At Loop, we understand that the accounting practices and/or preferences are unique to each one of our clients and we acknowledge that not all of them desire the granular details in their journal entries (JE) that we have to offer.

What is "ar_adjustment"?
"ar_adjustment" is a memo line item whose sole purpose is to balance the credits and debits in the JE at a platform, location and/or brand level.

When does an imbalance occur?
Generally when clients choose not to see all the financial breakdowns and there might be an imbalance in debits and credits.

For instance, you may choose to see commissions, marketing and refunds only. By nature, these are all debit entries and since there isn't a credit counterpart and imbalance in the credits and debits is expected in the JE.

How "ar_adjustment" works?
To reconcile these imbalances seamlessly, we incorporate "ar_adjustment" entries. This ensures that your financial records remain accurate and aligned with your preferred level of transaction detail.
Please note that these entries would have a value of $0 ideally, if you have opted for all JE categories, providing you with flexibility without affecting your overall financial standing.

Our commitment is to provide flexibility and tailored solutions, allowing you to streamline your accounting processes according to your specific needs.

Feel free to reach out if you have any questions or if you'd like further clarification on how "ar_adjustment" entries work for your business.