Request Contra Function in Journal Vouchers

Overview:

The Request Contra function in QNE Software simplifies the process of offsetting transactions between two accounts. This is especially useful when a business has both receivable and payable transactions with the same entity. Instead of manually recording separate payments, the contra function allows users to offset balances, ensuring accurate financial reconciliation while reducing manual data entry.

Scenario:

A company operates as both your customer and supplier. They purchase goods from your company, and in turn, your business also buys goods of equal worth from them. Instead of recording separate transactions and settling them individually, the Request Contra function allows you to offset these amounts, ensuring accurate financial reconciliation without unnecessary manual entries.

Solution::

1. Create a Journal Entry

• Navigate to General Ledger > Journal Vouchers
  
  

• Click Add to create a new Journal Voucher transaction.
  
  
• Enter the debit and credit accounts for the relevant customer or supplier, and ensure the amounts are correctly recorded.
  
  
• Click Save to finalize the entry.
  
  

2. Open Customer or Supplier Knock-Off

• Navigate to Account Receivable > Customer Knock-Off or Account Payable> Supplier Knock-Off.
  

• Select the customer or supplier associated with the contra transaction.
  
  

3. Match the Journal Voucher to Outstanding Receivables or Payables

• Locate the journal voucher created for the contra transaction.
  
  

• Match it against the corresponding outstanding invoice (Accounts Receivable) or outstanding bill (Accounts Payable).
  
  

4. Confirm the Contra Transaction

• Verify that the selected journal entry and outstanding transaction balance out.
  
  

• Click Save to complete the offsetting process.
  

Application:

Your company sells goods worth Php 5,000 to a supplier (who is also your vendor). At the same time, you purchase Php 5,000 worth of goods from them.

Step 1: Create the Journal Voucher

Debit: Accounts Payable – ABC Supplier – Php 5,000

Credit: Accounts Receivable – ABC Supplier – Php 5,000

Step 2: Match Transactions in Knock-Off

Open Customer Knock-Off or Supplier Knock-Off.

Select ABC Supplier and match the journal entry against the outstanding invoice or bill.

Step 3: Confirm the Contra Transaction

Once the journal entry and outstanding amount match, process the knock-off.

The system offsets the receivable and payable amounts, ensuring accurate reconciliation.