About reclassifying general ledger transactions
In Visma Net, the reclassification of a general ledger transaction means the creation of a correcting transaction to move an amount from one general ledger account to another general ledger account, from one subaccount to another subaccount, or from one company branch to another one. You can reclassify a general ledger transaction if an amount has been posted to the wrong general ledger account, subaccount, or branch by mistake.
As a result of the reclassification process, the system generates a new transaction of the Reclassification type based on the original general ledger transaction. The Reclassification transaction moves the amount from the wrong general ledger account, subaccount, or branch to the required one. The following section provides an example of the reclassification process and illustrates the corresponding general ledger transactions.
Understanding the reclassification process
Suppose that you classify all your expenses by department by using a dedicated subaccount segment for each department code.
By mistake, you have specified the wrong subaccount in the supplier ledger invoice, so that an amount has been posted to the expenses of the wrong department; now you need to reclassify the wrong journal entry by creating a correcting transaction, so that amount will be moved to the subaccount of the correct department.
The following table shows the journal entries of the original general ledger transaction of the Normal type.
| Account | Subaccount | Debit | Credit |
|---|---|---|---|
| Supplier ledger account | 00-00-000 | 00.00 | Amount |
| Expense account | 00-00-OPS | Amount | 00.00 |
The following table shows the journal entries of the correcting general ledger transaction of the Reclassification type.
| Account | Subaccount | Debit | Credit |
|---|---|---|---|
| Expense account | 00-00-OPS | 00.00 | Amount |
| Expense account | 00-00-FIN | Amount | 00.00 |
You can find and view transactions of the Reclassification type in the Journal transactions (GL301000) window. In this window, in the Orig. batch no. column of the table, the reclassified journal entries contain the links to the original general ledger transactions (that is, to the batches generated for the transactions).
In Visma Net, a batch is generated for each transaction created in the system. A batch can contain one transaction or multiple transactions, and each transaction consists of at least two journal entries (a debit entry and a credit entry). Through the reclassification process, you can reclassify a wrong journal entry or move an amount from the wrong account, subaccount, or branch to the correct one. The reclassification process generates the correcting transaction, which includes two journal entries.
Understanding the splitting process
The split of a general ledger transaction means the creation of a correcting transaction to move a part of the amount (of the original transaction) from one general ledger account to another general ledger account, from one subaccount to another subaccount, or from one company branch to another branch. You can split the transaction in any of these regards.
As a result of the reclassification or split process, the system generates a new transaction of the Reclassification type based on the original general ledger transaction. The Reclassification transaction moves the amount or a part of the amount from the wrong general ledger account, subaccount, or branch (or more than one of these) to the required one (or ones).
Related reference
Related pages
Concepts
- Initiate reclassification and split
- Process reclassification
- About viewing and managing reclassification transactions