Internal vs external adjustments
When posting an adjustment, you need to select whether the adjustment is 'Internal' or 'External'.
'But why?' you are probably asking.
Allocating an adjustment to a category is used for client reporting purposes, and is totally optional.
When viewing adjustments as part of a report, you are able to select whether internal or external (or both) adjustments are shown.
If there are certain adjustments that a client always wishes to see/that you always show your client, it may be useful categorising these as 'External' when processing the adjustment.
The same applies for adjustments that don't need to be reflected in a client report. Simply categorise these as 'Internal' and, when exporting the adjustments, deselect the 'Internal' tick box.
Adjustment categories are also useful when copying adjustments to a new period. You may wish to copy over only 'External' or only 'Internal' adjustments (or neither). The choice is yours! For details of copying adjustments, read this article.