Invoices are adjusted to account for several reasons, including late fees, Write Offs, and Refunds. Adding adjustments to posted Invoices creates adjusting entries that are reflected in the customer's financial software. Multiple adjustments can be made to an Invoice. The Is Adjustment field must be checked on each Invoice Line record that is being adjusted. Invoice Lines cannot be added to paid Invoices.
Navigate to the Invoices tab. Invoices can also be located directly from the Account or Contact record on theInvoices related list.
Click the Invoice Number of the Invoice requiring an adjustment.
Navigate to the Invoice Lines related list.
Check the checkbox(es) related to the line item(s) needing adjustment.
Click the Create Adjustments button. This will create a new Invoice Line marked Is Adjustment.
Navigate to the newly created Invoice Line.
Click the Edit action. The Edit Invoice Line modal will open.
Type a negative or a positive value in the Sales Price to show a decreasing or increasing adjustment to the Invoice.
Define the GL Account that will be the opposing entry to the defined A/R Account.
Type the Adjustment Reason.
Check the Is Posted checkbox to create the Adjusting Transaction.
Check the Deferred Revenue Adjustment checkbox to identify the adjustment as a Deferred Revenue adjustment prior to saving and posting. The resulting transaction will adjust all deferred revenue transactions.
Click Save. Any transactions dated prior to the Adjustment Date will have a date of the Adjustments Posted Date.
The adjustment line is posted in the Invoice Lines related list. Adjusting entries are generated for reporting purposes. The Adjustments field on the Invoice record populates with the sum of the value of the related invoice lines Total field.