[GNC] Revisiting the pre-paid invoice (coupon, credit note ...) issue:

[David Long]

Hi,
 one way I know works, but is a bit ugly, is to create your prepayment
account as a negative current asset. I do something similar as some members
of a club incur expenses on its behalf, which goes to their current account
as a negative asset, and I then use this to clear off invoices in their
receivable account using the invoice payment process which is equivalent to
your item 4 below.
Ugly though, as on the balance sheet report the current accounts not yet
cleared of to A/R appear as a negative asset rather than in the liability
section.
Regards
David Long

Your message :


Revisiting the pre-paid invoice  (coupon, credit note ...) issue:

In standard accounting a prepaid debt (aka a coupon, credit note, etc) is
booked as a liability.
On paper, and as direct import of transactions into GnuCash, this works
However, I abandoned the brute force transaction method since I really like
the GnuCash Invoice and Bill features: so I started fresh with imported
Invoices and Bills.




My real life example: client prepays for 13 1 hour tutoring sessions, $25
each; to be used over the next year:
1. New Invoice for the prepayment:
         Dr.    $325 Assets: Receivables        Cr.     $325 Liabilities:
Prepaid
2. Process Payment for the coupons
        Dr.     $325 Assets: Cash                               Cr.
 $325 Assets: Receivables

I 'earn' payment for an individual session when it is complete.
3. New invoice for that session
        Dr.     $25 Assets: Receivables         Cr.     $25 Income: Tutoring
4. and pay for it from the prepay
        Dr.     $25 Liabilities: Prepaid                Cr.     $25 Assets:
Receivables

GnuCash, however, appears to only allow payment of an invoice from an asset.
Is there a way GnuCash can accommodate this?
On Tue, 12 Jul 2022, 23:20 , <gnucash-user-request at gnucash.org> wrote: