You can use the Reclass function to change the expense account on a paid payable. For example, you paid a vendor for a repair to the air conditioning unit and selected the Repair account. Later, you decide that this expense belongs in the HVAC account. To change the expense account, you open the payable and click the Reclass button.
In this article, we show two reclass examples -- one for an open period, and one for a closed period. In an open period you can edit the expense account directly; while in a closed period, the system creates a journal entry to move the expense from one account to another.
To reclass a payable (open period)
Go to Accounting > Accounts Payable > Payables.
Locate the payable you want to change and open it. Click the Reclass button.
You can then edit the Account field as needed.
In the example shown above, we changed 6210 Repair to 6240 HVAC.
Click Save when you are finished.
To reclass a payable (closed period)
Go to Accounting > Accounts Payable > Payables.
Locate the payable you want to change and open it. Click the Reclass button.
A note appears on the screen: Payable is in a prior period. Reclass journal will be created.
In the Account field, select the new expense account.
Click the Create Reclass Journal button at the top of the screen.
The screen refreshes, and a note at the top of the Payable screen shows that it has been reclassed.
If you click the Reclassed note, Breeze displays the journal.
Financial Reports
The original payable is not changed -- it still has the original expense account. Financial reports of the past period are not changed.
The journal entry moves the amount from one expense account to another. The journal is posted in the current period and appears in financial reports in the current period.
Reclassing Job Cost Payables
Job Cost payables can be reclassed similar to regular payables. The only difference is that different fields can be edited.
On a regular payable, you can change the Account field. On a Job Cost payable, you can change the Contract, Job, and Category fields.
Note: This is a tool you can use if you need to change a GL code on a invoice that has already been posted.
Using the reclass button is preferred, but if it is not possible to click the reclass button or if running into errors and cannot reclass the payable, it is best to recreate the payable. Delete the payment, delete the payable, and recreate the payable with the correct GL Account, and repay.
If the payment cannot be deleted, create a journal entry crediting the original GL Account and debiting the new GL Account, and back dating to the original date of payment. It would be best to add notes for why the journal entry is created.