Work with the Historical Adjustment account
The Historical Adjustment account is a system account Xero uses to handle balancing figures for your organization. As it is a system account you can't delete it, but you can use it in manual journals and make some other changes to it.
How does Xero use the Historical Adjustment account?
Xero uses the Historical Adjustment account to:
- Make the debits and credits for your conversion balances match, if required
- Temporarily record unrealized gains or losses when you enter unpaid bills or invoices in foreign currency in your conversion balances
- Hold the balance of your tracked inventory when you import your opening inventory balances and you're not sure which account to select
- Hold the balancing amount if the debits and credits for your pre-conversion monthly comparative figures don't match
What can I do with the Historical Adjustment account?
Because the Historical Adjustment account is a system account, you can't archive or delete it. You can:
- Use it in a manual journal
- Change its name and account code
- Change its account type (not recommended)