What are the reclassification journal used for in the ARM module. Give a concrete example with FX variance

AI generated answer (using internal Slack threads):

Reclassification journals in the Advanced Revenue Management (ARM) module are used to correct or adjust revenue recognition entries. They are typically triggered when revenue is booked (through the month-end Journal Entry run) which has yet to be billed. In the absence of an invoice, a counter Journal Entry booking for unbilled receivables is created. For example, if a mistake was made in a prior period, or a transactional issue or item issue is encountered, and a sale or fulfillment is fixed, these adjustments would appear in the reclassification list. In the context of foreign exchange (FX) variance, let's consider a scenario where open foreign-currency denominated Accounts Payable (APs) and Accounts Receivable (ARs) are imported using the original foreign currency amount and original exchange rate. When the foreign currency revaluation process is run, the unrealized FX gains and losses calculated would be between the original exchange rate and the closing exchange rate. If there were unrealized FX gains and losses already recorded in the legacy system, a reclassification journal would be needed to correct this. The correct approach would be to create a reversing Journal Entry on the first day of the new period (e.g., 7/1/21) on the unrealized FX gains and losses from the end of the previous period (e.g., 6/30/21). This way, when the FX revaluation process is run in NetSuite, the new unrealized FX is the net of the reversal and the cumulative as of the end of the new period (e.g., 7/31/2021). ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******