Keeping your ledgers balanced all the time
Yes, you read it correctly: Hybrid journal entry. Like the currently ubiquitous Prius that runs on both electric and fuel, this type of journal entry is capable of leaving its footprint into duo environments at the same time!
It's really a nice, easy way to make an impact on your twisted subsidiary ledgers position from your favorite general ledger platform.
The entries will debit the GL expense account as usual. But on the other side, pick 'Vendor' instead of having 'Ledger' as the account type and the Vendor Name account (eg. ABC123) instead of the GL Account code for the Trade Creditors.
The beauty of this method is the system will automatically process the entry as if it was processed in A/P module although you actually posted it in the GL module. Therefore the amount is now sitting in the A/P module thereby eliminating the need to reconcile between GL and SubLedger.
Another reason for going hybrid is that the main Creditor account itself should ideally be 'locked' and made inaccessible for direct posting by GL-level users. This is because direct posting to this 'control account' will upset the apple cart altogether creating unnecessary reconciliation work at month end. (EJ - 7/06/13)
