Auto-Reversal Journals: Setup & Common Errors

Introduction

In Oracle Fusion General Ledger, Auto-Reversal Journals are a powerful automation feature used to reverse accruals or temporary entries in the following period. Despite being a simple tool, misconfigurations often lead to confusion, reporting discrepancies, or double entries.

In this guide, you’ll learn:

• How to set up Auto-Reversal in Fusion GL
• When to use it
• Common errors users face and how to fix them

What are Auto-Reversal Journals?

Auto-Reversal Journals are system-generated journals that automatically reverse previously posted entries on a defined future date. Typical use cases include:

• Month-end accruals
• Temporary estimates
• Reversals of reclassification entries

Example: You record an expense accrual on 5th May. Fusion can auto-reverse it on 1st
April with no manual intervention.

Step-by-Step Setup of Auto-Reversal Journals

Step 1: Enable Auto-Reversal in Journal Categories

• Go to: Setup and Maintenance > Financials > General Ledger > Manage Journal Categories> Create the Category

Then go to Setup & Maintenance > Manage Journal Reversal Criteria Sets

Then Create the Criterial Sets

• Set Reversal Period: Next Non Adjusting Period, Set Reversal Data as First Day
• Set Reversal Method : Switch Debit or Credit
• Automatic Reversal Option : Reverse Automatically

Then go to the Setup & Maintenance >Specify Ledger Options

r

Assign the Auto Reversal Criteria Set

Step 2: Create the Original Journal

• Use the selected category (e.g., Adjustment)

Post the journal

Step 3: Run “Auto Reverse Journals” Process

• Scheduled daily or run manually

• Go to Scheduled Processes > Search for: Auto Reverse Journals
• Provide ledger name, period, and category (or leave blank for all)

Step 4: Post the Reversal Journal

• After reversal is created, run the Post Journals process
• Can also be scheduled together with AutoReverse

Common Errors & How to Resolve Them

❌ Error 1: “No Journal Found for Reversal”

• Cause: The original journal doesn’t use a category with reversal required.
• Fix: Ensure journal category is enabled for reversal and used correctly in journal entry.

❌ Error 2: “Reversal Journal Not Generated After Process”

• Cause: Reversal method or period isn’t correctly configured in category.
• Fix: Check Manage Journal Categories setup for the selected category.

❌ Error 3: “Reversal Created in Incorrect Period”

• Cause: Reversal period setup is misaligned (e.g., Next Available vs. Specific)
• Fix: Set appropriate reversal period logic in journal category setup.

❌ Error 4: “Auto-Reversal Fails in Closed Period”

• Cause: Journal reversal is scheduled into a period that’s not open.
• Fix: Ensure future periods are open before reversal process is scheduled.

❌ Error 5: “Duplicate Reversal Journals Created”

• Cause: Manual and automatic reversal both triggered.
• Fix: Standardize reversal method—use only Auto-Reverse OR manual.