CountServa
Contras and Deemed Payments
Contras and Deemed Payments in CountServa let you settle open invoices and bills without any money moving through the bank. A Contra cancels what a contact owes you against what you owe the same contact, so only the difference is left to settle. A Deemed Payment (or Deemed Receipt) clears an open invoice or bill against another account, for example a write-off or a discount account. Both post a journal automatically and can be voided with a reversing entry. They are used by bookkeepers and accountants who deal with parties that are both customers and suppliers, or who need to record non-cash settlements.
Before You Start
- You need the Accounting module with the Create right to post, and the Void right to void. See Users, Roles and the User Portal.
- For a contra, the contact must be set up as both a customer and a supplier. Edit the contact under Contacts to enable both roles. See Contacts and Items.
- The documents you settle must be open (issued or partly paid).
Both screens are under Accounting, in the Records section of the sidebar: Contras and Deemed Payments.
Post a Contra
- Go to Accounting > Contras and press New Contra.
- In Contact (Customer & Supplier), pick the contact. Only contacts flagged as both customer and supplier appear in the list.
- Set the Contra Date. This is the date the offset is recorded and it decides which period it falls in. Add Notes if useful.
- Under Receivable Invoices (Cr AR), type how much of each open invoice to cancel in the Offset column.
- Under Payable Bills (Dr AP), type how much of each open bill to cancel in the Offset column.
- Check the totals bar. It shows Invoice Side and Bill Side and reads Balanced only when both sides are equal and above zero.
- Press Post Contra.
CountServa posts one journal: Dr Accounts Payable / Cr Accounts Receivable for the contra amount. The invoices and bills are reduced by the amounts you typed.
Contra Rules
| Rule | What Happens if It Is Broken |
|---|---|
| At least one invoice and one bill must carry an amount | The contra is refused: "Allocate at least one invoice and one bill." |
| Invoice side must equal bill side | The contra is refused and both totals are shown. |
| No offset may exceed the document balance | The contra is refused with the allocation and balance shown. |
| All documents must share the same currency and exchange rate | The contra is refused. Settle differing currencies with separate payments. |
| Every document must belong to the chosen contact and be open | The contra is refused. |
Post a Deemed Receipt or Deemed Payment
A Deemed Receipt treats a customer invoice as received without cash. A Deemed Payment treats a supplier bill as paid without cash.
- Go to Accounting > Deemed Payments.
- Press New Deemed Receipt for customer invoices, or New Deemed Payment for supplier bills.
- Pick the Customer or Supplier. The open documents for that contact load below.
- Set the Date.
- Choose the Offset Account. This is the account that absorbs the settled amount, for example a bad debt write-off or a discount account.
- Enter a Reference if you have one.
- In the Settle column, enter how much of each open invoice or bill to clear.
- Press Post Deemed Receipt or Post Deemed Payment.
How Deemed Settlements Post
| Direction | Journal |
|---|---|
| Deemed Receipt | Dr the Offset Account / Cr Accounts Receivable |
| Deemed Payment | Dr Accounts Payable / Cr the Offset Account |
All documents in one deemed settlement must share the same currency and exchange rate. Record separate deemed settlements per currency.
Void a Contra or Deemed Payment
- Open the record from the Contras or Deemed Payments list.
- Press Void Contra or Void Deemed Payment and confirm.
CountServa posts a reversing journal and reopens the amounts on the invoices and bills. The record stays in the list with the status Void, so the audit trail is kept.
Reference: List Columns
| Column | Meaning |
|---|---|
| Date | The contra or deemed date. |
| Contra # / Deemed Payment # | The document number, from your numbering settings. |
| Dir. | Deemed Payments only: receipt or payment. |
| Contact | The customer or supplier. |
| Offset Account | Deemed Payments only: the account that absorbed the amount. |
| Amount | The total settled. |
| Status | Posted or Void. |
Each record's view page also shows the journal lines (GL) and a link to the ledger entry, plus every document it settled.
Statutory Cautions
- Writing off a customer debt through a deemed receipt does not by itself make the bad debt deductible for income tax. Keep evidence of recovery efforts. For a formal write-off with its own trail, CountServa also has Accounting > Bad Debt Write-Off.
- A contra or deemed settlement does not change SST already charged on the original invoice or bill. If the supply itself changed, issue a credit note instead.
- If you file e-Invoices, a contra does not replace a credit note: it settles balances, it does not amend the supply.
Frequently Asked Questions
Why Is My Contact Missing From the Contra List?
Only contacts set as both a customer and a supplier appear. Edit the contact, enable both roles, then return to New Contra.
Can the Two Sides of a Contra Be Different Amounts?
No. The invoice side and the bill side must be equal. Settle the remaining difference with a normal receipt or payment.
Can I Use a Bank Account as the Offset Account?
No. CountServa blocks bank and cash accounts for deemed settlements, because money that actually moved must be recorded as a real receipt or payment.
What Happens When I Void?
A reversing journal is posted, the invoice and bill balances are restored, and the record is marked Void. Nothing is deleted.
Can One Contra Mix Ringgit and Foreign Currency Documents?
No. Every document in a contra must have the same currency and exchange rate.