can anyone point me in the right direction my empolyer has a number of contra accounts
sales ledger against purchase ledeger recently with a client a sales ledger invoice was taken against a purcahse lesgder invoice which should never have happened obviously the client wants his money back next time we make a purchse payment to him how would i show this in a set off accounts!!!!
Easiest way is to set up a dummy bank account and process the offset as a sales receipt (for the sales invoice) and a purchase payment (for the purchase invoice)
eg Sale ledger balance £100, Purchase ledger balance £150. So effectively you owe the supplier £50 (net) but you want to net the £100 against the £150. Post £100 sales receipt and £100 purchase payment to a dummy bank account. Will be a receipt of £100 and a payment of £100 so the net effect on bank is £nil. The sales ledger will reduce by £100 to £nil and the purchase ledger will reduce by £100 to £50 so you end up with what you want ie to show you owe £50.
Hi
