Entering a credit

[Robert Stocks]

Both Credit and Payment Decrease the amount in the A/R account - the
difference is where the money goes to,

with a payment it goes to the bank account - with a credit i would
guess it goes back to the account it came from in the first place.
reducing the amount of income recorded (which was to high due to your
estimate being to high)

R.

2009/1/12 Robert G Palmer Jr <robertpalmerjr at mac.com>:
> Yes, you could record as a payment, which is my current work around.  I
> created a "Income:Misc Credits" account and make payments using that as the
> Income account.  The problem is that this is NOT correct double entry
> book-keeping.  A payment INCREASES the amount in an INCOME account.  This
> credit should really DECREASE the amount in the A/R account.
>
> Since my situation is so simple, a payment is acceptable (i.e., even if I
> were audited, the number of transactions and where they go/come from is
> small enough that I wouldn't have a problem).  However, the correct way is a
> CREDIT which, as I said, DECREASES the amount in the A/R account.  (I'm a
> bit of a perfectionist and like to do things the "right" way) To be able to
> use this for a business, it seems that CREDITS are a critical feature (am I
> wrong?).
>
> Robert
>
> On Jan 12, 2009, at 5:07 AM, Robert Stocks wrote:
>
>> I dont use the business stuff myself but could you not just record
>> this as a payment?
>>
>>
>> 2009/1/12 Robert G Palmer Jr <robertpalmerjr at mac.com>:
>>>
>>> Specific example:
>>>
>>> I manage my daughter's soccer team.  Each family owes for club dues
>>> and team fees.  Team fees are an ESTIMATE of how much it will cost to
>>> attend all tournaments for the season.  As I near the end of the
>>> season, I figure out how much it ACTUALLY cost to attend the
>>> tournaments.
>>>
>>> I want to issue a credit for the difference between the ESTIMATE and
>>> the ACTUAL cost.
>>>
>>> Unpost and reposting is not a good option for two reasons:
>>> 1. the family already has a copy of the invoice
>>> 2. the credit will NOT appear in the customer report as a line item -
>>> the change in the customer report consists simply of the invoice
>>> value changing (by the credited amount) so the total owed by the
>>> customer does change, but I want them to see the credit in the
>>> Customer Report.
>>>
>>> I really like the Customer Report because it shows how much each
>>> family is expected to pay AND all payments (and hopefully credits)
>>> they made/received during the season.
>>>
>>> Thanks,
>>> Robert
>>>
>>>
>>> On Jan 11, 2009, at 7:38 PM, Cam Ellison wrote:
>>>
>>>> Robert G Palmer Jr wrote:
>>>>>
>>>>> I think this question may have gotten lost in the middle of the other
>>>>> questions I asked.
>>>>>
>>>>> How do you enter a credit in GnuCash?
>>>>>
>>>>> If I create an Invoice for a given amount: e.g. $100, and post the
>>>>> invoice
>>>>> Later, for whatever reason, I decide that the customer only owes $50.
>>>>>
>>>>> How do I enter a $50 credit in such a way that it appears on their
>>>>> Customer Report as a credit?
>>>>>
>>>>>
>>>> If you did not actually issue the invoice to the customer, the
>>>> simplest
>>>> thing is to unpost the invoice and correct it.  If the customer has
>>>> received the original invoice, you could still do this, and send the
>>>> replacement.
>>>>
>>>> If the customer has already paid, that's more complicated.  If this
>>>> is a
>>>> repeat customer, and there is a new invoice, you might unpost the
>>>> original invoice as above, and correct it.  There would then be a
>>>> credit, which should show up on the Customer Report.  I'm
>>>> speculating at
>>>> this, because I rarely run the Customer Report.  The difference should
>>>> show in the total, but only if you unpost and amend the original
>>>> invoice.
>>>>
>>>> HTH
>>>>
>>>> Cam
>>>>
>



-- 
Robert