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Can't reverse a transaction

  • Artikkel

This article describes the different reasons why transactions can't be reversed in Microsoft Dynamics 365 Finance, and provides solutions to this issue. Although this article focuses on transactions in Microsoft Dynamics 365 Finance, some of the concepts and validation can be applied to other apps, such as Dynamics 365 Supply Chain Management. Also, this document isn't exhaustive. There are too many combinations of transactions that can be entered and reversed.

Symptoms

You may encounter a situation where a transaction that has been posted can't be reversed.

Resolution

Transactions must meet specific criteria before they can be reversed. The More information section of this article provides the validation for each module.

Additionally, the place where a transaction is reversed might affect whether it can be reversed. For example, a vendor payment that is posted as a check can be reversed only from the Checks section on the transaction page for the bank accounts. It can't be reversed from the Voucher transactions page in General ledger.

For some types of transactions, more than one transaction at a time can be selected and reversed from the journal that it was posted from, or from the Voucher transactions page.

Some subledger transactions can be reversed from the journal (general journal) or the Voucher transactions page. They don't have to be reversed from the subledger page. For example, a vendor invoice journal could previously be reversed only from the Vendor transactions page. However, it can also be reversed from the General ledger side, the journal, or the Voucher transactions page.

For more information about reversing an entire journal, see Reverse journal posting.

More information

General ledger

General ledger adjustments are entered only by using ledger accounts. Therefore, they update only General ledger.

Most general ledger adjustments can be reversed individually from the Transactions for <main account> page for the ledger (LedgerTransAccount). (The exact title of the page varies, depending on the selected main account.) The page shows each transaction that has been posted to the main account. It's typically opened from the Trial balance list page, or by selecting Transactions on the Voucher transactions page.

One or more general ledger vouchers can be reversed from the Voucher transactions page, and from the journal that the transaction was posted from. The exceptions are General ledger foreign currency revaluation, consolidation, and year-end close transactions. Those transactions are reversed from the pages on which the process was run.

Reasons why transactions can't be reversed

Transactions can't be reversed for the following reasons:

  • General journal:

    • The fiscal period is on hold or permanently closed:

      • If the reversing date is in a fiscal period that isn't open, the transaction can't be reversed.
      • If the transaction supports entry of a reversing date, the transaction can still be reversed by changing the reversal date to an open period.

    • The year-end close process has been run:

      • The transaction's accounting date is in a fiscal year that has been through a year-end close. Although a period in the fiscal year might still be open, the transaction can't be reversed if the year-end close process has been run for the fiscal year. The fiscal year has a different status than the periods in it.
      • The year-end close can be reversed, and then the transaction can be reversed. This approach might not be an option. It might be easier to manually enter a reversing transaction in an open period of either the closed fiscal year or the next fiscal year, depending on the status of the fiscal close process. If a new transaction is posted to an open period of the fiscal year that has been through the year-end close process, the year-end close must be run again.

    • Transaction reversal is already in process:

      • If the transaction is in the process of being reversed, that process must be completed. A separate reversal process can't be done.
      • After the reversal is completed, a reversed transaction can be reversed again (that is, the reversal can be reversed).

    • Ledger settlement:

      • If one or more lines of the transaction have been ledger-settled by using the Ledger settlements periodic task (General ledger > Periodic tasks > Ledger settlements), so that the record exists in the LedgerTransSettlement table, the transaction can't be reversed.
      • The ledger settlement can be reversed, and then the voucher can be reversed.

    • Intercompany:

      • If the transaction is an intercompany transaction, it can't be reversed.
      • The transaction is not an intercompany transaction, but is posted to a "due to" or "due from" main account that was defined on the Intercompany setup page.

    • Accruals:

      • If the accrued general ledger voucher is reversed, the accrued entry and all the corresponding accrual sub-transactions will be reversed.
      • The individual accrual sub-transactions can't be reversed.

  • Revenue recognition journal:

    • Revenue recognition transactions can't be reversed.
    • When revenue is recognized through the revenue recognition journal, the voucher is posted only to ledger accounts. Therefore, on pages such as Voucher transactions, the transactions appear as if they're only general ledger entries.

  • Foreign currency revaluation:

    • Foreign currency revaluation transactions can be reversed, but only from the General ledger Foreign currency revaluation page that the revaluation was run from.
    • The reversal can be completed only if it's posted to an open fiscal period.

  • Consolidation:

    • Consolidation transactions can be reversed, but only from the Consolidation transactions page.
    • The reversal can be completed only if it's posted to an open fiscal period.

