How to handle a "will not pay" invoice in gnucash?

Julie Cliffe thisjcliffe at yahoo.ca
Sun Jan 3 12:40:32 EST 2016


Hi,
I'm using the business features of GnuCash (2.6.3) to invoice and track payments of customers.  One customer with whom I do a lot of business has indicated that they will not pay one of their invoices (sigh).  My accountant told me to transfer the A/R amount to Expenses (Bad Debt).  What's the best way to do this?
Having asked that question, it might be too late and I might actually need some kind of retro-fix advice.  I tried to deal with this a while back and I can't recall exactly what I did, but now I have the following entries:
    BadDebt    dr    x.xx
    A/R            cr        x.xx
and 2 LotLink transactions, 1 dr and 1 cr.  The Type of the BadDebt transaction in the A/R account is "?".

On the books, everything looks OK:  there's a BadDebt expense, everything is balanced, and the invoice is no longer in the list of open invoices.  However, there's a straggling "Prepayment" item in my list of invoices for that customer that I'd rather not look at.  Can I make that go away somehow?
And, for future reference, can you suggest how this should have been done in the first place?
Thanks,Julie






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