Handling Adjustments

Adjustments allow you to match transactions that have a variance in amounts for a valid reason.

If the manual match rules have been configured to allow tolerance, you can create a match with adjustment (as opposed to an exact match). You can also adjust one or more transactions from the same source, which is known as a single sided adjustment.

You can select transactions that are within the acceptable tolerance, and then click Match with Adjustment. The Selected Transactions dialog shows the selected transactions and allows you to fill in adjustment details. Then click Match with Adjustment to create the match.

For a single sided adjustment, you can select transactions from one source and click Adjust to create the adjustment.

Adjustments Example

You may have certain transactions that have a different amount in Accounts Receivable and Accounts Payable. To justify the variance between the two amounts, you can enter an adjustment.

To handle these:

1. Select the transactions from both sources and click Match with Adjustment. Or, select the transactions from one source and click Adjust.

   The Unmatched Transactions dialog is displayed.

   Note:

   You can also use Select All check box to choose all transactions.

   For a Number attribute, the value displayed is based on the precision set when defining the attribute. The precision of the Variance amount would be same as the balancing attribute, which is inherited from the currency code of the default currency in the lowest currency bucket that is enabled for the Profile.

   If an adjustment attribute is a group attribute, its member attributes are displayed under a separate node in the Adjustment section.

   
   
   

   The following image shows the Unmatched Transactions tab for single sided adjustments.

   
   
   
2. In Adjustment To, select whether you are making the adjustment to Accounts Receivable or Accounts Payable.
3. Select an Adjustment Type, then enter an ID, Name and optionally, a Description.
4. You can also enter a comment to explain the discrepancy between the Accounts Receivable amount and the Accounts Payable amount..
5. Optionally, you can add a file attachment by browsing to the file and click Open and then click Adjust.

Understanding Adjustment Processing Logic

• No adjustment can be created if the condition for Balancing attribute is set to Match Exactly.
• No adjustments are allowed if the match process limit set to -0/+0 for Balancing attribute.
• Adjustments are allowed if there is Matching with Tolerance Allowed and the matching falls within the tolerance specified including the actual limit amount. For example, if the match limits are set to -150 to +150, then amounts over 150 will fail as well as amounts under -150.
• Adjustments are allowed with no restrictions if the matched with adjustment From and To values are both blank. This allows for one sided adjustments to be processed.
• Adjustments are allowed if it falls within the From match limit and the To limit is blank. For example, if the From value is +150 and the To value is blank, you could create an adjustment whose value is $-2000.00).
• Only the Balancing attribute condition is checked to determine if single sided adjustment can be created.
• For Transaction Matching profiles that are integrated with Reconciliation Compliance, adjustments cannot be deleted if the Accounting Date of one or more transactions in a match set is lower than the Purged Through Date.

• For Adjustment attributes mapped from Data Source attributes, the values for the Adjustment are copied over from the first Transaction selected while performing a Manual Match.

• The Accounting Date displays the current date. This date is set as the Adjustment Accounting Date for the adjustment. See Setting up Due Dates in Setting Up and Configuring Account Reconciliation for additional information about how the Transaction Matching Adjustment Cutoff Time setting impacts the accounting date.