Create an AP adjustment

Adjust the amount that you owe a supplier by creating an adjustment. Depending on the type of adjustment you create, you can either increase or decrease the amount you owe. A credit memo adjustment increases the amount that you owe a supplier, while a debit memo adjustment decreases the amount you owe.

1. Go to Accounts Payable > All > Payments and select Add (circle) next to Adjustments.

2. Enter the Date of the adjustment.

3. Select the Supplier.

   The Pay to and Return to fields automatically populate based on the information in the supplier record. You can override these fields if needed.

4. Select the Type of adjustment that you want to create.

   In Accounts Payable, a debit memo decreases the amount that you owe a supplier, and a credit memo increases the amount you owe a supplier.

   Examples

   Credit memo adjustment: Increase the amount that you owe the supplier.

   Say you accidentally underpaid a supplier, or incurred a late charge for R50. You would create a credit memo to increase the amount you owe the supplier by R50. You would then pay the credit memo when you go to pay AP supplier invoices.

   Debit memo adjustment: Decrease the amount that you owe the supplier.

   Say you receive an AP supplier invoice for R1000 for catering for an event and you pay the AP supplier invoice in full. Later, you discover that not all the services were provided and you contact the supplier. The supplier agrees to credit your account for R100. You would create a debit memo to decrease the amount you owe to the supplier by R100.

5. Enter an Adjustment number to track the adjustment.

   If your company uses document sequencing, "New" appears in this field. After you post the adjustment, Intacct assigns an adjustment number automatically.

6. Optionally, reference the AP supplier invoice number, purchase order, or account number associated with the adjustment in the Reference AP supplier invoice number field.
7. Optionally, enter a Description.

8. Add any supporting documents in the Attachment field.

   Select an existing attachment from the dropdown or select Add to upload a new document.

   More details

   Learn more about who can add attachments.

   You can drag and drop your files to add an attachment. To attach a document to multiple journal entries, see Bulk processing.

9. If prompted for a Summary, make a selection from the dropdown list.

   The Summary field appears when your company has configured the summary frequency for this transaction type to be user-defined. For all other summary frequencies, such daily or monthly, Intacct automatically creates the summary for you and adds the new transaction to the summary.
   What's a summary?

   Summaries are collections of the same type of transactions, grouped together for processing. The advantage of using a summary is that the transaction group posts to the GL as one line. From that one line, as needed, you can drill down to any of the individual transactions.

   You can have Sage Intacct create, post, and close summaries automatically at a frequency that you specify by selecting a time interval. Or, you can create, post, and close summaries yourself.

   When you first create a summary, it's open, and you can enter transactions. After you close a summary, you can't post transactions to it, which prevents posting transactions to the wrong period. To add or delete transactions from a closed summary, reopen it.

   See AP summaries overview for more information.

10. For multi-currency companies, enter Currency and Exchange rate information about the adjustment in the Currency section.

    1. For Transaction currency, select the dropdown to select the currency being used.

       If the currency is not your company's base currency, continue with the next two steps.

    2. Select an Exchange rate type such as Intacct daily rate or WSJ published rate.

       If you know what the exchange rate for this transaction is, or have contracted with the supplier on a set exchange rate, you can enter it in Exchange rate to override system calculations.

       The Intacct daily rate is the system-supplied default exchange rate type, unless you've defined a different one.

    3. Enter or select a date in Exchange rate date.

       The default is the current date, but you can override this. For example, you might want to change it to the date the transaction was issued, or the date you intend to pay the transaction. If you override the Date field, the Exchange rate date updates automatically.

11. Enter line item details about the adjustment in the Entries section.

    1. For Account (or Account Label if your company is enabled for account labels), select an account to receive the adjustment.
    2. Select 1099 to add the line item amount to the supplier Form 1099.

    3. Enter the Amount of the item. Intacct expects this field to be populated, even if the amount is zero (0).

       For companies using multiple currencies, enter the Transaction Amount, which is the amount in the transaction currency. Intacct then calculates the Base Amount in your company's base currency, according to the exchange rate listed in the header.

       If you’re creating a debit memo, enter a positive line item. The debit memo type takes care of the accounting treatment for the supplier.

    4. Enter a Memo for line items that might require explanations at a future date.
    5. If you use departments or locations and are assigning the expense to them, select the appropriate Department or Location.
    6. If you use additional dimensions (such as customer, employee, or item) and are assigning the adjustment to them, select the corresponding dimension dropdown list and select the dimension you want.
    Optionally, select default information for all line items

    You can select default values to autofill each line item. Intacct displays these default values for every existing and new line item. You can manually override the default values on line items, as needed.

    For example, you can set dimension values for tracking and reporting purposes. After you select the general ledger account in the Items area, any dimension value that you set as a default is automatically reflected for each line item.

    Select Apply Defaults to save your selections.

    See Setting default line items for more information.

12. Select Post.

    Intacct automatically does the following based on the selected Type:

    •  Debit memo: The debit memo adjustment becomes a supplier credit that you can apply to an AP supplier invoice on the Pay AP supplier invoices page.
    • Credit memo: The credit memo adjustment becomes an AP supplier invoice to pay on the Pay AP supplier invoices page.

    Learn more about the next steps after posting an AP adjustment.

    Not ready to post? Save your transaction as a draft.

Exceptions

There are some situations in which you should not create an AP adjustment to record a decrease or increase in the amount you owe a supplier.

Next steps

After you post an adjustment, the credit or debit memo appears on the Pay AP supplier invoices page.

If you created a debit memo, Intacct creates a supplier credit that you can apply to an AP supplier invoice on the Pay AP supplier invoices page. Learn how to apply a supplier credit.

If you created a credit memo, Intacct treats this transaction as a AP supplier invoice. Follow your normal accounts payable workflow to process the payment. For example, you might need to approve the payment and then create a payment request on the Pay AP supplier invoices page.