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Adjustments (also known as 'journals') are used to move an amount from one category to another. They can be used to correct errors (especially when transactions are locked to a previous VAT return) or for bookkeepers/accountants to adjust for year end items such as loan interest, depreciation or Corporation Tax owed.
Go to Categories > + (new) > New Adjustment
You will then be presented with the adjustment screen.
The above correction shows an adjustment from the 'Stationery' category to the 'Postage' category. These are both 'expense' type categories. Once saved, this will increase the postage category by £100 and reduce the stationery category by £100; debiting an expense category increases its balance, likewise crediting an expense category reduces its balance. Note that the debit amount total must always equal the credit amount total.
You can easily view all previous adjustments by clicking on the magnifying glass symbol on the top right.
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/accountant first.
