Should the Retained Earning be updated following Misclassified code fix?

Hi All,

One of our clients has a misclassified account - An account was created as an Expense rather than an Asset, this in turn meant that a code combination was created incorrectly as an expense, which meant that this was treated as an expense at year end, the balance didn't roll forward as a balance sheet code should but was included in the retained earnings.

In a test environment I've gone through the Oracle fix to correct Misclassified Codes, which in brief involves the following:

1.            Identify all the code combinations that are misclassified

2.            Zeroise the balances on the code combinations with the problem in the period they occurred