How do I clear unpaid invoices?

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How do I clear unpaid invoices?

Robert Smits
I use gnucash 2.4.13 to manage finances of my Amateur Radio Club.

Each fall I send out invoices for membership dues and then when I receive
payment, I process the payment and it goes into our checking account.

Of course, not everyone invoiced pays, so next year I still have outstanding
invoices that show up on the balance sheet as accounts receivable.

How do I get get rid of these outstanding invoices? I thought I could just
mark the invoices as not active, but they still seem to show up in accounts
receivable.

All advice gratefully received.

Bob Smits.
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Re: How do I clear unpaid invoices?

Wm...
On Fri, 2 Sep 2016 12:32:35 -0700, in gmane.comp.gnome.apps.gnucash.user,
Robert Smits <[hidden email]> wrote:

> I use gnucash 2.4.13 to manage finances of my Amateur Radio Club.
>
> Each fall I send out invoices for membership dues and then when I receive
> payment, I process the payment and it goes into our checking account.
>
> Of course, not everyone invoiced pays, so next year I still have outstanding
> invoices that show up on the balance sheet as accounts receivable.
>
> How do I get get rid of these outstanding invoices? I thought I could just
> mark the invoices as not active, but they still seem to show up in accounts
> receivable.
>
> All advice gratefully received.

Unpost and re-use will probably be best.  I am presuming that your invoices
are more "request to pay dues" than invoices in a business sense.  However
if they really are invoices then you'll need to create a credit note to
write each one off.

--
Wm

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Re: How do I clear unpaid invoices?

Kurt Padilla
In reply to this post by Robert Smits
Make an expense account for unpaid invoices. For each unpaid invoice, make
a transaction for that amount between your receivables account and the
expense account.

Kurt

On Fri, Sep 2, 2016, 16:31 Robert Smits <[hidden email]> wrote:

> I use gnucash 2.4.13 to manage finances of my Amateur Radio Club.
>
> Each fall I send out invoices for membership dues and then when I receive
> payment, I process the payment and it goes into our checking account.
>
> Of course, not everyone invoiced pays, so next year I still have
> outstanding
> invoices that show up on the balance sheet as accounts receivable.
>
> How do I get get rid of these outstanding invoices? I thought I could just
> mark the invoices as not active, but they still seem to show up in accounts
> receivable.
>
> All advice gratefully received.
>
> Bob Smits.
> --
> [hidden email]
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>
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RE: How do I clear unpaid invoices?

ChrisGood
In reply to this post by Robert Smits
> Message: 3

> Date: Fri, 2 Sep 2016 12:32:35 -0700
> From: Robert Smits <[hidden email]>
> To: GnuCash List <[hidden email]>
> Subject: How do I clear unpaid invoices?
> Message-ID: <[hidden email]>
> Content-Type: text/plain;  charset="utf-8"
>
> I use gnucash 2.4.13 to manage finances of my Amateur Radio Club.
>
> Each fall I send out invoices for membership dues and then when I receive
> payment, I process the payment and it goes into our checking account.
>
> Of course, not everyone invoiced pays, so next year I still have
outstanding
> invoices that show up on the balance sheet as accounts receivable.
>
> How do I get get rid of these outstanding invoices? I thought I could just
> mark the invoices as not active, but they still seem to show up in
accounts
> receivable.
>
> All advice gratefully received.
>
> Bob Smits.
> --
> [hidden email]

Hi Bob,

Unpost the invoices to get them out of Accounts Receivable, then re-use
them, even for other customers, as you cannot delete an invoice.

Regards, Chris Good

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Re: How do I clear unpaid invoices?

Kurt Padilla
Since the club is essentially covering these unpaid memberships, isn't it
better to capture that expense?

Kurt

On Fri, Sep 2, 2016, 21:28 Chris Good <[hidden email]> wrote:

> > Message: 3
> > Date: Fri, 2 Sep 2016 12:32:35 -0700
> > From: Robert Smits <[hidden email]>
> > To: GnuCash List <[hidden email]>
> > Subject: How do I clear unpaid invoices?
> > Message-ID: <[hidden email]>
> > Content-Type: text/plain;  charset="utf-8"
> >
> > I use gnucash 2.4.13 to manage finances of my Amateur Radio Club.
> >
> > Each fall I send out invoices for membership dues and then when I receive
> > payment, I process the payment and it goes into our checking account.
> >
> > Of course, not everyone invoiced pays, so next year I still have
> outstanding
> > invoices that show up on the balance sheet as accounts receivable.
> >
> > How do I get get rid of these outstanding invoices? I thought I could
> just
> > mark the invoices as not active, but they still seem to show up in
> accounts
> > receivable.
> >
> > All advice gratefully received.
> >
> > Bob Smits.
> > --
> > [hidden email]
>
> Hi Bob,
>
> Unpost the invoices to get them out of Accounts Receivable, then re-use
> them, even for other customers, as you cannot delete an invoice.
>
> Regards, Chris Good
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

--

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request.
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Liz
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Re: How do I clear unpaid invoices?

