cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Processing a contra payment using online quickbooks

I've been looking on the web and can't see how to process a contra payment - it looks like the online quickbooks doesn't allow it? Specifically, I have a sales invoice for say £10,000 and a purchase invoice for say £2,000 of the same entity. They pay me £8,000 & I want to post this correctly.

 

Help would be greatly appreciated!

Solved
Best answer 05-01-2019

Accepted Solutions
Highlighted
Level 2

Re: Processing a contra payment using online quickbooks

Hi Lee

 

So what about the following as a solution:

 

1. When the money comes in from the customer click on 'split payment'

2. On the first line enter in your customer details, select the category 'debtors' and 'NO VAT' as the tax code. Enter in the amount you wish to allocate against the sales invoice

3. On the second line enter in your supplier details, select the category 'creditors' and 'NO VAT' as the tax code. Enter in the amount you wish to allocate against the supplier invoice. **This will be a minus figure**.

The split transaction should now balance and you can post it

4. Then you can allocate the supplier payment against the invoice it relates by raising an expense and adding the two transactions from the right hand side

5. The sales invoice and receipt can be allocated by using 'receive payment'

 

As a result your banking will be dealt with and the supplier and customer invoices will have the correct values allocated against them.

 

Hope this helps!

 

 

View solution in original post

2 REPLIES 2
Highlighted
Level 2

Re: Processing a contra payment using online quickbooks

Hi Lee

 

So what about the following as a solution:

 

1. When the money comes in from the customer click on 'split payment'

2. On the first line enter in your customer details, select the category 'debtors' and 'NO VAT' as the tax code. Enter in the amount you wish to allocate against the sales invoice

3. On the second line enter in your supplier details, select the category 'creditors' and 'NO VAT' as the tax code. Enter in the amount you wish to allocate against the supplier invoice. **This will be a minus figure**.

The split transaction should now balance and you can post it

4. Then you can allocate the supplier payment against the invoice it relates by raising an expense and adding the two transactions from the right hand side

5. The sales invoice and receipt can be allocated by using 'receive payment'

 

As a result your banking will be dealt with and the supplier and customer invoices will have the correct values allocated against them.

 

Hope this helps!

 

 

View solution in original post

QuickBooks Team

Re: Processing a contra payment using online quickbooks

Hey Lee,

 

You'd be better to speak to an accountant about this; there is more than one way to achieve this on your account, your accountant will be the best placed person to tell you what is appropriate for your account

 

We often see this being done via Journals, using Debtors and Creditors on the Journal; then linking the invoices and bills to that Journal, Whichever method you choose, likely Debtors and Creditors would play a part of this.

 

I'll leave this open to other users, to share their experiences and how they've implemented contra in their account.