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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