Sage 50 Accounts
Manual contra entries
If you do not have the feature to do an automatic contra entry you can do a manual entry in SAGE 50 Accounts, to offset outstanding customer and supplier invoices etc.
If you have a customer who is also a supplier, you can offset outstanding customer invoices (SI) and supplier invoices (PI). You can also pay off Sales Payments (SP) or Purchase Receipts (PR) that post when you refund a customer or supplier. This is a contra entry.
Create a contra entry bank account.
- Go to Bank accounts, then select New.
- Enter the relevant details for the new bank account:
A/C Ref * The nominal code you want to use for the new bank account.
Note: If you are using Sage’s default nominal ledger structure, use a number within the range of 1200 to 1239. These numbers are in the existing bank account range in the Chart of Accounts. This ensures that the bank balances appear correctly on your management reports.
Nominal Name Enter a description for the new bank account, for example, Contra Entries bank account.
A/C Type Select Cheque Account from the drop-down list.
No Bank Reconciliation If you do not want to run a bank reconciliation for this bank account, select this.
- Click Save then click
Post a sales receipt using the contra entry bank account
To clear the outstanding sales invoice(s) (SI) or Sales Payment(s) (SP) on the customer’s account, post a Sales receipt (SR) using the contra bank account.
- Go to Bank account, select the contra bank account, then click Customer receipt.
- Complete the Customer Receipt window as follows:
Account Ref The contra bank account appears.
Account Choose the required customer from the drop-down list.
Date Enter the date of the sales receipt.
Receipt Enter the required value in the Receipt field for the relevant transaction(s). This is the lower value of the contra entry. For example, if the SI is £250.00 and the PI is £200.00, enter £200.00.
- Click Save then click Close.
Post a purchase payment from the contra entry bank account
To clear the outstanding PI or PR on the supplier’s account, post a Purchase Payment (PP) using the contra bank account.
- Go to Bank accounts, select the contra entry bank account, then click Supplier payment.
- Complete the Supplier Payment window as follows:
Account Enter the required supplier’s account reference.
Date Enter the date for the purchase payment, use the same date as the customer receipt
Payment Enter the same value as the SR in the Payment box of the invoice item line. For example, enter £200.00 against the relevant outstanding invoice(s).
- Click Save then click Close.
The balance on the contra entry bank account will now be zero.
Reverse a Contra Entry
To reverse a contra entry, delete or reverse the transaction posted to the contra entry bank account in the normal way.
If you would help with creating a contra bank account and or doing contra’s entries, or reversing a contra entry or if you need any other help with your Sage 50 Accounts, please contact us
