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