About auto-reversing transactions

Visma.net ERP makes it easy to close your books at the end of a period.
To do so, you may need to post some adjusting transactions that should be reversed at the beginning of the next period.
For example: At the period-end, the accounts maintained in foreign currencies are revalued in the base currency, and the adjusting entries are posted to the General ledger's unrealised gains and losses accounts. At the beginning of the next period, these entries should be reversed.

In Visma.net ERP, the General ledger workspace can process auto-reversing batches, which can be manually marked as such in the Journal transactions (GL301000) window. Also, some auto-reversing batches are automatically generated.

For a batch marked as auto-reversing, the system automatically creates the reversing batch according to the following rules:

  • All transactions are reversed—that is, a debit entry is reversed as a credit entry and vice versa.
  • The first day of the next financial period is set as the date of the reversing transactions.

Depending on the Generate reversing entries option in the General ledger preferences (GL102000) window, the system can be configured to generate reversing batches at either of the following times:

  • On post: Each reversing batch is generated once the original batch is posted.
  • On period closing: All reversing batches are generated at once when the process of period closing has been initiated.

When you view the batches in the Journal transactions (GL301000) window, note that for the reversing batches, the Reversing entry check box is selected.