Best Approach
We use Standard (Calc On The Fly Share and Hierarchy Elimination).
What type of Rule should we leverage to reclass balances from one account to another during consolidation. For illustration purpo...
I'm not sure I understand the question, sorry.
You can do anything you want in consolidation rules. If you mean you have some data that needs to be moved from one Entity to the other (i.e. so it won't be consolidated on the source entity), you should load it against a dummy UD then copy it where it needs to go.
Generally speaking, for pure consolidation, member formulas do indeed fit better on individual members; and pulling data is better than pushing.
In this case, I would probably put the formula on U4#ReclassThis. It will only execute for that UD once per entity, and you can target multiple accounts from there if necessary.
