Does a supplier invoice adjustment create a new, separate transaction and journal?

A supplier invoice adjustment does create a new, separate transaction and journal because it is essentially a modification of the original invoice. When an adjustment is made, whether it’s for correcting an error or changing terms, it is recorded as a distinct transaction in the financial system to accurately reflect the adjustment's impact on financial reporting and accounting records.

This separation is crucial for maintaining the integrity of financial data, ensuring that both the original invoice and the adjustment can be tracked independently. It also serves to provide a clear audit trail, allowing stakeholders to easily reference adjustments made to invoices without altering the original transaction details.

In contrast, the other options imply that adjustments might not be treated as standalone transactions, which could lead to confusion in accounting practices and reporting. Recognizing adjustments as separate transactions reinforces the importance of accuracy and accountability in financial management.