Overview
Smart Adjustments is Blue Onion's automated system for detecting, tracking, and booking changes to transaction data that occur after journal entries have been booked. This feature ensures your general ledger always reflects the most current platform data, eliminating manual reconciliation work and maintaining financial accuracy despite continuous upstream data updates.
What You'll Learn
What Smart Adjustments is and why it matters
How data drift detection works
Understanding Adjustment Journal Entries (AJEs)
How to review and book adjustments
Setting up automated cadence controls (ERP Subledger users)
Manual adjustment workflows (Core App users)
Best practices for managing adjustments
Key Concepts
Smart Adjustments: The automated system that detects data changes, generates adjustment entries, and optionally pushes them to your GL on a scheduled cadence.
Data Drift: Changes to upstream transaction data from platforms like Amazon, Shopify, or PayPal that occur after the original journal entry was created.
Adjustment Journal Entry (AJE): A delta journal entry that captures only the financial changes due to data drift, showing original values, new values, and the difference.
Cadence: The scheduled frequency (daily, weekly, or monthly) at which Smart Adjustments automatically scans for data drift and books adjustment entries (ERP Subledger users only).
Baseline Snapshot: The data snapshot that was used when you originally booked a journal entry, serving as the reference point for detecting changes.
What Is Smart Adjustments?
The Problem: Data Drift Is Unavoidable
E-commerce platforms continuously update transaction data after the fact:
Common scenarios:
Amazon Seller:
Day 1: Order shows $50
Day 3: Order updated to $67
Day 7: Discount applied at fulfillment
Your GL needs to reflect these changes
Shopify with PayPal:
Day 1: Order created with initial gateway
Day 2: Customer edits order, changing line items
Day 5: PayPal processes payment
Day 7: PayPal makes details of payment processing fees available
Your books need the corrected amounts
Without Smart Adjustments:
You discover variances during reconciliation
Manual research required to identify what changed
Manual adjustment entries created and booked
Risk of missing changes entirely
Hours spent on reconciliation each month
With Smart Adjustments:
Changes detected automatically
Adjustment entries generated with precise deltas
Optional automated booking to GL
Complete audit trail maintained
Reconciliation happens continuously
How Smart Adjustments Works
Step 1: You book an entry
Select an as-of date (generally the most recent) and book the journal entry
Blue Onion marks this snapshot as the "baseline"
For ERP Subledger users: Entry pushed to GL with transaction ID
Step 2: Continuous monitoring
Blue Onion continues to capture new data snapshots
System compares each new snapshot to your booked baseline
Differences are flagged as data drift
Step 3: Adjustment generation
When drift is detected, an Adjustment Journal Entry (AJE) is created
Shows only the delta between baseline and current state
Links to parent (original) entry for full audit trail
Step 4: Adjustment booking
Core App users: Review, export, and manually book adjustments
ERP Subledger users: Review and push to GL, or set cadence for automatic booking
Step 5: New baseline established
Once adjustment is booked, it becomes part of the baseline
Future changes are detected against this updated baseline
Process continues indefinitely
Understanding Data Drift
What Causes Data Drift?
Platform processing delays:
Payment processors not identified immediately
Settlement details arriving hours or days later
Fee calculations finalized after initial sync
Order modifications:
Customer/Merchant edits (Shopify, Amazon)
Merchant adjustments to pricing or tax
Shipping address changes affecting tax calculation
Data quality improvements:
Platforms fixing data errors retroactively
Missing information filled in later
Account classifications corrected
Types of Data Drift
Amount changes:
Order totals increasing or decreasing
Fee amounts adjusting
Tax recalculations
Currency translation updates
Account reallocations:
"Unknown" amounts resolving to specific accounts
Payment processor assignments
Channel or source corrections
Product category reclassifications
New transactions appearing:
Late-arriving refunds
Delayed payment settlements
Batch-processed transactions
Platform-initiated adjustments
Transaction modifications:
Line item changes (Shopify edits)
Split payments resolved
Bundled orders separated
Combined orders created
Expected vs. Unexpected Drift
Expected drift (normal operations):
Payment processors appearing within 1-3 days
Amazon order adjustments within 2-5 days
Fee finalizations within 48 hours
Adjustment Journal Entries Explained
What's in an AJE?
For each affected line item:
Original Value: The amount in your booked baseline
What you told your GL
Based on data available at booking time
New Value: The current amount from latest platform data
What the platform now reports
Based on most recent snapshot
Delta/Adjustment: The difference requiring adjustment
Calculated as: New Value - Original Value
Positive = increase, Negative = decrease
This is the actual adjustment amount
Example:
Account Original New Delta ────────────────────────────────────────────────────────
Deferred Revenue - Amazon $50 $67 +$17
Accounts Rec - Amazon $50 $67 +$17
────────────────────────────────────────────────────────
Interpretation:
$17K added to total order value for Amazon
Reflects late platform data from source system
Adjustment needed: DR Accounts Rec - $17, CR Deferred Rev $17
Delta-Only Entries
Critical concept: AJEs contain ONLY the changes, not complete re-bookings.
