QBO 5 - Using the Reclassify transactions tool

Find Transactions Box

Selecting Find transactions instructs QuickBooks Online to look for transactions that match your search settings.

Additional Filter Tools

Additional filter tools allow you to refine your search by transaction type and/or customer or vendor. The Modify filter allows you to filter out any transactions that you can't modify using the Reclassify transactions tool.

Limitations of the Reclassify transactions tool

Although you can use the Reclassify transactions tool in most situations, there are some limitations on when you can use it—and what you can use it for.

Accounts Search Box

Any accounts you select from the list in the left-hand panel are shown here. Selecting X next to an account name resets the search results so it's not filtering transactions by that account.

Account / Amount Box

In this section, QuickBooks Online lists all the available accounts for the criteria you selected using the filters above. Select an account here. This refines the transaction list on the right so it only displays the transactions for that account.

Using the Reclassify transactions tool

Let's see how to use the Reclassify transactions tool to fix a miscategorized transaction. 1.) From the client dashboard, select Accountant Tools, then Reclassify transactions 2.) In the Account types field, select either Balance sheet or Profit and loss 3.) Check the Basis of the transaction, either Accrual or Cash 4.) In the From and To fields, set the range of the transactions If needed, you can set further parameters, such as selecting the account or transaction type, or even searching for a specific class or location, if they're in use. 5.) Select Find transactions The left pane shows all of the available accounts, along with any sub-accounts for the selected criteria. Selecting an account would show all the transactions for that account in the right pane. 6.) From the left pane, select the account where the miscategorized transaction is 7.) Check the box next to the miscategorized item in the right pane 8.) Next, select Reclassify 9.) In the Change account to dropdown, select the correct account 10.) Select Apply The transaction has been reclassified. You can also use this function to reclassify in batch and save time.

Exploring the Reclassify transactions tool

The Reclassify transactions tool is designed specifically for accounting professionals and is only available to accountant users who use QuickBooks Online Accountant and clients with QuickBooks Online Advanced. It provides a variety of search options to allow you to find transactions that need reclassifying. To open the tool, select Reclassify transactions from Accountant Tools.

What types of transactions can't be classified?

The following transactions can't be reclassified with the Reclassify transactions tool: - Sales tax transactions: Tax payments and tax adjustments are controlled by tax settings - Inventory adjustments: Inventory adjustments are item-based transactions - Billable expense transactions in the income account: The income account is set in Account and Settings - Payroll transactions: These are controlled by the Payroll settings - Item-based transactions (invoices, sales receipts, checks, and/or bills using the Item details grid): N/A

Account Type Box

The left-hand panel allows you to search for and locate accounts in the client's company. Use the Account types dropdown to specify whether you want to look at Profit and loss or Balance sheet accounts. You need to specify whether to look at transactions in the selected account(s) based on the accounting basis (cash or accrual). To see all transactions in the account(s), choose Accrual. If you're looking for a specific general ledger account, enter the account name in the search box.

What are the limitations on the data you can change for a transaction?

There are some limitations on what you can change using the Reclassify transactions tool. For example: * You can't change the payment account (bank or credit card) for expenses * You can't change the account for inventory adjustments, because they're connected to the inventory shrinkage and asset accounts * You can change the expense account for billable expenses, but not the income account for the related income transactions In addition, there are restrictions on how you can reclassify certain transactions. For example: * Transactions that don't contain a customer name can't be reclassified to accounts receivable * Transactions that don't contain a vendor name can't be reclassified to accounts payable

Reclassify Button

Transactions that match your search settings are listed here. You can then review and reclassify them, as you'll see next.

Date Range Box

Use this section to set the date range for your search.

How do you know which transactions you can reclassify with the tool?

When you use the Modify filter to change accounts, you'll only see transactions for which the account can be changed.