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Post Info TOPIC: Sage Instant Accounts 2011, doesn't allow contra entries for traders who are custs and suppliers
Tom


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Sage Instant Accounts 2011, doesn't allow contra entries for traders who are custs and suppliers
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 I have a situation where a trader is both a customer and a supplier. How do I post money (Chq) from the trader ? I want to use the bank nominal code 1200.

Specifically, we invoice the customer for say £ 3 K.  They invoice us for £ 700.00.  I've posted the invoices okay. We have now recived a chq from them for £2,300.00. 

 It is not a payment on account, it has to be allocated against these specific invoices, however, i do not understand how to do this. (Sage 50, I know allows you to do contra's but Instant (which I have doesn't)).

Can someone please explain very simply !  Thank you in advance.



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HendyPhilhendy


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Just use the cash account, or set up a dummy bank account. Ensure that the balance on this account is always £nil.

i.e. raise a sales invoice for £100 and a purchase for £75, net effect is that a debtor of £25 exists

Dr Debtors, Cr Sales £100

Dr Purchases, Cr Creditors £75

Dr Creditors, Cr Dummy bank £75

Dr Dummy bank, Cr Debtors £75

Overall effect

Sales £100
Purchases £75
Profit £25

Debtors £25





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Tom


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thank you for your reply.  However, I have already posted the invoices.  It's the incoming chq that I don't know how to offset.



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annepebo


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If you use the dummy bank account as suggested by Phil then -

1. post the £2300 cheque actually receivied via your normal bank account to the customer's account.

2. post the £700  'contra receipt' to the customer account using the dummy bank account and allocate both receipts against the relevant invoice.

3. post the £700 'contra payment' to the relevant supplier account using the dummy bank account and allocate.

The two transactions in the dummy bank account will cancel each other leaving a nil balance.

Hope this helps

 

 



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Anne P
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