Adjustment Type

An adjustment type is a reason to clear part of an invoice without money: a small balance written off, a prompt-payment discount allowed, a rounding difference. Each type names the account the adjustment posts to.

Where

Accounts Receivable › Payment › Adjustment Type

Who uses it

Finance controller

When

At setup

Needs first

The accounts in the chart of accounts (General Ledger Account)

What it is for

On the Adjustments tab of a Collection, each line picks an adjustment type and its account is filled in. The adjustment counts towards clearing the customer's invoices, so the invoice can be closed even though less money came in.

Every field in plain words

Field	What it means	What to put
Adjustment Type	The code	Required
Name	What it is called	Required. "Discount allowed", "Small balance written off"
Account	The account the adjustment posts to	Required

What it is connected to

• Collection, tab Adjustments. The tab shows only on collections that clear invoices, and can be hidden for the company with Hide Adjustment on Account Receivable Setting.

If something looks wrong

• "Adjustments - Line ID : ... - Adjustment Account cannot be empty" on a collection. The adjustment type has no account. Set it here.