I am trying to do contra entries, but the Sage I am using does'nt have the " contra entries" functions , how should I record the entries then.. Hope someone can help me...
If you are contraing sales and purchase invoices, you could always use credit notes to clear the respective invoices, although there may be ramifications for VAT, so be careful.
Hi, I usually create a dummy bank account. Then enter the actual contra amount using customer receipt & supplier payment onto account. This will create a £0 balance on the dummy bank account and a contra payment on account required.
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
There is a contra wizard in Sage however I do find this lacks information (tools/contra). You will note on using the contra wizard it does not show any credit notes on the accounts, just invoices. The newer versions do mention contra.
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
I must admit I've always used the credit note method, but I make sure both credits (one on sales and one on purchases for the same amount)are posted to the same nominal account - preferably once specifically for contras or use something like the misposting account and use the reference contra so it's clear what it relates to. Also ensure the vat code is T9. This method will ensure turnover and purchase totals are not altered and the vat is not affected.
The end result is the same of course either a bank account with a nil balance or a 'contra' account with a nil balance (or even a debit and corresponding credit within (say) sales).
I've always prefered credits as I think you can enter more narrative and references etc but they do mess your daybook reports up so if you use them beware. So I may consider using a 'bank account' seems to make a lot of sense.
