Debit and Credit Adjustments: Generated Transactions
When you release a debit or credit adjustment, the system generates a batch of transactions to record a decrease or increase of liability.
A batch created upon release of the debit or credit adjustment is numbered in accordance with the numbering sequence assigned in the Batch Numbering Sequence box on the Accounts Payable Preferences (AP101000) form. The batch number is specified on the Financial tab of the Bills and Adjustments (AP301000) form.
Debit Adjustment Batch
On release of an adjustment, a batch of the following transactions is generated for a one-line adjustment.
| Account | Debit | Credit |
|---|---|---|
| Accounts Payable account | Amount | 0.00 |
| Expense account | 0.00 | Amount |
A cash discount cannot be applied to a debit adjustment.
Credit Adjustment Batch
When a one-line credit adjustment is released, a batch of the following transactions is generated.
| Account | Debit | Credit |
|---|---|---|
| Accounts Payable account | 0.00 | Amount |
| Expense account | Amount | 0.00 |
A cash discount can be applied to a credit adjustment in accordance with the credit terms. As the credit adjustment is released and posted, the system adjusts the vendor Accounts Payable account and the specified expense account.