When on the deposits/adjustments tab in bank reconciliation. Deposits show as positive amounts (they increase the bank balance), however an adjustment that shows a positive amount is actually reducing the bank balance.
This inconsistency causes confusion when working with the bank reconciliations.
Make the display consistent so that an adjustment that reduces the bank balances displays as a negative and an adjustment that increases the bank balance displays as a positive.
by: Tom R. | over a year ago | Financial Management
Comments
I have always advised my clients to not use the adjustment feature for this reason.
A lot of truth to that. However if you use ACH payments, they show up as adjustments so its hard to totally avoid it.