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Intuit

How to use the reclassify transactions tool in QuickBooks Online Accountant

The Reclassify Tool enables accountants to find transactions that have been assigned to incorrect accounts or classes and reclassify them in batches. We’ll show you how to use the took, and explain which transactions can and can’t be reclassified, and why.

Before you get started

There are a few things to know before you get started.

  • Accrual Basis: Displays accrual basis transactions for review (i.e. invoices, bills, etc.)
  • Cash Basis: Displays cash basis transactions for review (i.e. sales receipts, checks, deposits, etc.).
  • Balance Sheet Accounts: Displays Asset, Liability, and Equity 
  • Profit & Loss Accounts: Displays Income and Expenses
Note: For Item-based transactions, we can reclassify Classes but not Accounts.

Access the Reclassify Transactions tool

Here's how to access the Reclassify Transactions tool:

  1. From the Accountant Toolbelt, select the Accountant Tools (briefcase) icon. (In QuickBooks Online Accountant, you must select one of the tabs in the Your Books section before the briefcase icon will appear.)
  2. Select Reclassify Transactions.

Use the Reclassify Transactions tool

Here's how to work in the Reclassify Transactions tool:

  1. From within the Accounts section, select the date range you wish to review.
  2. Select the Basis. (If you selected Cash basis, unpaid transactions are not displayed in the transaction list. The only way to see these transactions is to set the basis to Accrual.)
  3. From the View drop-down, select the account type you wish to review. This displays a list of accounts containing transactions that meet the criteria set above.
  4. Select an account to review. This populates the Transactions section with available transactions.
  5. In the Transactions section, select a name from the Name drop-down.
  6. Select a filter from the Show transactions drop-down menu.
  7. Set any additional filters.
  8. Once all filters have been set, QuickBooks displays a list of available transactions that match the criteria.

Working with batches in the the Reclassify Transactions tool

This process can be repeated for each batch of like transactions you wish to reclassify:

  1. Select a tick next to the account(s) you wish to edit.
  2. Select what you wish to change for the selected transactions, Account to and/or Class to.
  3. From the Account to and/or Class to drop-down(s), select the account and/or class to which you wish to change the transactions.
  4. Select Reclassify.

What can and can’t be reclassified

How a transaction can be reclassified will be dependant on the colour of the dot that appears to the left of the transaction.

If Classes are turned On:

Description What it means
Filled green circle Account and Class can be changed
Yellow half circle Only Class can be changed
Empty red circle Transaction cannot be changed

If Classes are turned Off

Description What it means
Filled green circle Transaction can be changed
Empty red circle Transaction cannot be changed

Transactions that cannot be reclassified
Transactions that cannot be reclassified are usually indicated by an empty red circle.

  • Item based transactions (Invoices, Sales Receipts, Checks and/or Bills buying items). Items have income and expense accounts tied to them.
  • Sales Tax transactions (tax payments and tax adjustments are controlled by tax settings)
  • Stock Adjustments (Stock adjustments always affect stock shrinkage and Stock asset accounts)
  • Billable Expense transactions income side (company settings for billable expense income controls)
  • Payroll transactions (payroll settings control this accounting)
  • The balance sheet account on Expense Transactions cannot be reclassified.
Note Transactions that do not contain a customer name cannot be reclassified to Accounts Receivable. Transactions that do not contain a supplier name cannot be reclassified to Accounts Payable.

Now you know how to reclassify transactions in QuickBooks Online Accountant.