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

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(New page: {{Review}}{{Incomplete}} == Summary == This article will explain what a contra is and how to handle one within the Platinum System. == Additional Information == A Text book definition '...)
 
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{{Review}}{{Incomplete}}
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== Summary ==
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This article will explain what a contra is and how to handle one in Platinum.
  
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== Summary ==
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== More Information ==
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This article will explain what a contra is and how to handle one within the Platinum System.
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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".
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=== Entering a Contra ===
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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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Go into {{Menu|{{SL}}|Receipts}}.
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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.
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* 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 {{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|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|text=Try and avoid Bank or Cash Accounts as no money changes hands.}}
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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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==== Purchase Ledger ====
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Go into {{Menu|{{PL}}|Payments}}.
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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|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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* [[How do I find a customer?|How do I Find a Customer or Supplier?]]
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* [[Posting payments received]]
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* [[Paying suppliers]]
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* [[Recommended accounting routines]]
  
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== Additional Information ==
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{{KB_Tags|contra, payments}}
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A Text book definition  '''"In accounting, a contra entry is one which is offset by an opposite entry, either a debit or credit."''' in Platinum this would be an invoice on a account being paid off by a payment on a different account.
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{{FAQ}}{{How}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}
  
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To handle a contra you will need to:
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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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