Overview of Invoice Item Adjustments

Invoice item adjustments allow you to adjust the invoice details, including taxes at the charge level, and have those adjustments reported in the system under the same accounting code as the items that are being adjusted. Thus, the invoice item adjustments help to ensure greater accuracy of reports and accounting integration. An Invoice Item Adjustment fundamentally impacts the invoice balance and can bring the invoice balance to zero. The Invoice Item Adjustment adjusts a specific invoice item at the line level.

For example, if an invoice has a $100 one-time charge and a $50 recurring charge, plus a line item for $5 in taxes applied to the one-time charge, you might choose to apply an Invoice Item Adjustment to adjust the $50 recurring charge, which will automatically tie the adjustment to the accounting and revenue recognition code associated with that charge.

The following applies to invoice item adjustments:

• Invoice item adjustments are always performed against an invoice item on an invoice.
• Invoice item adjustments always include the accounting code, service period, and all other information from the invoice item for revenue recognition.

  If you have the Billing - Revenue Integration feature enabled, you can exclude an invoice item adjustment from revenue accounting by checking the Exclude Item Billing From Revenue option when creating or editing the invoice item adjustment.

• Multiple invoice item adjustments can be made against one invoice item, as long as each adjustment drives the balance of the invoice item closer to 0.
• Invoice item adjustments are named with a prefix of "IIA-".