13th Month Adjustment  Journals

The 13th Month Adjustment Journal lets you correct and finalise your accounts at the end of a fiscal year. These adjustments ensure that your financial statements accurately reflect your business’s financial position.

In Zoho ERP, you can create a 13th month adjustment journal at the last day of the financial year. You can view these adjustments made in the 13th Month Trial Balance report, helping you maintain accurate records.

Enable 13th Month Adjustment Journals

To record the adjustment journal, you’ll first need to enable it in your Zoho ERP organisation. To do this:

• Go to Settings.
• Select Accountant under Preferences.
• Scroll down to the Journals section, and check Allow 13th Month Adjustments in manual journals.
• Click Save.

The preference will be enabled, and you can now record 13th month adjustment journals in your organization.

Record 13th Month Adjustment Journals

To record the 13th month adjustment journals:

• Go to Accounting on the left sidebar.
• Click the Journals dropdown in the module bar and select Manual Journals.
• Click + New in the top right corner.
• On the New Journal page, fill in the following fields:
  • Period End Adjustment: Check Mark this journal as a 13th month adjustment.
  • Fiscal Year: Select the required fiscal year you follow in your business.
  • Reference#: Provide a unique reference number for internal use.
  • Notes: Provide notes for creating the journal.
  • Reporting Method: Select the required reporting method for which you want to record the adjustment. The available options include: Accrual and Cash, Accrual Only, and Cash Only.
  • Currency: Select the currency in which you want to record the adjustment.
  • Select the required accounts, and provide the correct credit and debit entries.
• Click Save and Publish or Save as Draft and publish it later.

The journal will be recorded on the last day of the fiscal year you’ve selected.

13th Month Trial Balance Report

When you record a 13th month adjustment journal in Zoho ERP, it will be reflected in the Trial Balance report. The difference between the Trial Balance report that already exists in Zoho ERP and this report is that the Trial Balance report usually follows the standard 12-month range to record and report transactions. To generate this Trial Balance report:

• Go to Reports on the left sidebar.
• Scroll down to the Accounting section, and select Trial Balance report, or search for the report in the search bar available at the top of the page.
• Enable the toggle next to Show 13th Month Adjustments at the top of the page.

The journal entries for the 13th month adjustment will also be displayed along with other journal entries in the Trial balance report.