Reclassifying transactions in Expenses

To correct information on an Expenses transaction that is in a Selected, Partially Paid, or Paid state, you need to reclassify it. Note that not all information on a transaction can be reclassified, and not all transaction types are eligible for reclassification. Reclassification requires setup and might not be available in all regions.

What you can reclassify in Expenses

Information that can be reclassified in Expenses
Transaction type Information that you can change Information that you cannot change
Expense reports
  • Expense type, while the expense is in a Selected state only
  • Amount
  • Paid to, Paid for, and Date
  • Dimensions, such as Department and Location
  • Attachment, Reason for expense, and Memo fields
You must provide a Reclassification reason when reclassifying an expense.
  • Expense type, after any reimbursement is paid
  • Date filled and GL posting date
  • Employee
  • Expense report number
  • Payment type, Non-reimb selection, Link to credit card txn
Expense report adjustments
  • Expense adjustment report number
  • Reference expense number
  • Description and Attachment

You must provide a Reclassification reason when reclassifying an expense.
  • Adjustment type
  • Date filled and GL posting date
  • Employee
  • Amount, Department, Location, and line item date
  • Memo fields
  • Payment type, Non-reimb selection, Link to credit card txn
  • Billable flag for a line item
  • Configuration of line items, which means that you cannot add, remove, or split lines
You cannot reclassify advances.

Restrictions

To reclassify a transaction, the following must be true:

  • Transaction State: The transaction must be in the state of Selected, Partially Paid, or Paid.

    Unpaid transactions can typically be edited instead. Reversed and Reversal transactions cannot be edited or reclassified. Zero balance transactions cannot be selected or paid, so they’re also ineligible for reclassification.

  • Summary or Period: The summary or period must be open.

    The period must be open not just for the entity where the transaction was created, but also in all entities included in line items.

  • Reconciliation status: The transaction must not be included in a completed (closed) reconciliation. To reclassify, reopen the reconciliation.
  • Related to a project: If the transaction is marked as billable and has been included in an invoice for the project, you cannot reclassify it.
  • Applied credits: Any credits applied must be from a single entity.
  • Associated bank: The transaction must be .
  • Tax implications: The transaction cannot use a standard or custom tax solution.

Best practices

  • Reclassify expenses before invoicing or before closing the period.
  • Do not associate expenses with a non-base reimbursement or multi-base currency.
  • Enter and pay expenses at the same entity level.
  • Ensure that expense reports contain either all billed or not yet billed expenses, not a combination of both.
  • When reclassifying an expense, do not remove entry lines.
  • Select only locations associated with the expense entity.
  • Reclassify paid expenses that use the same type of . For example, do not reclassify an expense paid from an entity-restricted to a non-restricted .

Set up

To make reclassification available in your company, you need to allow reclassification in your Expenses configuration. Then, you need to grant reclassification permissions to the users authorized to correct these transactions.

After you complete this setup, authorized users can reclassify expense reports and adjustments by selecting Reclassify on the transaction edit page.