  • Year-end close:

    • Year-end close transactions (both closing and opening transactions) can be reversed in these ways:

      • If the General ledger parameter Delete existing year-end entries when re-closing the year is set to Yes, the opening and closing balances will be deleted when closing the fiscal year again. This also reruns the year-end close and will create new closing and opening balances.
      • If you want to delete the closing and opening balances without re-closing the year, select the company and fiscal year records that were created for the year-end close on the Year-end close page, and then select Reverse year-end close.

      Note

      The reversal of the year-end close actually deletes the closing and opening transactions. A reversing voucher is never posted. This is because the opening balance is simply a summarization of the balances from the previous year, and doesn't represent new business transactions.

Accounts payable

Multiple transaction types update the Accounts payable subledger. Examples include vendor invoices, vendor invoice journals, and expense reports.

Transactions can be reversed individually from either the Vendor transactions page for invoices or the Bank account page for check payments.

One or more Accounts payable transactions can also be reversed from the Voucher transactions page, and from the journal that the transactions were posted from. However, vendor payments can still be reversed only from the bank account. Additionally, vendor transactions can't be reversed from the Transactions for <main account> page for the ledger. They can be reversed only from the Voucher transactions page.

Note

Some transactions can't be reversed at all. Examples include purchase order vendor invoices and electronic vendor payments.

Reasons why vouchers can't be reversed

Vouchers can't be reversed for the following reasons:

  • The fiscal period is on hold or closed:

    • If the reversing date is in a fiscal period that isn't open, the transaction can't be reversed.
    • If the transaction supports entry of a reversing date, the transaction can still be reversed by changing the reversal date to an open period.

  • The General ledger year-end close process has been run:

    • The transaction's accounting date is in a fiscal year that has been closed in General ledger. Although a period in the fiscal year might still be open, the transaction can't be reversed if the year-end close process has been run for the fiscal year. The fiscal year has a different status than the periods in it.
    • The year-end close can be reversed, and then the transaction can be reversed. This approach might not be an option. It might be easier to manually enter a reversing transaction in an open period of either the closed fiscal year or the next fiscal year, depending on the status of the fiscal close process. If a new transaction is posted to an open period of the fiscal year that has been through the year-end close process, the year-end close must be run again.

  • The subledger journal entry hasn't been transferred to General ledger:

    • This reason applies only to non-purchase order vendor invoices.
    • Use the Subledger journal entries not yet transferred page to transfer the entry to General ledger. The non-purchase order vendor invoice can then be reversed from the Vendor transactions page.

  • Settlement:

    • The transaction (such as an invoice or payment) is settled or marked for settlement.

      • You can verify whether a transaction is settled or marked for settlement by selecting View settlements or Settlement > Settlement history on the Vendor transactions page.
      • You can also reverse a settlement from the Vendor transactions page (Settlement > Undo settlement) if one of the transactions must be reversed.

  • The voucher contains more than one subledger transaction that was entered by using the same voucher number (One voucher issue).

  • The invoice hasn't been approved:

    • If the Approval checkbox isn't selected on the invoice, the invoice can't be reversed.

      • In this case, approval doesn't refer to approvals in the workflow process but to the Approval option on the invoice. This option is used to prevent an invoice from being paid. It's typically used for vendor invoice register invoices.

  • The transaction is in the invoice pool:

    • An invoice in the pool can't be reversed directly from the Vendor transactions page. Instead, it must be reversed through the cancellation process on the Invoice approval journal page.

  • The transaction has a parent invoice that has been corrected (Indian localization).

  • The transaction has a promissory status of Invoice remitted.

  • The transaction is used for a partial tax settlement.

  • The transaction contains a vendor account but is being reversed from an incorrect page, such as the Transactions for <main account> page:

    • As this reason suggests, even when the Mass reversals feature is turned on, some subledger transactions can be reversed only from specific pages.

Types of transactions that can't be reversed

The following types of transactions can't be reversed:

  • Foreign currency revaluation:

    • Unlike General ledger foreign currency revaluation, Accounts receivable and Accounts payable foreign currency revaluation can't be reversed. Instead, the revaluation must be run again by using the invoice date. In this case, the revaluation uses the exchange rate from the invoice's date, and essentially brings the unrealized gain or loss to 0 (zero). Therefore, the result resembles the result of reversing the previous revaluation. However, note that the same amount won't be reversed if the default exchange rate was changed on the invoice.

  • Purchase order vendor invoice:

    • A credit note must be created to reverse the vendor invoice. For more information about how to create a reversing transaction, see Create a purchase return order.

  • Promissory note

  • Bank letter of credit export shipment

Accounts receivable

Several transaction types update Accounts receivable subledgers. Examples include customer invoices from sales orders, customer invoices that are entered through the general journal, free text invoices, customer payments, and write-offs.

Transactions can be reversed individually from either the Customer transactions page for invoices or the Bank accounts page for deposits. For information about how to reverse a payment, see the Cash and bank management section later in this article.

