[GNC] Best way to close unpaid invoices?
Adrien Monteleone
adrien.monteleone at lusfiber.net
Mon Mar 8 10:50:21 EST 2021
*note* none of the below is accounting or tax advice, but how to use
GnuCash to accomplish the goal of 'clearing' the invoices while
following general accounting practices.
Here's how to handle both using the Business Features so GnuCash sorts
everything properly and can 'see' what you are doing.
-----
For Bad Debts, set up an account called "Allowance for Doubtful
Accounts" as a child of AR. (be sure to make this of type 'Asset')
You can then 'pay' the invoice using this account as the source.
This will cause the invoice to be closed by GnuCash and it will be
removed from the Due Invoices Reminder.
Then make a manual entry zeroing out this amount between Allowance for
Doubtful Accounts and Expenses:Bad Debts account.
-----
For the reduced invoice, you can either edit the original after
un-posting and adding in the eventually issued discount and re-posting.
(which of course, alters the original amount, but you see the discount
so you can figure out what it was if needed)
*or*
You can issue a credit note for the discount and link it with the
invoice when recording as a payment. (thus offsetting the original
balance) That way, both the credit note and the original will disappear
from the Invoices Due Reminder as they are now both 'closed' entirely.
Personally, I like this method as it preserves everything as originally
done, rather than making edits.
Regards,
Adrien
On 3/6/21 10:35 PM, Daffy Duck wrote:
> Hello,
>
> I have some clients that, for whatever reason, I didn't finish work for
> because something happened, so we ended the transaction without the
> full payment.
>
> They continue popping up on invoice reminder, etc.
>
> I have another client who I have agreed to settle for a lesser price
> than that which was billed.
>
> In these cases, how do "close" the invoice but still have the ability
> to see the details if you ever have to? What is the recommended way to
> do this?
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