Contra

[FarmerH]

I sell some zero rated products through an Auction Mart. My payment slip from them shows the Gross sales amount, the marketing charges, the VAT charges on marketing and then the Net amount I am paid.
Can I log all this under Sales?
Or must I enter the marketing charges separately under purchases?

[QFSteve]

Hello @FarmerH

Generally the marketing charges would be recorded separately.

I did find the post below on the forum relating to contra payments you may find useful

Contra-Invoicing, Same Customer and Supplier, Netting-off receivables and payables

Do you have a recommended method for ‘netting-off’ customers who have made supplies i.e. transfer the balance on an unpaid purchase invoice to the Customers account and apply against outstanding invoices. Do not want to use a credit notes because that would understate values in the P&L.