Overview: Accounts in the chart of accounts that have been moved or reclassified in an accounting source file (e.g. Xero, MYOB, QBO) may not reflect these changes in Active if there are existing binders or Ledger files that previously imported those accounts under their old classification.
For example, If you move an income account to the assets category in Xero and then click Reimport on the Trial Balance screen in an existing Active Workpapers binder, the account will retain its original classification. It will not automatically update to reflect its new classification under assets.
Cause
This occurs because the source is stored at the client level in Active. Due to the complexity of chart of accounts hierarchies, the system currently does not support automatic reclassification of accounts when using an existing source stored at the client level.
This issue does not occur when creating a new source for a new client, as classifications are imported fresh from the accounting software.
Workaround/Resolution:
After reclassifying an account in Xero, you have two options: (A and B)
A) Manually Reclassify in Active:
Go to the Accounts screen in Active.
Drag the reclassified account to its correct position (e.g. move the income account under the Assets section) using the hamburger icon on the left.
Click the pencil icon on the far right of the account to edit it.
Change the classification rule to Manual, and adjust the account type to reflect the correct classification. (if possible)
B) Delete/Recreate Source:
If possible; Delete any binders or Ledger files that are using the affected source.
Create a new binder or Ledger file.
Click the cog icon at the top right > select Manage Source > and delete the source.
When the new binder or Ledger file is created, a fresh source will be imported, reflecting the updated chart of accounts.
If the above doesn't resolve the issue, you may:
Delete all binders/Ledger files linked to the client (if they haven’t been used),
Then delete the client itself from Active.
Recreate the client manually or let it import automatically if you are using a practice management integration (e.g. XPM, MYOBPM etc.).
Finally, create a new binder and connect it to a new source. This will import the updated chart of accounts and classifications correctly.