Jeff, The standard direct write off method for bad debts would be to credit the Accounts Receivable for the amount of the bad debt and debit an Expense:Bad Debts account for that amount. That will remove the bad debt from your Accounts receivable and record it as an expense against the business as you suggested.
There are more complex allowance methods where your business has a fraction of bad debts regularly and you are required to use accrual accounting. David Cousens On Fri, 2024-08-16 at 08:53 +1000, Jeff wrote: > Hi list, > > Looking for some advice in recording (writing off) some bad debts in > GnuCash when using the Business Invoice/Bills feature. > > Example: > Have Client Bob who owes (has been send and Invoice) for $1000. > Bob are disputing the full amount and have only paid $700. > > In GnuCash I open the Invoice and record a payment of $700. This > leaves > Bob owing $300. > > I can record a $300 amount going into Expenses -> Bad Debts, from the > Accounts Receivable going directly via the Account page. > > I think that this then effectively wipes out the debt. (This may be > completely wrong) > > My issue is Bob still shows as owing $300. I, maybe incorrectly, > assumed it would effectively show as Bob owes nothing as we have > forgiven the amount owed. > > What step am I missing? > Can it be done through the Invoice screen to essentially "pay" the > invoice? The Payment side of the Invoice only seems to show "Assets" > accounts (as expected). > > Regards, > Jeff. > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
