Note: A General Ledger chart of accounts is set up with a system that classifies accounts of different types with different account numbers. Consider whether changing your account type will cause the account number to be out of place. For example, you have four digit base accounts and 2000 through 2999 are your liability accounts. If you change account 6102 from an expense account to a liability account, then the account number will not fall in the account range for that account type.

• If the account type AND the account number are incorrect, choose Option A.
• If the account type is incorrect but the account number is correct, then choose Option B.

Option A

1. Create a new account with the appropriate account number and account type.
2. Record General Ledger journal entries to transfer balances from the account set up incorrectly to your new account.
3. Add your new account to your financial statements and accumulators.
   • If you use the default financial statements and accumulators, refer to article 21641 DocLink: How do I create or update the default financial statements or accumulator in Financial Statement Designer?
   • If you use custom financial statements, manually edit your custom statement and accumulators to place the account into the correct section based on the new account type. Refer to article 17041 DocLink: How do I add new accounts to a financial statement design?

Option B

1. Change the account type in General Ledger Setup, Accounts. If you use prefixes in your account format, also correct the account type in Setup, Prefix/Base, Base accounts.
2. Correct your financial statements in Financial Statement Designer (FS). Note the following considerations:
   • If you use the default financial statements and accumulators, after correcting the account type on the account(s), refer to article 21641 DocLink: How do I create or update the default financial statements or accumulator in Financial Statement Designer?
     • Note: The File, Create process creates/updates default designs and accumulators based on the account types assigned at the time this is performed.
   • If you use custom financial statements, manually edit your custom statement and accumulators to place the account into the correct section based on the new account type. Refer to article 17041 DocLink: How do I add new accounts to a financial statement design?
3. If the year was closed while accounts had the wrong account type, continue with the following to correct retained earnings:
   • Income statement accounts such as income and expense accounts, close to your retained earnings account when you close your fiscal year. If the fiscal year was closed while the account had the wrong account type, you may be out of balance.
     • If the account type was incorrectly set as asset, liability, equity, or suspense; use article 17721 DocLink: A General Ledger account type was incorrectly set as an asset, liability, equity, or suspense when the fiscal year was closed
     • If the account type was incorrectly set as income, cost, expense, or other income; use article 17724 DocLink: A General Ledger account type was incorrectly set up as an income or expense account when the fiscal year was closed