One or more Accounts receivable transactions can also be reversed from the Voucher transactions page and the journal that it was posted from. However, deposits can still be reversed only from the bank account, and free text invoices can be reversed only from the originating page (if the feature that allows for corrections is turned on). Additionally, customer transactions still can't be reversed from the Transactions for <main account> page for the ledger. However, they can be reversed from the Voucher transactions page.

Note

Some transactions can't be reversed. Examples include sales order customer invoices and write-offs.

Reasons why transactions can't be reversed

Transactions can't be reversed for the following reasons:

  • The fiscal period is on hold or permanently closed:

    • If the reversing date is in a fiscal period that isn't open, the transaction can't be reversed.
    • If the transaction supports entry of a reversing date, the transaction can still be reversed by changing the reversal date to an open period.

  • The General ledger year-end close process has been run:

    • The transaction's accounting date is in a fiscal year that has been through a General ledger year-end close. Although a period in the fiscal year might still be open, the transaction can't be reversed if the year-end close process has been run for the fiscal year. The fiscal year has a different status than the periods in it.
    • The year-end close can be reversed, and then the transaction can be reversed. This approach might not be an option. It might be easier to manually enter a reversing transaction in an open period of either the closed fiscal year or the next fiscal year, depending on the status of the fiscal close process. If a new transaction is posted to an open period of the fiscal year that has been through the year-end close process, the year-end close must be run again.

  • The subledger journal entry hasn't been transferred to General ledger:

    • This reason applies only to free text invoices.
    • Use the Subledger journal entries not yet transferred page to transfer the entry to General ledger. The free text invoice can then be reversed or corrected if the corrections functionality is enabled.

  • Settlement:

    • The transaction (such as an invoice or payment) is settled or marked for settlement.

      • You can verify whether a transaction is settled or marked for settlement by selecting View settlements or Settlement > Settlement history on the Customer transactions page.
      • You can also reverse a settlement from the Customer transactions page (Settlement > Undo settlement) if one of the transactions must be reversed.

  • The transaction contains more than one subledger transaction that was entered by using the same voucher number (One voucher issue).

  • The invoice hasn't been approved:

    • If the Approval checkbox isn't selected on the invoice, the invoice can't be reversed.

      • In this case, approval doesn't refer to approvals in the workflow process but to the Approval option on the voucher lines. This option is used to prevent an invoice from being paid. Although this option is typically used in Accounts payable, it's also available for Accounts receivable invoices that are entered through journals.

  • The transaction has a parent invoice that has been corrected (Indian localization).

  • The transaction contains a customer account but is being reversed from an incorrect page, such as the Transactions for <main account> page:

Types of transactions that can't be reversed

The following types of transactions can't be reversed:

  • Foreign currency revaluation:

    • Unlike General ledger foreign currency revaluation, Accounts receivable and Accounts payable foreign currency revaluation can't be reversed. Instead, the revaluation must be run again by using the invoice date. In this case, the revaluation uses the exchange rate from the invoice's date, and essentially brings the unrealized gain or loss to 0 (zero). Therefore, the result resembles the result of reversing the previous revaluation. However, note that the same amount won't be reversed if the default exchange rate was changed on the invoice.

  • A transaction that has adjusted tax withholding

  • Sales order customer invoice:

    • A credit note or return must be created to reverse the transaction. For information about how to create the reversing transaction, see Sales returns.

  • Bill of exchange

  • Cash register transaction

  • Advanced adjustment

  • Interest note

  • Collections letter

  • Bank letter of credit

  • Export shipment

  • Revenue recognition journal:

    • When you recognize revenue through the revenue recognition journal, the vouchers are posted to ledger accounts. Therefore, they appear as if they're only general ledger entries. These entries can't be reversed, because the revenue schedule won't be reopened to recognize the revenue again.

Cash and bank management

Several transaction types update the Bank subledger through the general journal. Examples include vendor payments, customer payments, and bank transfers.

Transactions can be reversed individually from the Bank accounts page for checks and deposits, or from the Customer transactions page for customer payments.

One or more payment transactions can also be reversed from the Voucher transactions page, and from the journal that the transactions were posted from. However, deposits can still be reversed only from the bank account. Additionally, bank transactions still can't be reversed from the ledger's Transactions for <main account> page. However, they can be reversed from the Voucher transactions page.

Note

Some transactions can't be reversed. Examples include electronic vendor payments.

Reasons why transactions can't be reversed

Transactions can't be reversed for the following reasons:

  • The fiscal period is on hold or permanently closed:

    • If the reversing date is in a fiscal period that isn't open, the transaction can't be reversed.
    • If the transaction supports entry of a reversing date, the transaction can still be reversed by changing the reversal date to an open period.

