Find this screen
Open: Customers > Enter Transactions > Contra Entry.
How to
Enter a contra entry
Open: Customers > Enter Transactions > Contra Entry.
Choose outstanding invoices from the customer's account to offset against the supplier's account.
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Enter the posting details:
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Bank Account Nominal Code - The nominal account for a bank account.
The contra entry is not posted to the bank account.
- Transaction date to use - The date for the transaction.
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- Enter or select the customer account.
- Enter or select the supplier account.
- Choose the transactions to offset:
- To select individual entries, select the check box in the Type column.
- To select all the transactions, click Select All.
- To select transactions up to a certain date, enter a date in the Automatically select transactions up to this date box.
- The difference between the selected customer and supplier invoices is displayed in the Difference box.
- Click Save.
Useful info
What is a contra entry?
Use this if you do business with a company who both buys from and sells to you (they act as both supplier and customer), and you want to offset a sales invoice against a purchase invoice. The purchase invoice effectively becomes a payment. This is often referred to as a Contra Entry.
To make contra entries there must be both a customer and supplier account for the company and the two accounts must operate in the same currency.
To make a contra entry you select outstanding invoices on the supplier's account to offset against the customer's account. Sage 200 creates a supplier payment and a customer payment which are then allocated to the selected outstanding invoices.
These payments are posted to the nominal account for the bank account but are not posted to the cash book and will not appear on your bank statement.
Fix it
Why are some invoices not displayed?
Only outstanding customer and supplier invoices are displayed.
The contra entries are not displayed on my bank account. Why is this?
The contra entries are posted to the Nominal Ledger only. As no payments have actually been processed by your bank, these transactions are not displayed in the Cash Book.
What happens when I
Save a contra entry?
- A supplier payment is created and allocated to the selected supplier invoices.
- The supplier account balance is updated by the payment amount.
- A customer receipt is created and allocated to the selected customer invoices.
- The customer account balance is updated by the payment amount.
The Nominal Ledger is updated. The transactions all have the same URN and a reference of Contra. This table shows the nominal account postings:
| Nominal Account | Debit | Credit |
|---|---|---|
| Debtors Control Account | Customer receipt | |
| Creditor Control Account | Supplier payment | |
| Bank Account | Customer receipt | |
| Bank Account | Supplier payment |
Note: If the invoice date is in a future period, it's not posted to the nominal accounts until the period is opened.