AR adjustments overview

It is a better accounting practice to make an adjustment than to edit an AR sales invoice, so there's an audit trail of the history. Use adjustments in the event that there's a balance due you or the customer after an AR sales invoice is paid. For example, if the customer received damaged goods, you can make an appropriate adjustment to show the difference that you owe the customer. When the customer applies the adjustment to a future payment, the balance will then be zero.

When you create an adjustment in Accounts Receivable, you specify the adjustment type. You can choose either debit memo or credit memo. Debit memos increase the amount that a customer owes you, while credit memos decrease the amount.

If your company is a multi-entity, multi-currency company, you can make adjustments at the top level or entity level.

  • Top level: When creating a top-level adjustment, you must select the base currency and location.

  • Entity level: When making adjustments at the entity level, Intacct already knows the location and base currency.

  • Foreign currency: Whether working at the entity level or top level, you must select a transaction currency when entering a foreign currency adjustment.

Debit memo adjustments

A debit memo adjustment increases the amount that a customer owes you. After you post the adjustment, the debit is batched in a summary and shows on the customer's statement. You can then select the customer's debit memo on the Receive Payments page as a transaction to be paid.

Credit memo adjustments

A credit memo adjustment decreases the amount that a customer owes you. When you create a credit memo adjustment, it appears on the Receive Payments page as a customer credit. You can then apply it to an AR sales invoice on the Receive Payments page.