What is a Contra Transaction?

A contra transaction is an accounting adjustment used to offset the financial effect of an existing transaction without deleting or altering the original record.

In Mobiloan, contra transactions are primarily used after a transaction has been reconciled through the day-end cashbox reconciliation process and can no longer be edited or deleted.

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Why does Mobiloan use contra transactions?

Once a transaction has been reconciled, it becomes part of an official accounting record. Editing or deleting it would compromise:

• Audit trails

• Financial integrity

• Day-end reconciliation accuracy

Contra transactions allow users to correct balances while preserving the full transaction history.

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When can a transaction be edited or deleted?

Before reconciliation:

• Manual transactions are considered to be in a volatile state

• Amounts can be adjusted

• Transactions can be deleted if entered incorrectly

This flexibility exists because the transaction has not yet been locked into a day-end reconciliation.

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What changes once a transaction is reconciled?

After day-end cashbox reconciliation:

• The transaction becomes locked

• Editing or deleting is no longer permitted

• The transaction forms part of the permanent audit record

This follows standard accounting principles, where reconciled transactions must remain unchanged to ensure traceability.

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How do I correct a reconciled transaction?

If a reconciled transaction is incorrect, you have two options depending on the scenario:

1. Create a contra transaction

   • Posts an equal and opposite entry

   • Neutralises the original transaction’s impact

   • Keeps the audit trail intact

2. Create a new manual transaction

   • Used when a direct contra is not suitable

   • Offsets the total balance to reflect the correct cash position

Both methods ensure the cashbox balances correctly without altering historical data.

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Why not just delete the transaction?

Deleting reconciled transactions would:

• Break reconciliation integrity

• Obscure what actually happened

• Fail audit and compliance requirements

Contra transactions make corrections explicit, visible, and auditable.

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What is the key principle behind contra transactions?

The core principle is accounting transparency:

What happened must remain visible — only the financial effect may be corrected.

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Where can I learn how to perform a contra transaction?

The Mobiloan User Guide provides step-by-step instructions on how to perform a contra transaction, including the available options based on transaction type and reconciliation status.

👉 Select the link below :

Reconcile Transactions | Mobiloan User Guidedocs.mobiloan.io