This example demonstrates recording a contra between customer & supplier who happens
to be the same person / entity.

Preparation

  1. Create a contra account (If it is not already created)
    1. Click on Accounting -> Chart of Accounts on left menu.
    2. Click New button on top right.
    3. Select Current Liabilities under Type.
    4. Enter Contra Account under Name.
    5. Click Save.
  2. Create a contact (If not already created)
    1. Click on Contacts on left menu.
    2. Click New button on top right.
    3. Enter their name under Display Name, eg. Test Contra Sdn Bhd.
    4. Tick both Customer & Supplier under Type.
  3. Record your sales invoice (Customer owes you money).
    1. Click on Sales -> Invoices on left menu.
    2. Click + Invoice button on top right.
    3. Select Test Contra Sdn Bhd under Customer.
    4. Add an Item, select any Product or just manually key in the Description.
    5. Update the Unit Price accordingly, eg. 1000.
  4. Record your purchase bill (You owe supplier money).
    1. Click on Purchases -> Bills on left menu.
    2. Click + Bill button on top right.
    3. Select Test Contra Sdn Bhd under Supplier.
    4. Add an Item, select any Product or just manually key in the Description.
    5. Update the Unit Price accordingly, eg. 500.
  5. Navigate to your Contact list and look for Test Contra Sdn Bhd.
    1. You should see RM500.00 under Payable, RM1,000.00 under Receivable.

Recording the Contra

Now you can follow the steps to do the contra, at the end of the process the contact Test
Contra Sdn Bhd
should only owe you RM500.00.

  1. Record the Customer Contra (RM500.00).
    1. Go to Sales -> Payments.
    2. Click + New on top right.
    3. Select Test Contra Sdn Bhd as Customer.
    4. Put 500 under Amount.
    5. Select Contra Account under Deposit To.
    6. Tick the Invoice that you want to knock off.
  2. Record the Supplier Contra (RM500.00).
    1. Go to Purchases -> Payments.
    2. Click + New on top right.
    3. Select Test Contra Sdn Bhd as Contact.
    4. Put 500 under Amount.
    5. Select Contra Account under Pay From.
    6. Tick the Bill that you want to knock off.
  3. The outcome.
    1. Check Test Contra Sdn Bhd under your Contact list, the Payable should be
      0.00, and the Receivable will be reduced to 500.00.
    2. The Contra Account should be zeroized every time you are done doing
      customer & supplier contra (You may refer to General Ledger report).

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