# Adjust accounting records

*/Processes/Adjust_accounting_records*

Rectifying for alterations occurred in accounts while recording.

## Digital Scalar

**Band**: digital
**Digital**: 0.9
**Rationale**: With no seeded child occupations, the scalar is derived from the PCF category lens 'Process accounts payable and expense reimbursements' and the process name 'Adjust accounting records'. These signals point to pure financial data manipulation and information processing, which is highly AI-addressable, desk-bound knowledge work.

## Process Profile

**Outcome**: The adjusting journal entry is posted to the general ledger and the financial records accurately reflect the correct financial position.
**Trigger**: A discrepancy, misclassification, or period-end accrual requirement is identified in the existing accounting records.
**Key Steps**:
- Identify discrepancy or adjustment requirement
- Gather supporting documentation
- Calculate the adjusted financial figures
- Draft the adjusting journal entry
- Obtain approval from authorized personnel
- Post the entry to the general ledger
- Verify the corrected account balances
**Measured By**:
- [Adjustment Cycle Time](/Metrics/Adjustment_Cycle_Time)
- [Journal Entry Error Rate](/Metrics/Journal_Entry_Error_Rate)
- [Adjustment Volume](/Metrics/Adjustment_Volume)
- [First-Pass Yield](/Metrics/First-Pass_Yield)

## Boundary Of Firm

**Outsourced To**:
- [Accounting Firm](/CompanyTypes/Accounting_Firm)
- [Bookkeeping Service Provider](/CompanyTypes/Bookkeeping_Service_Provider)
- [Outsourced Accounting Provider](/CompanyTypes/Outsourced_Accounting_Provider)
**Automatability**: augmented
**Routing Summary**:
- Recurring and rules-based adjustments — accruals, reclasses, and reconciling entries — are templated and posted automatically through the general ledger system.
- Judgmental adjustments and period-end true-ups are prepared in-house by accountants and reviewed for correctness.
- Final approval and sign-off on entries that affect reported results is retained by the controller; financial-statement attestation is reserved to credentialed staff and is not automated.
**Delivered By Role**:
- [Staff Accountant](/Processes/Adjust_accounting_records/JobTypes/Staff_Accountant)
- [General Ledger Accountant](/Processes/Adjust_accounting_records/JobTypes/General_Ledger_Accountant)
- [Controller](/Processes/Adjust_accounting_records/JobTypes/Controller)
**Asset Specificity**: specific
**Automated By Action**:
- [Posting Journal Entries](/Action/Posting_Journal_Entries)
- [Reconciling Ledger Accounts](/Action/Reconciling_Ledger_Accounts)
- [Calculating Accruals](/Action/Calculating_Accruals)
**Automated By Software**:
- [General Ledger System](/Software/General_Ledger_System)
- [Accounting Automation Platform](/Software/Accounting_Automation_Platform)
**Delivered By Department**:
- [Accounting Department](/Processes/Adjust_accounting_records/Departments/Accounting_Department)
- [General Ledger](/Processes/Adjust_accounting_records/Departments/General_Ledger)

## Neighborhood

### Parent

- [Process accounts payable (AP)](/Processes/Process_accounts_payable_(AP)) — parent · Processes

### Siblings

- [Verify AP pay file with purchase order vendor master file](/Processes/Verify_AP_pay_file_with_purchase_order_vendor_master_file) — siblings · Processes
- [Maintain/Manage electronic commerce](/Processes/Maintain%2FManage_electronic_commerce) — siblings · Processes
- [Audit invoices and key data in AP system](/Processes/Audit_invoices_and_key_data_in_AP_system) — siblings · Processes
- [Approve payments](/Processes/Approve_payments) — siblings · Processes
- [Process financial accruals and reversals](/Processes/Process_financial_accruals_and_reversals) — siblings · Processes
- [Process payables taxes](/Processes/Process_payables_taxes) — siblings · Processes
- [Research/Resolve payable exceptions](/Processes/Research%2FResolve_payable_exceptions) — siblings · Processes
- [Process payments](/Processes/Process_payments) — siblings · Processes
- [Respond to AP inquiries](/Processes/Respond_to_AP_inquiries) — siblings · Processes
- [Retain records](/Processes/Retain_records) — siblings · Processes