Why this matters:
Cleaner accounting records (no duplicate amounts)
Easier to understand what changed
Smaller journal entries in your GL
Clear audit trail of corrections
CR: Deferred Revenue - Amazon $17
DR: Accounts Rec - Amazon $17
Benefits of this structure:
Complete history visible at a glance
Easy to trace all changes to an entry
Clear audit trail showing progression
Can see which adjustments are booked vs. pending
How to Review and Book Adjustments
Reviewing an Adjustment
Step 1: Access the adjustment details
In Booking Management, click on an entry showing "X Adjustments"
Click the expand arrow (▼) to see the hierarchy
Click the preview icon (👁️) on the adjustment entry
Step 2: Understand what changed
Review the changes on the adjusting entry
Identify which accounts are affected
Note the magnitude of changes
Step 3: Drill into transaction details
Click on specific line items
Navigate to transaction profile pages
Review the journal entry history
Understand why the platform updated data
Step 4: Decide on action
Book the adjustment now
Wait for more changes to accumulate
Investigate if something seems wrong
Document the decision
Booking Adjustments: Core App Users
Workflow:
Review the adjustment (as described above)
Export the adjustment entry:
Click the download icon (📥)
Save the adjustment file
Create adjustment entry in your GL:
Open your accounting system
Create a journal entry with the delta amounts
Reference the original entry number
Add notes explaining the adjustment
Post the adjustment in your GL
Return to Blue Onion:
Click the Book button next to the adjustment
Confirm the booking action
Verify:
Status changes to "Booked"
Adjustment no longer shows in action-required view
Orange indicator clears in Booking Management
Best practices:
Book adjustments in batches (weekly or monthly)
Document the source of each adjustment
Keep adjustment entries separate from original entries for clarity
Maintain a log of adjustment booking dates
Booking Adjustments: ERP Subledger Users
Workflow:
Review the adjustment (as described above)
Preview the adjustment entry (optional but recommended)
Check the checkbox next to the adjustment entry
Click "Push Selected" button
Wait for processing:
Blue Onion sends the adjustment to your ERP
May take a few minutes
Verify success:
Status changes to "Booked"
GL Transaction ID appears for the adjustment
Booked Date populates
Orange indicator clears
Verify in your ERP:
Copy the GL Transaction ID
Search your ERP for the adjustment entry
Confirm it posted correctly
Best practices:
Set aside weekly time to review and push adjustments
Don't just auto-push—review first to understand patterns
Document recurring adjustment patterns
Consider cadence automation after building confidence
Setting Up Cadence Controls (ERP Subledger Only)
What Are Cadence Controls?
Cadence controls allow ERP Subledger users to automate the scanning and booking of adjustment entries on a scheduled basis.
How it works:
You set a cadence (daily, weekly, or monthly) on a template
At the scheduled time, Blue Onion automatically:
Scans all booked entries for that template
Detects any data drift
Generates adjustment entries
Pushes adjustments to your GL
You receive notifications of what was adjusted
No manual intervention required
Accessing Cadence Settings
Navigate to Journal Entries → Templates
Select the template you want to automate
Select the pencil icon edit menu
Look for Adjustment Cadence settings
Configure your preferences
Cadence Options
Daily Cadence:
Scans every day
Auto-books all pending adjustments
Best for:
High-volume businesses
Real-time accuracy requirements
Templates with frequent data updates
Revenue recognition that can't wait
Considerations:
More frequent GL postings
Less time for manual review
Weekly Cadence:
Scans once per week on a selected day (e.g., every Friday)
Processes all pending adjustments in a batch
Best for:
Balanced accuracy and efficiency
Weekly close processes
Templates with moderate drift
Considerations:
Accumulates adjustments through the week
Single batch posting to GL
Time to review before weekend if Friday selected
Monthly Cadence:
Scans on a selected day of the month (e.g., 1st of each month)
Aligns with month-end close schedule
Processes all adjustments for the prior period
Best for:
Lower-volume businesses
Traditional month-end close workflows
Templates with minimal drift
Conservative approach to automation
Considerations:
Can accumulate significant adjustments
Keeps prior month "open" longer
May delay detection of issues
Best Practices for Cadence Management
Start manual, then automate:
Spend at least a month booking adjustments manually
Understand patterns before automating
Build confidence in the adjustment logic
Test in the middle of a period:
Don't test cadences during month-end close
Run the first cycle mid-month when you have time to monitor
Avoid testing during busy seasons
One template at a time:
Don't enable cadences on all templates at once
Prove out the process incrementally
Easier to troubleshoot issues with limited scope
Communicate with your team:
Let your accounting team know what's automated
Explain when adjustments will appear in the GL
Establish who monitors the automation
Review and adjust periodically:
Monthly: Review what adjustments were made
Quarterly: Assess if cadence frequency is appropriate
Annually: Re-evaluate which templates should be automated
Disabling or Modifying Cadences
When to disable:
Unusual patterns appearing (investigate first)
Major mapping changes needed
Template configuration being reworked
How to disable:
Navigate to Journal Entries → Templates
Select the template
Access Adjustment Cadence settings
Set Cadence to None
Save changes
When to modify:
Drift patterns change (more/less frequent)
Business process changes
New platforms added
Close schedule changes
Manual Adjustment Workflows (Core App Users)
Weekly Review Process
Recommended workflow:
Open Booking Management
Filter to the month to date
Identify adjustments:
Look for orange indicators
Note how many adjustments exist
Review each adjustment:
Preview the adjustment details
Understand what changed
Validate the adjustments make sense
Export adjustments:
Download all adjustment entries
Organize by template or date
Create GL entries:
Enter adjustments into your accounting system
Reference original entry numbers
Document the source of adjustment
Mark as booked in Blue Onion:
Return to Booking Management
Click "Book" for each adjustment
Verify status changes to Booked
Monthly Review Process
Recommended workflow:
Open Booking Management
Filter to the prior month
Verify all original entries booked:
Ensure no yellow indicators
Resolve any pending bookings first
Identify all adjustments for the month:
Look for all orange indicators
Create a list of adjustments by template
Analyze adjustment patterns:
Which templates had most adjustments?
