Definition of Reclassify an Amount
Example of Reclassifying an Amount
Assume that a company's accountant recorded a vendor's invoice for $900 in the account Advertising Expenses. Upon review, the advertising manager informs the accountant that the amount should have been recorded in the account Marketing Supplies. If the accountant uses a journal entry to move the amount, the entry's description might be: To reclassify $900 from Advertising Expense to Marketing Supplies.
The term reclassify has a gentler tone than the phrase to correct an account coding error.