A. FINANCIAL POSTINGS

The accounting effects of the various posting programs are described below.

Account Debit Credit
Post Disbursement (item/batch)
Cashbook and office bank account A130   gross amount
Matter disbursement record and unbilled disbursements A120 net amount  
VAT file and VAT control account L040 VAT amount  
Write Off Disbursement
Matter disbursement record and unbilled disbursements A120   amount
Non-recoverable expenses E280 amount  
Post Disbursement Receipt
Cashbook and office bank account A130 amount  
Matter disbursement record and unbilled disbursements A120   amount
Post Bill
Matter bill record and Bill register and o/s unpaid bills A110 gross amount  
Matter disbursement record and unbilled disbursements A120
* (if disbs billed exceed disbs written off)
  disbs written off
(or disbs billed)*
Profit costs/fees I020   time billed
VAT file and either VAT control account L040 or VAT suspense account L140 1   VAT amount
Non-recoverable expenses E280
* (if disbs billed exceed disbs written off)
disbs written off - disbs billed
(or 0)*
 
Matter WIP record   time removed
Post Bill Receipt - to office bank
Cashbook and office bank account A130 gross amount  
Matter bill record and Bill register and o/s unpaid bills A110   gross amount
VAT control account L040 and VAT suspense account L140 1    
Post Bill Receipt - to client bank
Cashbook and client/trust bank account L010/L020   gross amount
Client account   gross amount
Post Bill Credit - cancel or part cancel bill
Matter bill record and Bill register and o/s unpaid bills A110   gross amount
Bills written off E330 net amount  
VAT file and either VAT control account L040 or VAT suspense account L140 1 VAT amount  
Post Bill Credit - reinstate balances
Matter bill record and Bill register and o/s unpaid bills A110   gross amount
Matter disbursement record and unbilled disbursements A120 original disbs written off  
Profit costs/fees I020 original time billed  
VAT file and either VAT control account L040 or VAT suspense account L140 1 VAT amount  
Non-recoverable expenses E280   original disbs written off - disbs billed
Matter WIP record original time removed  
Post Office Receipt
Cashbook and office bank account A130 gross amount  
Selected account   net amount
VAT file and VAT control account L040   VAT amount
Post Office Payment
Cashbook and office bank account A130   gross amount
Selected account net amount  
VAT file and VAT control account L040 VAT amount  
Cashbook Transfer
From cashbook amount  
To cashbook   amount
Journal Transfer
From account amount  
To account   amount
Transfer Matter Balances
From matter disbursement record disb amount  
To matter disbursement record   disb amount
From matter WIP record WIP amount  
To matter WIP record   WIP amount
Nominal to Disbursement Transfer
From account amount  
To matter disbursement record and unbilled disbursements A120   amount
Post Time Sheet (non-financial)
Matter WIP record   individual time entries
Write Off Time (non-financial)
Matter WIP record time value  
Post Client Receipt 2
Cashbook and client/trust bank account L010/L020   amount
Client account   amount
Post Client Payment 2
Cashbook and client/trust bank account L010/L020 amount  
Client account amount  
Transfer Client to Office - to pay a bill 2
Client cashbook and client/trust bank account L010/L020 amount  
Client account amount  
Office cashbook and office bank account A130 amount  
Matter bill record and Bill register and o/s unpaid bills A110   amount
VAT control account L040 and VAT suspense account L140 1    
Transfer Client to Office - to settle a disbursement 2
Client cashbook and client/trust bank account L010/L020 amount  
Client account amount  
Office cashbook and office bank account A130 amount  
Matter disbursement record and unbilled disbursements A120   amount
Transfer Office to Client 2
Client cashbook and client/trust bank account L010/L020   amount
Client account   amount
Office cashbook and office bank account A130   amount
Matter disbursement record and unbilled disbursements A120 amount  
Transfer Client to Client 2
From client account amount  
From client cashbook and client/trust bank account L010/L020 amount  
To client account   amount
To client cashbook and client/trust bank account L010/L020   amount
Post Client Interest 2
Office cashbook and office bank account A130   amount
Interest paid E340 amount  
Client cashbook and client/trust bank account L010/L020   amount
Client account   amount

Notes:

1 If the practice is on a VAT cash basis, then the VAT amount is credited to the VAT suspense account (L140) by Post Bill, and is transferred from the VAT suspense account to the VAT account (L040) by Post Bill Receipt, or Transfer Client to Office if the transfer is to pay a bill; the VAT suspense account is debited by Post Bill Credit. If the practice is on a bills delivered basis for VAT, then the VAT amount is credited to the VAT account (L040) by Post Bill, and debited by Post Bill Credit.

2 To avoid any confusion between debits and credits on the client ledger, transactions are shown on enquiries and printouts as either receipts or payments.


» Appendix B: Month End Procedures


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