Set up 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.

Enable regularization accounts

1. Go to General Ledger > Setup > Configuration.

2. Select Enable regularization.

3. Select the Regularization account reclassification journal.

   Each time that an account is automatically reclassified, the account balance is moved from the original account to the account that it's reclassified to. Those entries will be posted to this journal.

   For cash accounts that are reconciled within Sage Intacct, we recommend that you post the reclassification entries to a Compliance adjusting journal to protect the data integrity of completed bank reconciliations. To learn more about how to set up and report based on GAAP adjusting journals, refer to Compliance and tax adjustments.

4. Select Save.

Designate individual regularization accounts

1. Go to General Ledger > All > Accounts > General Ledger accounts.

2. Find the account.

3. Select Edit.

4. Select Regularization account.

5. Select the Reclassification account.

   This is the account that the current account is reclassified to when the balance does not match the account's normal balance.

6. Select Save.