How to Reverse a GB Interdepartmental Billing
- Knowledge Assistant
Would like to know best practices for reversing interdepartmental billings
- Adjust Invoices
- Payment Reversals
- Customers
- Accounts Receivable Settings
- Accounts Receivable Charge Codes
- Allocation Codes
Instructional
It's first important to recognize that a GBI journal which results from an interdepartmental billing contains both the bill GL allocations as well as the payment GL allocations. This is because when an Invoice Entry and Proof batch containing interdepartmental billings is Output-Posted, the payment on the interdepartmental bill(s) are auto-processed within the invoice batch as part of the output/posting process. The GL allocations on the payment receipt are governed by accounts/allocations set up in the Allocation Codes program, which are in turn specified on the customer record via General Revenues > Accounts Receivable > Setup > Customers > Inter Dept (button).
To reverse interdepartmental billings within the current fiscal year, it is advised to first reverse the payment, and then adjust the invoice to 0.00 or delete the posted invoice.
When reversing an interdepartmental billing from a previous fiscal year, it's important to note the following AR setting: General Revenues > Accounts Receivable > Setup > Accounts Receivable Settings > Reversals (tab) > Refunds and Reversals Options (heading) > For prior year reversals, use General Ledger account information. Bear in mind that the GL allocations on the receipt were partially pulled from the allocation code linked to the customer record, so the GL allocations on the reversals should not come solely from what's on the charge code. With this in mind, global setting For prior year reversals, use General Ledger account information should be set to from the receipt history, even if only temporarily, before the interdepartmental billing receipt is reversed.
It is strongly advised that these processes be fully verified in a non-live environment before replicating in live–this includes verifying that the resulting GBM (invoice adjustment) and CRP (payment reversal) journals correctly offset entries from the original GBI journal. This also includes verifying that at the end of these processes, the general billing invoice (as displays in Invoice Inquiry) and the general bill (as displays in Bill Inquiry) are in balance (same billed, adjusted, principal, and due amounts).
For any general bills out of balance, please contact Enterprise ERP General Billing Support.