[GNC] Best way to close unpaid invoices?

[Alan Hopkins]

   Hi all
   I'm new to GNU Cash but I just tested a method that worked and I think
   is valid.
   I went to the client's invoice and paid the full amount ($120) which
   then was entered by GNUCash into the Accounts Receivable.
   I then went into the Accounts Receivable account, located the payment,
   looked at the Splits (DR $120 Assets:CashOnHand, CR $120 A/R) and
   changed the splits to be Debit CashOnHand $60 Debit Bad Debts $60
   Credit Accounts Receivable $120.
   The invoice is recorded as paid and no longer appears in reminders and
   all the accounts are in the correct state.
   Maybe that may be of help!
   Cheers
   Alan

   On 8/3/21 4:06 pm, Keith Fetterman wrote:

I recall the original question was how to make the open invoices disappear from
the “Due Invoices Reminder” dialog.  Based on the explanation below, do the open
 invoices still appear in the dialog?  If so, how does one make them disappear?




------------------------------

Message: 7
Date: Sun, 7 Mar 2021 16:53:56 -0600 (CST)
From: David Cousens [1]<davidcousens at bigpond.com>
To: [2]gnucash-user at gnucash.org
Subject: Re: [GNC] Best way to close unpaid invoices?
Message-ID: [3]<1615157636594-0.post at n4.nabble.com>
Content-Type: text/plain; charset=us-ascii

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



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David Cousens
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References

   1. mailto:davidcousens at bigpond.com
   2. mailto:gnucash-user at gnucash.org
   3. mailto:1615157636594-0.post at n4.nabble.com
   4. http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html
   5. mailto:gnucash-user at gnucash.org
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