Value adjustment

How to remove the effects of liquidity from the Profit & Loss account

You can give a Profit & Loss account a value adjustment if you want to remove the effects of liquidity and and transfer the value to an Assets & Liabilities account.

You would typically do this in relation to depreciation, but you can also use it to manage goods sold directly from inventory, tax, accruals and other inventory changes.

In order to work with value adjustments, simply open the drop-down list in column named Property of Liquidity at far right in your Chart of Accounts and select the relevant Assets & Liabilities account.