How to write off bad credit

[Wouter van Marle]

> > 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.
> 
> No. You reverse enter it. You decrease the A/R account by the remaining
> balance and enter that amount as an increase in Expense::Bad Debts.

That way it does not show up in the report of the customer. And that's
the problem. I have now done it the way you suggest. Still it's not in
the customer's report that it is cleared that way.

> > 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!
> 
> You should have an account Assets::Sales. You should have an account
> something like Assets::Sales Returns & Allowances. This account balance
> is a contra-account if my memory serves me. It should be a sub account
> under Sales. You *can* create an expense account Sales Refunds. This
> *should* be a contra-account under Sales.

Well I can just as well use the same Assets:Sales account for that, as
basically the actual value of the goods sold is decreased, which is why
a refund has to be made. But again that's not the real point: the point
is how to book it against that customer, so that it shows up in the
customer's report.

Wouter.

> It doesn't sound like the Gnucash do not wish to correct design flaws.