The amount owed stays in AR.
Who owes it is what changes.
How you do that is not specific to GnuCash.
You will likely have to employ intermediary accounts, but what those
should be, are up to you and your needs/requirements. Perhaps ask a
local CPA.
Regards,
Adrien
On 12/6/23 7:01 PM, Morgan Read via gnucash-user wrote:
Hi Andrew,
Many thanks for coming back.
I think perhaps that in an attempt at brevity, I assumed too much in my
example and perhaps wasn't as clear as I might have been. There are
three entities in my example, but in yours there are 5. Perhaps the
confusion arises because the 'I' in my example is an active party,
whereas the 'you' in yours seems to be a passive observer.
I thought it might help to fill in some of the gaps in my example -
there may be well be more:-
1/ Two shoe boxes - one marked 'invoices due' the other marked 'invoices
not due';
2/ Three entities - 'I', Entity-A for whom I do work and Entity-B to
whom I sell the right to collect the debt for the work done for Entity-A;
3/ Two invoices - my (I's) invoice to Entity-A (Invoice-A) for the work
done and my (I's) invoice to Entity-B for the sale of the right to
collect the above debt;
4/ Invoice-A is generated on the completion of the work for Entity-A,
and placed in the shoe box marked 'invoices due';
5/ Invoice-B is generated on the sale of right to collect the debt to
Entity-B;
6a/ On the generation of Invoice-B a copy is stapled to Invoice-A to
represent the discharge of the right to collect the debt on Invoice-A
and its transfer to Invoice-B - and placed in the shoe box marked
'invoices not due';
6b/ Invoice-B is placed in the shoe box marked 'invoices due'
In gnucash, I imagine that the transfer of Invoice-A from shoe box
'invoices due' to shoe box 'invoices not due' is represented by a
transfer from Accounts Receivable to somewhere else - but, I'm not sure
where. To keep it simple, the right to collect is not sold at a discount.
So, the question is - how do I effect 1 to 6 above in gnucash, bearing
in mind that some things may have been missed and I'm not sure where the
transfer from Accounts Receivable might go?
The right to collect on an invoice is sold to debt collectors all the
time - I'm just a bit surprised there isn't a straight forward answer to
representing that transaction in gnucash.
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