CONTMENU - CONTRA INVOICES MENU
The CONTRINV process allows you to offset an Invoice or Credit for a Customer against outstanding balances on a Supplier.
The process asks for a Customer and Supplier, then an Invoice Number, Reference Number and Amount.
The entries are posted via the POSTCONT process, and may be viewed via the EDITCONT process.
The posting process creates adjustment entries in the Accounts Payable and Accounts Receivable areas for each line of the contra invoice entry.
The Accounts Receivable entries are automatically posted, and will be applied against the invoice it has identified. If the Invoice/Credit entries cannot be identified, they can be applied after posting via AROPENCR.
The Accounts Payable entries need to be posted via the POSTVOUC process.
You should make sure that the following is set up, prior to using the POSTCONTR process.
ARPARAM - Screen 3.
6) Contra Invoice Tax Code
7) Contra Invoice Clearing Account
You need to have the Contra Invoice Tax Code and Contra Invoice Clearing Account fields filled in.
The Contra Invoice Tax Code should be a zero percent GST Tax Code.
The Clearing Account is used to offset the AR and AP Transactions. The net movement of this account will be zero each time, but it’s best to use a dedicated clearing account for this.
Customer: Enter the Customer Code that you wish to contra.
Supplier: Enter the Supplier Code that you wish to contra
Reference: The Reference can be anything, although it cannot be an Invoice number that has been used for the Supplier previously. It is recommended to use something including the date, eg. “CLR15012007” or anything else that is meaningful to you. If you have multiple lines in the window you will need a different reference for each line.
Whatever you use here will display on Screen 2 of ARENQ under the Trx Ref No column
Description:This is simply tagging the reason for the entries – eg. “Offset January Invoices” or similar. This should be something that is meaningful to you.
Whatever you use here will display under the description column of the General Ledger Account (GLACTENQ) used in the posting.
Type: If you are offsetting Invoice Transactions the Type will be I.
If you are offsetting Credit Transactions the Type will be C.
AR Reference: This is the Invoice or Credit number that already exists for this Customer. ie. This Invoice/Credit already exists on the system.
If you use a valid Invoice Number the system will identify the Invoice Number and will automatically apply your Contra entry against this transaction.
If the system cannot identify the Invoice/Credit number the amount of the Contra will show as unapplied in ARENQ for the Customer. You can then use AROPENCR to apply the outstanding amounts.
Amount: This is the amount of the Invoice/Credit you wish to contra.
Edit List:Print a Contra Invoice Edit List to check for accuracy prior to posting.
Post:When you are satisfied as to the accuracy and completeness of your
Entries post them via the Post Contra Invoices Process - POSTCONT.
POSTCONT will create AR transactions to offset each of the outstanding Invoices/Credits entered. The date used for the transactions will be the date posted.
POSTCONT will also create equivalent “A”djustment type voucher entries that must be posted via POSTVOUC.
Once this has been done, the Customer and Supplier balances will have been offset.
EXAMPLE:
CUSTOMER
SUPPLIER
CONTRINV
The following details are entered into CONTRINV
These details are posted via POSTCONTR.
After running the POSTCONTR, the Customer Account via ARENQ then shows the following details:
Because in CONTRINV we entered the Invoice numbers in the ARRef Section, the System matched these details with the Invoice/Credit Numbers in the System and has automatically applied the amounts.
If you did not enter the exact Invoice/Credit Numbers in the CONTRINV process and then posted the details via POSTCONTR, the Customer Account in ARENQ Screen 2 would show the Original Invoices/Credits with an unapplied amount, as well as the Contra Transactions would show with the amounts unapplied. You could then apply these via AROPENCR.
The POSTCONT process creates equivalent ‘A’djustment vouchers that must then be posted via POSTVOUC.
After the POSTVOUC process is run, the APENQ for the TEST1 Supplier then looks like the following.
In this example you can see Voucher 41 which cleared Credit 396 from the Customer TEST1
In this example you can see Voucher 40 which cleared Invoice 3760 from Customer TEST1
In this example you can see Voucher 39 which cleared Invoice 3759 from Customer TEST1.
When you process the next payment to this supplier, you can ‘apply’ any unapplied amounts.
Contra Invoices Page 1 of 6