Adjustment Creation

There might be scenarios wherein the adjustment currency is different from the account's invoice currency. The system enables you to determine whether currency conversion must be done during adjustment creation or during bill completion. If you deselect the Print by Default option in the respective adjustment type, the currency conversion takes place during adjustment creation. However, if you select the Print by Default option in the respective adjustment type, the currency conversion takes place during bill completion and not during adjustment creation. A transfer adjustment is created in the account's invoice currency and the reverse adjustment is created against the original adjustment in the adjustment currency when you complete the next bill of the account. The system creates the transfer and reverse adjustments using the adjustment type specified in the Transfer Adjustment Type option type of the Multi-Currency Accounts (C1_​MLTCURACC) feature configuration.

The currency conversion is done when you have an algorithm of the C1_​CURALGAD or C1_​EXCRTAD algorithm type attached to the Currency Conversion For Adjustments algorithm spot of the respective division. Otherwise, the currency conversion will not happen. If the required exchange rate is not available during currency conversion, the transfer adjustment will not be created.

The financial transaction for the adjustment is created in the account’s invoice currency. On freezing a financial transaction or on assigning a GL account to a financial transaction, an FT GL record is created for the financial transaction. For more information, see FT GL Creation.

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