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

From Catalyst
Jump to: navigation, search
m
Line 1: Line 1:
−
{{Review}}{{Incomplete}}
+
{{Review}}
 
== Summary ==
 
== Summary ==
−
This article will explain what a contra is and how to handle one within the Platinum System.
+
This article will explain what a contra is and how to handle one in Platinum.
  
 
== Additional Information ==
 
== Additional Information ==
−
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.
+
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.
  
−
It is possible to Contra between two sales Ledger accounts, two Purchase Ledger accounts or one of each.
+
== 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 to "Sales Ledger" -> "Receipts".
 +
* At the {{DataPrompt|Account:}}, type in the customer's account code if known, or [[How do I Find a Customer?|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 {{KeyPress|ESC}} when the payment total is correct.
 +
* At {{DataPrompt|Cheque No./Comment}}, type {{DataValue|Contra}}.
 +
* At {{DataPrompt|Payment Centre}}, type {{DataValue|Z990}} Suspense Account. 
 +
{{Note|text=Try and avoid Bank or Cash Accounts as no money changes hands.}}
 +
* Press {{KeyPress|ESC}} and click {{DataValue|A}}.
 +
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.
  
−
=== Sales Ledger to Sales Ledger ===
+
=== Purchase Ledger ===
−
To contra Between two Sales ledger accounts you will need to go to "Sales Ledger" -> "Receipts".
+
Go to "Purchase Ledger" -> "Payments".
−
*At the {{DataPrompt|Account:}} type in the customer's account code if known, or [[How do I Find a Customer?|search]] for the customer.
+
* Carry out the same process as for the Sales Ledger above, paying particular attention to the Value and the Payment Centre.  
−
*Click on the payment and press {{KeyPress|F}} for full payment this will move the amount in {{DataPrompt|Balance Held}} and place it in {{DataPrompt|Payment}}.
 
  
−
{{Note|text=It is advised for the payment centre that the amounts are paid of to are a form of suspense account as standard this would be {{DataValue|Z990}} "Suspense Account". Try and avoid the Bank Accounts as no money exchanges Hands.}}
+
{{Warning|text=The amounts to be "contra'd" must be the same value for the contra to work.}}
−
 
 
−
{{Warning|text=The Amounts to be paid of and Contra have both got to be the same value for the contra to work.}}
 
  
 
{{FAQ}}{{KB_Tags|contra, payments}}{{KB_SL}}{{KB_PL}}{{ZN_Accounts}}
 
{{FAQ}}{{KB_Tags|contra, payments}}{{KB_SL}}{{KB_PL}}{{ZN_Accounts}}

Revision as of 11:00, 22 September 2008

 This article or section is under review.
Be aware: Content may change as the document is reviewed.

Summary

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

Additional 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.

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 to "Sales Ledger" -> "Receipts".

  • At the "Account:", type in the customer's account 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 <Esc> when the payment total is correct.
  • At "Cheque No./Comment", type 'Contra'.
  • At "Payment Centre", type 'Z990' Suspense Account.
Try and avoid Bank or Cash Accounts as no money changes hands.
  • Press <Esc> and click 'A'.

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.

Purchase Ledger

Go to "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 amounts to be "contra'd" must be the same value for the contra to work.


Feedback
Thank you for using our Knowledge Base, we value your feedback. Did you find this article useful? 'Yes' or 'No'
Keywords AND Misspellings
contra, payments
Retrieved from "https://www.catalyst-uk-support.com/kb/index.php?title=How_do_I_deal_with_contras%3F&oldid=5244"