How to write off bad credit

[Wouter van Marle]

On Thu, 2009-01-15 at 20:02 -0800, Cam Ellison wrote:
> Wouter van Marle wrote:
> > Exactly... and there is the core of the problems. To clear the report I 
> > basically need to enter a negative amount, and write that off to an 
> > expense account.
> >   
> Well - you cannot do that - GnuCash won't let you.  I still say the way 
> to go is to enter a Bill for the amount of the advance, just as you 
> would if the supplier had sent you an invoice.

Then I could just create an extra COGS account or so to allow for that.
Sounds reasonable. It's a cost of the goods sold in a way, after all.
And COGS is an expense account already. It's just that I don't really
like the idea of a fake invoice but well I have to account for it
somehow.

> > Closely related: I have another customer who had a claim against me 
> > (material supplied and paid for, but after arrival quality was poor so 
> > I have to give them some refund). In this case I have to make actual 
> > cash payments, even more reason to have them in the customer reports, 
> > so I can keep track on how muhc I owe them!
> >
> >   
> That's more complicated.  You could unpost the original invoice and show 
> a discount.  You could show a discount on a subsequent invoice (though 
> if you are using GnuCash to print invoices that won't work).  Either 
> would show the correct amounts, but of course there won't be anything in 
> the report to remind you of what happened. 

Actually I don't use GnuCash to print invoices, so the first part I do
already: unpost the invoice, add an extra line for the claim discount,
post it again. So now this supplier has overpaid me:

Original invoice: $10,000
Payments done: $10,000
Balance: $ 0

Now add $1200 discount:
New invoice: $ 8,800
Payments done: $10,000
Balance: ($1,200)

The trouble with GnuCash is that it doesn't allow for returning
payments... very irritating in this case. I don't see any way how to
clear it: can't post negative invoices and pay them with a negative
amount or so... customer and vendor are also fully separate (in my
situation vendor and customer is sometimes the same - I sometimes buy
from and sell to the same company!).

Wouter.

> 
> HTH
> 
> Cam
> 
> 
> 
> 
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