I have a Supplier who also has a sales account with us. A little problem has been thrown at me. The supplier has paid his customer account but deducted the monies we owe him. One cheque which totals the difference between the two. How do I make these entries in Sage.
The best way is to post a receipt to the customer account for the balance, using 'CONTRA' as the reference to indicate that's what it is, and then post a payment for the same amount and reference to the supplier account.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
The Sage method is to create a dummy bank account called Contra (I think some versions have a Contra function built in, which may be done automatically)
Make a payment to the supplier account for the full amount using this account - that clears the debt. As Vince says use Contra as the reference
Receive a payment for the full amount to this account from the customer account - that clears the customer account. contra reference
That should leave a debit balance equal to the cheque received. Do a bank transfer from the Contra to Current and use a meaningful reference to pick it up when you do a bank rec (overtype TRANS)
That should leave nothing in the Contra account and new debit in the current
Dependant on the year and version of your product, just use tools / contra entries which allows you to offset amounts. No need for any dummy nominal's.
The contra entry tool works in a way that might not be appropriate for the VAT, depending on what scheme you are on. Posting a payment and matching receipt covers all cases.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Many thanks for your replies. I will look into all suggestions. Am curently using Sage 50 v.11 and will look at the tools options available in this case.
