Contra Entry Postings

On the Customer Account

A contra sales receipt is posted with the system date, a reference of CONTRA and a details description of Contra Receipt.

The contra sales receipt is allocated to the invoice(s) automatically, and in full.

The account balance (the amount of money the customer owes you) is reduced accordingly.

On the Supplier Account

A contra purchase payment is posted with the system date, a reference of CONTRA and a details description of Contra Payment.

The contra payment is allocated to the invoice(s) automatically, and in full.

The account balance (the amount of money you owe the supplier) is reduced accordingly.

In the Nominal Ledger

The total amount owed to you by your customers, as shown in the debtors control account, is reduced by the contra sales receipt amount (a credit posting).

The money in the default bank control account is increased by the contra receipt amount (a debit posting).

The total amount you owe your suppliers, as shown in the creditors control account, is reduced by the contra purchase payment (a debit posting).

The money in the default bank control account is reduced by the contra payment (a credit posting).