[GNC] Selling an unpaid invoice to another business at face value?

[Adrien Monteleone]

Sorry Morgan, I didn't mean to exasperate you.

What I meant by 'How would you do this on paper?', was, "Using Pen and 
Ink, How would you record this according to standard Accounting rules?"

If you can do it with pen and ink, you can likely do it with GnuCash.

So the question, for this list, is rarely, if *never*, "What should I 
do?" You should already know (or been otherwise professionally advised 
of) that answer, have already attempted to do so using GnuCash, have hit 
some sort of stumbling block, and then request assistance.

We cannot provide accounting or legal advice here. Even if some of these 
users are officially qualified to do so, in their respective 
jurisdictions, and even if their jurisdiction matches yours, this is not 
the proper forum for such advice.

But once you have that answer, we can help with the mechanics of the 
software if you can't figure it out on your own.

----
Your attempted goal still isn't clear. As I noted, originally in your 
first post it appeared as if *you* were changing business entities and 
wanting to transfer debt owed by customers from one entity (which you 
were closing) to a succeeding entity.

Now it appears that you want to 'sell' a debt of a customer to some 
outside entity.

How you go about these two is quite likely very different, but in any 
case, no one here can offer you that advice.

You *must* obtain that advice from professional sources and then if you 
can't figure out how to implement that advice, ask here. When you ask, 
you already need to have been advised of the accounts to be involved and 
how the money is to 'flow' with the respective transactions.

Regards,
Adrien

On 12/5/23 10:19 AM, Morgan Read via gnucash-user wrote:
> Thanks Adrian,
> 
> All I'm attempting to discover is how - in gnucash - can I use what is 
> owned by somebodyA to pay off what is owed by somebodyB?  What is the 
> procedure for using what is owed by one person to relieve another of the 
> debt they owe?
> 
> On paper, I would take the invoice to somebodyB, copy it and staple the 
> invoice to the invoice to somebodyA and then place the invoice to 
> somebodyA in the paid invoices shoe box.
> 
> I'm sorry if I'm sounding exasperated .
> 
> The legal position in the UK is that if I sell the debt from companyA to 
> companyB then companyA will be liable for income tax or company tax 
> (depending on whether the entity is a natural person or legal person - 
> not that a natural person isn't also a legal person, but a limited 
> company is only a legal person) on the returns they receive for the 
> sale.  CompanyB will also be liable for any returns it receives on the 
> debt purchased.  So, legally, there is a double taxation issue.  Please 
> can we leave the legal stuff out of this - I am a lawyer.  It's not a 
> legal question.