With the Accounting adjustments feature you can move balances between accounts manually and also record the initial balances of the balance sheet accounts in Alegra.
For example: The Ideal company wants to start keeping its accounting in Alegra and needs to record the initial fixed assets of the company, by doing a "category adjustment". There, it can select the assets by registering the corresponding values.
Follow these steps to make accounting adjustments in Alegra:
1. Click on the "Accounting" menu and choose the "Accounting document" option.
2. Click on the "New accounting document" button.
3. Complete the form fields (see details below).
4. Click on the "Save" button.
- Date: Indicates the date on which you are making the accounting adjustment. If it is an initial balance, enter the date from which you will add your accounting information to Alegra.
- Contact: This is the beneficiary, person or company whose name the movements of the accounts will be made in
- Reference and Observations: These are optional fields that you can use for internal control of your records or any other information you want to add to the accounting adjustment.
- Concept: Choose the assets, expenses, income, liabilities, and equity to which you are going to make the adjustment. You can choose all what you want! You must take into account the group to which they belong to in order to make the debit and credit movement correctly.
- Credit and Debit: use these fields to decrease or increase the balance depending on the type of the account (debtor or creditor).
- Description: for each account chosen you can add a small description.
Look at this example:
How are accounts debited or credited?
This is the nature of the accounting accounts:
|Assets||Debit||If an expenditure account is debited, then its value increases. If it is credited, then its value decreases.|
|Income||Credit||If an income account is debited, then its value decreases. If it is debited, then its value increases.|
|Liabilities||Credit||If a liability account is debited then its value decreases. If it is debited, then its value increases.|
|Equity||Credit||If an equity account is debited then its value decreases. If it is debited, then its value increases.|
For example: The Ideal company wants to perform an accounting adjustment to bring the initial balances of its accounts to Alegra. It has a balance of USD $24000 in fixed assets (asset account) which has a counterpart of USD $13,000 loans to third parties (asset account) and USD $11,000 of shareholder capital (equity account).
You must record it like this:
Your accounting adjustment will be ready when the Debit and Credit movements are equal, which you can see at the bottom of the adjustment form.
You can view, edit, or delete your accounting adjustments anytime. Just enter the "Accounting adjustments" option, locate the adjustment, and click on the appropriate option in the action bar.
Be aware that the changes you make to these settings will affect the balances of the accounts involved in it.
If you have doubts about this or other processes in Alegra, our support team is ready to help you.