David, Thank you. I realized what was happening from an accounting perspective, but I was wondering if I can do anything that addresses the reference in due invoices reminder?
On Sun, 2021-03-07 at 16:53 -0600, David Cousens wrote: > There is no need to zero out the invoice. It remains as it originally > was and > the debt remains on the books. What the debt write off does is > correct your > income for the amount of income you expected to but didn't receive > and > adjusts the accounts receivable to reflect that you do not expect to > receive > that income. > > If you cancel out the invoice and at some future time the client > coughs up > the money, you will have no way of accounting for how that money was > received but a simple adjustment allows you to reverse the bad debt > write > off and then record the payment against the original invoice. > > When you make a payment against an invoice normally, you do not > change the > amount of the invoice, itself but you increase the amount of an > asset(bank > account) and decrease the amount of the Accounts receivable (also an > asset ) > by the same amount. > > The invoice creates an increase in an income account and an increase > in the > Accounts receivable when it is posted to you accounts. In the case of > a bad > debt you do not adjust the income but an expense account which has > the same > effect on your profit. Expense accounts can be regarded as contra > income > accounts. > > This way your accounts contain a record of the events as they > affected your > finances at the time the events occurred. If they are annotated well > enough > anyone can reconstruct the sequence of events as recorded > > David Cousens > > > > ----- > David Cousens > -- > Sent from: > http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html > _______________________________________________ > gnucash-user mailing list > [email protected] > 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 [email protected] 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.
