Negative goodwill

Goodwill is an intangible asset that cannot be expensed nor depreciated. It sits on books until you sell out. I doubt what you bought should have coded as Goodwill and especially not negative.

The liabilities associated go on your books as liabilities, reducing the basis of the purchase, the deferred revenue is an asset and increases basis. When the df is realized it will then be income, if you are cash basis, but is income now if accrual.  You can record it as an Invoice. If payment never materializes then you write it off as bad debt expense

Ok, there are a few links about Negative Goodwill (esp in the context of a bargain purchase): https://smallbusiness.chron.com/negative-goodwill-accounting-52567.html or https://pakaccountants.com/what-is-negative-goodwill-and-its-accounting-treatment/

"the resulting gain should be recognized in the profit and loss at the acquisition date in the books of acquirer i.e. it will be taken as a gain in the consolidated income statement of the acquirer.". But, I don't know how to record this gain in QBO (so the negative goodwill in the balance sheet is linked to Gain from Bargain Purchase in P&L)

Hello, tt24.  

Thank you for reaching us here in the Community. The only way to transfer the balance from one account to the other is to create a journal entry.  

Here's how to do it: 

1. Click + New icon, then select Journal entry. 
2. Enter all the information needed.
3. Check the amounts make sure your debits equal your credits.
4. Enter information in the memo section so you know why you made the journal entry.
5. Press Save and close.

To learn more the whole process of creating journal entry, please refer to this article: Create a journal entry in QuickBooks Online.

Though, I still recommend consult an accountant to help you identify the affected accounts to make sure your book is accurate. 

Let me know if you have other questions. I'm right here to help. Stay safe and be well.

Sounds a little like voodoo economics that you can in theory end up taking a tax deduction over time for money you did not expend as there appears to be no distinction between hard and soft assets. I was always told you booked assets only for what you paid. But these are soft assets, as in something of an anomaly.  These future receivables have a face value that is not guaranteed in stone but otherwise reliable and enforceable. 

You will actually not enter the negative Goodwill on the balance sheet during the purchase but just the bargain purchase income in the same transaction. Book value minus price paid equals bargain purchase income 

Debit the asset at face

Credit cash paid

Credit bargain purchase income 

Create a new income account to track this.  If you already recorded the purchase and did post to a so called negative asset account you will now debit the negative Goodwill and credit income.

As I guess this purchase of future receivables may consist of multiple customer balances in the price you may want to distribute the sum total of receivables across each affected new to you customer or client.   Enter an invoice for each customer posting an item that you will add tying it to the total receivables asset account used in the purchase