[GNC] Best way to close unpaid invoices?

[Derek Atkins]

Adrien,

On Mon, March 8, 2021 10:54 am, Adrien Monteleone wrote:
> You should refrain from making manual entries or edits in AR/AP. It
> isn't that you can't or that anything will blow up, but you may forget
> that the Business Features will not see those edits/transactions where
> you might expect them to.
>
> If you really need to make manual edits/entries, create an 'Other AR/AP'
> account, as a child of the main account, and make sure it is of type
> 'Asset/Liability' and *not* of type 'AR/AP'. (there can be only 1 of
> each of those)
>
> With the method listed below, the Business Features (and their reports)
> 'think' the customer paid when they did not.

I would suggest that the method Alan used below is EXACTLY the RIGHT thing
to do, and indeed it's exactly how I would (and have) handled bad debts in
the past.

Manual adjustment of payment transactions is explicitly allowed, so long
as you don't change the split tied to the AR/AP account.  But changing the
transfer account from Cash to Expenses:Bad Debt, or even splitting the
Cash split like Alan did, is perfectly acceptable.

> See my other reply describing how to close these out properly in GnuCash.

-derek

> Regards,
> Adrien
>
> On 3/8/21 2:33 AM, Alan Hopkins wrote:
>>     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!
>
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-- 
       Derek Atkins                 617-623-3745
       derek at ihtfp.com             www.ihtfp.com
       Computer and Internet Security Consultant