Adjustment transactions are used to record bank account and credit card transactions such as interest earned, service charges, balance adjustments, and transfers between bank accounts. You can create adjustment categories on the Bank account and Credit card records for the adjustment transactions you create regularly.
Adjustment categories reduce data entry time, ensure accuracy, and speed reconciliation. For example, if you have a monthly bank service fee for checking, you can create an adjustment category for this fee that includes all the necessary information for the transaction, such as the payment amount, the reference for the register and statements, and the payment distribution accounts. Each month when you need to record the bank service fee, you can create an adjustment transaction, select the adjustment category created for this transaction type and all the information for this payment is entered automatically.
The Adjustment categories tile displays all saved adjustment categories. You can open a saved category to make changes, delete an adjustment category, or copy an existing category to create a new one based on its settings.
To edit adjustment categories, access and open the category from the Adjustment categories tile. For example, you might want to change the default date or post status. You can also delete adjustment categories you no longer use.
From the Adjustment categories tile on a bank account or credit card account, select Add.
Enter a name for the adjustment category.
Enter the default information for the adjustment category.
Adjustment date - Enter the date to use as the default when creating an adjustment of this type.
Amount - Enter the amount of the adjustment. You can leave this field blank and enter the amount when you create the adjustment.
Adjustment type - Select “Deposit”, “Payment”, or “Transfer Out”. The “Deposit” and “Payment” transaction types do not necessarily have to be deposits or payments. The terms simply mean a “Deposit” increases the account balance while a “Payment” decreases the account balance. For example, a service fee would be a payment, while a credit to the account would be a deposit.
Reference - Enter a journal reference. This information appears in the check register.
Post status and date - Enter the post status and date for the adjustment category.
Notes - Enter any notes you want associated with the adjustment category.
Under Distributions you can create a default distribution for the adjustment category. Select the account and enter the credit amount for the distribution.
Next select the projects, grants, and transaction codes for the distribution.
To apply an account distribution set, make your selection and click Apply account distribution set. Account distribution sets are defined in Accounts Payable Configuration in the database view. Account distribution sets allow you to split an amount you have assigned to an account over several projects and transaction codes.
Enter custom fields to further define the distribution. For more information about custom fields, see Custom Fields.
Once you've entered the distribution information, select Add distribution.
If the interfund transfer entries are required, select an interfund entry set from the drop-down. The interfund entry set determines what balancing entries are created.
Save the adjustment category.