Debit Adjustment Reasons

Adjustment Reasons have several purposes. Its primary purpose is to hold the Charge Category used in GL rules. Adjustment Reasons can also be used to determine the purpose of an adjustment by defining why a debit or credit adjustment was issued. For example: the adjustment was due to a service delivery issue, or Sales promise something they could not deliver, or there was an SLA outage, or the adjustment was a bank fee, etc. Reasons can be created for your particular circumstances and customers.

When you assign an Adjustment Reason to the debit or credit adjustment, it can help (particularly with credits) determine the correct allowance percentages for Sales Returns and Bad Debt.

The standard adjustment rule (On adjustments with consolidated transaction types, charge categories, optional fields, and foreign exchange) will accept the Charge Category for the secondary reason, in addition to the Charge Category for the primary reason. Refer to Posting Rules and Posting Rule Sets in the Revenue Management section of this user guide for more information about this standard adjustment rule.

A Debit Adjustment Reason can be denoted as either Primary or Secondary, which determines their rank and how you are able to select them when creating an adjustment. Primary Reasons are listed in the Adjustment Reason drop-down list, while Secondary Reasons are listed in the Secondary Adjustment Reason drop-down list. If no Secondary Debit Adjustment Reasons are created, the Secondary Adjustment Reason field will not display.

Complete the following steps to add a Debit Adjustment Reason:

1. Select Setup from the Gotransverse application menu .

2. Click Reasons in the left pane.

   

   Reasons Window

   Click the icon in the left pane to hide it. Click the icon to open it.

3. Click the Add button above the Debit Adjustment Reasons section to open the Add Adjustment Reason window.

   

   Debit Adjustment Reasons Section

4. On the Add Adjustment Reason window, complete the required and relevant fields:

   

   Add Adjustment Reason Window

   Required fields are marked with an asterisk.

   • Name* — Enter the name for the Reason.

   • Status* — Select a status for the Reason:

     • Active: The Reason is available for use and is visible to users when creating a debit adjustment.

     • Suspended: The Reason is not available for use and is not visible to users. It cannot be deleted in case it will be used again in the future.

   • Adjustment Category* — Select an Adjustment Charge Category to associate with the Reason.

     A new charge category can be created from this window by clicking Add and completing the fields for the charge category. However, adding a new charge category may require changes to Revenue Management posting rules, invoice templates, and/or reports. Refer to Charge Categories Module for more information.

   • Reason Level* radio buttons — Select a level for this Reason. The Reason level determines how the Reason will be available when creating an adjustment.

     • Primary: Sets the Reason as a primary Reason for the adjustment. When set as Primary, it will display in the Adjustment Reason drop-down list on the Add Debit Adjustment window when creating Debit Adjustments in the Accounts application.

     • Secondary: Sets the Reason as a secondary Reason for the adjustment. When set as Secondary, it will display in the Secondary Adjustment Reason drop-down list on the Add Debit Adjustment window when creating a debit adjustment.

   • Description — Enter additional information about the Reason.

   • Credit Only and Debit Only radio buttons — The Debit Only radio button is automatically selected for debit adjustments.

5. Click Finish to add the Reason.

 

 

 

Topic updated: 10/2023.