- Browse to one of the following menu options:
Posting Details > complete the following information:
- Sales > Enter / Change Journals > Enter / Change Customer Credit Notes / Credit Journals (option 222).
- Purchase > Enter / Change Journals > Enter Change Supplier Credit Notes / Debit Journals (option 322).
Customer Details or Supplier Details > Code > enter the customer or supplier code. Alternatively, press F2 > select the relevant customer or supplier from the lookup list.
||Ignore this option.
||Enter the date you want to post the contra entry for.
||Choose Contra with PL or Contra with SL, as applicable.
Note: To process a contra entry, you must have the relevant company set up with both a customer and a supplier record. If you haven't done this already, TASBooks will prompt you to create the appropriate record for this company.
Invoice Details or Credit Note / Journal Details > complete the following information:
To save the journal > Save > when prompted to save the transaction > Yes.
||Enter a reference for this transaction.
||Enter the required date.|
||Edit the description if required.
||Enter the amount of this transaction.|
||Ignore this option.
Note: There's no VAT on this transaction, as VAT was calculated on the original invoices you entered on the Sales and Purchase ledger for this company.
||The total amount calculates automatically here.
Once you enter the contra journal, the transaction automatically posts to the customer and supplier accounts simultaneously, without using a vat rate.
What effect does a contra entry have on the nominal ledger?
This reduces the balance on the Sales Ledger Control account, which is a current asset and also reduces the Purchase Ledger Control account, which is a liability. By reducing the current asset, the total value that you are owed by your debtors has been reduced. In reducing the liability, the total value that you owe your creditors has been decreased.
What effect does a contra entry have on the customer and supplier account?
This posts an unallocated payment on both the customer and supplier account. The type is X for contra
entry and will be in red on the relevant account enquiries.
You will then need to allocate this payment to the outstanding invoices on both ledgers.