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A reclassification entry is a journal entry used to move amounts between accounts, funds, or classifications to ensure correct financial reporting.
A nonprofit should create a reclassification entry when a transaction was initially posted to the wrong account or fund, or needs to be moved for accurate reporting.
Aplos provides tools to create, track, and document reclassification entries, making it easy to maintain accurate and transparent records for audits and board reports.
Not exactly. While both adjust records, reclassification entries often move amounts for proper categorization, not just to fix mistakes.