Adjustment Names

For each type of adjustment posting you need to make in the Sales Ledger, you must have an adjustment type record that identifies the Nominal Ledger account to which the transaction value is posted. Using the Adjustment Names command, you can maintain a table of these adjustment types. You then select the relevant name in the Reference 2 list box when posting a sales adjustment transaction.

Foreign Currency Gains and Losses

When your customer pays an invoice in a foreign currency, it is likely that the exchange rate between the home and foreign currencies will have changed since the date the invoice was posted. As a result of that change, there will be a gain or loss depending on whether or not it is in your favour. The value of such discrepancies is posted to a Nominal account you identify on the Adjustment Names form.

If you use the multi-currency application you can define a description and Nominal account for gains or losses arising from foreign exchange transactions. A home currency must also be defined in the System - Maintenance - Company Profiles command.

Adjustment Name Entries

Nominal accounts are defined using the Nominal Ledger - Maintenance - Account form.

Box	Description
Name	A unique name for the sales adjustment type. You can use up to 10 characters.
Nominal Code	A reference that identifies the Nominal Ledger account to which the value of the sales adjustment will be posted. You can select from a list.
Settlement Discount VAT Adj.	This is used only if VAT Return adjustments are posted when prompt payment discount (settlement discount) is claimed when invoices are paid. What controls how Opera calculates VAT on invoices with prompt payment discount? VAT in the UK must be calculated before any prompt payment discount (settlement discount) is calculated. Your VAT Return must be updated with the full VAT value when an invoice is posted, even if settlement discount is offered. How do you make sure VAT is calculated before prompt payment discount is calculated? If you use the EC VAT application ... Make sure the VAT After Discount (Settlement) option is selected on the EC VAT - Maintenance - Countries form. If you don't use the EC VAT application ... Make sure the VAT calculated before settlement discount from date is entered on the System - Maintenance - Company Profiles form. If the settlement discount is taken when an invoice is paid, an accounting adjustment must be made which does the following: post the discount for the reduction in the goods and VAT values adjust the goods and VAT values on the VAT Return. The accounting adjustment can be posted using either a credit note, or a VAT adjustment directly after the receipt or payment is posted: In the Purchase Ledger you define on each supplier record how the adjustment will be posted. In the Sales Ledger you can define it either from the Sales Ledger - Utilities - Set Options - Settlement Discount Options form, or on each customer record. If you use credit notes to account for the VAT adjustment, receipts involving settlement discount must be posted on account and then allocated to the invoice and credit note. Important: Customers are set to 'Company Default' for this purpose, so each customer uses the default setting on the Sales Ledger - Utilities - Set Options - Settlement Discount Options form. Suppliers are set to 'Credit Note' by default for this purpose. You may need to change them if necessary.
Account Write Offs	An adjustment description and corresponding reference that identifies the Nominal Ledger account to which the value of write offs are posted. You can select from a list. The code may be left blank, the posting will then use the code from the Discount Given box on the Sales Ledger - Utilities - Set Options - Settlement Discount Options form.
Exchange Gain/Loss	An adjustment description and corresponding reference that identifies the Nominal Ledger account to which the value of the foreign currency exchange discrepancies (gains or losses) that cannot be attributed to one currency are posted. You can select from a list. These boxes are displayed if you use the multi-currency application and have defined a home currency on the System - Maintenance - Company Profiles form.