Roger, You could create a sub-account of A/R something like ‘B2BTrade'. When the client does work for you, you ‘pay’ the bill they send you by crediting the asset, and debiting the relevant expense. When you want to apply this to their A/R balance, then ‘pay’ their invoice from you using that account. You can use a single sub-account or keep separate ones for each business you trade with. You could instead place that account in Liabilities if you prefer. The advantage to making it a sub-account of A/R is to have a roll-up total reflect what is actually owed to you without having to do the math yourself with the liability section. The single account is certainly easier, especially if you don’t do frequent and regular business this way. And if you want to see a B2BTrade balance for any one entity, you can run a report filtering on the Payee Description or Notes/Memos, however you annotated the transaction.
So no need to issue credit memos in this case. Just pay their bill to you with a Trade asset account and then pay your bill to them with that same account. The business features will make the debits and credit work out properly. Regards, Adrien > On Apr 9, 2019, at 6:45 PM, <rmom...@gmail.com> <rmom...@gmail.com> wrote: > > Greg, > > > > When you create an invoice or a credit memo, in the main body of the form > where you enter what you are going to sell, the available accounts are asset, > liability and income. Still no access to an expense account to charge off bad > debts. I face the same problem when a parent wants to pay his child’s tuition > in kind, i.e. by services I would otherwise pay for. I would like to show the > credit memo as an expense for the service provided but there is no way to do > that. I bought a hefty switch for our internal network that way. The family > has a nice credit balance and it didn’t touch my cash flow. I added a fixed > asset account for the switch and charged the credit note to that account. > That would not work for other services, like painting and computer > maintenance, > > > > The only way I’ve been able to make it work is to create a bad debt income > account that will show a negative balance and then move the transaction out > of the income account journal to a bad debt expense account by a separate > manual transaction outside the invoice module. Seems a bit more convoluted > than it needs to be. I have to read my notes on what I decided to do every > time I need to do it. Isn’t that often so it isn’t that big a deal but it > would be nice to have at least an option to charge off bad debts to a bad > debt expense account. The totals come out the same either way and a CPA may > tell me that it indeed should be an income account. Just seems like it should > be an expense account. Would also be useful to pay for services in kind this > way. Came to mind this week because I have a pretty hefty account to write > off. > > > > You need to do something through the invoice module or the unpaid invoice > just hangs there and shows up on your balances. You can’t just do a journal > entry in the accounts receivable journal. I think once or twice I just gave > up and unposted the invoice, changed the name of the customer to an account I > use to save these as you can’t delete them, z Recibo Abierto (open receipt – > my system is in Spanish), delete the charges and that makes it go away too > but there is no record that Joe Dokes is a non-paying customer and it created > a loss. Just drops your accrued income. Same net effect so it is an option. > > > > Thanks, > > Roger _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
