> For the complete documentation index, see [llms.txt](https://smartbooks.gitbook.io/smartbooks-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartbooks.gitbook.io/smartbooks-docs/advanced-features/reclassification-of-gl-accounts.md).
# Reclassification of GL Accounts
## Creating a reclassification
In certain cases, you may want to reclassify specific relations without creating new GL accounts in your source system. Smartbooks allows you to split existing GL accounts into separate ones, which can then be placed in different parts of your financial structure.
1. **Access the Reclassification Function:**
* Go to the **Financial Accounts** section.
* Locate the GL account you want to reclassify.
* Click the **three dots** on the right and select **Reclassify**.
2. **Reclassification Screen:**
* The account you’re reclassifying appears at the top.
* Below it, you’ll see **Target Accounts**, which represent the new accounts created for reclassification.
3. **Defining Target Accounts:**
* **Unique Code:**\
The code for each target account starts with the original account code, followed by a suffix you define (e.g., "IC" for intercompany, or a client’s initials).
* **Description:**\
Provide a descriptive name for the target account.
* **Relation or Business Dimension:**\
Specify the relations or business dimensions that this target account should contain.
By using this feature, you can reorganize and classify your financial data in Smartbooks without making changes to your original source system.
## Managing Reclassified Accounts
Once created, reclassified accounts appear in the Financial Accounts section just like standard GL accounts from your source system. You can move them anywhere in the hierarchy by dragging and dropping them, allowing you to adjust their position within financial reports.
**Available Options for Reclassified Accounts:**
* **Description:** Update the account name or label to reflect its purpose.
* **Type:** Change the account classification (e.g., income, expense, asset, liability) as needed.
* **Planning Purposes:** Specify whether the reclassified account will be used for budgeting or forecasting.
