Ok, maybe that is the issue. AFDA is not listed under transfer accounts. Both AR and AFDA are not listed.
? On Mon, 2021-03-08 at 20:55 -0600, Adrien Monteleone wrote: > Sorry if I wasn't clear. > > At first, there should be no transactions in that account. > > Go to Business > Customer > Process Payment. > > Enter the customer in the search field at the top. > > You'll see the invoice that you need to close out, select it. > > Put in the appropriate date, and the amount you are charging off to > Bad > Debts. (eventually) > > Select the Allowance for Doubtful Accounts (AFDA) account as the > Transfer Account. > > Put a memo if you like. > > Then save the 'payment'. > > After that is done, the invoice will be closed out as 'paid' by AFDA. > > This then needs to be expensed, so in AFDA enter a transaction for > the > same amount as the 'payment' but this time between AFDA and > Expenses:Bad > Debts. > > Not sure if you are using formal labels or not, but the result of the > payment will be: > > Dr. Allowance for Doubtful Accounts (left column) > Cr. Accounts Receivable (right column) > > The charge off will be: > > Dr. Expenses:Bad Debts (left column) > Cr. Allowance for Doubtful Accounts (right column) > > AFDA will now be zero. > > Normally, this account is populated at the beginning of an accounting > period with a reasonable estimate of what you won't collect. It is > then > converted to charged off expense at the end of that period, or > monthly, > whichever you need or works for you. > > Of course, you can make specific adjustments like this one as needed. > > > Regards, > Adrien > > On 3/8/21 8:25 PM, Daffy Duck wrote: > > Hi, > > > > Thanks. > > > > "For Bad Debts, set up an account called "Allowance for Doubtful > > > Accounts" as a child of AR. (be sure to make this of type > > > 'Asset') > > > > > > You can then 'pay' the invoice using this account as the source. > > > > > > This will cause the invoice to be closed by GnuCash and it will > > > be > > > removed from the Due Invoices Reminder." > > > > This does not work. I created an asset account under "Accounts > > receivable" and I put the entry in for the $500, an increase. > > > > I then tried to assign it as a payment to the invoice. It said > > "you > > must select a transfer account from the account tree." > > _______________________________________________ > 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. _______________________________________________ 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.