What Are Adjustment Reason Codes?

Adjustment reason codes default general ledger accounts and set review requirements for cash application adjustments. You assign these codes to adjustments during cash application.

The following table shows the four types of adjustment reason codes you can define and the purpose of each.

Adjustment type	Use to
Chargeback (CB)	A chargeback is a charge to a customer for the unpaid portion of their open items. There are three types of chargebacks: Detail, Summary, and Memo. Click the More button to determine where the credit will be posted when a chargeback type is used.
Discount (DS)	This reason code is used to accept discounts offered to your customers for early payment.
Over-Short (OS)	This reason code is used to write off a balance of a transaction instead of charging it back to the customer.
Grouping (GP)	This reason code is used when grouping transactions on Transaction Obligation Grouping (AR44.1).

Adjustment reason codes are used for automatic application tolerances on Customer Defaults 1 (AR08.1), during cash application on Cash Entry and Application (AR30.1), Application Adjustments (AR35.1), and Automatic Cash Application (AR130).