Reversing a Lock

If you manually locked a period and discover an error, you can reverse the lock during the grace period. This undoes the closing entry and returns the period to “Closed” status for corrections.

When to Reverse

Reverse a lock only when:

• ✅ An error is discovered in the closed fiscal year
• ✅ An adjusting entry needs to be posted
• ✅ Audit adjustment required
• ✅ Approved by management

Caution

Only manually locked periods can be reversed. If the period was auto-locked (grace period expired), it is permanent and cannot be reversed.

Who Can Reverse?

Only these roles can reverse a lock:

• Organization Owners
• Administrators

Reversal Process

1. Navigate to Period Close

   Go to Period Close from the sidebar.

2. Review the Locked Period

   The page shows the current period status as “Locked” with the closing journal entry details.

3. Click “Reverse Lock”

   The reverse button appears for manually locked periods during the grace period.

4. Provide a Reason

   Enter the reason for reversing (required for audit trail):

   • What error was discovered
   • Why it can’t be adjusted in the current period
   • Who authorized the change

5. Confirm

   Review the confirmation dialog and click “Reverse Lock”.

What Happens

When you reverse a lock:

1. Closing journal entry is reversed — a reversal entry is created automatically
2. Period returns to “Closed” — the grace period continues from where it was
3. Posting is allowed again — you can make corrections in the fiscal year
4. Audit trail recorded — who reversed, when, and why

Note

The original closing entry is marked as reversed. You can see both the original and the reversal entry in your journal entries list.

After Making Corrections

Once you’ve fixed the issue:

1. Post your corrections — adjusting entries, missing transactions, etc.
2. Review the closing preview — verify the updated numbers look correct
3. Lock again — the new closing journal entry will reflect the corrected balances
4. Document thoroughly — note all changes made for auditors

You can reverse and re-lock multiple times during the grace period if needed.

What You Cannot Reverse

Scenario	Can Reverse?	Why
Manual lock during grace	✅ Yes	You chose to lock; you can undo it
Auto-lock (grace expired)	❌ No	The review window has passed

Tip

This is why we recommend locking manually instead of waiting for auto-lock. Manual locks give you the safety net of being able to reverse if something is wrong.

Alternative: Current Period Adjustment

If the period is permanently locked (auto-locked), you can still correct the numbers by posting an adjustment in the current period:

1. Post an adjusting entry in the current fiscal year with a clear description
2. Reference the original error — note what you’re correcting and which period it relates to
3. Disclose if material — significant corrections should be noted in financial statements

A future update will support formal Prior Period Adjustments for this scenario.

Audit Trail

Every reversal creates a complete record:

Information	Captured
Who reversed	User ID and name
When	Timestamp
Why	Reason provided by user
Original closing entry	The closing JE that was reversed
Reversal entry	The new entry undoing the close
Re-lock	When and by whom the period was locked again

Best Practices

1. Reverse promptly — Don’t wait until the last day of grace
2. Get approval first — Written approval before reversing
3. Make corrections quickly — Lock again as soon as corrections are done
4. Lock manually — Always prefer manual lock over auto-lock for the reversal safety net
5. Document everything — Future auditors will ask about reversals