If you have an invoice for a customer and a bill from this same contact you can use the steps below to make a contra payment.


First, you will need to create a contra bank account and then pay off both the bill and the invoice with this account. Finally, you will need to transfer the difference from the contra account to the business account or vice versa.


In this example, the invoice is £25,478 and the bill is £9.59. The contra payment will, therefore, be a transfer of £25,468.41 from the Contra account to the business account.

Step 1.


Navigate to Money > Bank Accounts and


Bank accounts

Step 2.


Click on the Add account button.

Step 3.


Fill in the Bank Name as Contra and hit the Save button to proceed.


contra account

Step 4.


Navigate to Sales > Invoices and click on the Unpaid tab.


Sales


Unpaid

Step 5.


Click on the appropriate invoice number under the Invoice# column.


invoice#

Step 6.


Fill in the required details of the quick pay form towards the bottom right of the menu. Make sure to select the Contra account in the Bank Account drop-down box.


Hit the Pay button to proceed.


quickpaycontra

Step 7.


Navigate to Purchases > Bills and click on the Unpaid tab.


Bills


Step 8.


On the unpaid bills menu, click on the appropriate Bill ID under the ID column.

billidcontr

Step 9.


Fill in the required details of the quick pay form towards the bottom right of the menu. Make sure to select the Contra account in the Bank Account drop-down box.


Hit the Pay button to proceed.


quickpaycontrabill


Step 10.


Navigate to Money > Bank Accounts.


Bank accounts


Step 11.


Click on the Transfer link beside your Contra account.


(Use your business account if you are paying the difference).


contra transfer


Step 12.


Fill in the required details of the form for the transfer then click the Transfer money button to proceed.


transfercontra


Step 13.


Select your business bank account in the Transfer to drop down list and hit the Confirm transfer button to complete.


transfer tab