On 10/6/22 1:59 PM, Charles Vincent wrote:
Hello Gnucash users list members,
I come back on the issue of invoicing clients and payment by the clients or
a third party.
As background:
For info, I am keeping the accounts for a small not for profit school in
Cambodia.
I have done the 70 invoices, one for each child, using a standard
accounting layout: R1 income school fees, R2 income registration, R3 income
extracurricular, etc etc..
So far so good.
I post the invoices, still good.
The invoices show up in an accounts receivable STUDENT INVOICES as I
believe they should. If so, so far so very good.
Just to be clear - GnuCash can have *only 1* account of 'type' Accounts
Receivable (same for Payables) and that is the account used by the
Business Features. (invoicing, payments, customers, vendors, etc.)
I don't know if you can rename that account.
You *might* be able to keep the default, and create another, but you'd
have to change the default account's type to generic the Asset type.
You can have all the AR accounts you want, even as sub-accounts of the
original default AR account, but there can be only 1 of 'type'
A/Receivable. I don't think the other accounts are 'seen' by the
business features but I could be mistaken.
If this is not your setup, you may run into problems.
The problem comes up with the management of the accounts when I receive
funds
I have two cases which are giving me problems related to the income that we
receive for which I am consulting this group:
Case 1: The parents have anticipated some expenses from trimester 2 and 3
and hence have paid more than the posted invoice. Let us say the invoice is
for USD 2,000 and the payment received in the bank is USD 2,500.
When I use the payment option, I do not see the 500 extra payment when I
print the invoice (which I would consider by this time as a Statement of
Account)
Advice appreciated on how to enter the amount and that the printed invoice
shows the overpayment.
The closest thing GnuCash has to a 'Statement of Account' is the
"Customer Report". (and "Vendor Report" for you for Payables)
You can run this directly, having to choose a customer/vendor each time,
but I prefer to always keep a Receivables & Payables Aging Report tabs
open at all times, then simply clicking the *amount* owed by/to each
entity will run their report.
You will see all invoices and payments there.
With Options > Display Columns > Transaction Links you can see which
payments apply to which invoices and vice versa.
You can also see payments on a particular Invoice Report by selecting
Options > Display > Payments.
As for entering the payment - use the Process Payment function. (in the
menu, or the toolbar button)
Select the invoice to which you want to apply the payment.
The extra will exist in the AR account linked to that 'customer' as a
'pre-payment'
A subsequent Process Payment will show the pre-payment in the documents
pane. When you are ready to apply it on a future invoice, simply select
both the pre-payment and the invoice document to offset each other. If
pre-payment remains still, it will show up as still existing but with
the new balance. If it is fully used up for the exact amount of the
invoice, both will be cleared. If the invoice still has a balance, you
can also enter that amount paid, or else it will show as that amount
only, still pending.
Case 2: We received in the bank a donation of say USD 8,000 on say 1
September from a donor for a scholarship fund for 4 students. I have
therefore credited the bank account on 1 Septemberr for 8,000$ and credited
the income account of the donor (let's call it R7) for the amount of
$8,000.
The issue becomes how I credit the 4 invoices which are dated 15 September
for the students as the funds are a. in the bank, b. credited to the income
account R7. I could not "pay" the invoice from the R7 account (not
possible in the Gnucash setup it seems) so that the various amounts flow to
the various Rs, R1, R2, R3,... . as per the invoice set up. From my
perspective it is more of a Journal Voucher type transaction, moving funds
from R7 to R1, R2, R3,... so that the proper amounts are credited to the
proper income accounts, reducing the amount under R7, i.e. allocating the
donors funds to various activities.
I tried various ways but the PAY option in the invoice does not work. Any
suggestions?
This might be a bit tricky, and there are likely several ways you can
handle it.
First, I'd receive the donation between the payment method (Undeposited
Funds most likely if in either the form of a check or pending credit
card transaction, or the Bank Account if by ACH or other direct means)
and a Liability:Donations account. (or whatever you'd like to name it,
possibly with a separate account for each donor)
As you need to use those funds to pay invoices, Process Payment between
that Donor account and AR using the beneficiary Student as the customer
and apply it to the desired invoices.
If you know in advance who will be the beneficiary of the funds, you can
make the pre-payments at the same time as recording the donation, and
they'll just be there to apply to the next invoice(s).
Note, 'revenue/income' are recorded by posting the invoice - not with
the receipt of payment. That is why the donation does not involve a
revenue/income account. (neither do regular payments if you haven't
noticed) If you are on a Cash-basis rather than Accrual-basis, you just
need to post your invoices with the same date as the receipt of funds.
Regards,
Adrien
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