A Contra Transaction is used to move an Invoice or Credit Note from an Accounts Receivable account to an Accounts Payable account. For Example, if a Franchisee has an Invoice to a Company Store, they can use a Contra Journal to process the Credit Note as a payment against the AR Invoice, and a Credit to collect on their AP account.
Go to Accounts Receivable > AR Transactions > Additional Customer Transactions > Contra Customer to Supplier
Enter your Accounts Receivable/Customer account and Accounts Payable/Supplier Account (Usually, this will be PEDDERS). Use the magnifying glass icon next to Invoice No. and select the invoice you wish to credit and click Reference. Confirm the amount to Refund. Enter any reference details you wish to put in, usually the credit note number. These will display in the Details Column on the respective accounts.
Click OK when done.
Proceed through the standard posting process. Once you return to the Contra Customer to Supplier Screen, press [ESC] once. Please Note. The date you enter here, will be the date of the transactions on the accounts.