The practice of using negative numbers to reverse original journal account entries is called Storno accounting.
The following procedures explain how to setup Storno accounting in Ax 2012. For example, following transaction wrongly recorded and to be reversed using Storno accounting.
Purchase a/c 10,000
To creditors 10,000
To reverse the following transaction and to post the reversing transaction using Storno accounting, you enter the following information;
Purchase a/c -10,000
To creditors -10,000
Each reversing transaction appears in the same debit or credit column as the original transaction. By keeping amounts in their original columns and reversing the sign on the amounts, you effectively “zero out” the original transaction.
Once following procedures is completed, system automatically creates reversal transactions as Storno transaction.
Activating Storno accounting system:
Firstly Storno accounting to be setup in General ledger parameters form before it is setup in any module.
General ledger module:
Setup -> General ledger parameters
Accounts payable module:
Setup -> Accounts payable parameter
By default, credit notes are now posted as storno transactions.
Accounts receivable module:
Setup -> Accounts receivable parameter
- By default, credit notes for advance invoices are now posted as Storno transactions.
- By default, credit notes for invoices are now posted as Storno transactions.
Inventory & Warehouse management modules:
By default, adjustments to inventory are now posted as Storno transactions.
Project management & accounting:
- By default, adjustments to project transactions are now posted as Storno transactions.
- By default, project journal entries that have a negative cost amount are now posted as Storno transactions.