Reclassification

Purpose

The reclassification function enables you transfer currency values from one account assignment to another.

In the Consolidation system you can use reclassifications for all posting levels . That is, you can use them to:

  • Adjust the financial data reported by consolidation units to meet the group's accounting requirements (standardizing entries)

  • Reclassify already-consolidated data

You also can use reclassifications to model the proportionate method of consolidation in the system.

Implementation Considerations

You choose this function if you want to post automatic reclassification entries.

If you do not choose this function, you must use the manual posting functions to process reclassifications.

Integration

You can use the reclassification function:

  • After the collection of reported financial data, if you want to use the reclassification to standardize the data

  • After the execution of consolidation tasks

    Example Example

    In the consolidation monitor, the sequence of the tasks might look like this:

    Consolidation Monitor, Tasks:

    End of the example.

    1. Balance carryforward

    2. Data collection

    3. Manual standardizing entries

    4. Reclassification

    5. Currency translation

    6. Elimination of interunit payables and receivables

    7. Elimination of interunit revenue and expense

    8. Elimination of investment income

    9. Consolidation of investments

    10. Reclassification

Constraints

You cannot use the reclassification function to distribute values to multiple account assignments. Instead, you use the allocation function.