Journal Adjustment Posting (SAP Business One)

A journal adjustment entry is a manual entry that serves to correct or adjust business transactions that have already been recorded. These postings enable the subsequent correction of incorrect or incomplete entries, the realisation of necessary value adjustments (e.g. for Doubtful receivables), temporal Demarcations or adjustments within the framework of the Annual financial statements.

Typical use cases:

Value adjustments: Adjustment of accounts receivable (e.g. doubtful receivables).
Error corrections: Correction of incorrectly posted invoices (e.g. to an incorrect account).
Accruals and deferrals: Posting of accruals and deferrals at the end of the period if no recurring entries are used.
Reclassifications: Transfer of account balances as part of the annual financial statements.
Adjustments after tests: Postings as a result of audits or tax audits.

Implementation in SAP Business One:
Manual journal correction entries are made in the menu item:

Financial accounting → Journal entries → Journal entry

The relevant transaction data (such as reference number and date) is entered on the "General" tab and the debit and credit amounts to be corrected as well as the corresponding G/L accounts are entered on the "Content" tab.

To Adjustment postings clearly separated from regular operational processes, it is possible to assign these postings to a Equalisation period (e.g. period 13) to be assigned. The "Origin" field is labelled with the abbreviation JE (Journal Entry) which emphasises the manual recording.

Example:
If doubtful receivables are not automatically recognised via separate Reconciliation accounts If the receivables account is not recognised in the balance sheet, a corresponding value adjustment can be made manually to the regular receivables account by means of a journal adjustment entry in order to adjust its balance.

Versino Financial Suite

the Versino Financial Suite supports and improves the handling of journal entries in SAP Business One on several levels:

It ensures transparency by clearly marking, documenting and analysing the corresponding bookings.
It supports efficiency and security, e.g. through checking processes, plausibility checks and supporting reporting logic.
It improves the quality of the financial statements, as adjustment postings can be clearly separated from operational transactions and specifically analysed and documented as part of the period and annual financial statements.

This ensures that financial adjustments are transferred to the general ledger in a precise, traceable and audit-proof manner - an immensely important aspect for any formal closing situation.