This topic provides the information on Reverse Liquidation Accounting Entries.

You can reverse the authorized accounting entries that were passed, when you liquidated a receivable or payable outstanding component of a contract.

You can reverse the accounting entries, passed for the liquidation of an outstanding component of a contract, through the Receivable/Payable Liquidation screen. Specify the Contract Reference Number of the contract. All the outstanding components of the contract that were paid from a receivable or payable and income/expense GL account will be displayed. Query the component whose liquidation entries you want to reverse. Click ‘Roll-over’ icon on the tool bar.

The system will prompt you to indicate whether you want to reverse the liquidation entries passed for the outstanding component or make the component outstanding again.

If you indicate that the entries should be reversed, the accounting entries that were passed earlier will be reversed. However, you will not be able to liquidate the component at a future date.

If you indicate that the component should be made outstanding, the accounting entries that were passed earlier will be reversed and the component will become outstanding again. The component can be liquidated later on.

You can also mark an Outstanding Liquidation Contract as Reversed. This option would be used to waive a particular Receivable or Payable Contract. When an outstanding liquidation contract is reversed, the accounting entries are reversed for the Outstanding Liquidated Amount from the Receivable or Payable GL and the Income/Expense GL. The Income/Expense GL will be derived from the Product Event Accounting Entry Definition for the corresponding Amount Tag and Event Code.

These entries would be passed with the Accounting Reference Number as the AR/AP Reference Number.