Contra Revenue and Contra Expense Accounts

Contra revenue accounts are discounts to income. 

Within Martus, contra income accounts show on reports and are budgeted as negative numbers, reducing total income.

Contra expense accounts are reductions to expense. Within Martus, contra expense amounts show on reports and are budgeted as negative numbers, reducing total expenses.

For Sage Intacct Integrations

Sage Intacct has no setting that specifies whether an account is 'Income' or 'Expense', so when Martus syncs the Chart of Accounts from Sage Intacct, 'Normal Credit' accounts are set as' Income' and 'Normal Debit' accounts are set as 'Expense'.

However, Martus also supports using either 'Normal Credit' or 'Normal Debit' on contra revenue and contra expense accounts within Sage Intacct; depending on how accounts are defined in Sage Intacct, it may be necessary to make configuration changes in Martus to properly handle contra accounts.

• Setting the account type within Setup > Accounts determines whether the account is shown in the 'Income' or 'Expense' section on Martus screens. 
• Once you’ve made this change, lock the type to ensure that the account sync won’t update it.  
• The Reverse Sign setting reverses the sign on budget amounts as they are uploaded to Sage Intacct, so that they are added to Sage Intacct with the reverse of the sign used in Martus. The Reverse Sign setting also affects the process of pulling a budget out of Sage Intacct and into Martus (normally done only by Martus Support personnel at the time of implementation).
  
  

For all contra revenue accounts:

• Set the accounts to 'Income' and lock the type.
• If your contra revenue accounts are set to 'Normal Debit' in Sage Intacct, then also set the accounts to Reverse Sign.

For contra expense accounts:

• Set the accounts to' Expense' and lock the type.
• If your contra expense accounts are set to Normal Credit in Sage Intacct, then also set the accounts to Reverse Sign.
  
  
  

Illustration of the Martus Setup for Contra Revenue Accounts that are Normal Debit in Sage Intacct

Change Account Type

If you change the 'type' of an account after implementation, you will need to re-sync all months that have any transactions with this GL account. 

You will also want to consider how this change affects your budget. You may need to change the sign on currently-budgeted amounts.

You may also need to ask Martus Support to re-load any budgets that they pulled from Sage Intacct at an earlier point in the implementation process.

For QuickBooks Integrations

QuickBooks has a setting that specifies whether an account is 'Income' or 'Expense', and Martus uses this information when syncing the Chart of Accounts from QuickBooks.  

For contra accounts, you may wish to change the account 'type' to indicate whether the account is shown in the 'Income' or 'Expense' section on Martus screens.  

Once you’ve made this change, lock the type to ensure that the account sync won’t update it.

For File-Based Integrations

For File-Based Integrations, you control the account 'type' within Martus. 

Simply use the desired 'type to determine whether the account is shown in the Income or Expense section on Martus screens. 

You don’t need to lock the type, since there is no automatic account sync.