Lesson 3 of 6
Reversals and recurring entries
6 min
Posted journal entries are never deleted. If one is wrong, you reverse it, which creates a new entry with the opposite debits and credits and links the two. The audit trail shows both: what was posted, and that it was undone, by whom and why. Recurring entries are the other side of routine: the same entry every month, generated instead of typed.
Reversing a journal entry
In Fiori, open the entry in Manage Journal Entries and choose reverse; the classic transaction is FB08. You must give a reversal reason, and you choose the reversal posting date. Only entries created in finance can be reversed this way. Entries created by logistics, such as a goods receipt or a billing document, are reversed in their own process (a reversal goods movement, a billing cancellation), so that the logistics document and the journal entry stay consistent.
- Was the entry created by a logistics process (goods movement, billing, supplier invoice in logistics)?Yes → reverse in that process · No → continue in finance
- Is the original period still open?Yes → reverse in the same period, typically with the reason for current-period reversal · No → continue
- Must the reversal land in a later open period?Yes → use a reason that allows an alternative posting date · No → open the period is not the answer; ask the period owner
- Should the reversal leave the account turnover unchanged?Yes → use a reason flagged for negative posting, if your company code allows it · No → normal reversal
Reversal reasons
Reversal reasons are configured codes. SAP delivers examples such as 01 for reversal in the current period and 02 for reversal in a closed period, and companies can add their own. Each reason controls whether an alternative posting date is allowed and whether the reversal is a negative posting. A normal reversal increases both debit and credit turnover on the accounts. A negative posting instead reduces the original side, so account turnover looks as if the original entry never happened. Negative postings must be allowed for the company code and the reason.
| Situation at Contoso | Approach |
|---|---|
| Accrual posted to the wrong cost center on Sept 30; period 9 open | Reverse with the current-period reason on Sept 30, then post correctly |
| Error found in October after period 9 closed | Reverse with a reason that allows an alternative posting date in October |
| Duplicate entry that must not inflate turnover statistics | Reverse with a reason flagged for negative posting, if enabled |
| Wrong goods receipt quantity | Reverse the goods movement in inventory management, not in finance |
Matching the reversal to the situation.
Accruals that reverse themselves
Many month-end accruals are meant to reverse on the first day of the next period, when the actual invoice will arrive. Rather than reversing each one by hand, finance can post them with a planned reversal date and run a mass reversal at the start of the next period. SAP S/4HANA also offers dedicated accrual functionality for recurring accrual scenarios. Whichever you use, test that the reversal lands in the right period with the right reason.
Recurring entries
A recurring entry is a template that generates the same journal entry on a schedule: monthly rent, a fixed service fee, an insurance amortization. In Fiori, Manage Recurring Journal Entries lets you define the lines, the first and last run dates and the interval, and the system creates the entries as scheduled. In Private Edition and on-premise, the classic transaction FBD1 creates recurring entry documents and F.14 runs them. The two are separate functions: entries created in one are not processed by the other, so pick one approach per use case and document it.
- SetupDefine the recurring entryRent: debit rent expense with cost center, credit accrued liabilities, 12,000 USD.
- ScheduleFirst run Jan 31, monthly, last run Dec 31Interval and end date set on the template.
- Each month endEntry generatedThe run creates a posted journal entry with its own number.
- Rent changesTemplate updatedChange amounts on the template; future runs use the new amount.
- Lease endsLast run reachedNo further entries; the template is retained for audit.
What would you do?
In October, Dan finds a September reclassification posted to the wrong profit center. Period 9 is closed and the auditors want September's numbers frozen. What is the right approach?
- Posted entries are reversed, never deleted; the reversal is linked to the original.
- Reversal reasons control alternative posting dates and negative postings.
- Entries from logistics are reversed in their own process.
- Manage Recurring Journal Entries and classic FBD1/F.14 generate recurring entries; they are separate functions.
- Review recurring templates whenever the underlying contract changes.
Check your understanding · not graded
Lesson check
1. What must you provide when reversing a journal entry?
2. How should a wrong goods receipt be corrected?
3. What does a negative posting do?
4. Which Fiori app manages recurring G/L entries?