How to reverse a posted journal

In Dynamics 365 Finance, if the Reverse option is unavailable for a posted journal, the supported workaround is to reverse the posted journal lines or the entire journal from the posted journal itself, rather than from the original entry screen.

Use one of these approaches, depending on the scenario and features in use:

1. Reverse an entire posted financial journal
   1. Go to the posted journal and open the Lines view.
   2. Use Reverse entire journal.
   3. When prompted, choose whether to keep the original transaction dates (Yes) or enter a new transaction date (No). If the original period is closed, select No and provide a valid new date.
   4. Enter a comment for the reversal.
   5. Select Reverse to post the reversing entries.
   The system creates reversing transactions for all vouchers in that posted journal. If the voucher has more than 100 lines, the reversal runs in batch; otherwise, it runs immediately and shows any lines that could not be reversed.
2. Reverse individual posted lines (for specific vouchers) If only certain vouchers or lines need to be reversed, open the posted journal, filter to the relevant voucher(s), and reverse only those lines instead of the entire journal. The same reversal dialog (date, comment, confirmation) applies.
3. If the issue is a bank reconciling item Reversing the journal will create offsetting entries in General Ledger, but the bank reconciliation may still show the original item until the reversing entry is also included and matched in the reconciliation. After posting the reversal:
   • Include the reversing entry in the next bank reconciliation.
   • Match the original entry and the reversing entry so that the net effect on the reconciliation is zero.
4. If using Asset leasing or other submodules If the posted journal originates from Asset leasing, use the module’s own reversal function so that subledger and GL stay aligned:
   • In Asset leasing, go to Asset transactions or Liability transactions.
   • Select the transaction and choose Reverse transaction.
   • Adjust the reversal date if needed (cannot be earlier than the original posting date) and confirm. A journal entry is posted that reverses the selected transaction and updates the lease balances.

If the original journal was configured as a reversing journal (with a reversing date) but no vouchers were reversed, verify that the Reversing entry and Reversing date flags were set on the Lines themselves, not only on the journal header. Changing these flags on the header after lines are entered does not retroactively mark existing lines; in that case, use the posted-journal reversal steps above.

References:

• Reverse journal posting
• Vouchers aren't reversed when you post a journal that has a reversing entry and date
• Reverse posted lease transactions