7401a389_usting_Journal_Entries_command__Description
[Code] R [Type] Reclassifying [Description] 
Reclassifying entries are not recorded in the normal accounting records. However, they are recorded in all draft financial statements and working papers such as grouping documents. Reclassifying entries are most useful for preparing year-end working papers where amounts need to be reclassified for presentation purposes in the financial statements. They can also be used for interim working papers and periodic reporting. When made in any period other than the last period of the fiscal year, reclassifying entries are excluded from the accounting records. In this case, the entries to non-consolidated balances do not have to be reversed. They are an excellent method to modify financial statements for disclosure rather than using the method of posting to the books and then posting a reversing entry in a subsequent period. In multiple period files, reclassifying journals display only in the month to which they are posted; their balances are not accumulated. Reclassifying entries made in the last period of the fiscal year do get included in the next year's opening balances when either of the following choices is made during a year end close: Update next year's opening balance with consolidated or report. Those reclassifying entries do then have to be reversed.
Adjusting Journal Entries command
Description