Adjusting Entries

An adjusting entry lets you correct a posted transaction without deleting it. NP Ledger creates two new entries: a reversing entry that cancels the original, and a correcting entry with the right values. This preserves a clear audit trail.

Once a transaction is posted, it's part of your official books. If you made a mistake — wrong amount, wrong account, wrong fund — you shouldn't just delete it. Adjusting entries are the accounting-correct way to fix errors: they leave a traceable history showing exactly what was wrong and how it was corrected. Your auditor will thank you.

• The transaction you want to correct must be posted (not a draft or void)
• You need an Admin role or higher in the organization
• Know what needs to change — the amount, account, fund, description, or a combination

Starting an adjustment

1. Find the transaction you want to correct. You can search from the transaction list or navigate from an account register.
2. Open the transaction detail page by clicking on it.
3. Click "Adjust." This opens the Adjustment Wizard.

Simple adjustments (two-line transactions)

Most transactions have two line items (one debit, one credit). For these, the wizard shows a simplified form:

1. Check the boxes next to the fields you want to change — Amount, Account, Fund, or Description. Only checked fields will be modified.
2. Enter the corrected values in the fields that appear.
3. Set the correction date — this defaults to today. Choose a different date if needed, but make sure it falls within an open accounting period.
4. Click "Preview."

Multi-line adjustments (three or more line items)

For transactions with three or more line items, the wizard shows a full line editor:

1. Review the table of line items. Each row shows the account, fund, amount, debit/credit direction, and description.
2. Edit any values directly in the table — change accounts, funds, amounts, or flip debit/credit.
3. Make sure debits equal credits. The wizard shows a balance indicator; it must be zero before you can proceed.
4. Set the correction date.
5. Click "Preview."

Previewing and confirming

1. Review the preview. It shows two proposed transactions:
2. Reversing entry — mirrors the original transaction with flipped debits and credits, effectively canceling it out
3. Correcting entry — records the corrected values
4. Check that the correcting entry looks right. Verify the accounts, amounts, and funds match what you intended.
5. Click "Confirm & Post." Both entries are posted immediately as a pair.
6. You'll be returned to the original transaction, which now shows links to the reversing and correcting entries.

Important: If the original transaction includes reconciled line items, you'll see a warning. You can still proceed by checking the Force box, but be aware this may affect your reconciliation.

• The original transaction detail page shows the adjustment link
• Two new transactions appear: one reversing entry and one correcting entry
• Your account balances reflect the corrected amounts
• The audit log records the adjustment

• Adjusting a transaction in a closed period — The correction date must fall in an open accounting period. If the period is closed, either choose a date in an open period or reopen the period first (see Closing an Accounting Period).
• Unbalanced multi-line edits — In the multi-line editor, total debits must equal total credits. The wizard won't let you proceed until the balance is zero.
• Adjusting when you should void — If a transaction should never have been recorded at all (e.g., a duplicate), voiding is more appropriate than adjusting. Adjusting is for when the transaction was real but the details were wrong.

Accountant note: Adjusting entries follow the standard reversing-and-correcting pattern used in GAAP financial accounting. The reversing entry exactly offsets the original, and the correcting entry records the intended values. Both entries reference the original transaction ID for audit traceability. This approach preserves the integrity of closed-period financials while allowing corrections to be posted in the current period.