[GNC] Follow up on Gnucash invoicing and payment - questions on process

[Michael or Penny Novack]

On 10/14/2022 3:21 AM, Charles Vincent wrote:
> Following my previous email on the subject, thank you to members and to the
> four friends who responded. Feedback and additional question below.
>
> It took me a while to understand what you were saying, but with your
> indication of liabilities, that got me thinking and I did manage to find
> the solution.
> - Create liabilities accounts for each donor under Liabilities,
> - $ is credited to the bank account and to the donors Receipt account,
> - $ are debited from the donors Receipt account to the donor's newly
> created liability account
> - Invoices are paid by inserting the payment in the PAY on the posted
> invoice and debiting the liability account.
>
> It all squares. Thank you

And although more work, is more technically correct if these invoices 
are for renewal of membership in a voluntary organization. When a 
renewal invoice is issued, the amount is entered as a receivable but the 
donors are not obligated to renew (so it's not legally a receivable). 
Its an additional reason why organizations prefer member signing up for 
"monthly donations". Not just because more likely to get, but that 
constitutes a "pledge" and legally a pledge is receivable.

Michael D Novack