Adjustments

Adjustments are used to resolve invoice balances that cannot be closed through a normal payment or credit memo. The most common use is writing off a balance that is not going to be collected — a small rounding difference, an old balance on a closed account, or a disputed amount that has been resolved in the customer's favor.

Every adjustment creates a permanent record with a reason code, a date, and the amount — so there is always a clear audit trail for what was changed and why.

📸 Screenshot suggestion: The Open Balance Items tab showing the list of invoices with open balances, with the Aging column visible showing color-coded values (amber for 61–90 days, red for 90+ days).

Open Balance Items Shows every invoice or charge that still has an unpaid balance. The aging column tells you how many days the balance has been outstanding. Items aged 61–90 days appear in amber; items aged over 90 days appear in red. Use this view to work your AR aging list and decide what action to take on each balance.

Adjustment History Shows every adjustment that has been posted — the date, the customer, the type, the reason code, and the amount. Use this view to review past activity or verify that a write-off was recorded correctly.

When you find an open balance and are ready to take action, click the three-dot menu on the right side of the row and select Resolve balance. A dialog will appear showing the customer name, the invoice number, and the exact amount outstanding. You then choose from four options.

📸 Screenshot suggestion: The Resolve Balance modal showing the customer summary header (customer name, invoice number, residual amount) and the four resolution option cards below: Write off, Credit memo, Adjustment, Leave open.

Write off this balance Use this when the balance is not going to be collected. This posts the amount to a write-off account. Small balances under the threshold set by your organization post immediately. Larger balances may require approval.

You will be prompted to select a reason code before the write-off is posted. Common reason codes include small balance, uncollectible, bankruptcy, and dispute resolved.

Create a credit memo Use this when the customer has a legitimate reason for not paying the full amount — a service issue, a pricing dispute, or a return. This opens the Credit Memo creation screen pre-filled with the customer and the balance amount.

Apply an adjustment Use this for small corrections — rounding differences, minor discrepancies between what was billed and what should have been billed. An adjustment is similar to a write-off but is categorized differently for reporting purposes.

Leave open (carry to aging) Use this when you are not ready to act on the balance yet. The balance stays on the account and continues to age. Choose this option intentionally — it is recorded as a reviewed decision, not just a skipped step.

A customer has a $4.12 balance left on an invoice after payment and it is not worth pursuing. Go to Adjustments → Open Balance Items, find the invoice, click the three-dot menu, and select Resolve balance. Choose Write off this balance and select Small Balance as the reason code. The balance will be cleared and recorded in Adjustment History.

You have a list of old balances to review at month end. Go to Open Balance Items and sort by the Aging column. Work through the red (90+ day) items first. For each one, use Resolve balance to decide whether to write off, adjust, or leave open pending further follow-up.

Your controller wants to see everything that was written off this month. Go to Adjustment History and filter by date range. You can see every adjustment posted, including the reason code and the user who posted it.

A balance needs to be written off but the amount is large and you are not sure if you have permission. Try the Resolve balance flow. If the amount exceeds your organization's write-off threshold, the system will indicate that approval is required before the write-off can be posted.