Contra entries (offset sales debt)

If you are dealing with a customer who is also your supplier you can offset your sales invoices against your purchase invoices, provided both accounts operate in the same currency. The purchase invoice effectively becomes a payment. This is commonly referred to as a Contra Entry.

The outstanding transactions on the selected customer account and supplier account are displayed. You can select the entries to offset against each other individually or you can select several by specifying a date range.

When the entries are selected the total amount, calculated as a positive or negative value, is displayed.

Once you save the contra entry, payment and receipt transactions are generated and allocated to the invoices. They are given a reference of Contra.

The balances on the accounts in Sales and Purchase Ledgers are adjusted and the appropriate nominal accounts in the Nominal Ledger are updated.

Note: This option does not apply cost centre breakdown.

• Sales, Purchase and Nominal Ledgers are updated to represent the debt reduction for both the customer and supplier accounts.
• Sales Ledger balances and the customer total balance are adjusted.
• Purchase Ledger balances and the supplier total balance are adjusted.
• Payment and receipt transactions are generated and allocated to the invoices.