Posting & Adjustments

Posting creates the accounting treatment of a supported event. Start by identifying what has already been recognized, because an invoice and its later payment must not create the same expense twice.

Follow an invoice and payment

An expense and its later payment represent recognition and settlement of one cost. Recognition records the expense and obligation; settlement reduces that obligation and cash. Each uses its own eligible source and accounting treatment. Reviewing existing journals first prevents a later payment from recognizing the expense again.

In a hypothetical USD1,000 administration invoice, the expense record identifies the business cost and the invoice supports it. Recognition may debit administration expense and credit a payable for USD1,000.

A later USD600 bank payment has an account transaction and cash split. Its link to the expense identifies which obligation it settles. Settlement may debit the payable and credit cash for USD600, leaving USD400 payable. The cash link supports that connection; it does not itself prove either journal is Posted.

The example leaves a USD400 payable because only USD600 of the recognized USD1,000 has settled. A posting rule maps a supported source event to the intended debit and credit accounts and required dimensions. Review the existing recognition and settlement entries before executing the configured posting process.

Use the right route

Source-driven posting uses supported subscription activity, investment activity, expenses, income and cash settlements. Check the eligible source and rule in Posting. This is a review surface; the separate configured workflow or form performs a posting operation.

An adjusting journal entry records accounting treatment without an appropriate operational source, such as an accounting-only accrual, reclassification or valuation adjustment. Retain its reason, calculation and supporting evidence, and follow the organization's authorization and review process. Do not create an adjustment to conceal a wrong source record.

Use Journal Entries to inspect the entry and Journal Explorer to trace its lines and source. Confirm entity, period, currency, amounts, accounts, required dimensions and status before authorized posting. A Draft may balance while still being unposted.

Correct the cause

If the invoice or activity is wrong, correct it through its supported source-maintenance process and inspect the effect on its existing journal. Changing the source is not proof that a posted journal changed with it.

If the source is right but its accounting is wrong, use the authorized adjustment or linked reversal process and preserve the reason. Check that original and correcting entries produce the intended net treatment. Do not insert another ordinary posting for an already recognized event.

Use GL to investigate source coverage, duplicates and inconsistent entries. A saved valuation mark also needs separate review of its required accounting adjustment.

Period close is a different process, explained in Accounting Review & Close. Do not assume a routine posting action generates a closing entry or closes the period.

Return to Accounting Operations for the complete Accounting Operations tab list.