contra charging feature

[srinivasu]

hi
Please scribe contra charging and its importance in ap,and ar.





help me out
srinivasu

[byswamy]

Hi All

Contra charging means when the customer and supplier are the same u will go for contra charging.

Ex: U rised transaction in AR for 10000, by mistake or any other reason he made 11000. so now we have to pay 1000 to customer. we cant pay 1000 rs in AR. for that we use AP for paying the money..

Ex2: A supply the rawmaterial(iron) to the B. A needs the machins from the B. so A plays the supplier and customer

Setups. Define supplier as customer and VAT registration number should be same.

when u run the contracharging report, it displays the payments, receipts and difference amount

based on this eaither u pay or recieve the money


Regards
swamy

[Murthyoracle]

Hai Swamy the example with scenario is really good and clear. I am having small doubt that, you are telling that Contra Charging Report , can we treat this as Supplier Customer Netting concept and if so ,we can run Supplier Customer Netting Programme from Payables.

Let me clarify.

thanks in advance,
Murthy