Balances are created by selecting and summarizing attributes of transactions that will be included in the balance. These attributes are termed the "Posting Key". We might use the transaction attributes themselves, or we might derive the balance attributes from them by joining to other tables or doing some other form of transformation.

What if the attributes on the balances need to change? For example, for most purposes a particular account might be classified as a “contra” account, like loan loss reserves, reducing the total asset value of the loans. It typically is a “negative” amount relative to the asset shown in the asset section of the balance sheet. However, being a negative amount, it could also be classified as a liability, which typically has a “negative” balance. Thus for some reports, finance might make journal entries to “move” an amount from one reporting category to another.

This is a simple form of reclassification. Reclassifications can happen for many other reasons; for example rules which post transactions to balances might change; new balances might be needed which divide amounts stored in historical balances; or report regulations might demand a balance be associated with another portion of a report.

In this course you will learn about the underlying principles of how reclassification processes can be handled in financial system.

Course Curriculum

  • 1

    Pre-requisites

    • This is an advanced course.....

    • ​Overview of finsysvlogger video series on You-Tube​

    • Suggested Prerequisite Course

    • Pre-assessment quiz

  • 2

    Reclassification Overview

    • Reclassification Overview Lecture

    • Overview Quiz

  • 3

    The Switch View

    • The Switch View Lecture

    • The Switch View Quiz

  • 4

    The Recast View

    • The Recast View Lecture

    • The Recast View Quiz

  • 5

    Date Effective Joins and Reclassifications

    • Date Effective Joins Lecture

    • Date Effective Joins Quiz

  • 6

    The Reclass View

    • The Reclass View Lecture

    • The Reclass View Quiz

  • 7

    Backdating and Reclass Processing

    • Backdating Lecture

    • Backdating Quiz

  • 8

    Reclass and Data Normalization

    • Data Normalization Lecture

    • Data Normalization Quiz

  • 9

    AI and Reclass Processing Recap

    • AI and Reclassification Processing Recap Lecture

  • 10

    Final Exam

    • Final Exam

    • Course Evaluation

About the instructor

Financial Systems Expert

Kip Twitchell

Kip Twitchell is a global subject matter expert with IBM Global Business Services (GBS) Financial Services Sector. He has extensive experience as a consultant in financial management and business intelligence systems, having consulted numerous Fortune 500 companies and 12 of the top 25 banks in the world. He is a Certified Public Accountant in the US and expert in the field of business events-based reporting and financial systemsHe is the author of “Balancing Act: A Practical Approach to Business Event Based Insights” (2010), and “Metric Engine: Reinventing the Data Supply Chains for Business” (2015) and vlogs (video blog) in "Conversations with Kip" on financial systems as the @finsysvlogger. He began his career with Price Waterhouse , which became PricewaterhouseCoopers and PwC consulting in 1998. PwC Consulting was acquired by IBM in 2002. He attended Brigham Young University in Provo, Utah.

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