The Lifecycle Of An Adjustment

The following diagram shows the possible lifecycle of an adjustment.

CAUTION: This diagram only makes sense in the context of the page used to maintain Adjustments. Refer to Adjustments - Main Information for the details.

The figure indicates how an adjustment moves from one status to another in its lifecycle.

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 contract, 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.

CAUTION: Freeze may not be enabled. 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 Contract 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.
Note: Adjustments may require approval. You cannot manually freeze adjustments whose adjustment type refers to an approval profile. If an adjustment of this type does not already have an approval request, a Submit button replaces the Freeze to enable request for an approval. For freezable adjustments that have an active approval request, all action buttons on the adjustment page are disabled.

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.