General Adjustment account

Any financial system requires some account adjustments at times to verify balances.   Some adjustments such as operational adjustments should be made to an adjustment account.   Other adjustments should be adjusted to an proper offsetting account instead of the adjustment account.

Adjustments made to the adjustment account:

The following adjustments should NOT be made to the general adjustment account:

The Default Adjustment G/L Account is set by opening the Financials > Options > Setting tab as shown below:

The Default Adjustment G/L Account is often found within the Non-Operating Items at the end of the chart of accounts as shown below

Since this account is used primarily as a management tool to calculate the total adjustments for the period, the adjustment account balance should be zero'd at the end of each fiscal year.