Account - Reclass Accounts (XXX9)

Revenue categories and Spend categories ending in (reclass) are reclassification accounts. These accounts are optional and generally exist within each major revenue or expense category. They can be used to record:

Support transfers

Organizations may provide support from one Cost Center to another unit for costs incurred by using the reclass categories. Use of the reclass categories for recording support transfers the original balances in the regular expense accounts while providing a different but similar spend/revenue category to record the support. Corrections of mis-recorded transactions should not use the reclass spend/revenue categories.

Example:

Dept B purchased supplies on spend category SC6199, but is reimbursed by Dept A. For more information regarding support transfers see Journal Entry Guidance.

Shared-activity reimbursements

Occasionally departments will partner with other entities to perform a certain activity or project. The SCxxx9 expenditure accounts can be used to record an expense in one operating unit and offset the expenses in another operating unit where the actual costs were recorded to reimburse expenses incurred by the second unit in behalf of or shared with other entities.

Example:

Dept D incurs travel costs that benefit both departments C and D. Dept C agrees to split a $900 expense.

Salary and wage transfers

Salary and wages costs may be transferred using SC5x09 if both entities desire to move salary and wages between them but do not want to affect the standard (non-SC5x09) salary and wage account. When using SC5x09 accounts to transfer salaries and wages, the accounting system will not prepare a corresponding payroll benefit journal entry at month-end. Though not required, where payroll benefits costs are also intended to be transferred, entities may also consider preparing a journal entry to transfer associated payroll benefits costs using the SC5999 account. Alternatively, salaries and wages may also be transferred between units using the same non-SC5x09 salary and wage accounts, however this will have to be completed using a payroll adjustment. Please contact payroll for help with that.

Examples:

Dept E agrees to pay $1,000 plus benefits of the professor’s salary.

Dept H has an employee’s wage billed to their operating unit. Dept G agrees to pay $2,000 of the employee’s wages.
 

Reclassification accounts (SCxxx9) may also be used to reduce overall salary, wage and benefit expense within one organization and increase a different expense category (e.g. supplies) within another organization. Note however that each element of this type of expense reclassification should normally use an SCxxx9 account.

Examples:

Dept I contracts with Dept J to provide services. For more information regarding salary and wage transfers see Salary & Wage Corrections/Transfers.