  • The General ledger year-end close process has been run:

    • The transaction's accounting date is in a fiscal year that has been through a General ledger year-end close. Although a period in the fiscal year might still be open, the transaction can't be reversed if the year-end close process has been run for the fiscal year. The fiscal year has a different status than the periods in it.
    • The year-end close can be reversed, and then the transaction can be reversed. This approach might not be an option. It might be easier to manually enter a reversing transaction in an open period of either the closed fiscal year or the next fiscal year, depending on the status of the fiscal close process. If a new transaction is posted to an open period of the fiscal year that has been through the year-end close process, the year-end close must be run again.

  • Settlement:

    • The transaction (payment) is settled or marked for settlement.

      • You can verify whether a transaction is settled or marked for settlement by selecting View settlements or Settlement > Settlement history on the Vendor transactions or Customer transactions page.
      • You can also reverse a settlement from the Vendor transactions or Customer transactions page (Settlement > Undo settlement) if one of the transactions must be reversed.

  • The transaction contains more than one subledger transaction that was entered by using the same voucher number (One voucher issue).

  • Bridged transactions:

    • If the transaction is related to a bridging payment, it can't be reversed.
    • If the bridged payment must be reversed, the payment first has to be cleared from the bridging account to the bank. The payment can then be reversed, provided that it meets the other validation criteria.

  • The transaction contains a bank account, but is being reversed from the Transactions for <main account> page or from an incorrect subledger, such as Accounts receivable or Accounts payable.

  • Bank foreign currency revaluation:

    • Bank foreign currency revaluation can be reversed. However, reversal might be prevented if you complete the reversal steps out of chronological order. For example, if you ran the revaluation in March and April, the March revaluation can't be reversed until the April revaluation is reversed.

Types of transactions that can't be reversed

The following types of transactions can't be reversed:

  • Vendor payments that were made as electronic funds transfers (EFTs)
  • Promissory notes
  • Bills of exchange

Fixed assets

Several transaction types update the Fixed assets subledger. Examples include acquisitions and depreciation.

Transactions can be reversed individually from the Vendor transactions page, from the Fixed asset transactions page, or from Asset leasing, depending on the transaction type.

One or more Fixed asset transactions can also be reversed from the Voucher transactions page in the journal that the transactions were posted from.

Reasons why transactions can't be reversed

Transactions can't be reversed for the following reasons:

  • The fiscal period is on hold or permanently closed:

    • If the reversing date is in a fiscal period that isn't open, the transaction can't be reversed.
    • If the transaction supports entry of a reversing date, the transaction can still be reversed by changing the reversal date to an open period.

  • The General ledger year-end close process has been run:

    • The transaction's accounting date is in a fiscal year that has been closed in General ledger. Although a period in the fiscal year might still be open, the transaction can't be reversed if the year-end close process has been run for the fiscal year. The fiscal year has a different status than the periods in it.
    • The year-end close can be reversed, and then the transaction can be reversed. This approach might not be an option. It might be easier to manually enter a reversing transaction in an open period of either the closed fiscal year or the next fiscal year, depending on the status of the fiscal close process. If a new transaction is posted to an open period of the fiscal year that has been through the year-end close process, the year-end close must be run again.

  • Acquisitions:

    • If the acquisition occurred on a purchase order vendor invoice, the reversal must be done by entering a vendor credit note. For information about how to enter the reversal transaction, see Create a purchase return order.
    • The acquisition occurred on a project transaction.
    • The acquisition can't be reversed after depreciation is posted for the asset. The depreciation must be reversed before the acquisition can be reversed.
    • If the status of the value model or depreciation book for a fixed asset isn't open, the transaction can't be reversed.

  • Disposals:

    • The disposal is done through a free text invoice:

      • The correction of a free text invoice is blocked if it contains a fixed asset. However, if the asset is disposed of through a journal, the free text invoice can be reversed from the fixed asset record.

    • If the status of the value model or depreciation book for a fixed asset isn't open, the transaction can't be reversed.

  • Depreciation:

    • The depreciation can be reversed if subsequent depreciation is also posted. However, you'll receive a warning, because this approach isn't a best practice.
    • If the status of the value model or depreciation book for a fixed asset isn't open, the transaction can't be reversed.

  • Transactions (or reverse transactions) for a specific asset and asset book exist for the voucher's transaction date or later.

  • The transaction contains an asset account, but is being reversed from the Transactions for <main account> page or from an incorrect subledger, such as Accounts receivable or Accounts payable:

    • If an acquisition occurs on a non-purchase order vendor invoice or a vendor invoice journal, it can be reversed only from the Vendor transactions page in Accounts payable.
    • If an asset is acquired from Asset leasing, it can be reversed from the Liability transactions page in Asset leasing.