and the accounting system are not permitted.
- This procedure can be used for periods and posting blocks of less than one year, as well as for those that cross fiscal years.
Manual reversals are possible only for BTs created within accounting.
Debit/Credit Sign Logic
You can specify how the debit/credit (+/-) sign for the reversal document is to be determined. You have two options:
- Debits and credits are swapped. This means an item that was posted to the debit side in the original BT is updated on the credit side in the reversal document.
- Debits and credits remain the same, but the +/- sign is swapped. This means an item that was posted to the debit side in the original BT is deducted from the debit side in the reversal document.
In Customizing, choose Bank Analyzer ® Accounting ® Balance Analyzer ® Accounting ® After Generation ® Processing for Business Transactions ® Basic Settings ® Reversal ® Set Debit/Credit Indicator for Reversal.
Reason for Reversal
Manual reversals require you to specify a reversal reason. The reversal reason determines the reversal’s posting date. A reversal posting is usually posted for the same date as the original posting. If the period in question is blocked, the reversal posting can be posted on the first day of the period that is currently open.
For more information about reversing documents whose posting dates are in a closed posting period, see Reversal in Closed Periods.
To define reversal reasons, choose Bank Analyzer ® Accounting ® Balance Analyzer ® After Generation ® Accounting ® Processing for Business Transactions ® Reversal ® Edit Reversal Reasons in Customizing.
Reversal Business Transaction
The reversal business transaction differs from the original business transaction in the data that has to be delivered. Only the fields business transaction ID and source system for the reversed business transaction, the business transaction ID for the reversal business transaction and the legal entity are required to process a reversal business transaction in Balance Analyzer. These FDB fields are transferred into the document key for the reversal document, sender ID, document key for the document to be reversed, and the legal entity of the Balance Analyzer business transaction. You do not need to make the same Customizing settings as for the original business transaction.
Internal BTs generated because of a (reversed) external BT are also completely reversed in accounting the next time that internal business transactions are updated.
Accounting in Bank Analyzer does not support partial reversals, so a BT is either reversed completely or not at all.
For reversals, a recognizable link has to be created between the document for the reversal BT and the document for the original BT (reversal peg). Reversal documents can also be reversed. This in turn triggers a reference to the original BT. The reversal peg between the original document and the first reversal document is canceled and a reversal peg is created between the first and second reversal documents. The original document reverts back to the state it was is in before the first reversal took place. If you reverse a reversal document, the original document is simply remarked as ‘not reversed.’
A new (corrected) original posting is usually generated as a result of a reversal. This posting is not assigned in any way to the original posting or its reversal.
Effects of Reversals on Position Management
Reversals affect position management because several internal BTs can already have occurred for a reversed external BT. These are also reset the next time internal BTs are updated.
Average Exchange Rates and Consumption Sequence Procedure
The weighted average method is used for the consumption sequence procedure. The average exchange rates are recalculated during the valuation. In the case of backdated reversals, the average exchange rates have to be recalculated from the reversal date for the key date valuation and the derived BTs. The average exchange rates change accordingly in the following periods.
As for all other BTs, reversals of corporate actions are also delivered to the FDB as reversals of BTs. Related BTs are reversed together.
You can find more information about reversing financial products manually in Post/Reverse Financial Products.. You can find more information about reversing impairments manually in the Impairment document.
Posting Block at Month-End Closing
Reversal of a purchase from January in February:
In February it was established that the bond was sold at 80%. A posting error has therefore been made. The report for January remains the same, the reversal posting takes place with a posting date in February because of the posting block.
Business transactions period 1
BT1: Purchase on January 15
BT2: Sale on January 20
BT3: Derived BT for BT2, gain 100,000
Business transactions period 2
BT1’: Reversal BT for BT1 on February 1
The posting date for the reversal of BT1 is February 1, 2001. This means the data does not change for the period up to January 31. In evaluations for January 31, the status is the same as it was before BT1 was reversed.
Conventional reporting using T-accounts
Postings in period 1:
1: Purchase on January 15
2: Sale on January 20
3a and 3b: Derived BT for BT2, gain 100,000
Postings in period 2:
1’: Reversal posting for BT1 on February 1
2a and 2b: Reversal of derived BT 3 on February 1
3’: Provision of a new, external BT – purchase at 80%
4a and 4b: Generation of a new, derived BT for BT2, gain 200,000