If the original gift was posted to the General Ledger, adjusting or deleting the gift posts a reversing set of transactions for the original gift amount and a new set of transactions for the new gift amount. If the original gift was not posted to the General Ledger, only the adjusted values for the gift will be posted.

Note: You can also select to use the adjustment date instead of the gift date when posting adjustments.

Example A:
A $100.00 cash gift was originally posted to the General Ledger. The following transactions are created in the General Ledger:

Debit (DR) $100.00 to the cash account
Credit (CR) $100.00 to a revenue account

The cash gift was then adjusted to $50.00. The following transactions are posted to the General Ledger:

DR $100.00 to a revenue account
CR $100.00 to the cash account
DR $50.00 to a cash account
CR $50.00 to the revenue account

Example B:

A $100.00 cash gift was created but not posted to the General Ledger. The cash gift was then adjusted to $50.00. After the adjustment is made, the gift is posted to the General Ledger. The following transactions are created in the General Ledger:

DR $50.00 to a cash account
CR$50.00 to the revenue account

NOTE: Both the gift and the adjustment get marked as Posted.

If a gift is adjusted to $0, the following error may appear after the posting is complete: "Batch Created - Validation Failed." The Batch Validation Report will have the following error listed under each zero-dollar transaction: "Error: Zero dollar amounts not allowed."

This occurs because there is a Business Rule in The Financial Edge that is set to not allow zero dollar transactions. As the message indicates, the General Ledger journal entry batch is still created, but it contains zero dollar transactions, which cannot be posted without modifying either the Business Rule or the batch. Depending on individual accounting practices within your organization, use one of the following methods to correct this problem: