Adjusting entry
A journal entry made at period end to fix timing: an accrual, a prepaid release, depreciation. Not tied to a bill or invoice.
In Solo Superstars
Most adjusting entries are generated by the close from schedules you set up once (prepaids, fixed assets, recurring accruals). Anything else goes through New journal entry.
Example
Month-end: release 100 of prepaid insurance to expense; book 480 of depreciation; accrue 900 of December contractor work not yet billed.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- adjustment
- AJE
Related
- Accrual — Recording an expense you have incurred but not been billed for yet (or revenue earned but not invoiced), so the period is complete.
- Prepaid schedule — The plan that releases a prepaid amount to expense evenly over its months, posting an adjusting entry each period.
- Depreciation — Spreading the cost of a long-lived asset over the years you use it, instead of expensing it all at once.
- Auto-reversing accrual — An accrual that the app automatically reverses on the first day of the next period, so the actual bill can post normally.