Adjustments

Warning - Caution should be exercised when making DR Adjustments (Decrease Supplier Balance) to Subcontractor accounts (those subject to CIS rules). You must ensure that any amount posted does not result in a NEGATIVE Materials total on CIS300 return for the next Tax Month period. HMRC will NOT accept negative values on monthly returns and the CIS300 return will fail validation. See CIS Transactions and CIS Making Adjustments.

Depending on whether the Working Periods feature is enabled and on your Security Profile permissions, it may be possible for you to continue to post financial changes, for month end procedures, even after the posting period has been advanced; in this situation the Period becomes a drop-down and you can select the appropriate period.

Purchase Ledger Adjustment transactions can be used to correct the Net value of Invoices or Payments and the Supplier's outstanding balance without affecting the Supplier's Turnover.

The Turnover of the Analysis record used in the transaction will be updated.

A example where you might use an Adjustment would be Bank Charges. These reduce the real value of a payment received for an invoice but should not be reflected in the Supplier's Turnover.

All Adjustment Values are Net, i.e. VAT is not involved.

The menu options for the Purchase Ledger are to Decrease Supplier Balance (Debit adjustment) or a Increase Supplier Balance (Credit adjustment).

The effects of adjustments vary according to the Ledger involved. Please refer to the table below.

The entry of Adjustment transactions is similar to the entry of an Invoice, the entry fields are described below.

The Adjustments feature comprises a Header, a Detail, and a Totals pane.

Purchase Ledger

Decrease Supplier Balance (Debit)
has the same effect as Payments but:

If a Purchase Analysis Code is used:

Decreases Purchases
Increases Purchase Control
Decreases Supplier’s outstanding Balance
Decreases the Analysis Balance and Turnover

If a Bank or Discount Analysis Code is used:

Decreases Bank/Purchase Discount
Increases Purchase Control
Decreases the Supplier’s outstanding Balance
Increases the Analysis Balance and Turnover

Increase Supplier Balance (Credit)
has the same effect as Invoices but:

If a Purchase Analysis Code is used:

Increases Purchases
Decreases Purchase Control
Increases the Supplier’s outstanding Balance
Increases the Analysis Balance and Turnover

If a Bank or Discount Analysis Code is used:

Increases Bank/Purchase Discount
Decreases Purchase Control
Increases the Supplier’s outstanding Balance
Decreases the Analysis Balance and Turnover

Account

Entry of an Account Code will display the first five lines of the Account address in a scrolling window. More Account information can be displayed in this window by scrolling.

Sub Ledger

Clicking on this button will display a window listing the Sub ledgers that have been set up for the Ledger you are using. Selecting one will apply this to all the Detail lines in this Transaction.

If using Currency:

Currency

The default Currency and Currency Rate for the Account entered will be shown.

If you want to use an alternative Rate, click on this button, and the available Rates for this Account’s Currency will be displayed.

If the Account has been flagged as Any Currency, all the available Currencies and their Rates will be displayed.

Description

Tabbing from the Description field displays the Detail window, for entry of the Detail lines.

When you have entered all the Detail lines, PRESS ‘return’ or ‘enter’ or click the button to save the transaction.

Workflow Forms on Transactions

Any WFF associated with the transaction will automatically display as a popup window for initial entry. Existing WFF can then be edited by clicking on the Workflow Form button. If no WFF is associated with the transaction, the window will not display.

WFF can be attached to:

The transaction Header - the WFF will display on initial tab off, and can also be opened by clicking the Workflow Form button.
Transaction Detail lines - the WFF will display on initial tab off to a new line, and can also be opened by clicking the Workflow Form button.
The transaction Save - the WFF will display when clicking Save.