Roger,

My apologies for any time wasted. I use my sub-account with manual entries. I 
see now the business features will not expose them in that payment drop down, 
regardless of type. (but you can use those asset (not A/R) accounts from the 
business features in line-items in bills/invoices as this is what I do. You can 
do the same with `other A/P`.) I first set this up using 2.6.17, and I see it 
still works the same in 3.5, so there is no version issue.

For you, I’d say the liability account is the way to go.

Overall, it would be a nice RFE for the business features to have a function to 
charge-off a bad debt or more easily handle B2B trade type scenarios.

Regards,
Adrien

> On Apr 10, 2019, at 4:05 PM, <[email protected]> <[email protected]> wrote:
> 
> Adrian,
>  
> I did not know you could assign a different type account to a sub-account. 
> Tried that and it still does not show up in the receive payment window, even 
> after closing and reopening the program. When I added the bad debts account 
> as a sub of accounts receivable, GnuCash automatically assigned it the same 
> category as the parent account. What changing the type to asset did 
> accomplish was that it not longer shows up as an option in the dropdown lists 
> for account receivable account to charge in the invoice module, sub-tasks: 
> post the invoice and receive payment. 
>  
> I think if I selected the bad debt sub-account from that dropdown window it 
> would reflect the reduction in the rollup but I would have to come up with a 
> different asset, liability or equity account to receive the payment. 
>  
> The version of GnuCash I’m working with is indeed 2, specifically 2.6.17. The 
> version I use for my family finances and another business is 2.6.18, the one 
> on the computer I’m using to respond to these emails. I thought I had updated 
> the program on the other computer as well. I assume I can go from 2.6.17 to 
> 2.6.21 to 3.5. 
>  
> As for services in kind, I think the easiest solution is to create an 
> unearned income liability account and pay for the service from there. The 
> income invoice is then paid in the invoice module from the liability account, 
> the entire amount, so the balance in favor of the customer will show up in 
> the receive payment window and in the reports. 
>  
> Thanks,
> Roger
>  

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