In our sample scenario, a property manager purchased $100 in supplies for a property. They posted the transaction and allocated it all to Repairs (#1). In the next month they realize that they made a mistake - some of the expense should have been allocated to painting instead. Because they had reconciled the previous transaction (#1), they didn't want to edit the original transaction so they created an adjustment transaction (#2). To do this, they went to the Accounts tab and created a split expense transaction and adjusted the transaction with a negative amount for the previously used category and a positive entry for the correct category. The net affect in this example is $0, however there is now a paper-trail, per-se. In the 3rd and 4th screenshots below, you will see how these transaction look in the financial reports.
#1 - ORIGINAL TRANSACTION
(If you prefer to just edit details, you can adjust within the original transaction and click "save changes.")
#2 - ADJUSTMENT TRANSACTION
Property Account Ledger