Hi,
one way I know works, but is a bit ugly, is to create your prepayment
account as a negative current asset. I do something similar as some members
of a club incur expenses on its behalf, which goes to their current account
as a negative asset, and I then use this to clear off invoices in their
receivable account using the invoice payment process which is equivalent to
your item 4 below.
Ugly though, as on the balance sheet report the current accounts not yet
cleared of to A/R appear as a negative asset rather than in the liability
section.
Regards
David Long
Your message :
Revisiting the pre-paid invoice (coupon, credit note ...) issue:
In standard accounting a prepaid debt (aka a coupon, credit note, etc) is
booked as a liability.
On paper, and as direct import of transactions into GnuCash, this works
However, I abandoned the brute force transaction method since I really like
the GnuCash Invoice and Bill features: so I started fresh with imported
Invoices and Bills.
My real life example: client prepays for 13 1 hour tutoring sessions, $25
each; to be used over the next year:
1. New Invoice for the prepayment:
Dr. $325 Assets: Receivables Cr. $325 Liabilities:
Prepaid
2. Process Payment for the coupons
Dr. $325 Assets: Cash Cr.
$325 Assets: Receivables
I 'earn' payment for an individual session when it is complete.
3. New invoice for that session
Dr. $25 Assets: Receivables Cr. $25 Income: Tutoring
4. and pay for it from the prepay
Dr. $25 Liabilities: Prepaid Cr. $25 Assets:
Receivables
GnuCash, however, appears to only allow payment of an invoice from an asset.
Is there a way GnuCash can accommodate this?
On Tue, 12 Jul 2022, 23:20 , <[email protected]> wrote:
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