Contra account

You can use a contra account within an allocation to maintain the balance in the original account for reporting and inquiry. If you use a contra account, then you will use it for the post from detail lines in the journal entry created for interface to GL.

Example

If you want to allocate 50 percent from account 41000's balance of $5000, then you can use contra account 42000 to allocate $2500 while keeping the integrity of account 41000's original balance.


	Account	Posting option	Percent
Post From	41000	C	.50
Post To	40000	A
Override	55000 55250


Account number	Debit amount	Credit amount
41000	5000.00
42000		2500.00
55000	2000.00	‘
55250	500.00