Why can I not credit and debit the same account at the same time? What if I want to reclass something to a different cost centre within the same account? This validation doesn’t make any sense in accounting terms, is there a functional reason why it exists?
I think from accounting point of view it’s not logical to Dr and Cr same ledger account. Eventually that means passing an unnecessary entry.
But I get your point of reclassification among cost center. I would suggest use mediator helper ledger for reclassification of cost center.
JV1: Your ledger Dr… Cost Center 1
Helper ledger (misc expenses) Cr… CC1
JV2: Helper ledger (misc expenses) Dr… CC1
Your ledger Cr… Cost Center 2
I’m not sure if this help, but try and give feedback
@FinForce, I follow your logic. But let me walk you through a use case that I had over the last few weeks. I am implementing a very young company (Pre-revenue). He has had a number of expenses related to sourcing his product, organizing his company, securing his trademarks, etc. All of this was paid out of his personal checking account until he could get a corporate bank account established.
To enter these early expenses, I added his personal checking account as a Cash Asset, and made a Journal Entry for each transaction. Here is what they typically looked like:
Debit the Expense Category for $100
Credit Personal Checking for $100
Debit Personal Checking for $100
Credit Owed to Founder for $100 (this was an Equity account)
I did all of it in the same JV and it allowed me to show exactly how the expense was paid as well as make sure that once the company was making money, he could easily remove the funds that were used at startup and not have them considered a Distribution.
… and I did it without having to create twice as many JVs.
I was working in v.10.1.27 and had no trouble making the entries.
I think I identified the issue, in the import file I was assigning values to the wrong columns so it was actually trying to put debits and credits on the same journal entry account line. Once I fixed it the journal posted fine.