[GNC] Pre-Payments into Liabilities

[Vance Turnewitsch]

Hello,
I use GnuCash for a small school. One of our parents paid their entire tuition amount at the beginning of the year. I have been fiddling with how to record this.

We bill monthly; therefore, for the payment that doesn't have a receivable yet, shouldn't it go into a liability account? Using the "Process Payment" dialog results in an accounts receivable with a negative balance. This seems odd to me, but it has been some time since I took accounting. In GnuCash's system, is an accounts receivable with a negative balance akin to a liability?

Thanks,
Vance

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