Explain ‘True Reversal,’ How is it different from regular ‘Reversal’?

As you are aware, any reversal results in opposite postings to the credit/debit sides of the original posting, leading to an increase in the account balances and the ‘trial balance’ is automatically inflated on both the sides. This is against the law in some countries such as France where it is required that even after reversal, there should not be an increased account balance. As a result, SAP came out with ‘True Reversal’ which overcomes this problem by ‘negative postings’ to the same line item(s) during reversal. The account balance, which was originally increased, is restored to the actual balance during the reversal: