How to Reverse a Journal Entry in SAP Business One

Open the Journal Entry window

In the left navigation panel, select Financials > Journal Entry.

The Journal Entry window shows the Series, Number, Posting Date, Due Date, Doc. Date, and Remarks fields. Below them is a table for G/L accounts. In this example, the entry contains these lines:

• G/L account 4002033 (Safety Equipment, Appliances & other exp), Debit: BDT 10,000.00
• G/L account 4060404 (Bank charges/ LC Charges), Credit: BDT 10,000.00

Verify the reversal details

Before you reverse the entry, check that the details are correct:

• The Remarks field contains the reversal reference, for example "(Reversal) - 36".
• The posting, due, and document dates are correct, for example 27/09/19.
• The G/L accounts and amounts are correct. In this example, 1000101 (Freehold Land) and 1001013 (Plant and machinery) each show BDT 150.00 as a debit and a credit.

Set the reversal date

In the Journal Entry window, find the Reversal Date field at the top right. Enter or confirm the reversal date, for example 28/09/19. Make sure the Reverse checkbox is selected.

Update the journal entry

Click Update at the bottom left of the Journal Entry window to save your changes before you continue with the reversal. If SAP Business One shows a date or validation warning, resolve it first.

Select the transactions to reverse in Reverse Transactions

In the left sidebar, under the Financials module, click Reverse Transactions. The Reverse Transactions dialog box opens and lists the transactions that must be reversed today.

Each row shows these details:

• The transaction number, for example 48
• The original date, for example 27/08/19
• The reversal date, for example 28/08/19
• The value, for example BDT 10,000.00

Select the checkbox in the Revers. column for each transaction you want to reverse. The "Number of transactions to be canceled" field updates as you select. Then click Execute to run the reversal.

Exclude a transaction from the reversal (optional)

To leave a transaction out, clear the checkbox next to it in the Revers. column. The number of transactions to be canceled decreases.

Understand the same-day reversal restriction

SAP Business One does not let you reverse a journal entry on the date it was posted. To see this restriction, open the Journal Entry window and enter these details:

• Series: 19-20
• Number: 22
• Posting Date, Due Date, Doc. Date: 27/09/19
• G/L Acct/BP Code: 1001001 (Freehold Land), Debit: BDT 10,000.00
• G/L Acct/BP Code: 1001019 (Electrical installations), Credit: BDT 10,000.00

If you set the Reversal Date to the original entry date (27/09/19), the system does not allow it. The message reads: "System is not allow you the reversal of any entry of the same date."

Create a manual journal entry for a same-day correction

When the system blocks a same-day reversal, create a new journal entry manually to reverse the original transaction. In the Journal Entry window, enter these details:

• Series: 19-20
• Number: 22
• Posting Date, Due Date, Doc. Date: 27/09/19
• G/L Acct/BP Code: 1001001 (Freehold Land), Debit: BDT 10,000.00
• G/L Acct/BP Code: 1001019 (Electrical installations), Credit: BDT 10,000.00

In this example, Recurring Postings is highlighted in the left navigation panel.

Select accounts for the new journal entry

When you enter a new journal entry, the "List of Accounts" dialog appears. Browse or search for the account you need, for example:

• 1001001 (Freehold Land)
• 1001002 (Leasehold Land)
• 1001014 (Plant and machinery)
• 1001015 (Furniture and fixtures)
• 1001016 (Other Office Equipments)

Select the account and click Choose.

Confirm the reversal entry

After you execute the reversal, the Journal Entry screen shows the reversed entry. In this example, the key fields are:

• Series: 19-20
• Number: 23
• Posting Date, Due Date, and Doc. Date: 28/08/19
• Remarks: "(Reversal) - 48", which links the entry to original transaction 48

The Reverse Transactions menu stays highlighted in the left sidebar. The entry lists these lines:

• G/L account 1000101, Freehold Land, Debit: BDT 10,000.00, Credit: BDT 10,000.00
• G/L account 1000159, Electrical installations, Debit: BDT 10,000.00, Credit: BDT 10,000.00

Check that the reversal mirrors the original transaction. The amounts should match the original values (BDT 10,000.00), and the G/L accounts should be the same. The posting, due, and document dates should reflect the reversal date (28/08/19). The remarks should indicate the reversal and reference the original transaction number.

Also review the lower section of the screen. Columns such as Remarks Template, Tax Code, Federal Tax ID, Receipt Number, Tax Amount, and Gross Value should be filled in as required, or left blank if they do not apply.

Check that no reversals remain

After the reversal runs, the main cockpit screen appears. In the left navigation panel under Financials, you can see options such as Chart of Accounts, Journal Entry, Posting Templates, and Reverse Transactions.

If no reversals are pending, a red message appears at the bottom of the screen: "No reversed transactions were found". This confirms that all required reversals have been processed. Because you are back on the main cockpit, the process is complete and the system is ready for further actions.