Rejected allocations reversed

A rejected journal voucher reverses itself in the sending company.

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What it does

If a receiving company rejects a journal voucher, a reversing journal entry is created in the sender.

When you need it: A subsidiary disputes a recharge; head office's books correct themselves.

How it works

The sender posts a G/L allocation, or a G/L-type service invoice allocation. Each receiver gets a journal voucher; in the "Journal Vouchers" window such vouchers show the B1i user.
The receiver opens the voucher. Before posting, the proposed expense or income account may be swapped for another G/L account.
The receiver sets "Status" to "Accept" or "Reject" and updates the voucher.
On "Reject", the voucher is closed, the sender's alert user is told, and a reversing journal entry for that receiver is posted in the sender. Its number appears in the "Rejected Journal Entry" column of the allocation's lower table.
On "Accept", the sender is also alerted; posting the voucher saves it as a journal entry, and the sender's lower table then shows "Confirmed" with the entry's number and posting date.

Set it up

The choice exists only where allocations arrive as journal vouchers. "Receive G/L Allocation as" in Administration › Setup › Intercompany › General Settings of the receiving company is set to journal voucher by default; set to "Journal Entry", the entry is posted at once and there is nothing to accept or reject. "Default Status for Journal Voucher" in the same window decides whether a voucher arrives as "Pending" or "Accept". Who hears about it is set in Administration › Setup › Intercompany › Intercompany Alerts Administration, by system alert or by email (for success, failure or both).

Good to know

The reversing entry is made for the receiver that rejected, and is shown against that receiver's row in the sender.
For an invoice-type service invoice allocation, rejecting the draft invoice in the receiver creates a cancellation of the sender's allocation invoice instead, shown under "Rejected Document Number".
The reversing entry's "Intercompany Details" mark it as an "Allocation Rejection" and give the rejecting company in "IC Rejection Branch".