Overview of Reclassifications

A reclassification is used to report a correction (reversal and restatement) to a Treasury Account Symbol (TAS) or Business Event Type Code (BETC) on a cash-originating transaction.

Source transactions include Collection Information Repository (CIR), Payment Information Repository (PIR), Intragovernmental Payment and Collection (IPAC), Treasury Disbursing Office (TDO) payments and Non-Treasury Disbursing Office (NTDO) payments that were reported to an agency location code (ALC). Reclassifications are directly related to source transactions.

There are several reasons why an agency may need to reclassify a source transaction. Here are some of those scenarios:

• Nonbanking transactions where entries are needed for reporting purposes and inter-ALC transfers

• Fiscal Service systems or processes require the ALC to reclass

• Agency doesn't know the TAS-BETC at the time the transaction was reported
• Agency system or human error
• More information is needed to classify or categorize the transaction

A reclassification has three parts: what was Reported, Reversal, and Restatement.

• What was Reported: This is the originating source transaction reported to CARS that the agency identified as a transaction that requires correction of the TAS or BETC.

• Reversal: The reversal should be reported using the same TAS and the opposing BETC that was reported on the originating source transaction.

• Restatement: The restatement is a transaction that restates the originating transaction with the correct TAS or BETC.