Adjustment Details

The following diagram illustrates the relationship between an account and its adjustments:

The following concepts are illustrated above:

Contracts have adjustments Over time, a contract may have many adjustments. The above illustration shows a single adjustment to one of the account's contracts.

An adjustment has a financial transaction An adjustment has a related financial transaction. The financial transaction contains the financial effects of the adjustment on the contract's debt and on the general ledger.

Canceling an adjust. cancels the fin. tran. If the adjustment is eventually canceled, another financial transaction will be linked to the adjustment to reverse its financial effect. The cancellation financial transaction appears on the next bill produced for the account as an adjustment.