An adjustment is generally used to write off small outstanding amounts in the debtors ledger as requested by a partner. Once you post the adjustment, you can produce an adjustment note and send this to your client for their tax records.
Adjustments only apply to invoices / bills and can be used to:
decrease the amount of an outstanding invoice where a client has underpaid
increase the amount of an outstanding invoice where a client has overpaid
write off amounts as bad debts when you're unable to collect outstanding amounts
apply a discount to a bill after the fact.
Enter discounts and bad debts in the same way as adjustments. Adjustment notes only print for the entry type Adjustment.
If one client has overpaid and you want to transfer monies to a related client, see Overpayments Scenario 5.
affect the client WIP ledger or sales figures in any way
display in the client fee reports
display on the Client > Bills tab.
In the toolbar, click Contacts. The Find Clients tab opens.
- In the Search for field, type the client code or name and click Search.
Highlight the client or double-click to open the client.
When you have a number of adjustments to enter, in the toolbar, click the Debtors drop-down and choose Debtors Adjustment. This will help you to process a number of adjustment entries quickly.
- On the Tasks bar, click Debtors ledger.
- On the Tasks bar, click Adjustments.
(AE only): In the Company field, select the relevant company from the drop-down if applicable.
In the Date field, enter the date of the adjustment. Enter the date in the format dd/mm/yyyy or select it from the drop-down calendar. The default date is the current date.
In the Receipt Number field, enter a unique adjustment number to help track the adjustment.
It's recommended that you enter the original bill number as the receipt number.
The number's prefaced with Adjustment, Bad Debt or Discount when it's stored in the system. This reference depends on which field the amount was entered into; Adjustment, Bad Debt or Discount column.
In the Description field, enter a reason for the adjustment entry.
In the Style field, select a different style from the drop-down if you don't want to use the default adjustment template.
Under the transaction column headings, click the bill you want to apply the adjustment to.
If no entries appear under the headings of Date, Number and Gross etc, this indicates there are no outstanding invoices / bills.
If you're reducing the bill amount, in the Adjustment column enter a positive amount. Entering a positive amount will by default, decrease the amount unpaid.
If you're increasing the bill amount, in the Adjustment column enter a negative amount, for example -12.00.
If you are processing a bad debt, in the the Bad Debt column, enter a positive amount.
If you are processing a discount, in the Discount column, enter a positive amount.
Press Tab or Enter. The Gross Unpaid amount updates and displays the current unpaid amount.
Check the Gross Unpaid amount is correct before posting the entry.
Click Post. The message 'Posting will commit these transactions PERMANENTLY. Do you wish to continue' appears.
Click Yes to post the transaction. The adjustment is allocated against the respective bill(s). Print an adjustment note if applicable.
A document style must be set up to print Adjustment notes
- In the toolbar, click the Debtors drop-down and choose Adjustment to Print.
Click the checkbox to select one or more Date/Client Name combinations or the checkbox in the column heading to select all listed adjustments.
Click the Print Document checkbox, then click OK. The adjustment(s) are sent to your printer.
Click the Mark as Printed checkbox to indicate that the adjustment has been printed or emailed and can be removed from the display.
Your client's name should be print on the adjustment note. If the client name is missing, make sure you've entered in a Mailing Name in the client record.