A more thorough explanation:

Adjustment refers to a settlement, allowance, or deduction made on a debt or claim that has been objected to by a debtor or creditor in order to establish a fair arrangement between the parties involved.

• Tax returns: An IRS-approved change to tax liability is considered an adjustment. This means that if there is a mistake on your tax return, the IRS can make an adjustment to correct it.
• Debt adjustments: When money is owed to a lender, debt adjustments are made by creditors or judges who exempt debtors from a part of their obligation, in light of ongoing circumstances; like insolvency. This means that if someone owes money to a lender but is unable to pay it back, the lender may make an adjustment to the amount owed.
• Insurance claims: In insurance law, an insurance company’s settlement on a claim is referred to as an adjustment. The company’s adjustment reflects the sum of money the company is willing to pay on behalf of a claimant after negotiation and consideration of the parties’ gains, losses, and rights. This means that if someone makes an insurance claim, the insurance company may make an adjustment to the amount they are willing to pay.
• Set-offs: A set-off is a statutory defense to all or a part of a plaintiff’s monetary claim. It also refers to the adjustment of losses against profit or income by a taxpayer in a particular tax year. This means that if someone owes money to another person, they may be able to make a set-off to reduce the amount owed.
• Contributions: A contribution is a payment made between defendants with joint and several liabilities in order to apportion, or adjust, for liability. This means that if multiple people are responsible for a debt or claim, they may make contributions to adjust the amount owed.
• Subrogation: Subrogation is the substitution of one person or group in the place of another with reference to a lawful claim, demand, or right, whereby the subrogating party assumes the rights and duties of the original party. This means that if someone has a legal claim or right, they may be able to transfer it to someone else through subrogation.

Overall, adjustment is a way to make things fair between parties involved in a debt or claim. It can involve changing the amount owed, transferring rights or claims, or making payments to adjust for liability.