How to write off bad credit

[Cam Ellison]

Wouter van Marle wrote:
> 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)
>   
Do not create a new invoice.  Unpost the original and show a discount in 
it - let's say it is a percentage of the total.  Using your figures, it 
would be (ASCII equivalent of the unposted invoice):
Date             Invoiced?   Description               Action         
Income Account            Quantity      Unit Price       Discount      
   Tax            Subtotal      Tax
2009-01-15   X               Services                     Project      
   Revenue                              1            10,000.00      %   
<   12                           8,800.00   0.00

Then post it.  Now with the payment having been received for the full 
amount, the customer has a $1200 credit, and the invoice is cleared.  
You should be able to now make the refund to the customer, with the 
appropriate A/R account as the other account in the transaction (that 
is, from chequing account to A/R).  I have tried this on my own system 
and it works.
> 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!).
>   

I agree - it doesn't allow for it.  This is the way around it - at least 
it seems logical to me.  There's no need to post another invoice, nor a 
negative one.

As the saying goes: YMMV - but it should work

Cheers

Cam