Convert customer recievable to equity in customer

There are too fairly easy ways to do this. One provide a touch more of a paper trail, but good memos can do that as well.

Enter a journal entry moving the amount from A/R to the account you have set up for that equity

1) Create the account for the equity if you haven't already

2) Create a journal entry crediting A/R (make sure to specify the customer name on this line) and debiting the account for the equity

3) Go into the receive payments window and apply the JE entry to the existing invoice

Discount the entire balance to the Equity account

1) Open the recieve payments window - select the customer

2) highlight the invoice and click discount/credits at the bottom

3) Enter the equity account as the discount account and the full amount of the invoice]

4) Save the entry

Thanks

Tracy

http://www.slsreporting.com

Thanks for the good answer. I also do the books for the customer (wholly owned subsidiary). In the customer's (subsidiary's) books, how do I likewise convert $400k in Bills from parent to equity in the subsidiary. In particular, how do I "cancel" the bills properly so they look like they were paid?