Accounts Receivable Reversals

When you choose to reverse an accounting transaction, Orion prompts you for the Reversal Date, The GL Transaction Date and the GL Period, and the Fiscal Year.

Reversal Date

The Reversal Date is used on the actual reversal record saved in the reversal data file. The current date is recommended. This date is used to determine whether or not a Reversal should be included in a report where Reversals are included (Payment Application Analysis, Timekeeper Productivity Report, Payments by Working Attorney Report, etc.). When Reversals are included in a report, any Reversal will be included where the Reversal date is within the specified report date range, but the date of the original transaction is outside the specified report date range. If both the Reversal date and the original
transaction date are within the report date range, the Reversal is thrown out and
not factored into the report.

* Note "if" one is simply reversing a PMT in a prior period and reapplying the same PMT for the same amount against a different invoice, it is possible to simply use the original payment date for the reversal date so that it is a wash - and post to prior GL period as well if that is needed. The date one uses for the reversal date and GL period used will depend on firm procedures and the specifics of the reversal needing to be done. Consult your firm's accounting managers for proper procedures in this regard. There may be considerations based on what financials have already been reported to partners or what tax information has already been reported. (in particular if crossing over fiscal years).

Only the detail reports are impacted by the Reversal dates used.

GL Transaction

The value you enter in the GL Transaction Date field will be used on the General Ledger Transactions that are created. If you are sensitive about the dates in your General Ledger, make sure you enter a date that goes with the General Ledger Period and Fiscal Year you will specify. This date is for presentation purposes only and has no impact on your financial statements.

GL Period and Fiscal Year

The GL Period and Fiscal year will be used on the GL transactions created by the Reversal. The Current Period and Fiscal Year is recommended. Even if you get this wrong, you can change the Period and Fiscal Year on the General Ledger transactions before you post them. The GL Period and Year will impact your financial statements which are created by period and year.