Difference between revisions of "How do I deal with contras?"

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The word '''Contra''' here is used in the sense of setting one amount against another, where no money changes hands. For example, you may have a customer who is also a supplier, and you owe them £100 and they owe you £125. If you agreed to "contra" the balances, your supplier should send you a payment of £25, i.e. £125 - £100, the difference between the two values, and the £100 is "contra'd".
 
The word '''Contra''' here is used in the sense of setting one amount against another, where no money changes hands. For example, you may have a customer who is also a supplier, and you owe them £100 and they owe you £125. If you agreed to "contra" the balances, your supplier should send you a payment of £25, i.e. £125 - £100, the difference between the two values, and the £100 is "contra'd".
  
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== Entering a Contra ==
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=== Entering a Contra ===
 
Two entries must be made for any contra, one in one direction and one in the other direction so that there is no overall effect on the company - you are simply matching one entry off against another.
 
Two entries must be made for any contra, one in one direction and one in the other direction so that there is no overall effect on the company - you are simply matching one entry off against another.
  
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=== Sales Ledger ===
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==== Sales Ledger ====
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Go to {{Menu|{{SL}}|Receipts}}.
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Go into {{Menu|{{SL}}|Receipts}}.
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* At the {{DataPrompt|Account:}}, type in the customer's account code if known, or [[How do I Find a Customer?|SEARCH]] for the customer.
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* At the {{DataPrompt|Customer:}}, type in the customer's code if known, or [[Do I have to remember all these customer and supplier codes?|search]] for the customer.
 
* Pay off the invoices and credit notes shown to the value of the agreed contra. In the example above, this would be £100 and would leave a £25 balance. This may involve making a part payment against an invoice or credit note.
 
* Pay off the invoices and credit notes shown to the value of the agreed contra. In the example above, this would be £100 and would leave a £25 balance. This may involve making a part payment against an invoice or credit note.
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* Press {{KeyPress|ESC}} when the payment total is correct.
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* Press {{Button|Done}} when the payment total is correct.
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* At {{DataPrompt|Cheque No./Comment}}, type {{DataValue|Contra}}.
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* At {{DataPrompt|Cheque no./Comment}}, type {{DataValue|Contra}}.
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* At {{DataPrompt|Payment Centre}}, type {{DataValue|Z990}} Suspense Account.
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* At {{DataPrompt|Payment centre}}, type {{DataValue|Z990}} Suspense Account.
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* Press {{Button|Done}} then choose {{Button|Accept}}. You are now able to go back in and pay the invoice off with the new cheque or leave it unpaid until your next payment run.
  
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{{Note|title=PLEASE NOTE|text= Try and avoid Bank or Cash Accounts as no money changes hands.}}
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{{Note|text=Try and avoid Bank or Cash Accounts as no money changes hands.}}
  
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* Press {{KeyPress|ESC}} and click {{DataValue|A}} to Accept.
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This sorts out the customer side of the contra. If there is an additional balance that has been paid by the customer, post this as normal.
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This sorts out the contra on the customer account. If there is a balance that has been paid by the customer, post this as normal.
 
  
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=== Purchase Ledger ===
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==== Purchase Ledger ====
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Go to {{Menu|{{PL}}|Payments}}.
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Go into {{Menu|{{PL}}|Payments}}.
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* Carry out the same process as for the Sales Ledger above, paying particular attention to the Value and the Payment Centre.  
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* Carry out the same process as for the {{SL}} above, paying particular attention to the {{DataPrompt|Value}} and the {{DataPrompt|Payment centre:}}.
  
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{{Warning|title=WARNING|text={{Red| The amounts to be "contra'd" must be the same value for the contra to work.}}]]
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{{Warning|text=The Value and the Payment Centre must be the same value for the contra to work.}}
  
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== See Also ==
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== See also ==
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* [[:Category:Getting Started|Getting Started]]
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* [[How do I find a customer?|How do I Find a Customer or Supplier?]]
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* [[Getting Started - Accounts]]
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* [[Posting payments received]]
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* [[Recommended Accounting Routines]]
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* [[Paying suppliers]]
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* [[Creating a New Customer/Supplier]]
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* [[Recommended accounting routines]]
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* [[How do I Find a Customer?|How do I Find a Customer or Supplier?]]
 
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* [[How should I handle takings?]]
 
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* [[Posting Payments Received]]
 
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* [[Posting Purchase Invoices]]
 
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* [[Paying Suppliers]]
 
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* [[How do I print an Aged Debtor or Creditor List?]]
 
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* [[Reconciling your bank account]]
 
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* [[How can I View Turnover Statistics for this account?]]
 
  
 
{{KB_Tags|contra, payments}}
 
{{KB_Tags|contra, payments}}
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{{FAQ}} {{KB_SL}}{{KB_PL}}{{ZN_Accounts}}
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{{FAQ}}{{How}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}
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 +
{{KB_Ref|PL04, SL04}}

Latest revision as of 05:33, 19 June 2019

Summary

This article will explain what a contra is and how to handle one in Platinum.

More Information

The word Contra here is used in the sense of setting one amount against another, where no money changes hands. For example, you may have a customer who is also a supplier, and you owe them £100 and they owe you £125. If you agreed to "contra" the balances, your supplier should send you a payment of £25, i.e. £125 - £100, the difference between the two values, and the £100 is "contra'd".

Entering a Contra

Two entries must be made for any contra, one in one direction and one in the other direction so that there is no overall effect on the company - you are simply matching one entry off against another.

Sales Ledger

Go into " Sales Ledger Receipts".

  • At the "Customer:", type in the customer's code if known, or search for the customer.
  • Pay off the invoices and credit notes shown to the value of the agreed contra. In the example above, this would be £100 and would leave a £25 balance. This may involve making a part payment against an invoice or credit note.
  • Press [Done] when the payment total is correct.
  • At "Cheque no./Comment", type 'Contra'.
  • At "Payment centre", type 'Z990' Suspense Account.
  • Press [Done] then choose [Accept]. You are now able to go back in and pay the invoice off with the new cheque or leave it unpaid until your next payment run.
Try and avoid Bank or Cash Accounts as no money changes hands.

This sorts out the customer side of the contra. If there is an additional balance that has been paid by the customer, post this as normal.

Purchase Ledger

Go into " Purchase Ledger Payments".

  • Carry out the same process as for the Sales Ledger above, paying particular attention to the "Value" and the "Payment centre:".
The Value and the Payment Centre must be the same value for the contra to work.

See also


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Keywords AND Misspellings
contra, payments
Tags

PL04, SL04

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