Contra Accounts

Contra accounts can be used to reconcile transactions for amounts owed between companies, i.e. companies that are both Suppliers and Customers to each other. For example, your company may have Supplier Invoices totaling $7,000 and Customer Invoices totaling $10,000 for another company and would be owed $3000 in total.

The Contra account can be used to do a Customer Receipt and the corresponding Supplier Payment. This ensures the transaction amount is recorded but not included in banking statements.

Companies that are Suppliers and Customers to each other should:

1. Exchange a list of invoices with the other company.

2. Enter the payment amount as a Supplier Payment into the contra account. See Entering a Payment.

3. Enter received amount as a Customer Receipt into the contra account. See Receipting a Customer Payment.

4. The company still owing an amount will pay their remaining debt to be processed in Moveware in the normal manner.

To set up a contra account:

1. Navigate to General Ledger > Setup in the main menu. Click the Add button.

2. Set the account Type to Assets and the Class to Posting.

3. Enter the account name as “Contra” and enter the Subcode (starts with 11 to group in Assets).

4. Select the Status of the account to Active.

5. Set Linked Account to Banking Account.

6. Set the Restrict field to N.

7. Set the Tax Code and Currency fields to your company defaults.

8. Enter the specific Branch and/or Cost Centre the contra account applies to.

9. Click Save.

Note: Accounts will only be created for the Cost Centres set up for a Branch (regardless of the Cost Centres selected). To determine if the selected Cost Centre is allowed for the Branch, check the Cost Ctr field on Details tab of the Branch Management window.