[GNC] Best way to close unpaid invoices?

[Daffy Duck]

Hi,

Thanks.  

"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."

This does not work.  I created an asset account under "Accounts
receivable" and I put the entry in for the $500, an increase.

I then tried to assign it as a payment to the invoice.  It said "you
must select a transfer account from the account tree."



On Mon, 2021-03-08 at 09:50 -0600, Adrien Monteleone wrote:
> *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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