Arranging Contra Payments - Easily Offset Debtor And Vendor Balances

Arranging Contra Payments Overview

Contra payment transactions are necessary when a Client also functions as a Vendor, and there is a need to offset either a debtor balance or a vendor balance against each other. This enables businesses to manage their financial relationships with Clients more efficiently and effectively, particularly in situations where there are outstanding balances on both the debtor and vendor sides.

To pay a Client

  1. Create a Client Journal (CJ) and apply it to the Suspense account. 
  2. Go to Accounts > Payables > Money Payment and do a Money Payment (MP) from the Suspense account to your client.

To pay a vendor is the reverse of the procedure outlined above.

You can review our Blog and YouTube channel for additional information and resources on SapphireOne ERP, CRM and Business Accounting software.

Was this helpful?