When to reverse
Reverse a capitalization if it was created by mistake – for example, you ran it for the wrong tax year, or you discovered some bill lines should not have been tagged as QE – Capitalized.
Tip: If the bill lines were correct and you only need to fix the IP %, category, or vendor classification, edit those and run capitalization again – you don’t always need to reverse.
Run a reversal
Open the IP asset.
In the Previous years section, find the capitalization to reverse.
Click Reverse and confirm.
What happens behind the scenes
Cybooks posts a reversing journal entry dated today – flipping debits and credits of the original entry.
If the linked Fixed Asset is still a Draft with no depreciation, it’s deleted.
The capitalization status changes to Reversed in the history.
All bill lines that were linked to the capitalization are unlinked – they become eligible for capitalization again.
When reversal is blocked
Situation | What to do |
The Fixed Asset has been registered. | Unregister or dispose of it first, then reverse. |
The Fixed Asset has active depreciation entries. | Roll back depreciation first, then reverse. |
The accounting period ending 31 December is locked. | Unlock the closing date, then reverse. |
The capitalization is already reversed. | Nothing to do – reversed records are kept for audit. |
After reversal
The reversed capitalization stays in the asset’s history with status Reversed for audit purposes. The bill lines it used are now uncapitalised again – you can fix any tagging issues and run capitalization for the same tax year a second time.
Audit trail
Both the original capitalization journal entry and the reversal entry remain in your General Ledger and journal reports – nothing is deleted. This keeps your books fully auditable while still letting you correct mistakes.