Re: Customer's invoices paid by another customer?

[John Locke <..hidden..>]

Hi,

I'm not sure I'm the right person to answer this, but here's what I've
done for partial payments of (long) past-due accounts:

I basically receive payment from a "Bad Debts" account, if it's
something I'm going to write off as bad debt.

If it's something I don't consider bad debt, I post a new revised copy
of the invoice with a reversed amount of what's left unpaid.

Not sure whether that's the right way to do it, but it's been working
for us.


Regarding payment from another customer, I guess we don't make the
distinction of where the payment came from. We just receive payment. You
could put a memo or source notation in...

Cheers,
John Locke
http://www.freelock.com

-------- Original Message  --------
Subject: Re: [Ledger-smb-users] Customer's invoices paid by another
customer?
From: Luke <..hidden..>
To: ..hidden..
Date: Fri 26 Mar 2010 05:54:28 PM PDT
> Followup:
>
> What do I do if the final payment is less than the original invoice?
>
> I guess this is a separate question, along the lines of settling 
> outstanding accounts for less than what is owed.
>
> Luke
>
>
> On Fri, 26 Mar 2010, Luke wrote:
>
>   
>> Accounting question.
>>
>> I have a customer with several years of outstanding invoices.  They are
>> about to be paid, but another customer is going to do the paying.
>>
>> I am looking for the best way to record and track this.
>>
>> The process discovered earlier this year for handling employee expensed
>> vendor purchases in LedgerSMB, should work in reverse for this I think.
>>
>> That process was:
>>
>> 0.  Create two vendors: real and employee.
>> 1.  Bill real vendor.
>> 2.  Pay from a liability bank account.
>> 3.  Pay the employee from the real bank (asset) account, balancing against
>> an AP clearing account (liability), via cash -> payments [all].
>> 4.  Transfer from the AP clearing account (liability) to that liability
>> bank account to balance the books.
>>
>> I am thinking that the mirror image of this process would be:
>>
>> 0.  Create two customers: original and payer.
>> 1.  Bill the original customer.
>> 2.  Receive payment to a fake asset bank account.
>> 3.  Receive a payment from the paying customer to the actual asset
>> account, balancing against an AR clearing account (asset), via cash ->
>> receipt [all].
>> 4.  Transfer from the fake asset bank account, to the AR clearing asset
>> account, to balance the books.
>>
>> Do I have this right?
>>
>> The order of steps 3 and 4 on both of these probably don't matter much.
>>
>> Luke
>>
>>
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