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Record an adjustment. Edit an adjustment


Typically, accountants and bookkeepers use adjustment entries at fiscal year-end to record revenue earned and expenses incurred that are not recorded as invoices and bills. Adjustment entries may also be made to rectify incorrectly recorded transactions.

Learn how to:

  When making adjustment entries in Flare, you'll need to know which account or accounts to debit and credit. An adjustment entry always involves at least two chart of accounts categories – one credited and one debited.  Total debits must equal total credits. We've provided two examples of how adjustment entries are often used, but recommend consulting or inviting your accountant or bookkeeper to assist you with adjustment entries.

Record an adjustment

Example: Correcting services revenue incorrectly recorded to the Business Revenue account.

To create an adjustment entry, do the following:

  1. In Flare's main menu, click Adjustment (1 below), and click the Add Adjustment button (2) on the Adjustments page.

    Adjustments in Flare's main menu

  2. Choose an adjustment date (3 below). The adjustment number is automatically generated; choose an account (4) to debit or credit; and,  enter the debit or credit amount (5).

    New adjustment form
    In this example, we are debiting Business Revenue by $1,000 and crediting Services Revenue by $1,000 to correct a recording error.

    Note: Selecting a vendor (6 above) is optional as the adjustment is being used to recategorize revenue without having to go through Sales > Invoices.

  3. Enter an optional note about the entry (7). Click Add Item as needed if you need to adjust other accounts (8).

  4. Click Save (9). The transaction is recorded in Flare, correcting the error, increasing Services Revenue by $1,000 and reducing Business Revenue by $1,000.

Edit an adjustment

To edit an adjustment, do the following:

  1. In Flare's main menu, click Adjustments (1 below).

    Adjustments in main navigation

  2. Find the adjustment in the list. You can use the search filter Filter search icon or sort  Column sort icon by adjustment number or date (2 below).

    Choose adjustment to edit

  3. Click the adjustment number (3). The Edit Adjustment form opens.

  4. Edit the adjustment details and click the Save button (4 below).

    Edit adjustment window

Delete an adjustment

To delete an adjustment, select the adjustment in the adjustments list and click the delete icon (1 below) or click the Delete button on the adjustment form (2 below).

Delete an adjustment

  Adjustment entries can be quite complex. If you are not sure how an entry would impact your account balances, invite your accountant or bookkeeper to use Flare.
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