Supplier Adjustments

Supplier adjustments are used to increase or decrease a supplier balance by affecting another account. For example, if a supplier charged you interest, you could process a supplier adjustment to increase the supplier balance and affect an Interest Paid Account.

When you are working with supplier adjustments, you will work with VAT in the same way you do when processing supplier invoices – you always enter VAT at the point of the original transaction and the supplier balance will always be increased or decreased with the VAT inclusive amount. For suppliers, you enter original transactions via supplier invoices (and credit notes or returns), or via supplier adjustments. In both these processes, you enter VAT codes along with the transactions. When you pay suppliers in Banks and Credit Cards, you do not enter VAT.

  • Click on the Suppliers…Transactions…Supplier Adjustments option.
  • The following screen will be displayed:
  • Click on the Add Supplier Adjustments button.
  • The following screen will be displayed:
  • Select the supplier from the Supplier drop down menu.
  • Select whether you are increasing or decreasing the supplier account.
  • Select the By Affecting account.

By Affecting is the “other” account affected when you post a transaction.

The principle of accounting dictates that every debit should have a credit. In other words – every transaction affects at least two accounts. A main account and a contra account. The contra account in Sage One is referred to as the by affecting account.

In an example of a Supplier Adjustment you would affect the Supplier (or Accounts Payable) but the by affecting account would be the other ledger account affected by the adjustment for example Interest Paid.

An increase adjustment cannot be allocated to unpaid invoices.

  • Click on the Process button to save the adjustment that was made.

Adjustments using the Supplier Adjustment Quick Entry Grid

You also have the option to do supplier adjustments using a Quick Entry Grid:

  • Enter all the supplier adjustment information in the respective fields.
  • Click on the Process button to save the supplier adjustments.

Supplier Opening Balances

If your opening balances were recorded incorrectly, you can use this feature to rectify the balances on your suppliers.

  • Click on the Suppliers…Special…Adjust Opening Balances option.
  • The following screen will be displayed:
  • Select the supplier from the Supplier drop down menu.
  • Enter a reason for the adjustment in the Reason field.
  • Enter the new opening balance in the New Opening Balance field.
  • Select the date when the opening balance was adjusted in the Opening Balance as At calendar look up field.
  • Click on the Save button to save the adjustment that was made.

If the opening balance period falls within a closed VAT period or a locked financial year, you will not be able to adjust the opening balance.

It is recommended that you seek professional advice from an accountant or auditor before adjusting your opening balances.