Create a reclassification project, account, and journal entries to adjust the project balances:

  1. Create a reclassification project (example, project X) and a reclassification account (the GL category of this account must be an asset or liability) and a transfer account (the GL category of this account must be an revenue, expense, gift, or transfer and will close to your fund balance accounts)
  2. Create the journal entry using the reclassification account and transfer accounts just created.
    For example, to create credit balances of $100 each in projects A and B, the journal entry would be:

    Debit    Transfer Account     $200   Project X

    Credit    Transfer Account     $100   Project A

    Credit    Transfer Account     $100   Project B

    These entries will close to the Fund Balance accounts and create the required beginning balances for the Projects at the beginning of the next fiscal year. However; if you have selected to require projects on balance sheet accounts, your journal entry must have the additional lines to be in balance by project:

    Debit     Reclassification Account     $100   Project A

    Debit     Reclassification Account     $100   Project B

    Credit    Reclassification Account     $200   Project X


Restore to a backup prior to locking beginning balances.

Note: The Reclassification account will have activity for some projects although the net account balance is zero.
Inactivate the wash account and make it a level 9. Also, exclude the project X from your reports.