[GNC] Should one use Accounts Payable if a vendor is paid immediately ?

[David Cousens]

David,

Accounts Receivable and Accounts Payable are really intended for the situation
where the vendor is extending credit to you or vice versa. It's main advantage
is as a tool to manage what is owed to you and what you owe to maintain cash
flow. 
If you receive payment immediately all you need is to create a transaction
debiting your relevant bank account and crediting the appropriate income
account. If there is some external record you can use the ability to associate
an image file of it with the transaction.  Similarly if you pay a vendor
immediately you can simply create a transaction crediting your bank account and
debiting the appropriate expense account and associate an image of the receipt
with the transaction.

David Cousens



On Sun, 2022-11-27 at 18:56 +0000, Dr. David Kirkby wrote:
> I have put a list of vendors into GnuCash. In the case of a couple of
> companies (RS and Farnell), I do have business accounts with, but
> previously I just paid with a debit card. For most other vendors, they want
> payment in advance. For example, anything I buy from eBay with buy-it-now
> usually has to be paid for immediately.
> 
> I appreciate that if a vendor gives one credit, the transaction will go
> into the Accounts Payable, then one later pays the bill. But what should I
> do with vendors which are paid immediately? I can see I could process the
> payment as
> 
> 1) Post Bill
> 2) Pay Bill immediately afterwards.
> 
> but I'm wondering if there's a more direct way of paying someone directly
> from the bank account.
> 
> Dr David Kirkby Ph.D
> Email: drkirkby at kirkbymicrowave.co.uk Web:
> https://www.kirkbymicrowave.co.uk/
> Kirkby Microwave Ltd (Tel 01621-680100 / +44 1621-680100)
> Stokes Hall Lodge, Burnham Rd, Chelmsford, Essex, CM3 6DT.
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