How do I nett off invoices paid by contra

Question asked by Graeme Clark 9 years ago

I regularly accept part-exchange items against new ones. VAT rules require that these are accounted for by separate invoices for the full amounts and not by 'reversal' or 'contra'
So my customer also becomes a supplier. I buy an item for £100 and sell him a new one for £400. he pays me £300.
I make the entry into CB and am left with an unpaid purchase invoice of £100 and an unpaid sales invoice of £100. How do I 'cancel' or 'net-off' these two invoices in Clearbooks

3 Replies

Hi Graeme,

To settle contra payments you will first need to create a bank account and call it contra account.

You can then net off the bill and invoice with this account and, in the case of an outstanding balance, transfer from the contra account to your business account or vice versa if you owe money.

Kind regards,


Thanks for that; It took a while to get my head around that but I did eventually; in essence it is a "virtual account" where the money resides for just a few seconds as it s received from the sale and almost immediately goes out again to pay the purchase!

why is there not a proper contra routine ?
we already have the feature to set up an entity as supplier and customer
I am sure this would be of wide interest

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