### Related (triggers)

- [Cone — Invoice Written Off](/Event/Cone_—_Invoice_Written_Off) — triggers · Event
- [Moon Invoice — Create Credit Notes](/Event/Moon_Invoice_—_Create_Credit_Notes) — triggers · Event
- [Zoho Billing — New Credit Note](/Event/Zoho_Billing_—_New_Credit_Note) — triggers · Event
- [Zoho Billing — Void Invoice](/Event/Zoho_Billing_—_Void_Invoice) — triggers · Event
- [Tokeet — Invoice Is Canceled](/Event/Tokeet_—_Invoice_Is_Canceled) — triggers · Event

### Related (optimizes)

- [Cycle time in days to resolve adjustments](/Metrics/Cycle_time_in_days_to_resolve_adjustments) — optimizes · Metrics

### Industries where this operates

- [Cut and Sew Apparel Manufacturing](/Industries/Cut_and_Sew_Apparel_Manufacturing) — operates in · Industries
- [Automobile and Light Duty Motor Vehicle Manufacturing](/Industries/Automobile_and_Light_Duty_Motor_Vehicle_Manufacturing) — operates in · Industries
- [Building Construction](/Industries/Building_Construction) — operates in · Industries
- [K-12 Education](/Industries/K-12_Education) — operates in · Industries
- [Food And Beverage Manufacturing](/Industries/Food_And_Beverage_Manufacturing) — operates in · Industries
- [Truck Body and Trailer Manufacturing](/Industries/Truck_Body_and_Trailer_Manufacturing) — operates in · Industries
- [Automotive Parts Manufacturing](/Industries/Automotive_Parts_Manufacturing) — operates in · Industries
- [Audio And Video Equipment Manufacturing](/Industries/Audio_And_Video_Equipment_Manufacturing) — operates in · Industries
- [Ship Building and Repairing](/Industries/Ship_Building_and_Repairing) — operates in · Industries
- [Direct Life, Health, and Medical Insurance Carriers](/Industries/Direct_Life,_Health,_and_Medical_Insurance_Carriers) — operates in · Industries
- [All Other Schools and Instruction](/Industries/All_Other_Schools_and_Instruction) — operates in · Industries
- [Direct Insurance (except Life, Health, and Medical) Carriers](/Industries/Direct_Insurance_(except_Life,_Health,_and_Medical)_Carriers) — operates in · Industries
- [Textile Industry](/Industries/Textile_Industry) — operates in · Industries
- [Motor Vehicle Dealers](/Industries/Motor_Vehicle_Dealers) — operates in · Industries
- [Chemical Industry](/Industries/Chemical_Industry) — operates in · Industries
- [Hospitals and Health Care Facilities](/Industries/Hospitals_and_Health_Care_Facilities) — operates in · Industries
- [Electric Power Generation, Transmission and Distribution](/Industries/Electric_Power_Generation,_Transmission_and_Distribution) — operates in · Industries
- [Management of Companies and Enterprises](/Industries/Management_of_Companies_and_Enterprises) — operates in · Industries
- [Business Schools and Computer and Management Training](/Industries/Business_Schools_and_Computer_and_Management_Training) — operates in · Industries
- [Arts, Entertainment, and Recreation](/Industries/Arts,_Entertainment,_and_Recreation) — operates in · Industries
- [Colleges, Universities, and Professional Schools](/Industries/Colleges,_Universities,_and_Professional_Schools) — operates in · Industries
- [Ambulatory Health Care Services](/Industries/Ambulatory_Health_Care_Services) — operates in · Industries
- [Educational Services](/Industries/Educational_Services) — operates in · Industries
- [Educational Support Services](/Industries/Educational_Support_Services) — operates in · Industries
- [Administrative and Support and Waste Management and Remediation Services](/Industries/Administrative_and_Support_and_Waste_Management_and_Remediation_Services) — operates in · Industries
- [Health Care and Social Assistance](/Industries/Health_Care_and_Social_Assistance) — operates in · Industries
- [Junior Colleges](/Industries/Junior_Colleges) — operates in · Industries
- [Accommodation and Food Services](/Industries/Accommodation_and_Food_Services) — operates in · Industries
- [Medical Equipment and Supplies Manufacturing](/Industries/Medical_Equipment_and_Supplies_Manufacturing) — operates in · Industries
- [Medical and Diagnostic Laboratories](/Industries/Medical_and_Diagnostic_Laboratories) — operates in · Industries
- [Nursing and Residential Care Facilities](/Industries/Nursing_and_Residential_Care_Facilities) — operates in · Industries
- [Oil and Gas Extraction](/Industries/Oil_and_Gas_Extraction) — operates in · Industries
- [Other Services (except Public Administration)](/Industries/Other_Services_(except_Public_Administration)) — operates in · Industries
- [Petroleum Refineries](/Industries/Petroleum_Refineries) — operates in · Industries
