Subtitles of the Movie

Now we can finally make the contra payment. We owe the supplier 300 dollars and they owe us 200 dollars so overall, we owe them 100 dollars. Method of applying this contra payment may seem strange at first but it does make sense in the end. On paper we're going to pay each other 200 dollars. This will wipe out their 200 dollar debt and it will also wipe 200 dollars off of our debt, leaving us with the 100 dollars that we owe them. This contra payment will happen in two parts. We're going to receive a 200 dollar payment from this company's customer card and then we're going to pay 200 dollars to their supplier card. So for the first half, go to the Sales Command Center and click Receive Payments. And this is where the contra suspense account comes in. At the top change the account to Contra Suspense. Select the customer card and enter 200 dollars in the amount received. Then click in the Amount Applied Column, which will apply 200 dollars. Hit the Tab Key and the out-of-balance amount is zero so we can record this. On paper, they've just paid us 200 dollars. Now, go to the Purchases Command Center and click Pay Bills. Once again, set the account at the top to the Contra Suspense Account and select the supplier card, enter the same 200 dollars in the Amount Field at the right and then apply it to the entry in the middle. Hit the Tab Key once again and the out-of-balance amount is zero so we can record this as well. On paper, we have now paid the supplier 200 dollars. Now open the Purchases Register and select the Open Bills Tab and check out the bill. We now owe them 100 dollars. As I mentioned at the beginning of this lesson, the benefit of all of this is that both companies don't have to each make a bank transaction. We make a few adjustments within MYOB and then we're left with only one payment that has to be made. And that's it for this lesson. Let's move on.