Reclassify regularization accounts

To comply with regional reporting requirements, you can now set up regularization accounts. A regularization account is an account that can be classified as either an asset or a liability on the balance sheet.

The account classification depends on the account balance at the time that the financial report is run. If the account's balance does not match its normal balance, the account is eligible to be reclassified.

To reclassify accounts, start by running the GL regularization account reclassification report. The report shows which regularization accounts have balances that do not match their normal balance and, therefore, need to be reclassified.

You'll have the option to create a draft journal entry to move the balances from the regularization accounts to their designated reclassification accounts. A second journal entry is created to reverse the reclassification entry on the first day of the next reporting period.

Run the reclassification report

1. Go to General Ledger > All > Reports > GL regularization account reclassification report.

2. Enter a Reporting period and As of date.

3. Use the options in the Filters section to filter the report.

   • Only the accounts designated as Regularization accounts are included in the report, regardless of the filter selections.

     More about filtering accounts

     1. To set the report to show results for a specific range of accounts, select the Range option. Next, select the down arrow in the From account dropdown list, and then select the account you want the report to cover. Do the same in the To account dropdown list.
     2. To set the report to show results for multiple accounts, select the Multiple Accounts option. Next, select Select Accounts, and then select the GL Account or a range of accounts to add to the selected account list. Select Save.
     3. To set the report to show results for all accounts, select the All Accounts option.

   • If you're working in an organization with multiple base currencies, you must select a Location.

     Using dimensions

     If you use dimensions for reporting, you can filter them by selecting the appropriate combinations. You can also select predefined dimension groups.

     For example, if you select the department group ENG, which includes Hardware and Software engineering plus Quality assurance, the report will include the data for those three departments only.

     In multi-entity shared companies, location groups also include entities.

     Include subdimensions, Individual reports, and Prompt on run

     These options provide additional control over how dimensions are handled in the report.

     Reporting options

     Option	Description
     Include subdimensions	Includes subdimensions, such as child locations or child customers, when filtering. Clear this checkbox if you do not want Intacct to include children of the dimension when filtering.
     Individual reports	If you select a department group and/or location group, this option creates a separate report for the individual department and/or location combinations. The order in which individual reports are created is determined by the order of the locations and departments in the groups. When you select Individual reports, all of the individual reports are contained in a single report or Excel workbook. You can include additional report header text for each department or location. Learn more about generating individual reports by department or location.
     Prompt on run	Select this checkbox to be prompted for a department, location, and/or time period each time you run the report. If you're filtering by department or location, and also select the Prompt on run option, the department or location that you selected is autofilled as the default.

     For multi-entity shared companies with multiple base currencies: Reports that you run at the top level require a location to ensure that Intacct will display all amounts in the same base currency.

4. In the Format section under Show dimension values, the location ID and account ID are required and selected by default. You can add the department ID and name along with the location and account names. Select Add or edit, and then select one of more items from the Available items list.

5. If you view or print the report, you'll have the option to create draft journal entries to move the account balance from the regularization accounts to their reclassification accounts.

   If you're going to process and store the report or create a memorized report, you can select Auto-create draft JE when offline. The journal entries are then automatically created for you in a draft state when the report is generated.

6. Optionally, add titles and a footer for the report.

   More on adding titles and a footer

   1. Enter the title in the Report title 1 box.

      • This title displays in large type at the top of the page, directly under your company name.
      • You can enter over any default name that Intacct might have automatically supplied in this field.

   2. Enter the subtitle in the Report title 2 box.

      This subtitle displays in smaller type, directly beneath the main title.

   3. Enter the footer text in the Footer text box. Footer text displays at the bottom center of the report.

   You can use up to 80 characters, including spaces, in each title and subtitle, and footer.

   When outputting to PDF, Standard reports automatically include the Created on timestamp and page number at the bottom of the page.

7. Run the report.

   To run the report immediately

   1. Select View or Print.

   2. Review the report data to determine which accounts will be reclassified.

   3. Select Create JE to create the draft journal entries to move the account balance from the regularization accounts to their reclassification accounts.

      The draft journal entries are created in the journal designated in Configure General Ledger.

   To run the report later

   Select one of the following options: 

   • Process & store

   • Memorize

   If you selected Auto-create draft JE when offline, the journal entries to reclassify the accounts are automatically created when the report is generated. Otherwise, you'll need to rerun the report to create the journal entries. The draft journal entries are created in the journal designated in Configure General Ledger.

Post the journal entries

If you created draft journal entries, there will be two of them. One to move the balances to the reclassification accounts and one to reverse that transaction on the first day of the next reporting period.

1. Go to General Ledger > All > Journal entries.

2. Find the regularization account reclassification journal that's designated in Configure General Ledger.

3. Select Transactions.

4. Find one of the transactions in the list.

5. Select Edit at the end of the row.

6. Select Submit.

7. Repeat these steps for the other transaction.

1. Go to General Ledger > All > Journal entries.

2. Find the regularization account reclassification journal that's designated in Configure General Ledger.

3. Select View transactions.

4. Find one of the transactions and select the transaction number to edit it.

5. Select Submit.

6. Repeat these steps for the other transaction.

When you run reports for the end of the reporting period, the reclassified accounts appear on the financial reports.