- [Petroleum and Petroleum Products Merchant Wholesalers](/Industries/Petroleum_and_Petroleum_Products_Merchant_Wholesalers) — operates in · Industries
- [Pharmaceutical and Medicine Manufacturing](/Industries/Pharmaceutical_and_Medicine_Manufacturing) — operates in · Industries
- [Professional, Scientific, and Technical Services](/Industries/Professional,_Scientific,_and_Technical_Services) — operates in · Industries
- [Public Administration](/Industries/Public_Administration) — operates in · Industries
- [Real Estate and Rental and Leasing](/Industries/Real_Estate_and_Rental_and_Leasing) — operates in · Industries
- [Scientific Research and Development Services](/Industries/Scientific_Research_and_Development_Services) — operates in · Industries
- [Support Activities for Mining](/Industries/Support_Activities_for_Mining) — operates in · Industries
- [Technical and Trade Schools](/Industries/Technical_and_Trade_Schools) — operates in · Industries
- [Navigational, Measuring, Electromedical, and Control Instruments Manufacturing](/Industries/Navigational,_Measuring,_Electromedical,_and_Control_Instruments_Manufacturing) — operates in · Industries
- [Nondepository Credit Intermediation](/Industries/Nondepository_Credit_Intermediation) — operates in · Industries
- [Aerospace Product and Parts Manufacturing](/Industries/Aerospace_Product_and_Parts_Manufacturing) — operates in · Industries
- [Communications Equipment Manufacturing](/Industries/Communications_Equipment_Manufacturing) — operates in · Industries
- [Other Motor Vehicle Dealers](/Industries/Other_Motor_Vehicle_Dealers) — operates in · Industries
- [Automotive Parts, Accessories, and Tire Retailers](/Industries/Automotive_Parts,_Accessories,_and_Tire_Retailers) — operates in · Industries
- [Other Transportation Equipment Manufacturing](/Industries/Other_Transportation_Equipment_Manufacturing) — operates in · Industries
- [Paper Manufacturing](/Industries/Paper_Manufacturing) — operates in · Industries
- [Agriculture, Forestry, Fishing and Hunting](/Industries/Agriculture,_Forestry,_Fishing_and_Hunting) — operates in · Industries
- [Textile Product Mills](/Industries/Textile_Product_Mills) — operates in · Industries
- [Transportation and Warehousing](/Industries/Transportation_and_Warehousing) — operates in · Industries
- [Depository Credit Intermediation](/Industries/Depository_Credit_Intermediation) — operates in · Industries
- [Utilities](/Industries/Utilities) — operates in · Industries
- [Executive, Legislative, and Other General Government Support](/Industries/Executive,_Legislative,_and_Other_General_Government_Support) — operates in · Industries
- [Finance and Insurance](/Industries/Finance_and_Insurance) — operates in · Industries
- [Radio and Television Broadcasting Stations](/Industries/Radio_and_Television_Broadcasting_Stations) — operates in · Industries
- [Wholesale Trade](/Industries/Wholesale_Trade) — operates in · Industries
- [Activities Related to Credit Intermediation](/Industries/Activities_Related_to_Credit_Intermediation) — operates in · Industries
- [Information](/Industries/Information) — operates in · Industries
- [Retail Trade](/Industries/Retail_Trade) — operates in · Industries
- [Scheduled Air Transportation](/Industries/Scheduled_Air_Transportation) — operates in · Industries
- [Leather and Allied Product Manufacturing](/Industries/Leather_and_Allied_Product_Manufacturing) — operates in · Industries
- [Beverage and Tobacco Product Manufacturing](/Industries/Beverage_and_Tobacco_Product_Manufacturing) — operates in · Industries
- [Manufacturing](/Industries/Manufacturing) — operates in · Industries
- [Manufacturing and Reproducing Magnetic and Optical Media](/Industries/Manufacturing_and_Reproducing_Magnetic_and_Optical_Media) — operates in · Industries
- [Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers](/Industries/Media_Streaming_Distribution_Services,_Social_Networks,_and_Other_Media_Networks_and_Content_Providers) — operates in · Industries
- [Computer and Peripheral Equipment Manufacturing](/Industries/Computer_and_Peripheral_Equipment_Manufacturing) — operates in · Industries
- [Semiconductor and Other Electronic Component Manufacturing](/Industries/Semiconductor_and_Other_Electronic_Component_Manufacturing) — operates in · Industries
- [Mining, Quarrying, and Oil and Gas Extraction](/Industries/Mining,_Quarrying,_and_Oil_and_Gas_Extraction) — operates in · Industries
- [Monetary Authorities-Central Bank](/Industries/Monetary_Authorities-Central_Bank) — operates in · Industries
- [Electronics and Appliance Retailers](/Industries/Electronics_and_Appliance_Retailers) — operates in · Industries

