Reclassifications

Reclassification Entries are usually used to correct financial information that has been incorrectly posted against an intersection within the database. For example, if $500 dollars was recorded in the wrong GL account, you can move the amount to the correct GL account with a Reclassification Entry.

The steps below walk you through the procedure to add a Reclassification Entry.

1. In the Consolidation Control Panel, under Processes, click Reclassifications. The Reclassifications grid appears.

2. Click Add. The Add Reclassification dialog appears.

3. Enter a code of your choice in the Code field.

4. Enter a name in the Name field.

5. Select the month and year range in the Period field. During the selected time period, the Reclassification is active.

6. In the grid that displays segment columns based on the application configuration and user's security, set up a Reclassification Entry by performing the following steps:

   1. Click Add Row. A new row is added.

   2. Do one of the following to set up the values for each column:

      • Complete the values in the UI directly, by either typing the values or selecting the value.

      • Paste copied line items from an Excel spreadsheet to the journal entry grid. You may copy/paste all values, including description, segments, and debit/credit values. Use shortcut keys (Ctrl+C and Ctrl+V).

7. To change the default selections for source and target segment columns, follow the information below:

   1. For a source type line, the default selected value for segment columns is All. To select specific members for a column, click All, clear the checkbox for the column shown on the right, and then select the checkbox for the members from the list that appears. If you select more than one member, Multi is shown in the segment column.

   2. For a target type line, the default selected value for segment columns is Same. To select specific members for a segment column, click Same, clear the Same as Source checkbox shown on the right, and then select the members from the list that appears. Only one member can be selected.

8. Click Save.

1. In the Consolidation Control Panel, under Processes, click Reclassifications. The Reclassifications grid appears.

2. Select a Reclassification.

3. Click Copy and select Copy Single. The Copy Reclassification dialog appears.

4. Complete all the fields.

5. Click Save.

1. Access the Consolidation Control Panel.

2. Select the scenario you want to copy the Reclassifications from.

3. Select the Reclassification process and click the checkbox next to the entry you want to copy.

4. Click the Copy button and select Copy Multiple. The Copy page appears.

5. Enter a Code and Name and select period dates.

6. Select the Target Scenario.

7. Complete all selections based on process being copied.

8. Click Save.

If you select multiple Reclassifications to copy, the Copy Single option will not be available.

1. In the Consolidation Control Panel, under Processes, click Reclassifications. The Reclassifications grid appears.

2. Select a Reclassification.

3. Click Edit. The Edit Reclassification dialog appears.

4. Edit as needed.

5. Click Save.

6. Run the Consolidation Process.

In cases where you need to delete a Reclassification (such as a mistake made when entering and / or posting data), follow the steps below.

1. In the Consolidation Control Panel, under Processes, click Reclassifications. The Reclassifications grid appears.

2. Select the checkbox for the Reclassification you want to delete.

3. Click Delete.

4. In the confirmation dialog that appears, click OK. The Reclassification is deleted.

5. Run the Consolidation Process.

1. In the Consolidation Control Panel, under Processes, click Reclassifications. The Reclassifications grid appears.

2. Select the active Reclassification rule.

3. Under Entry Actions, click Post. The Reclassification Post dialog appears.

4. The Scenario field is read-only and indicates the scenario that will be used when posting Reclassifications.

5. Select the fiscal Year by using the calendar icon.

6. Select the Period by selecting a month range.

7. Select the E-mail Notification checkbox if you want to send notification about results when the process is complete, and then enter email addresses of recipients you wish to notify.

8. Click Post. The Reclassification Post dialog is exited. A message appears indicating that the Reclassification is submitted for posting based on the selected periods, and includes a link to navigate to the Detail View for status.

It might be necessary to discontinue a Reclassification mid year. If so, you must perform an additional step to ensure that the data is accurate for the period after the process is stopped.

For example, you have a Reclassification from Jan through October (assuming Jan – Dec fiscal year) and you cease the Reclassification in November. Due to the calculation of the YTD/MTD values generated by the Reclassification Entry, this will cause the November values to be off by the reversal of the October entry for the Reclassification Entry. This is because the system assumes that YTD=0 when a zero value is calculated (i.e. Reclassification stops and no value recorded for November). Therefore, it will calculate MTD based off of YTD. When the assumption is YTD=0, MTD will have to reverse the previous month’s entry to get the YTD value to 0 (i.e. Debit of 125,458 in October would then be credited for (125,458) in November to achieve a YTD=0 in November as the Reclassification stopped).

When this situation occurs (stopping reversal mid-year), it may be necessary to perform a “reversing” entry in the month subsequent to when the process is ended. To use the Reclassification example above where the Reclass is active for Jan – Oct and then becomes Inactive in November, perform the following steps.

1. Set the End Period to October in the Reclassification Entry. This will stop the execution of the Reclassification in November as November will not be considered as an Active period.

2. Then due to the reversal of the October Reclassification in November (assuming a Flow type account in Reclassification), book a Standard Journal Entry or Dynamic Journal Entry referencing the November reversal amounts with the opposite signs (if November entry is a debit then credit, and vice versa). Once posted in November then there are no additional entries required for December as the reversal is a one-time entry only. This will ensure that the data that has been posted is in the correct accounts for reporting purposes.

1. Select Edit and make each row inactive.

2. Click Save. The Status is updated.

3. Process the Reclassification Entry again.

4. Now process the cube again before you run reports.