[GNC] Handling Prepayments

Adrien Monteleone adrien.monteleone at lusfiber.net
Tue Apr 30 21:11:43 EDT 2019


I forgot to mention, it is okay to use the Process Payment for pre-payments, but you’ll still need to link that to the posted invoice to clear it. Simply use Process Payment again after posting and select both the pre-payment and the invoice. GnuCash will use up the portion it needs to cover the bill and leave the rest as a pre-payment for the next one.

Regards,
Adrien

> On Apr 30, 2019, at 8:09 PM, Adrien Monteleone <adrien.monteleone at lusfiber.net> wrote:
> 
> Be certain not to manually enter pre-payments into AP. Ideally, create a Current Asset account called something like ‘Pre-Paid Expenses’. (and make subs for each such service if you have more than one)
> 
> Enter the payments between your cash/checking/card account and this pre-paid expense account.
> 
> When the bill comes in, post it. Then process a payment for it using the pre-paid asset.
> 
> This is common with many tech services (such as web hosting) and insurances. Some are billed later, some are billed and paid up front and expensed as you ‘use them up’ each period. In that case, you can accomplish the expense with a Scheduled Transaction if you like.
> 
> Note, you don’t have to involve the Business Features if you don’t want to. But be sure if you are using it, not to manually edit AP. (or AR)
> 
> Regards,
> Adrien
> 
>> On Apr 30, 2019, at 4:16 PM, David Burleigh <david.burleigh at saphar.net> wrote:
>> 
>> I have a vendor (a VOIP service provider) that requires prepayments for
>> all services. So the way I have been doing this is to process a payment
>> to that vendor, which gives me a credit balance with them. Then, at the
>> end of the month, I post a bill from that service provider for the
>> total cost of the services used during that month, which is less than
>> the credit balance I have with that vendor. But the next time I start
>> up GnuCash, the "Due Bills Reminder" pops up and shows me that "unpaid"
>> bill, which is in fact "paid" out of the credit balance. 
>> 
>> So, my question is, how can I make those reminders go away? Or is there
>> a better way to account for these transactions?




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