An intercompany relationship is setup between USMF and USSI companies. Both companies are using the same ledger accounts for due to and due from.

An intercompany transaction is entered in the general journal. The lines of the voucher are marked as a Reversal and a Reversing date is entered.

Upon posting, the original voucher for USMF company posted to the Due from (133340) ledger account and USSI company posted to the Due to (231370) ledger account.

When the reversing entry posted, the customer expected the reversal to reverse exactly what was posted. Instead, the reversing voucher for USMF company posted to the Due to (231370) ledger account and USSI company posted to the Due from (133340) ledger account.

Solution: This is by design.

There are two types of reversals:
- A reversal because the transaction was incorrectly posted
- A reversal for accruals where the transaction is correctly posted and then is reversed in the next period

Even though both of them should reverse the exact ledger accounts that were original posted, the logic is different in when/how the reversing entry is created. As a result, the reversal for accruals acts differently than a typical reversal.

For reversals for incorrect accounting, the voucher for the reversal is created through a process and is done after the original journal is posted. Intercompany transaction CANNOT be reversed for incorrectly posted transactions. The correction must be manually entered, so we can't use this logic without a feature change.

THIS FEATURE CHANGE IS REQUIRED BY OUR CUSTOMER