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easy contra between same customer aka suppier

Before we engaged freeagent.com, we have trial run a few on-line accounting app and some desktop software as well. Beside freeagent has relative short learning curve (10 mins with freeagent.com as compare to 2 week training of other software), it also could automatically link customer to suppliers in the case of contra payment.

Other software would differentiate "customer" and "supplier", and one would have to make internal linkage (contra payment in bank account) to ensure it would generate the proper statement of account. It can be frustrating if you have a few customers also happen to be your suppliers as well. You would have to make 2 entries for the contra payment and actual bank reconciliation.

Freeagent seems to be able to do in a simple method.

However, we might not be using it for long as its Tax report may not complied to Malaysia GST Taxaion (even though it is proven it could handle far much complex taxation issue). Since our subscription ends in July 2015, perhaps we still push the tax report to the max to see if it could be accepted by Malaysia Custom.
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  • Hi Shaw,

    Thanks for your post today.

    If you have a contact that is a supplier as well as a customer we would advise that you create the bill and the invoice against this contact.

    You would then need to enter 2 manual bank account entries (like this http://www.freeagent.com/support/kb/banking/enter-bank-transactions-manually?utm_source=Support&...)to net these off against one another.

    If the amount of the invoice and the bill are the same the entries would be:

    1) a receipt for the amount of the invoice; choose Money In > Invoice Receipt > select the invoice.
    2) a payment for the amount of the bill; choose Money Out > Bill Payment > select the bill.

    The net effect on your bank account is £nil but the bill and the invoice will both be marked as fully paid.

    If the invoice amount is more than the bill, the entries would be:

    1) a receipt for the amount of the bill; choose Money In > Invoice Receipt > select the invoice.  This will partially pay the invoice off.
    2) a payment for the amount of the bill; choose Money Out > Bill Payment > select the bill.

    The net effect on your bank account is £nil but the bill will be marked as fully paid and the invoice will show as part-paid up to the value of the bill.

    If the bill amount is more than the invoice, the entries would be:

    1) a receipt for the amount of the invoice; choose Money In > Invoice Receipt > select the invoice.
    2) a payment for the amount of the invoice; choose Money Out > Bill Payment > select the bill.  This will partially pay the bill.

    The net effect on your bank account is £nil but the invoice will be marked as fully paid and the bill will show as part-paid up to the value of the invoice.

    Hope this helps today Shaw, but if you do have any further queries please do not hesitate to email us at support@freeagent.com

    Michelle Smith 
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