In NetSuite, voiding and reversal journals do not need to be manually imported because they are system-generated. This automation simplifies the process and ensures accuracy. Here’s a detailed explanation of how it works:
Voiding Journals
Voiding journals are used to nullify or cancel out previous journal entries. In NetSuite, these journals are automatically created by the system when a void action is performed. Since these entries are system-generated, there is no need to manually import them.
Reversal Journals
Reversal journals serve the purpose of reversing the effects of previously recorded journal entries. This is typically done to correct errors or to reverse accruals and other temporary entries at the start of a new accounting period.
Automatic Generation of Reversal Journals
- Initial Journal Entry: When you create a normal journal entry, you can specify whether it will have a corresponding reversal journal entry. This is done by selecting the “Reversal Date” and indicating the entry as reversible.
- Reversal Date: During the creation of the initial journal entry, you provide the date on which the reversal should occur. This ensures that the reversal entry will be posted on the specified date.
- System Processing: Once the journal entry is marked for reversal and the reversal date is set, NetSuite handles the creation of the reversal journal automatically. This means that when the specified reversal date arrives, NetSuite generates the reversal journal entry, mirroring the original entry but with opposite amounts to nullify its effect.