Reversals in Dynamics AX 2012

I tried searching for the reversal process in AX 2012 for the following:

1. AP Invoice Reversal
2. AR Invoice Reversal
3. AP Payment Reversal
4. AR Payment Reversal
5. GL Journal Reversal

But I could not get proper explanation and the process details for all the above reversals neither on google nor in the Dynamics AX training manuals. Hence I tried and researched them all in AX 2012 VPC. This is what I found. Please correct me if I am wrong in any of the interpretations that I have posted here.

AP Invoice Reversal

I created a AP invoice by posting a normal AP Invoice Journal. I wanted to reverse that, however there is no functionality in AX 2012 to reverse the AP Invoice Journal. Atleast I could not find it. The only option that I as left with to reverse this transaction, was to pass a reverse transaction .i.e. AP Invoice with a negative value. I mean this a very regular and general scenario wherein you have keyed in a wrong invoice information and posted it and now you want to reverse it. However for this I need to create another AP invoice journal with negative values and then reduce the AP (Trade Creditors) balance in the system.

AR Invoice Reversal

Free text invoice can be corrected but cannot be reversed. By this I mean, that if I have posted a free text invoice for some customer and then I realised that I shouldn't have raised an invoice for that customer but it should have been for some other customer. Then in that case I need to raise a free text invoice with a -ve value and reduce the AR (Trade Debtors) account accordingly. There is no functionality to reverse a free text invoice in AX 2012.


AP Payment Journal Reversal

If the payment journal is posted using the Settlements. If Yes, then the next question is whether it is made by check or by other methods. If it done by check, then the user will have to first reverse the transaction from the Closed Transaction Editing form and then reverse the check from the Checks form in the Bank Management module. This will reverse the entire payment. OR If the user directly reverses the check from the bank management, then also the entire payment is reversed, without going to the Closed Transactions editing form of the vendor.

Remember: If the Reconcile check box is selected on the reversal form during the reversal, the check is reconciled and it will not be displayed in the Bank Account reconciliation form.

If the payment is done by other payment method (Wire Electronic etc), then the user will have to first reverse the transaction from the Closed Transaction Editing form and then pass a -ve payment journal. Then from the Settle Transactions screen, the user will have to manually select the +ve and -ve payments and then settle them.

If only payment was made, without selecting the Settlement, then the user will have to just pass a -ve payment journal. Then from the Settle Transactions screen, the user will have to manually select the +ve and -ve payments and then settle them.

This will reverse the AP payment journal.

AR Payment Journal Reversal

 If the payment is done using Settlements, then the user will have to first reverse the transaction from the Closed Transaction Editing form and then pass a -ve payment journal. Then from the Settle Transactions screen, the user will have to manually select the +ve and -ve payments and then settle them.

If only payment was made, without selecting the Settlement, then the user will have to just pass a -ve payment journal. Then from the Settle Transactions screen, the user will have to manually select the +ve and -ve payments and then settle them.

This will reverse the AR payment journal.

GL Journal Reversal

The GL journal involving the account type of Ledger can only be reversed and any other type of transactions posted from the GL General Journal cannot be reversed. A manual entry with reverse values needs to be posted to reverse those transactions.


Please do let me know if any of the information here is mis-leading or not correct. But from what all research that I have done, I have made the above conclusions.

Thanks !

AXAPTAMANIAC