Hi Ravi,
This is an excellent suggestion and looked like a viable solution. I tested this and unfortunately, even after setting the relevant update types as not relevant for posting, when I ran TPM2 for 12/31/2012, it still posted the reversals into FI.
In addition, I also have tested the configuration setting 'Exclude Product Types from Posting' and marked the specific product types that I want to exclude for posting. Unfortunately TPM2 still posted the reversals into FI.
I hope you have more tricks up your sleeves.
Thank you and best regards,
Dexter