I have a statement from a seller (Amazon) that shows a summary of the months sales, expenses and then how much they have paid into my bank account. On my accounts package, I have entered the expenses under Bills, I put the sales as a Sales invoice. So, for that customer (Amazon), they owe me money for sales, I owe them for bills and they pay me the difference.
How do I match these items together in my accounts package? Is it using credit notes or something? I need to show the bills as paid, the sales invoices received. Hope that makes sense.
Thanks,
Jon
Replies (7)
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You already received the answer on UKBF.
I don't understand why you need further answers.
A contra is not an account it's a type of accounting entry. In particular it's a debit in the purchase ledger account and a credit in the sales ledger account of the same customer / supplier.
Pragmatic
Both pieces of advice are correct. Occasional invoice offsets would suggest using contra entries which can be implemented using dummy credit notes. If these are frequent, then setting Amazon as a bank account is probably better if you are using Sage because that is the only type of account that will happily deal with debist and credits to match your invoices. If you have a different accounting package then the advice may be differenet but you haven't shared that with us.