Use

The system uses automatic inversion prior periods for consolidation tasks that post totals data and create documents in consolidation periods. In the current consolidation period, an automatic inversion for prior periods inverts documents that have been posted by consolidation tasks in prior consolidation periods.

Integration

Automatic inversion prior periods is a part of task execution.

Prerequisites

The following conditions must exist before the system performs automatic inversion prior periods during the execution of a consolidation task:

The task posts documents.

The task is based on totals data.

The indicator for automatic inversion prior periods is selected in the task’s document type.

Features

For cumulative-posting consolidation tasks, the system inverts those documents that have been posted by consolidation tasks in previous consolidation periods for the current consolidation period. This takes place before the documents are posted for the current consolidation period.

This has the following benefits:

The amounts posted in a given period are always cumulative values. Thus, the system does not need to calculate delta amounts, which are difficult to reconcile.

If the postings occur within one fiscal year (so that no balance carryforward is required), the consolidation task recalculates the amounts without taking the task’s own changes to the transaction data into consideration. This is because the changes are inverted.

If a transaction has an effect on net income and affects more than one fiscal year (which then requires balance carryforward), the system automatically allocates the effects on net income between those of previous fiscal years and those in the current fiscal year.

The task execution makes sure that all documents created in earlier task runs are reversed in the same period.

If you have selected the corresponding indicator, task execution also makes sure that all documents created by task runs in the prior consolidation period are inverted.

Activities

Maintain the document type that will be assigned to the automatic-posting task, and select the indicator for automatic inversion prior periods .

If you have manual consolidation tasks, create a period initialization task to enable the system to perform automatic inversion prior periods for these tasks.

The system automatically performs automatic inversion prior periods in consolidation periods at the beginning of the execution of a consolidation task that posts documents. The system uses the following procedure:

It selects all line items concerned.

It reverses all documents that are neither reversed documents nor reversal documents. (Document pairs consisting of an inverting document and an inverted document must be reversed in unison.)

If one or more inverted line items are reversed during this step, the system triggers task execution in the subsequent period. You need to repeat the task execution to ensure your totals data becomes consistent.

The system proceeds as follows, depending on the settings in the document type:

It checks whether the inversion of the tasks has already been performed in the prior period (that is, whether the prior period does not contain a line item that is inverting or inverted).

If the inversion in the prior period has not been performed, the system performs the inversion at this time. (The system can invert only those line items that are not reversing, reversed, inverting, or inverted.)

Example

This example shows you how automatic inversion prior periods works step by step:

It uses a reclassification task for an asset item that is executed in each quarter. The value of the asset item increases in each period by a monetary amount of 10.

The table below uses the following abbreviations :