What are Adjustments?
Adjustments (also known as journals) are used to move an amount from one category to another.
Adjustments can be used to correct errors (especially when transactions are locked to a previous VAT return) or for bookkeepers/accountants to adjust for things like home grown consumption, loan interest, accruals/prepayments, depreciation or Corporation Tax owed (usually as 'year end adjustments').
How to use Adjustments in Business Cloud
Go to Accounting > Adjustments
You will then be presented with the adjustment screen.
The above correction shows an adjustment from the stationery category to the postage category. Once saved, this will increase the postage category by £100 and reduce the stationery category by £100.
Remember the debit amount total must always equal the credit amount total.
You can easily view all previous adjustments by clicking on the magnifying glass symbol on the top right.
Adjustments are not always the best way to make corrections. Sometimes it can be better practice to edit the incorrect transactions if they have not been included in previous reports or VAT returns. See View Transactions.
If you are unsure about how to use adjustments then it is always best to check with your accountant first.