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Contra entries

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If you have a customer who is also a supplier, you may want to offset outstanding customer and supplier invoices. This is known as making a contra entry. This article explains how to process automatic and manual contra entries in Sage 50cloud Accounts.



If you post a contra entry for an outstanding customer invoice of £/€150, and an outstanding supplier invoice of £/€200. The contra entry amount is £/€150.

After the contra entry is posted:

  • The invoice on the supplier's account is part paid with an outstanding value of £/€50.
  • The customer's invoice is fully paid.
  • Neither of the transactions appear on the current bank account.
  • The balance on the contra entry bank account is zero.

 NOTE: If the contra entry includes foreign currency values then a foreign currency bank account should be used for the contra. You can only process foreign bank contras using the manual method. The balance can be zeroed with a transfer between the foreign and base bank accounts.

Which contra method to use

Automatic contra entries are available in:
  • Sage 50 Accounts Plus on standard VAT scheme
  • Sage 50 Accounts Professional on standard VAT scheme
  • Sage 50cloud Professional on standard VAT scheme
Manual contra entries should be used with:
  • Sage 50 Accounts
  • Sage 50 Accounts Essentials
  • Sage 50cloud Standard
  • Sage 50cloud Essentials
  • If you operate the VAT Cash Accounting scheme
  • To offset outstanding credit notes and payments on account
  • CIS transactions - you can use the manual routine, however CIS transactions can't be part paid
  • Non-base currency transactions



Automatic contra entries


Reverse a contra entry

To reverse a contra entry you must delete or reverse the transactions posted due to the contra entry. To do this please identify the transaction and delete or reverse them as usual.


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