How to: Process ‘Contra-accounts’
- This procedure defines how to offset an accounts receivable item against an accounts payable item.
- Setup procedure:
- Processing the transactions:
- Enter an account distribution to the ‘Contra AR/AP’ account.
- Enter ‘Payment Received’ = zero.
- Right click on the applicable invoice row and click the ‘Add Adjustment’ button.
- In the ‘Account’ field, choose the ‘Contra AR/AP’ account from the drop down list.
- Enter the invoice balance negative value in the ‘Adjustment’ amount field (When you tab form the field, you will see the ‘Invoice Balance’ amount in the line above change to zero.)
- Enter a reference in the notes field for the payable ID#.