How do I deal with delayed payments/sales?

[Les]

On 08/29/2012 07:46 AM, mikedefieslife wrote:
> Hi, I'm new to GNU Cash.
>
> I have some accounting knowledge (high-school and university) but as it's 10
> years old, it's probably more of a hindrance than a help. 
>
> How do I deal with delayed payment when it comes to sales in GNU Cash?
>
> For example:
>
> I sell a service on 01/01/12 for £50, so I put that in my Sales account, but
> the client doesn't pay until 01/03/12 (yes they are very slow with payment).
> Now when I add the £50 sale to my sales account on 01/01/12, this will
> automatically add that balance to my Bank account too for the same date. 
>
> The problem is that the client doesn't pay until 01/03/12, so in GNU Cash my
> Bank account doesn't match what's actually gong on.
>
> Do I need a suspense account? How do I work this in GNU Cash.
>
> Thanks
>
>
>
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This is an accrual and as such, you need to add an accounts receivable
account.  This would be where your offset to sales is (instead of your
bank account.  Then, when you receive the payment, you would credit
accounts receivable and add the amount to your bank account.

01/01/12  debit AR for 50 and credit income (or sales).
01/03/12  credit AR for 50 and credit bank account for 50.

Hope this helps. 
Les