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