If I understand what you are talking about, purchase prepayments are removed from the account through the Payments module.  Without knowing any details of the entry, it's possible you need to set up a Purchase invoice first to put the money where it is supposed to go, then use the Payments to remove it from the Prepayments account and remove the invoice amount from Accounts Payable.

Normally Reclassification entries are not posted to the books, they are only used to present the financials to the CRA in the final tax reporting.

If I understand what you are talking about, purchase prepayments are removed from the account through the Payments module.  Without knowing any details of the entry, it's possible you need to set up a Purchase invoice first to put the money where it is supposed to go, then use the Payments to remove it from the Prepayments account and remove the invoice amount from Accounts Payable.

Normally Reclassification entries are not posted to the books, they are only used to present the financials to the CRA in the final tax reporting.

That is good to know.  I don't come across this often, as I usually have all prepayments used before year end.  I will check with the accountant for this company, and double check if it needs to be posted.  

It is a prepayment to Receiver General Corp to the previous year.  (2021)- installment payments.  There was never an invoice.  The accountant wants the amount to be credited to Purchase Prepayments, and debited to Corporate Taxes Payable - to reclass corporate tax installment payment from prior year.  

I would check with the accountant due to the "reclass" terminology they gave you but the nature of the entry leads me to believe it should have been in the Corp tax payable account from the time of payment so it should be posted.

There was nothing owed at the time of payment, it was the owner's decision to pay an installment payment