Hi David,
Again, possibly just my lack of knowledge on the subject, but I thought
that essentially you cleared the debt from the client by moving it to
the Bad Debt, essentially saying, We are never going to get this money,
so lets forget about it. (Note I have other means to flag to not extend
credit to those clients if contact continues).
However probably the main reason that I thought (or wanted it) to be
cleared from the client is:
When GnuCash is started, it pops up with a screen showing Outstanding
(or Overdue) Invoices. I know that screen can be turned off completely,
however I like the screen but would like it to reflect only the
outstanding invoices that we are essentially waiting for, not ones we
have given up on ever getting.
This is assuming that we are never going to see the bad debt money. I do
understand that if for whatever reason that money does come in later,
that will be a bit messy, but by the time I want to add it to the bad
debts I have given up all hope of getting the money. An example is the
client is now deceased.
Again, I might be looking at this completely wrong. Thanks for your help.
Jeff.
On 16/8/24 10:21, David Cousens wrote:
I think you would have to link the writeoff transaction to the invoice
in the same manner you link a payment if GnuCash will allow you too do
that (I don't know for sure if it will- Derek may be able to confirm
whether it can be). That should clear the invoice
I would not see why it you would want to necessarily remove the bad
debt from the client report - they still owe you the money, it is just
your judgement that you are never going to receive it. Too many bad
debts to the one client and you would want to look at not extending
credit to them.
If you ever did receive it, then you would have to do an adjustment
cancelling the bad debt write off and carrying forward the debt into
the period in which it is paid (bit messy to do).
David
On Fri, 2024-08-16 at 09:29 +1000, Jeff wrote:
Thanks David,
That is a clearer description of what I am doing.
The issue that I have, and maybe it is just my lack of general
accounting knowledge, but the amount ($300) is still showing as owing
from Bob if I either run the Client Report, or open the Invoice.
Shouldn't a written off debt effective remove that debt, so when you
look a that client is shows they owe nothing?
This is the bit that I seem to be missing, or misunderstanding.
Essentially how do I link it to that specific client?
Regards,
Jeff.
On 16/8/24 09:17, David Cousens wrote:
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.
_______________________________________________
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.
_______________________________________________
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.
