[GNC] Accounting for partial payment of bill from vendor

[Default User]

Hi, Murugan.

Thanks for the tip.
I am not familiar with credit notes (yet). 
But I will check it out.




On Sun, 2024-10-27 at 23:40 +0000, Murugan Mariappan wrote:
> Since you are utilizing the business function to register a bill, a
> more efficient approach would be to create a credit note for the
> transaction. By doing this, all your reports will accurately reflect
> the discount, making it easier for you to reference and track your
> financial data.
> Please review the attached image to see if this solution meets your
> needs.
> 
> 
> 
> 
> Saludos Cordiales
> Murugan
> From: gnucash-user <gnucash-user-
> bounces+m.muruganandam=hotmail.com at gnucash.org> on behalf of Default
> User <hunguponcontent at gmail.com>
> Sent: 27 October 2024 18:55
> To: Derek Atkins <derek at ihtfp.com>
> Cc: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
> Subject: Re: [GNC] Accounting for partial payment of bill from
> vendor 
> Hi, Derek. Thanks for the reply.
> 
> I was thinking of doing something like that. 
> Maybe creating an Income:Discounts Received account, and crediting
> $20
> to that from Liabilities:Accounts Payable.
> 
> I had thought of doing that as a separate transaction, added directly
> to the account registers. I did not think of adding a credit split to
> the existing transaction, as I thought that might mess up however
> GnuCash does its internal handling of payments using Business ->
> Vendor
> -> Find Bill -> Process Payment. 
> 
> Since this would seem to be a common scenario, was surprised that I
> could not seem to find a way to have GnuCash "handle it
> automatically".
> 
> 
> 
> 
> On Sun, 2024-10-27 at 17:23 -0400, Derek Atkins wrote:
> > Hi,
> > 
> > IANAA....  Having said that, the way I would handle it is to
> Process
> > Payment for $200, and then go in and split the transaction so you
> > still
> > debit A/P the $200, but only credit $180 to your Checking and
> credit
> > $20
> > to whatever counter-account you are using to keep track of your
> > discounts.
> > 
> > -derek
> > 
> > On Sun, October 27, 2024 5:10 pm, Default User wrote:
> > > Hi!
> > > 
> > > This should be a simple question, with a simple answer.
> > > 
> > > Let's imagine that a customer purchases computer repair services
> > > from a
> > > vendor on 2024-10-27, for $200.00, due in 30 days.  There are no
> > > taxes
> > > involved.ￜ The vendor will give a 10% discount ($20.00) for
> early
> > > payment.
> > > 
> > > Let's assume, for simplicity, that the customer has these
> starting
> > > Account balances:
> > > $0.00     Liabilities:Accounts Payable
> > > $0.00     Expenses:Repairs:Computer Repairs
> > > $200.00   Assets:Current Assets:Checking Account
> > > 
> > > The customer uses GnuCash Version 4.13, from the default package
> > > repository in Debian 12 GNU/Linux.  He enters the bill from the
> > > vendor
> > > using: Business -> Vendor -> New Bill. This results in:ￜ
> > > $200.00 debit to Expenses:Repairs:Computer Repairs
> > >         $200.00 credit to Liabilities:Accounts Payable
> > > 
> > > Then, later the same day, the customer pays the vendor $180.00
> from
> > > his
> > > checking account.
> > > This results in:
> > > $180.00 debit to Liabilities:Accounts Payable
> > >         $180.00 credit to Assets:Curent Assets:Checking Account
> > > 
> > > Since he has a $20.00 discount for early payment, he now owes the
> > > vendor nothing.
> > > 
> > > So, how does the customer enter the transaction(s) in GnuCash?
> > > 
> > > If he uses Business -> Vendor -> Find Bill -> Process Payment,
> > > entering
> > > a Payment amount of $180.00, the result is :
> > > $180.00 debit to Liabilities:Accounts Payable
> > >         $180.00 credit to Assets:Current Assets:Checking Account
> > > 
> > > The Asssets:Current Assets:Checking Account balance is now
> $20.00,
> > > which is correct.
> > > But the Liabilities:Accounts Payable balance is $20.00, which
> > > should
> > > not be correct, as the customer received a $20.00 discount for
> > > early
> > > payment.
> > > 
> > > But if the customer instead uses Business -> Vendor -> Find Bill
> ->
> > > Process Payment, entering a Payment amount of $200.00, the result
> > > is :
> > > 
> > > $200.00 debit to Liabilities:Accounts Payable
> > >         $200.00 credit to Assets:Current Assets:Checking Account
> > > The Accounts Payable balance is now $0.00, which would seem to be
> > > correct, as the customer now owes the vendor nothing.
> > > But the Checking Account balance is now $0.00, which would of
> > > course
> > > not be correct.
> > > 
> > > So, what is the correct way to handle this situation, so that
> these
> > > account balances result:
> > > $0.00   Liabilities:Accounts Payable
> > > $20.00  Assets:Current Assets:Checking Account
> > > $200.00 Expenses:Repairs:Computer Repairs
> > > 
> > > ???
> > > 
> > > 
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