How to write off bad credit

[Robert G Palmer Jr]

Wouter,

I just had a very similar (if not identical) issue.  And here is the  
best answer I got:

Create an Income account such as "Income:Credits and Discounts"
Post a payment for the customer to this "Income: Credits and  
Discounts".  Use the appropriate notes in the payment (e.g. Customer  
discount for...)
	- this will DECREASE the A/R
	- this will INCREASE Income:Credits and Discounts
	- you will see this as a NEGATIVE value on the Customer Report

Now, go to the A/R account and EDIT the payment account in the  
transaction, changing it to the correct account.

Search the list for "Entering a Credit" and "(We have a winner!)" -  
that was the tread on my question.

Robert

On Jan 16, 2009, at 1:50 AM, Wouter van Marle wrote:

> Hello Cam,
>
> That's yet another idea... and the main problem I have is that it does
> not show the transactions in the customer's report. This is really
> important to me as I must keep track of how much I owe them: the  
> payback
> is in instalments, and may also be cancelled by a new invoice to them
> for a new sale.
>
> I do not keep an A/R for each and every customer, I consider that too
> much work. I rather use the reports to check on customers, that is  
> also
> more transparent when I have to show it to the customer.
>
> I'm afraid GnuCash simply can not do here what I need it to do.
>
> For the business I'm anyway going to move to SQL Ledger, mainly for  
> the
> web based interface (not limited to a single computer/location),  
> and the
> better multi-currency support which is something that I really need to
> work better: buying in EUR, selling in USD, and the base currency is
> HKD... it just doesn't go well enough in GnuCash. I hope that package
> can handle this kind of transactions better.
> For my personal accounting I don't have this kind of issues so that's
> going to be GnuCash all the way, I know it so well after six years and
> it's a great solution for the basic stuff. SQL Ledger is overkill  
> there.
>
> Wouter.
>
> On Thu, 2009-01-15 at 22:11 -0800, Cam Ellison wrote:
>> 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
>>
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