Hi Hasan,

What needs to be considered when a Natural Account is defined as a Revenue Account and in fact should have been defined as an Asset Account.

Ie. 1050 was defined as an Revenue Account by accident and should be defined as an Asset account.

Assume that there is approx 4 months worth of journal entries.

What should be considered/done to fix this kind of problem ?

Can you breifly explain... thank-you

Charlie

Option 1:
The best approach is to disabled that segment value that you wrongly classified as Revenue and recreate a new value and start using it as as Asset.
Enter a reclass journal to move the amounts from old to new value.

Option 2:
Change the account type of segment value and all affected combinations.

It is not as simple as changing the segment value's account type from Revenue to Asset if combinations are already created.
When combinations are created they inherit the segment value's account type as well. Once you change the segment value account type, the combination's type do not change automatically. Even Segment Value Inheritance program is not capable of doing that. More over the combinations (GL Account) screen does not allow you to change the type as well. The only option is to open a service request and have Oracle run a script at the back-end to fix the combinations' account types. Some companies run this script themselves too without involving Oracle and that is a breach of support agreement.

This would be simple if the next year is not opened.
If you have opened the next year then you will have to remove the amount from the Revenue account first before doing the above exercise and then put the amount back. Otherwise your Retained Earning account will get out of sync. The amount is the revenue account will get closed into Retained Earnings. If you change the segment value's account type form Revenue to Asset, the associated amount is not going to come out of Retained Earnings account automatically. That is why you must empty the YTD balance in the affected Revenue combinations manually before changing the account types.