Adjustments are changes you want to apply to the invoicing outside the setup of the contract Charge definitions. There could be any reason to create adjustments, including a customer disputed an invoice and you have decided to give a $100 credit, or equipment was returned in such bad shape that it warrants an extra charge of $150 for unexpected repairs.
You should not confuse Adjustments on this tab with the Adjustment fields that manipulate a transaction value already discussed on the Charge Definition screen. The same name was chosen because in the end they all influence what is invoiced and they can add or subtract to that invoice amount. The word adjustment nicely covers that capability.
Adjustments have the following important attributes:
-
Contract Item - Optional field. If entered, the Adjustment will be invoiced as part of the Contract Item costs. If blank, the Adjustment will be treated as an Adjustment on contract header level.
-
Adjustment - Reference to the Adjustment screen where you can define Adjustments.
-
Tax Code - If entered the system will calculate the Tax amount.
-
Adjustment Type - You can create your own codes on the System Codes screen (entity AJTP). The system will not let you select types that are either Invoice Discount or Contract Discount. These are protected and used by the Generate Invoices Process to handle discounts.
-
Date - The date this Adjustment must be invoiced.
-
Status - Status of the Adjustment (System Codes entity AJST). Only approved adjustments will be selected by the invoicing process. Once invoiced the system will change the status to Invoiced and will add the invoice number on the Adjustment record for future reference.
-
Quantity - Number of times the adjustment should be applied
-
Rate - Price of the adjustment
-
Total Amount = Quantity * Rate, but it is not necessary to enter any values. If Rate is blank the Total Amount is automatically set to 0 (zero). If Quantity is blank the Total Amount is automatically set equal to the entered Rate.
-
Exchange Rate - The system will try and find the exchange rate for you. If the Adjustment date is in the past, it will try and find the exchange rate for that day. If it is in the future, it will use today’s date. If a Contract Item is selected and Use Fixed Exchange Rate is selected for the Contract Item, the system will default the exchange rate from the Contract Item.
This field can be left blank if the Adjustment is going to be invoiced in the future and the exchange rate is therefore not known yet. Note that you can also manually clear the value in this situation and wait until the system determines the exchange rate at the time of invoice generation.
For adjustments with a date on or before today you will need to provide the exchange rate, providing the currency in which the adjustment is defined is different than the currency in which the contract will invoice.