What are Adjustments?

How to use Adjustments in Pandle

What are Adjustments?

Adjustments (also known as journals) are used to move an amount from one category to another.

Adjustments can be used to correct errors (especially when transactions are locked to a previous VAT return) or for bookkeepers and accountants to adjust for things like loan interest, depreciation, or Corporation Tax owed (which usually takes place in the 'year end adjustments').

How to use Adjustments in Pandle

Click 'Accounting' in the navigation bar and select 'Adjustments' from the dropdown menu.

You can also add new adjustments from the Categories page by clicking the 'Add' button, and selecting 'New Adjustment'.

Use the 'New Adjustment' screen to enter the details of how much you are moving, from which category, and where it's going to (the amount that you are 'adjusting').

Enter a description which explains what the adjustment is for. This might help if you need to review it in the future!

In our example we're entering an adjustment because we want to make a correction from the postage category to the stationery category. Use the dropdown menus to choose the category you want to debit (move money from) and to credit (move money to).

Enter the amount you want to debit and the amount to credit. Debit is the amount you 'move from', and credit is the amount you 'move to'. The total amount that you debit and credit must be equal.

Once saved,  this will reduce the postage category by £100, and increase the stationery category by £100.

You can easily view previous adjustments by clicking on the magnifying glass symbol on the top right of the screen.

Adjustments are not always the best way to make corrections. Sometimes it can be better practice to edit the incorrect transactions if they have not been included in previous reports or VAT returns. If you are unsure about how to use adjustments then it is always best to check with your bookkeeper or accountant first.

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