The contra feature in MoneyWorks is not to offset between customers owing or between the outstanding of a customer and a supplier. A contra, in MoneyWorks accounting system, is to knock off the credit note of the same customer or supplier with their invoice.
Let’s say you received a credit note of US$414.30 from a foreign currency supplier and going to use it to offset the outstanding purchase invoice of $41,430.
The first method is to select the credit note while making a payment to the supplier. This method may be more “controlled’ to some users as you can dictate the bank account, date, and credit amount to use.
Another method is to use the contra invoice feature from the command menu to offset the credit note against the invoice. Highlight the available credit note and follow the contra invoice wizard to select the invoice to offset. It’s simple and easy.
However, this method does not have an option of changing the contra date and credit amount used. A dummy bank account, which is the bank account used in your last transaction, will add to the contra payment transaction. Since the dummy bank account is the account used in the previous transaction, and there is no accounting impact; therefore, whether the currency matches the transaction currency or not is immaterial.
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Software: MoneyWorks accounting system
An inventory system helps to monitor stock efficiently. Other than updating the stock on hand, the inventory system takes care of the product costing and value of the inventory when you enter a bill or sales invoice. The system debit (increase) the inventory asset account when goods purchased and credit (reduce) when sold. Although you only record a Sales or Purchase Invoice entry form, the accounting systems which has a built-in inventory system takes care of the accounting entry automatically.
Besides taking care of the stock movement, MoneyWorks version 8 has multiple location features which monitor the quantity and cost of the inventory from different warehouses (or branches). You decide where to store and pick up the stock from when recording the purchase or sales invoice, and both the stock quantity and value transferred automatically when the stock moved across warehouses (or branches). You no longer need to update the stock manually with a spreadsheet, turn on multiple locations tracking in MoneyWorks and start to monitor the stock from multiple warehouses (or branches).
MoneyWorks gives you a big business capability at an affordable price. Try it out today!
MoneyWorks | Desktop & Cloud-based accounting systems for Small Businesses
Cognito has released MoneyWorks version 8, which is a major upgrade with the improvement such as:
- Multiple Location / Warehouses
- Serial/Batch number tracking
- New database storage format results in smaller data files.
- More user/custom fields and larger field capacity.
- Multiple-section forms in forms designer
- Account security levels and improved privilege control with User Roles
- Unlimited contacts per Name record
View the full change history at Cognito website.