What types of changes occurred?
Any unexpected patterns?
Review significant adjustments:
Drill into large-dollar adjustments
Verify unusual changes with platform data
Document explanations
Batch export all adjustments:
Download all adjustment entries
Organize for GL entry
Create adjustment entries in GL:
Enter all adjustments
Use consistent numbering/referencing
Post to the new month (common practice)
Mark all as booked in Blue Onion:
Batch book all adjustments
Verify status changes
Document for records:
Total adjustments for the month
Material items requiring disclosure
Patterns for next month's planning
Tips & Best Practices
Understand Before Automating
Best practice: Don't enable cadence automation until you've manually managed adjustments for at least 3-4 weeks.
Why: Manual review builds understanding of:
What types of adjustments are common
Which platforms create most drift
Whether your mappings are correct
What "normal" looks like
Set Adjustment Thresholds
Best practice: Establish materiality thresholds for when to investigate vs. auto-book.
Example policy:
Adjustment Review Policy ───────────────────────────────────── < $100: Auto-book via cadence $100 - $1,000:
Review before booking $1,000 - $10,000:
Detailed review and approval > $10,000:
Investigate thoroughly, document, get CFO approval
Why: Balances efficiency with appropriate oversight.
Track Adjustment Patterns
Best practice: Keep a log of adjustments by platform, template, and reason.
Example log:
November 2025 Adjustment Summary ─────────────────────────────────────────────────
Platform: Amazon Seller
Count: 23 adjustments
Total $: $45,230
Common reasons:
- Payment processor assignment (15)
- Fee adjustments (5)
- Order value changes (3)
Platform: Shopify
Count: 7 adjustments
Total $: $3,450
Common reasons:
- Order edits (5)
- Refunds (2)
Why: Identifies patterns that can inform template optimization.
Book Adjustments Promptly
Best practice: Don't let adjustments accumulate for months.
Recommended frequency:
ERP Subledger with cadences: Automated (no action needed)
ERP Subledger manual: Weekly or bi-weekly
Core App: Weekly or monthly
Why:
Keeps GL current
Prevents large surprises at month-end
Easier to understand small frequent adjustments than large accumulated ones
Document Material Adjustments
Best practice: For adjustments over your materiality threshold, document:
What changed
When the platform updated data
Why the adjustment is valid
Any follow-up actions needed
Example documentation:
Material Adjustment Documentation ───────────────────────────────────── Date: November 15, 2025
Adjustment: $12,500 revenue increase
Original Entry: Revenue Recognition Oct 10
Cause: Amazon updated 15 orders with final settlement amounts
Platform timing: Amazon finalizes orders 30-45 days after fulfillment
Validation: Verified against Amazon settlement reports
Approved by: Jane Doe (Controller)
Booked: November 15, 2025 (GL ID: CE9512)
Why: Creates audit trail and institutional knowledge.
Use Adjustments to Optimize Templates
Best practice: Review adjustment patterns quarterly to identify template improvements.
Questions to ask:
Are certain templates generating excessive adjustments?
Could we add lag days to wait for data to settle?
Should we split a template by channel or platform?
Example optimization:
Before: Book orders daily (T+1)
Result: 50+ adjustments per month
After: Book orders after 3-day lag (T+3)
Result: 10 adjustments per month
Action: Added 3-day lag to order template
Why: Reduces adjustment volume while maintaining accuracy.
Test Cadences Mid-Period
Best practice: When enabling your first cadence, do it mid-month, not during close.
Why:
You have time to monitor results
Errors won't impact month-end
Less pressure if something goes wrong
Can disable and adjust if needed
Need More Help?
For questions about Smart Adjustments, assistance with cadence configuration, or help understanding adjustments, contact support via the chat in your Blue Onion application or reach out to your Customer Success Manager.