A reclass or reclassification, in accounting, is a journal entry transferring an amount from one general ledger account to another. This can be done to correct a mistake; to record that long-term assets or liabilities have become current; or to record that an asset is now being used for a different purpose (e.g. lands becoming investment property intended for resale, rather than as property, plant, and equipment used in production).
Example
A $500 purchase of office supplies was charged to building maintenance by accident. The correcting entry would be handled in one of at least two ways:
1) If your system recorded the $500 to Building Maintenance, it needs to be reversed out, as this is the most common method:
Office supplies Dr. $500
to Building maintenance ... -$500
2) If your system records final values only, in which case you are now updating the original record:
Office supplies Dr. $500
to Building maintenance ... $0
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