### Problems this exposes

- [the same FTEs who process AP also post adjusting entries, creating a SoD conflict flagged in SOX testing](/Problems/the_same_FTEs_who_process_AP_also_post_adjusting_entries,_creating_a_SoD_conflict_flagged_in_SOX_testing) — exposes problem · Problems
- [AP-clearing adjustments lack an approver distinct from the preparer when staffing overlap is high](/Problems/AP-clearing_adjustments_lack_an_approver_distinct_from_the_preparer_when_staffing_overlap_is_high) — exposes problem · Problems
- [manual journal entries lack supporting documentation links, failing the auditor's JE-testing sample](/Problems/manual_journal_entries_lack_supporting_documentation_links,_failing_the_auditor's_JE-testing_sample) — exposes problem · Problems
- [prior-period error corrections blur the line between adjustment and restatement under the materiality threshold](/Problems/prior-period_error_corrections_blur_the_line_between_adjustment_and_restatement_under_the_materiality_threshold) — exposes problem · Problems
- [recurring reclass and accrual reversals re-keyed each period instead of templated, inviting transposition error](/Problems/recurring_reclass_and_accrual_reversals_re-keyed_each_period_instead_of_templated,_inviting_transposition_error) — exposes problem · Problems
- [intercompany adjustments don't net to zero at consolidation, leaving an elimination plug](/Problems/intercompany_adjustments_don't_net_to_zero_at_consolidation,_leaving_an_elimination_plug) — exposes problem · Problems
- [adjusting entries posted after the sub-ledger close break GL-to-subledger tie-out](/Problems/adjusting_entries_posted_after_the_sub-ledger_close_break_GL-to-subledger_tie-out) — exposes problem · Problems
- [Adjusting Entry Reconciliation](/Problems/Adjusting_Entry_Reconciliation) — exposes problem · Problems

### Measured by

- [Percentage of FTEs that perform the process "process accounts payable (AP)" that perform the activity "adjust accounting records"](/Metrics/Percentage_of_FTEs_that_perform_the_process_"process_accounts_payable_(AP)"_that_perform_the_activity_"adjust_accounting_records") — measured by · Metrics

### Automated by

- [Accounting Automation Platform](/Software/Accounting_Automation_Platform) — automated by · Software
- [General Ledger System](/Software/General_Ledger_System) — automated by · Software
- [Calculating Accruals](/Activities/Calculating_Accruals) — automated by · Activities
- [Reconciling Ledger Accounts](/Activities/Reconciling_Ledger_Accounts) — automated by · Activities
- [Posting Journal Entries](/Activities/Posting_Journal_Entries) — automated by · Activities

### Outsourced to

- [Outsourced Accounting Provider](/CompanyTypes/Outsourced_Accounting_Provider) — outsourced to · CompanyTypes
- [Bookkeeping Service Provider](/CompanyTypes/Bookkeeping_Service_Provider) — outsourced to · CompanyTypes
- [Accounting Firm](/CompanyTypes/Accounting_Firm) — outsourced to · CompanyTypes

### Delivered by

- [Controller](/JobTypes/Controller) — delivered by · JobTypes
- [General Ledger Accountant](/JobTypes/General_Ledger_Accountant) — delivered by · JobTypes
- [Staff Accountant](/JobTypes/Staff_Accountant) — delivered by · JobTypes
- [General Ledger](/Departments/General_Ledger) — delivered by · Departments
- [Accounting Department](/Departments/Accounting_Department) — delivered by · Departments