And to add to what Stan & Gyle said,
Several years ago, I played around with pre-payments using a
Liabilities:Customer Deposits account but that was a mess. The way the
Business Features of GnuCash work, it is *much* easier to just Process
Payment, letting it post to AR and then apply it later to an invoice.
You also get a nice 'Statement of Account' with the Customer Report
which would otherwise not reflect the pre-payment.
IF I would ever encounter the situation that I'm not going to invoice
that customer ever again, and would have to carry the prepayment funds
for a long period of time for some odd reason rather than issue a timely
refund, I would then do a transfer from AR to the Liabilities:Customer
Deposits account and handle from there. But that would be a very odd case.
Regards,
Adrien
On 9/11/22 5:51 PM, Vance Turnewitsch via gnucash-user wrote:
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?
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