Reclassification
In accounting, reclassification means moving an amount from one account or line to another without changing net income or total equity — current portion of debt, a miscoded bill.
- Layer
- Lexicon
- Defined in
- Lexicon
- Components
- 1
- Nearby
- 1
Not a rule
Bookkeeping convention — not codified. US GAAP governs recognition, measurement and presentation — not the mechanics a bookkeeper uses to get there. Anyone citing a standard for this word is citing the wrong thing.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
Reclassification, in use
Quoted from the document that use the word — what it does to an interface, in the spec's own sentence.
A customer with a net credit balance in AR is flagged for possible reclassification to a liability at period end — shown, never buried.
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
- Can you vibe code your startup’s accounting?AI coding tools build a finance dashboard in an afternoon, but not a closed, reconciled, GAAP-basis ledger. Where the line is, and how to stay inside it.
- How to read an income statement (P&L)Revenue, cost of revenue, gross margin, operating expenses and net income, read line by line, on accrual basis, with the mistakes founders make most.
- General ledger and double-entry bookkeeping, explainedHow double entry works: journal entries, debits and credits, normal balances, running balances, the trial balance, and why posted entries are reversed.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- adjustment unqualified
Components that render this
The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.
Components that render the terms it depends on
Little in the catalog names this concept outright, but its definition is built out of others that are named. These render net income, account, equity, bill.
3Payments
Family spec7Dashboard & charts
Family spec- AccountPickerShows the normal balance. Blocks non-postable accounts.
- AccountTieOutEvery BS account, proven against its evidence.
- ChartOfAccountsHierarchy, statement mapping, unsupported-account flags.
- AccountRegisterGL detail with a running balance.
- DimensionPickerEntity always required; renders what the account demands.
13Metrics & analysis
Family specNearby in the catalog
Components in this part of the system that no term names outright. A weaker claim than the list above, and stated as one — but a component nothing links to is a component nobody finds.
12Close, controls & consolidation
Family specTerms this one depends on
- Net incomeRevenues and gains less expenses and losses, including income tax, for the period — the bottom line of the P&L, before any allocation to non-controlling interests
- AccountA GL account in the chart of accounts. Always qualify when a bank account is meant.
- EquityThe residual interest in the assets that remains after deducting liabilities (FASB CON 8 ¶E61)
- BillA claim against us
Also in Close
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.