Period and posting adjustments
Period- and posting adjustments are posted from transaction documents, and it is crucial to the general ledger to make the income and costs for a period or dimension as accurate as possible.
Period adjustments is done to distribute the costs or incomes to several accounting periods if an invoice is created for a certain time span.
Posting adjustments is done to distribute costs or incomes to several dimensions (department, project etc). While period adjustments are crucial to make the profit and loss report as accurate as possible, posting adjustments points towards cost accounting.
Set up of period adjustment GL accounts
In the default account archive (ACD), set up of general ledger accounts for period adjustments can be made. You can set up one GL account for customer period adjustments and one GL account for supplier period adjustments.
It is possible to set up additional general ledger accounts to be used when performing a period adjustment. Enter the preferred general ledger account and select Provisions & Prepayments from the Category dropdown menu in the Account information area. Once categorized, these accounts will be available to choose in the Period Adjustment plan, providing enhanced flexibility and efficiency in managing period adjustments.