In Customizing for Financial Accounting, you make the following settings for adjustments:

1. For each account involved in the adjustment, you can set up an adjustment account to which the adjustment is posted. The account and its adjustment account must be displayed together in one balance sheet item.

This includes the following accounts:

- Reconciliation accounts. These accounts cannot be posted to directly. Therefore, you must enter an adjustment account.

- Tax accounts

- Cash discount accounts

- Accounts for exchange rate differences

The adjustment accounts may not be tax-relevant. This means that either the "Tax category" field in the master record is not to be filled or the "Posting without tax allowed" field must be selected.

It is possible to make adjustment postings to accounts that the system can directly post to. Therefore, you do not need to set up adjustment accounts for these accounts.

If you do not set up an adjustment account, the system posts to the original account. If you wish to separate the adjustment postings from other postings, you should create separate adjustment accounts for this purpose and post to these accounts.

2. You need to create a clearing account. Postings that ensure that the adjustment does not affect the distribution of business area balances are made to this account. The posting that balances business areas to zero is also generated from these clearing accounts.