Intuit Accountants News Central

How to Reclassify Transactions in QuickBooks®

Article Post Date
July 25th 2013 by Laura Madeira

How often have you reviewed your client’s QuickBooks® data to see multiple transactions posted to the incorrect general ledger account? As an accountant, you will probably not want to spend the time needed to correct each individual transaction. A preferred method might be to create a journal entry transaction, which in effect “reclassifies” the amount out of the incorrect account and into the correct account.

With Client Data Review (CDR) in QuickBooks Accountant 2013 or Enterprise Solutions Accountant 13.0, you can use the Reclassify Transactions feature. You access this tool from the Accountant Center, Accountant menu, or from an opened review using CDR.

From the Accounts panel on the left side of the Reclassify Transactions dialog box, you can do the following:

After selecting a chart of account listing on the left in the Accounts panel, you can filter the transactions displayed on the right in the Transactions panel with these options:

When you select Include Inactive Names from the Name drop-down list in the Reclassify Transactions task, you will not affect the transactions displayed. Instead, the list now includes any inactive list items for you to select from.

If you select an inactive name from the list, you will get a message from QuickBooks asking if you would like to use it once, make it active, or cancel. More information about working with lists can be found in Chapter 4, “Understanding QuickBooks Lists.”

After reviewing the detailed transactions, you might find that a certain vendor had all transactions assigned to the wrong expense account. For example, in the image below, vendor Cal Gas & Electric had the transactions assigned to the Utilities:Water expense account. This was a mistake made on each of the checks all year. The proper account should have been the Utilities:Gas and Electric expense account.

 

1. With the Reclassify Transactions dialog box displayed as shown above, select a date range for which you want to review and possibly reclassify transactions.

2. Accept the default Basis, or change if needed.

3. From the View drop-down list, select the account types you want to review for reclassification.

4. With a chart of accounts item selected in the Accounts panel on the left, you will see displayed to the right transactions assigned to that account for the selected date range and basis.

5. (Optional) From the Name drop-down list, select a specific vendor, customer, employee, or other name for which you want to filter the displayed transactions.

6. The Show Transactions drop-down list will default to display only those transactions you can reclassify with this feature. (Optional) Select to show Item-Based transactions. For item based transactions, you can reclassify only the Class assigned. Or, select All to see both.

7. (Optional) Select the Include Journal Entries check-box.

8. In step 5, if you selected a specific name from the drop-down list, you might want to select in the Accounts: Show All. CDR will display all transactions for the Name selected for All accounts (not just the account selected on the left).

9. As you make changes to the filters in Reclassify Transactions, the displayed transactions refresh automatically.

10. (Optional) Choose Select All or Deselect All when choosing which transactions to reclassify.

11. For all selected transactions, select the proper general ledger account from the Account To drop-down list and optionally assign a new Class, if desired.

12. Review your selections and click the Reclassify button. The window will refresh, displaying the changes made to the transactions.

13. Continue reviewing all the accounts until your review is complete.

14. Press the Esc key on your keyboard or click the X on the top right of the Reclassify Transactions dialog box when you are ready to close.

A word of caution: Only non-item-based transactions can be reclassified with the CDR tool. If you want to edit the account assigned on item-based transactions, you need to edit the individual item in the original transaction.

Editor’s Note: This blog is an excerpt from Laura Madeira’s book, QuickBooks 2013 In Depth.

Share and Enjoy:
  • Facebook
  • Twitter
  • LinkedIn
  • Digg
  • del.icio.us
  • StumbleUpon
  • Technorati
  • Google Bookmarks
  • RSS
  • Print
  • PDF
  • email
  • About Laura Madeira

    Laura Madeira is the owner of ACS, Inc.; an Intuit Solution Provider firm providing software sales and training for QuickBooks Enterprise, Premier and Pro, QuickBooks Point of Sale Software and Hardware, Intuit Merchant Services and Intuit Payroll solutions. She is also certified in QuickBooks Enterprise, QuickBooks Point of Sale and Advanced Certified in QuickBooks and offers training on several other software solutions. Information about their services can be found at http://www.quick-training.com/. Laura is a select member of the Intuit Trainer/Writer Network and has been a guest speaker for Intuit for many years, teaching what is new for QuickBooks each year and speaking at multiple accountant and end users conferences nationally. She is also a published author of QuickBooks training materials. She has authored the QuickBooks 2013 In Depth, QuickBooks Solutions Guide, QuickBooks Essentials self-paced training DVDs and QuickBooks on DemandSee all of Laura's articles…

When commenting, please be polite and use the site for your own personal, non-commercial use. For the full legalese of dos and don'ts, see our Online Community Terms of Use. Thanks!

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

You must be logged in to post a comment.

 
© 2014 Intuit Inc. All rights reserved. Intuit, the Intuit logo, QuickBooks, ProSeries and Lacerte, among others, are registered trademarks and/or registered service marks of Intuit Inc. or one of its subsidiaries. Other parties' marks are the property of their respective owners. Terms, conditions, features, pricing, support and service are subject to change at anytime without notice.

The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here (to read full disclosure on third-party bloggers.  This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Comments are subject to moderation. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service.