Liz
On Sat, 03 Sep 2016 04:04:19 +0000
Kurt Padilla <[hidden email]> wrote:

> Since the club is essentially covering these unpaid memberships,
> isn't it better to capture that expense?
>
> Kurt

That would depend on the size of your Club, and the ease of otherwise
accounting for members and non-members using your facilities and
repeaters.

Liz
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RE: How do I clear unpaid invoices?

ChrisGood
In reply to this post by Kurt Padilla
From: Kurt Padilla [mailto:[hidden email]]
Sent: Saturday, 3 September 2016 2:04 PM
To: Chris Good <[hidden email]>; [hidden email]
Cc: [hidden email]
Subject: Re: How do I clear unpaid invoices?

 

Since the club is essentially covering these unpaid memberships, isn't it better to capture that expense?

Kurt

 

On Fri, Sep 2, 2016, 21:28 Chris Good <[hidden email] <mailto:[hidden email]> > wrote:

> Message: 3
> Date: Fri, 2 Sep 2016 12:32:35 -0700
> From: Robert Smits <[hidden email] <mailto:[hidden email]> >
> To: GnuCash List <[hidden email] <mailto:[hidden email]> >
> Subject: How do I clear unpaid invoices?
> Message-ID: <[hidden email] <mailto:[hidden email]> >
> Content-Type: text/plain;  charset="utf-8"
>
> I use gnucash 2.4.13 to manage finances of my Amateur Radio Club.
>
> Each fall I send out invoices for membership dues and then when I receive
> payment, I process the payment and it goes into our checking account.
>
> Of course, not everyone invoiced pays, so next year I still have
outstanding
> invoices that show up on the balance sheet as accounts receivable.
>
> How do I get get rid of these outstanding invoices? I thought I could just
> mark the invoices as not active, but they still seem to show up in
accounts
> receivable.
>
> All advice gratefully received.
>
> Bob Smits.
> --
> [hidden email] <mailto:[hidden email]>

Hi Bob,

Unpost the invoices to get them out of Accounts Receivable, then re-use
them, even for other customers, as you cannot delete an invoice.

Regards, Chris Good



Hi Kurt & Bob,

 

I am not an accountant so Bob, please refer to your accountant if you are unsure.

 

Bob, you said you wanted to mark the invoices as not active, so presumably there was no legal requirement for the members to pay their membership dues, so therefore there is no ‘expense’ if they do not.

If there is a legal requirement and therefore there is ‘bad debt’ to be written off as an expense, please see

https://www.gnucash.org/docs/v2.6/C/gnucash-help/busnss-ar-payment1.html#busnss-ar-baddebt

 

I think you could also do a credit note if you want to go to that trouble. There may be legal implications if the amateur club must do audited book keeping.

If there is no legal requirement for members to pay their dues, the invoices should not really be posted until there is a commitment that they will be paid, as there is no Accounts Receivable asset.

 

I’ll leave it to others who run clubs to advise how they track un-renewed memberships.

 

Regards, Chris Good


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Re: How do I clear unpaid invoices?

Mike or Penny Novack-2
In reply to this post by Kurt Padilla
On 9/3/2016 12:04 AM, Kurt Padilla wrote:
> Since the club is essentially covering these unpaid memberships, isn't it
> better to capture that expense?
>
> Kurt
>
Because THESE (membership) invoices have resulted in A/R income that can
be dealt with by a pseudo expense account with some name as "dropped
dues". However I am surprised to hear that unposting an invoice doesn't
eliminate the income in A/R. There be the need for something like that
even in ordinary business << say the shipment never reaches the
customer; and being a time sensitive item, they no longer want it, so
you are trying to undo the sale >>

However, for pledges that go unfulfilled, you want a real expense
account "unfulfilled pledges" because those were receivables in the
legal sense.


Michael
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Re: How do I clear unpaid invoices?

Geert Janssens-4
On Saturday 03 September 2016 18:04:45 Mike or Penny Novack wrote:

> On 9/3/2016 12:04 AM, Kurt Padilla wrote:
> > Since the club is essentially covering these unpaid memberships,
> > isn't it better to capture that expense?
> >
> > Kurt
>
> Because THESE (membership) invoices have resulted in A/R income that
> can be dealt with by a pseudo expense account with some name as
> "dropped dues". However I am surprised to hear that unposting an
> invoice doesn't eliminate the income in A/R.

Unposting the invoice will remove the invoice transaction from A/R. What will
not is marking the invoice as "not active". I'm not sure all reports take this
state into account properly.

Geert
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