Journal adjustments

Journal adjustments are period-end entries with a type: accrued revenue and expenses, prepaid expenses, deferred revenue, bad debts, reversing entries. They are saved first and posted separately, and can repeat automatically on a schedule.

Go to Accounting › Journal Adjustments and click New Adjustment.

Creating an adjustment

1. Fill in:
   • Title: for example October rent accrual.
   • Type: Manual Journals, Accrued Revenue, Accrued Expense, Deferred Revenue (Unearned Revenue), Prepaid Expense, Advance Payment, BadDebt Expense or Reversing Entry.
   • Adjustment Date, Project Name, Currency. In another currency than the base one, each line amount and the totals show their base-currency value under them, and changing the currency converts the lines already entered (each keeps its base value; changing only the rate keeps the amounts).
2. Add the lines: Account, Description, Debit or Credit. "Debit and Credit totals must be equal and greater than zero." If your company has more than one project and Cost Centers & Branches is on in Settings › Preferences › General (your plan must include it), each line also has a Project: it starts as the adjustment's project and follows it until you choose another one. Each line is posted to its own project, and recurring copies keep the line projects.
3. Save. The adjustment is Unposted.

"Ensure adjustments are balanced and approved per policy."

Posting

Open the adjustment and click Post to post it to the ledger; its status becomes Posted. Unpost takes it back out. Posting is refused in a closed period.

An adjustment with a line on a cash account follows the Negative Cash setting in Preferences. When posting it, or saving a change to a posted one, would make a cash account negative, it is refused while Negative Cash is off, and you are asked to confirm while it is on ("This journal creates a negative cash balance. Continue?"). Unpost and Delete of a posted adjustment with a cash debit line take that money back out, and are checked the same way ("This change creates a negative cash balance. Continue?").

Recurring adjustments

Tick Is Recurring to repeat an adjustment, for example a monthly accrual:

• Frequency: Daily, Weekly, Monthly, Quarterly or Yearly
• Next Run Date: when the next copy is made
• End Date: when the repetition stops

Once a day the system creates a copy of each recurring adjustment whose next run date has come, titled "... (Recurring)", dated that day and unposted, then moves the next run date on. Review and Post the copies.

Other actions

Clone copies an adjustment as a new one; Delete removes it.