[GNC] Best way to close unpaid invoices?

Daffy Duck suffsuccotash at gmail.com
Sun Mar 7 20:21:29 EST 2021


David,

So if I add an entry in bad debt for

$500 from expense, transfer from assets:accounts receiveable

can I "assign" it to the specific invoice, or no?

On Sun, 2021-03-07 at 19:16 -0600, Daffy Duck wrote:
> David,
> 
> Thank you.  I realized what was happening from an accounting
> perspective, but I was wondering if I can do anything that addresses
> the reference in due invoices reminder?
> 
> On Sun, 2021-03-07 at 16:53 -0600, David Cousens wrote:
> > There is no need to zero out the invoice. It remains as it
> > originally was and
> > the debt remains on the books.  What the debt write off does is
> > correct your
> > income for the amount of income you expected to but didn't receive
> > and
> > adjusts the accounts receivable to reflect that you do not expect
> > to receive
> > that income. 
> > 
> > If you cancel out the invoice and at some future time the client
> > coughs up
> > the money, you will have no way of accounting for how that money
> > was
> > received but a simple adjustment allows you to reverse the bad debt
> > write
> > off and then record the payment against the original invoice.   
> > 
> > When you make a payment against an invoice normally, you do not
> > change the
> > amount of the invoice, itself but you increase the amount of an
> > asset(bank
> > account) and decrease the amount of the Accounts receivable (also
> > an asset )
> > by the same amount.
> > 
> > The invoice creates an increase in an income account  and an
> > increase in the
> > Accounts receivable when it is posted to you accounts. In the case
> > of a bad
> > debt you do not adjust the income but an expense account which has
> > the same
> > effect on your profit. Expense accounts can be regarded as contra
> > income
> > accounts.
> > 
> > This way your accounts contain a record of the events as they
> > affected your
> > finances at the time the events occurred. If they are annotated
> > well enough
> > anyone can reconstruct the sequence of events as recorded
> > 
> > David Cousens
> > 
> > 
> > 
> > -----
> > David Cousens
> > --
> > Sent from:
> > http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html
> > _______________________________________________
> > gnucash-user mailing list
> > gnucash-user at gnucash.org
> > To update your subscription preferences or to unsubscribe:
> > https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > If you are using Nabble or Gmane, please see
> > https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
> > -----
> > Please remember to CC this list on all your replies.
> > You can do this by using Reply-To-List or Reply-All.


More information about the gnucash-user mailing list