The Lifecycle Of An Adjustment
The following diagram shows the possible lifecycle of an adjustment.
This diagram only makes sense in the context of the page used to maintain Adjustments. Refer to Adjustment - Main Information for the details.
Adjustments are initially created in the Incomplete state. Adjustments in this state don't have a financial transaction. This means, you can change the adjustment type and amount at will.
Click Generate to generate a financial transaction for the adjustment. The financial transaction contains the adjustment's effect on the general ledger and on the customer's payoff and current balances. If the adjustment is calculated, the algorithm on the adjustment type's Generate Adjustment event controls how the adjustment is calculated. If the adjustment is calculated, you must specify the calculation date, which is passed as a parameter to the calculation algorithm and is used for calculations that are effective dated (e.g., rate version or bill factor value). The financial transaction (FT) algorithm defined on the adjustment type Adj. Financial Transaction event controls how the financial transaction is constructed. For calculated adjustments, the distribution code may be taken from the adjustment type or the calculation lines.
After generating the financial transaction, the adjustment becomes Freezable. While in this state, you may change the service agreement, adjustment type and amount at will. However, if you change this information, you will have to regenerate the financial transaction (by clicking the Generate button).
In the very rare situation when the system cannot generate the financial transaction because of inconsistent setup data, the adjustment is moved to the Error state. You may regenerate the financial transaction after correcting the source of the error. You may also delete such an adjustment.
Click the delete button to physically remove an Incomplete, Error or Freezable adjustment from the database.
Please be aware that you can prevent specific types of adjustments from being frozen until the account's next bill is completed. Refer to Preventing SA Balances And The GL From Being Impacted Until Bill Completion for how to enable this feature on your adjustment types.
Click Freeze to freeze the adjustment and its financial transaction. After doing this, the adjustment's state becomes Frozen. While in this state, you cannot change the adjustment's type or amount, but you may change:
- When the adjustment starts aging.
- Whether the adjustment appears on a customer's bill.
- The accounting date used to derive the general ledger accounting period(s) to which the financial transaction is booked.
Adjustments may require approval. If the adjustment type referenced on the adjustment has an approval profile, the Freeze button is replaced with a Submit for Approval button. If an adjustment is currently being approved, all action buttons are disabled because the adjustment must be either approved or rejected using the Adjustment - Approval page.
However, the Delete button is enabled for an adjustment in a freezable state and linked to an approval request that is in a “no approval necessary” state. If the adjustment is deleted a log entry is created on the associated approval request.
Refer to The Big Picture of Adjustment Approvals for more information.
If you need to remove the financial effects of an adjustment, click Cancel. Canceling an adjustment causes the generation of another financial transaction. This new financial transaction reverses the financial impact of the original adjustment.