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Recording a Contra between Customer & Supplier
Recording a Contra between Customer & Supplier
Ben Liew avatar
Written by Ben Liew
Updated over 7 months ago

Recording a contra refers to transactions that balance out or offset each other, simplifying record-keeping. You can use it when handling situations like owing money to a supplier who also owes you money.

This article demonstrates how to record a contra in two different scenarios.


Scenario 1 - contra of the same amount:

  • Ali is both a customer and a supplier to your company.

  • Previous Transaction: Ali made a purchase from your company for a total of RM300. You created a Sales Invoice to Ali.

  • Current Transaction: Today, your company buys something from Ali worth RM300.
    You created a Purchase Bill for this transaction.

  • Ali requests to do a "Contra" between these two transactions to simplify the settlement process.

1. Go to Accounting > select Contras.

2. Click + New.

3. Select your Customer and your Supplier/Employee.

(in this case, select Ali as both your customer and supplier)

4. Tick the Sales Invoice that Ali owes you in this contra (RM300).

  • the remaining contra is shows RM300(x). You need to select a purchase bill to knock off this amount.

5. Tick the Purchase Bill to you owed Ali(RM300)

  • once both the sales invoice and purchase bill are selected, Bukku will automatically knock off the amount and it shows RM0.00(tally).

6. Scroll down and click Save.

Outcome:

Both Ali's invoice and your bill to Ali will be knocked off, resulting in a settled transaction.


Scenario 2 - contra with different amounts:

  • Ali is both a customer and a supplier to your company.

  • Previous Transaction: Ali made two(2) purchase from your company for a total of RM300 and RM450 respectively. You created a Sales Invoice to Ali.

  • Current Transaction: Today, your company buys something from Ali worth RM500.
    You created a Purchase Bill for this transaction.

  • Ali requests to do a "Contra" between these three transactions to reduce the amount owed.

  1. Repeat above step 1, 2, and 3 from previous scenario.

  2. Tick the Sales Invoices that Ali owes you (RM300 & RM450).

    • note that the total of both sales invoice Ali owes you is RM750(blue box).

    • adjust to combined total of RM500(red box) in the Apply Amount to knock off your bills.

  3. Tick the Purchase Bill that you owes Ali (RM500).

    • when the same total apply amount of both invoices and bills is entered, the remaining balance will be RM0.00.

  4. Scroll down and click Save.

Outcome:

  • Your outstanding bill with Ali will be knocked off, resulting in a settled transaction.

  • Ali's IV-00005 is partially paid. Ali would need to pay the remaining RM250 in a different transaction to settle his bills.


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