Adjustments That Behave Like Payments

There are several types of adjustments that behave just like payments (in respect of payables cash accounting). Consider the following events:

• Seizing a deposit (i.e., transferring a credit from a deposit service agreement to a regular service agreement)
• Overpayments transferred from one service agreement to another

The above events should cause the system to transfer holding amounts to true payable amounts (notice that the above examples are all transfer adjustments).

However, there are many other adjustments that should NOT behave like payments. You control how the adjustment works by selecting the appropriate FT algorithm when you set up adjustment types (refer to ADJT-AC and ADJT-TC for a description of the base package algorithms that cause the holding amounts to be manipulated in proportion to the amount of receivable being adjusted; and to C1-FTGL-ADAC and C1-FTGL-ADTC for the base package algorithms that take Accounting Priority into consideration). In other words, there are adjustment FT algorithms that cause the transference of holding payable amounts to real payable amounts when the A/R balance is decreased by the adjustment.