Adjustments are used for balance alignment in cases of booking mistakes, wrong billing, customer disputes, bad debt write-offs, etc. Adjustments are different from payments or refunds despite the fact that they have the same effect on the balance.
Please note that you should never enter payments or refunds as adjustments.
Adjustments are charges that appear on invoices – they are not a way to set the credit limit on the account. If you want to give credit to an account, please change its billing terms to postpaid and set his credit limit.
Please note that you should not use adjustment to increase/decrease credit limits.
There are two types of adjustments:
- positive (credit) – positive adjustments increase the account balance
- negative (debit) – negative adjustments decrease the account balance
Account > Account Name > Billing > Credit/Debit
You can add adjustments from here:
- Account Current Balance – shows the account balance of the account
- Transaction Amount – the amount of the adjustment
- Currency – choose between account and base currency
- Total to pay – shows the amount that will be adjusted
- Type – select “adjustment”
- Note – you can add some note regarding the transaction
Please note that when a positive adjustment is invoiced, there should be enough current period charges so that it can be allocated – if this is not the case this adjustment will always be shown as unallocated in the invoice grid.
Example
Account A is issued invoices on the 1st day of the month.
There is an Invoice for $100, issued on March 01 for the period February 01 – 28.
During this period there was a billing error in the amount of $20.
This mistake was corrected with a positive adjustment for this amount on March 02.
During the month of March there was no traffic and as a result no charges are applied in the invoice issued on April 01 for the period March 01-31.
Since there is not enough charge during the period to cover the positive adjustment, the adjustment will be shown as unallocated in the invoice grid.