gnucash-user Digest, Vol 85, Issue 28

[John R. Carter, Sr.]

On April 16, 2010 8:12:51 AM MST, edog5948 <edog5948 at yahoo.com> wrote:

> I have two customers.
> I have invoiced both customers
> 
> First customer has paid second customer amount of my invoice.
> Second customer has paid his invoice plus that amount of first customer.
> 
> How do I record this?

This is too straightforward as to be easy to miss.

You want to fulfill the requirements of double-entry accounting. You invoiced both customers and have receivables against both, and you expected to get paid from each individually, yet A gave B the money to give to you along with B's money, at least that's the effect.

Go ahead and record all the money received from B against his receivables. You will have an excess, a credit for B. In the same transaction (create a split), transfer that excess into A's receivables. That squares everything. Just make sure to note in both accounts (memo) how that transaction happened for future reference.
--
John Carter