Reclassifying Bank Account to Other Asset
We have an asset account that was set up as "Bank" under Account type by error, and since have recoreded 3 end of year journals for this account.
When trying to change it to "Other Asset" it shows an error of "You have cheques or deposits for this account in your files."
Is there any way of changing this Account Type as it's throwing off our Cashflow Statement?
Hi TommyG
Generally speaking, users can change the account type of an account by navigating to the particular account within the Account Lists and update the Account Type. However, bank accounts (and credit cards) are unique in the fact that these are used on payment transactions. As a result, you would not be able to update that account type while there are transactions within the company file for that account.
You do have a few options available if you are needing that changed:
- Delete the transactions associated with that account, update the account, and re-record those transactions. Note: This option may not be suitable for all situations.
- Edit the transactions recorded for that account to be a different account and then update the account type. Note: This option may not be suitable for all situations.
- Create a new account for your purpose and if required record a journal from the old account to the new account to transfer that balance.
- Delete the transactions associated with that account, update the account, and re-record those transactions. Note: This option may not be suitable for all situations.
