Invoice and type of account

[Geert Janssens]

On Sunday 15 February 2015 19:25:43 Martin Mizur wrote:
> Hi
> I'll try to give you an example:
> 1. Start with the contract, but I do not know how long the work will
> take, or not sure that will be paid after all
> 2. I get an advance
> - Write it on account payables

This is wrong: money you receive in advance should still be posted to an account receivable.

I assume you are using the business features to handle invoices. If not, you shouldn't even be 
using accounts of type "A/Payable" or "A/Receivable".

The way to properly handle an advance payment from a customer in gnucash is via
Business->Customer->Process Payment...

Enter the amount you received and make sure you deselect any invoices still unpaid. The post-
to account should be you accounts receivable account and the transfer account (probably) your 
bank account the customer paid you on, or cash account if you received the money in cash. 

> 3. Work in progress
> 4. Take another advance
> - Write it on account payables

Use the same procedure as above to enter another pre-payment to *accounts receivable*

> 5. Invoice you, I want to record the total amount of the contract, but
> also both received advances.

Now it's time to create your invoice via
Business->Customer->New Invoice...
Add the full amount of the contract on the invoice. Ignore the advance payments at this point.

Post the invoice.

Hit the "Process Payment" button (right most button on the toolbar). Select the invoice and 
both payments in the payment window. Gnucash will automatically suggest a payment for the 
still outstanding amount (invoice amount - amount of two advance payments). You can change 
this to 0 though because you haven't received the final payment yet. Then hit ok.

At this point gnucash will know you have created an invoice for the full amount of the contract 
and that you have received two payments for it.

If you choose to print this invoice (second button on the left) it will open a preview (report). You 
can change the invoice options to list the advance payments if you like (third button from the 
right on the invoice report).

Regards,

Geert