Stoddart and Reclaim & Timber have a Contra Deal in place. 

• Stoddart owns the QLD Factory and charges Rent, Electricity and Outgoings to Reclaim & Timber
• Reclaim & Timber supplies timber to Stoddart

The Contra Deal is managed monthly: the Rent is paid in advance, whereas the Timber supplies are paid in arrears. This means the Conta Deal mainly works on alternate months for Rent Vs Timber Supplies (i.e. Rent in June is used to offset the payment of the May Statement).

To manage the Contra Deal Account correctly follow these steps:

1. Statements are automatically emailed to Stoddart at the start of each month; 
2. Stoddart will email Remittance Advice showing the invoices' payments made, less the Rent Bill(s);
3. Pay the monthly rent Invoice to the Contra-Services Account;
4. Pay Timber Supplies Sales listed in the Remittance Advice to the Contra Services Account;
5. The outstanding balance in the Contra Services account represents the amount payable by / to Reclaim & Timber;
6. Once the payment has been made and appears on the Bank Feeds, post the payment to the Contra Services Account;
7. Check the Contra Services Account and make sure it balances to nil.

Pay the Timber Supplies to the Contra Services Account

1. Review the Stoddart Remittance Advice
   
   è  The Stoddart Remittance Advice
   
   
2. The total payment displayed on the Remittance is the difference between the Timber Supply invoices paid less the Rent Bill(s). This is payment expected to show on the Bank Feeds
   
3. Go to Sales > Create Invoice Payment
   
   è  The Record payment from customer screen opens
   
   
   
   
4. Select/Enter the following details:
   • Customer > Select: Stoddard Manufacturing QLD
   • Bank Account > Select: 1-1180 Contra Services Account
   • Date > Type the date of the Remittance Advice
   • Description of transaction > Type: Stoddard Contra Service #remittancedate
5. Allocate the payment to all Invoices listed in the remittance
   
   è  The Record payment from customer screen
   
   
   
   
6. Total the allocated invoice payments and subtract the Rent bills listed on the Remittance, the difference should equal the payment amount from the Remittance
7. Click on [Save]

Pay the Monthly Rent to the Contra Services Account

1.  Go to Purchases > Create Supplier Payment
   
   è  The Record payment to supplier screen opens
   
   
   
   
2. Select/Enter the following details:
   • Customer > Select: Tom Stoddard Pty Ltd
   • Bank Account > Check-Off Electronic Payment and select: 1-1180 Contra Services Account
   • Date > Type the date of the Remittance Advice
   • Description of transaction > Type: Stoddard Contra Service #invoiceno
3. Allocate the payment to all Rent Bill(s) listed in the remittance
4. Click on [Save]

Post the Payment to the Contra Services Account

1. Go to Banking > Bank Transactions
2. Find the Stoddart Payment
   
   è  The Bank Transactions screen
   
   
   
   
3. Click on Allocate and select: 1-1180 Contra Services Account
4. Go to Accounting > Chart of Accounts
5. In the Search box type: Contra Services
6. Make sure the account Current Balance is $0.00
   
   è  The Chart of Accounts screen