Contra between sales and claim

Question

Hi. I've been stuck with this situation for weeks now.

Ok first of all, my company is operating taxi@cab rental. In the rental agreement, my company will bear all maintenance costs. So lets say, if the renter did some maintenance on the car and want to claim the cost but not in term of money, instead he want to set it off with his rental, how do i record it?

Rental for 1 day $80 - paid $70 in cash

I recorded it in Enter Sales and made a Receive Payment so the renter will have an open invoice of $10

Then he claim for maintenance

Maintenance claim - $110

How do i set off the open invoice with the claim?

How can i set off his next rental with the balance from the maintenance claim?

CloverQ · Accepted Answer

Hi @munirahalias

I would suggest following this online Help article to set up the contra deals - Dealing with a supplier who is also a customer.

While in your case the the claim is used to offset the expense, it will still need to be recorded in payment forms via the contra account. The claim payments are refunded from the contra account, then the invoice payments are received into the contra account to return its balance to 0. If the claim is not refunded in full, partial payment can be recorded as well.

It would be best talking to your bookkeeper/accountant for the best way to record these transactions suitable for your business set up. I hope this helps.