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Contra entries - 'The sales balance does not match the purchase balance - Do you want to make a part-contra for the lowest amount?'

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Summary

If you've a customer who's also a supplier, you may want to offset outstanding customer and supplier invoices. This is known as making a contra entry.

Description

TIP: To have the automatic Contra Entry feature in your software, you must be using Sage 50cloud Accounts Professional.  If not, you can post manual Contra Entries.  Read more >

When you make a contra entry, you pay the same amount off the customer and supplier account. However, the outstanding invoice values may not always exactly match the amount you want to contra. In the Contra Entries option, if the total of the selected sales invoices is different to the total of the selected purchase invoices, the following message appears:

'The sales balance does not match the purchase balance - Do you want to make a part-contra for the lowest amount'

If you click Yes, contra entries are posted for the lower of the two amounts. The ledger with the higher balance is left with the remainder outstanding for you to pay off separately.

If you click No, you return to the Contra Entries window where you can double check which transactions you've selected.

 

Example

You have a sales invoice for £100, and a purchase invoice for £80 which you want to contra.

In Contra Entries, when you select the two invoices and click OK, the message appears asking if you want to make a part-contra. When you click Yes, a sales receipt and purchase payment are posted for £80. The sales ledger is left with £20 still outstanding.