USA Journal entry debit and credit charges

[Intern]

Hello,

I have a journal entry question - I have to create journal entry for a PO that was submitted to a cost center (eg. dpt 1000); however, this order was suppose to be charged to cost center (1002) but (1002) was not set up with vendor so they had to use (1000), so these costs will need to be charged to cc (1002). I need to create a journal entry and move these costs. How do i show the expenses hitting cost center (1000) that need to go to cc (1002)?

Would it be like this:

GL Account GL account description Debit Amt Credit Amt Cost Center
00000001 Charges to (1002) $100 1002
00000002 Item ordered (1000) $100 1000

 

[smallbushelp]

Credit the expense account that was used when you first entered the PO and associate it with cost center 1000 then debit the same expense account for the same amount and associate with cost center 1002.

 

[Intern]

Credit the expense account that was used when you first entered the PO and associate it with cost center 1000 then debit the same expense account for the same amount and associate with cost center 1002.

So it would be like this :

GL Account GL account description Debit Amt Credit Amt Cost Center
00000001 Charges to (1000) $100 1000
00000001 Item ordered (1000) $100 1000
00000002 Charges to new cc (1002) 100 1002

 

[Intern]

first line should be debit,
second line will be credit,
third line will be debit

 

[smallbushelp]

Your example confuses me because you have three lines and I don't know your system. Let me see if I can clarify.

If I were to enter a PO (or an invoice) into QuickBooks, the transaction would look like this:

Job materials (expense account) $1000 DB 1000 (class or cost center)
Accounts payable (liab account) $1000 CR 1000

Then the correcting journal entry would look like this:

Job materials $1000 DB 1002
Job materials $1000 CR 1000

This way, the credit removes the amount from the expense account and the incorrect class, and the debit puts the amount back into the expense account with the correct class. Can your accounting system do that with a JE?