Adjusting Transactions
Sage 50 Accounting provides two ways to correct transactions: by adjusting and reversing them.
The adjustment feature allows you to correct transactions after they have been processed, without having to record two entries in your company ledger. Sage 50 Accounting automatically reverses the original transaction and enters the corrected transaction in one step, behind the scenes.
- General Journal entries.
- Paycheques. You can adjust payroll transactions in the previous fiscal or calendar year, whichever is more recent. When adjusting paycheques in previous years, the previous year tax tables are not available, so you must calculate the employee's taxes manually.
- Purchase invoices, Orders, and Quotes .
- Payments. You cannot adjust payments made to credit card companies.
- Remittance payments made in the Payments window.
- Sales invoices, Orders, and Quotes.
- Receipts.
- Time slips.
- Paycheques. You can adjust payroll transactions in the next fiscal year or calendar year. When adjusting paycheques processed in the next fiscal year or calendar year, the tax tables for the next year are not available, so you must calculate the employee's taxes manually.
Also if you want to issue paycheques in the next fiscal year or calendar year, you must have a service plan that includes payroll and turn on the option Allow transactions in the future.
In order for automatic adjustments to work, the details of the original transaction must be available in your company data. You cannot make adjustments if you have cleared the transaction details or deleted the vendor, employee, or customer record. You also cannot adjust transactions in cash-basis accounting.
If you ever need to find adjustment details, display the appropriate Transaction report. Make sure you select the Corrections box in the Modify Report window. Adjustments can be easily identified by their comments.
| Text | Explanation |
|---|---|
| ADJ<number> | Tells you the number of the transaction being adjusted. |
| Reversing J<number> | Tells you the number of the journal entry being reversed. This is the entry associated with the original transaction. |
| Correction is J<number> | Tells you the number of the journal entry that replaces the reversed entry. This is the new entry associated with the adjusting transaction. |
Note:
- You cannot modify the customer or vendor names on these transactions: sales invoices created from existing sales orders or quotes.
- Credit notes are generated when you adjust sales and purchase invoices that have already been fully or partially paid.
- You cannot reverse transactions that cannot be adjusted in the program.
- If you want to update the inventory quantities in Sage 50 Accounting after adjusting a payment or receipt, you should adjust the original purchase or sales invoice.
- To record an NSF cheque from a customer, you should reverse the receipt.