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Reversing journal is defined as those vouchers reversing automatically after a specified date.Reversing journal are created on a date and the affect of the voucher will remains till that date. These are vouchers that will not directly affect ledgers or financial report of the company, you can view the affect of these entries only if you included the entry in the report. This is very useful tool if you need to create interim reports like monthly ,quarterly or half yearly report to include an expected expense or income or an expense that has not been paid till the date of interim report, you can include those expense /incomes using reversing journal and create an accurate profit. Let’s see how to use reversing journal in tally erp 9.
Example of reversing journal usage
ABC Ltd has the following Profit & Loss account in 31-12-2018
They want to create an interim profit and loss account on 31-03-2018, There are many things to added to get a complete report. For example December month salary may not have issued to staff, telephone expense for the month may not have entered etc. In such cases you can include those expense on temporary basis through reversing journal just for the purpose of preparing interim report.
In the above example ,we want to add a depreciation amount of INR 10000 to get a complete report of profit and loss account. Let’s create a reversing journal for this.
Activation of reversing journal
To get activated reversing journal go to
F11 Features > Use Reversing Journals and optional voucher : Yes ( Under main heading budgets and scenario Management)
Voucher entry of reversing journal
The reversing journal voucher can be entered as follows.
Go to Accounting Voucher > F10 Reversing journal
- In our example ,The entry to included in the report of 31-12-2018 is
Depreciation ……….Dr 10000
To Furniture 10000
reversing journal entry example.
- Choose the date of entry, here on 31-12-2018
- By; Depreciation, amount 10000
- To Furniture amount 10000
- Applicable up to 31-12-2018, this is the date up to the expense is applicable in the report.
- Enter narration if any & save the voucher.
Create Scenario for including reversing voucher in the report
To include the expense entered through reversing voucher, you should create a scenario.To create a scenario, go to
- Accounting Info>Scenarios>Create
- Name: You can create a name , here I am creating Accruals.
- Include Actual s: Yes by default.
- Under Include select reversing journal as shown in the below image.
- Under exclude select nothing and save.
View desired report after considering reversing journal entry
Now let’s see the report after considering the expense entered through reversing journal voucher.
You cannot view the profit loss account with entered depreciation if you access profit and loss account from Gateway of Tally.For example if you view the profit and loss account on 31-12-2018 you will find the same profit and loss account as shown in the example above, the loss will be the same 274690. Then how to view the reversing journal included report?
- To see this in profit and loss account of tally erp 9,
- Gateway of Tally > Profit & Loss account, The period should be up to 31-03-2018
- Now click on new column or use shortcut key Alt+C
- In the column details fill up the following
- From ( blank for beginning) : 01-04-2018 , The beginning date of profit & loss account.
- To ( blank for end) : 31-12-2018 here you should select 31-12-2018, the Applicable Up to date in the journal you entered.
- You can select currency of report if you use multi currency
- Type of Value to show: Accruals, the scenario created above
- Show variance :No
Save the column details. The profit and loss account will display in columns , of Actuals and Accrual scenario created and selected in report as shown below.
In the accrual report, you can see the profit has again come down after charging expense of depreciation.And the actual report before charging the depreciation is also displayed in another column.
In the column details if you chosen a date after 31-12-2018, the reversing journal shall not be included in the report. both column shows the same report.
Reversing journal Register.
In tally ,there is a register for reversing journal,This will record all the vouchers entered through this voucher type. These vouchers will not affect your books of account, not included in any of the report of tally unless you use scenario for reporting.To view the reversing journal register go to
Display>Exception Report>REversing Journals
You can view month-wise breakup in the report, drilling down will end up the viewing of voucher in alteration mode.