Xero Journal Exports (Accruals)

14/02/2024
Knowledge

How To

Office transactions recorded in LEAP are also exported to Xero. The entries are held in a queue in LEAP so that you can evaluate them before you export them to Xero.

To review the entries ready for export in LEAP click the LEAP Menu > Accounting > under Office Accounting > General Ledger Link:

The standard view shows all the items ready to be exported. The export status drop-down allows you to view other entries such as those previously exported and items that have been put on hold.

Hold items

If you have a transaction on the list which you do not want to be exported to Xero you can select the entry by ticking the box on the left hand side then click “Change Status” to “On hold”

If you decide later to export the entry to Xero you will need to change the status back. This is useful for situations where you are unsure about a particular entry.

Below we examine the entries that are exported to Xero, how these journals look, and which ledger cards are used in Xero.

Office Payment

Disbursement

In LEAP this entry is created on a matter file by posting an Office Payment which is available on the Office Accounting tab. It is used when a disbursement is paid out of the Office Bank for the Matter.

What is exported to Xero:

Credit 080: Bank (Assets)
Debit 310: Leap Office Payment (Expense/Cost of sales)

The entry reduces the amount of money in the Office Bank and Credits Leap Office Payments.

Pay Anticipated Payments

Anticipated payments are not exported to Xero when they are recorded in LEAP in themselves. However they are accounted for in Xero when these are actually paid and there is an entry for them when they are billed to the client.

To pay the supplier of the Anticipated Disbursement go to the Office Accounting tab and select Anticipated Payments > Pay Anticipated.

Credit 080: Bank (Assets)
Debit 310: Leap Office Payments (Expenses/cost of Sales)

The entry reduces the amount of money in the Office Bank and Credits Leap Office Payments.

As far as the entries in Xero go this is identical to the Office Payment.

Invoice Client

Accrual GST Basis

When we finalise an invoice to the client, a number of entries to the Xero ledgers can be exported at once.

One line for each fee and disbursement:

Debit 630: Leap Debtors (Assets)
Credit 210: Leap Client Fees (Income from Fees/Profit Costs)
Credit 220: Leap Cost Recoveries (Other income in respect of Cost Recoveries)
Credit 230: Leap Payments Received (Other income in respect of Disbursements)

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Invoices to clients are only exported to Xero on systems using Accrual GST Basis. If using Cash Accounting only, the Office Receipt (as explained in the next accordion) will be exported to Xero.

Office Receipt

Below we look at what is exported when an Invoice is paid. In LEAP this can be recorded via an “Office Receipt” or “Trust to Office Transfer".

Debit 080: Bank (Assets)
Credit 630: Leap Debtors (Assets)

This transaction has reduced the debtors balance and increased the amount of money in the Bank.

This particular Office Receipt is deposited (the money has gone straight to the bank); the payment type used in this case was an Electronic Funds Transfer. If payment is by Cash or Cheque, the Receipt does not go straight to the bank but will go to undeposited funds.

Invoice Adjustment

Discounting a fee on an invoice by $100

Once the invoice has been finalised, we can apply a discount by right clicking on the invoice line on the ledger and selecting “Adjust Invoice.”

To reduce the invoice amount enter a negative value such as -100:

Credit 410: Leap Debtors (Assets) (Reduces debtors)
Debit 630: Leap Discounts Given (Expenses)

Therefore, applying a discount will reduce the asset value of debtors and increase expenses/costs of sales.

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It is possible to adjust an invoice and actually increase the cost of it. Please note that if you do this it has the opposite journal effect (i.e. reduces discount expenses and increases debtors).

Such an entry may be suitable if a discount is being removed but may not be suitable for other case.

Reverse Invoice

Credit Note

The reverse invoice option can be accessed by right clicking on the invoice line on the Office ledger. Then click on in the top right corner.

Credit 630: Leap Debtors (Asset – debtors is reduced)
Debit 210: Leap Client Fees (Cost of sales reduced)
Debit 220: Leap Cost Recoveries (Cost of sales reduced)
Debit 230 :Leap Payments Received (Cost of sales reduced)

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Note that this is the mirror image of the invoice – it reverses each line. Here we are posting a credit note rather than writing off the bill.

Write Off Invoice

Write Off Entire Invoice

If the Invoice is unpaid and you wish to write it off you may do so by right clicking on the invoice line on the ledger.

Select Adjust Invoice and then select “Adjustment” and “Write off”

Credit 420: Leap Debtors (Reduces debtors)
Debit 630: Leap Debtor Write Offs (Expense – increased by write off)

There is one line for each Fee and Disbursement on the Invoice.

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By doing this you'll move the funds to Write offs and the balances will net off on the Trial Balance, but the balance will remain on Client Fees, Cost Recoveries and Payments Received.

Total reported income at the year-end should consider write offs so that income is not over-stated.

Write Off Disbursement

When an Office Payment (disbursement) has been paid but not billed, and you do not expect the client to pay it then you may write it off.

On the Office Accounting Ledger right click on the Office Payment and select “Write Off”.

Debit 430: Leap Payments Write Offs (Expense is increased)
Credit 310: Leap Office Payments (Expense is decreased)

With this entry you are simply moving an expense from Office Payments (Disbursements) to Written Off Disbursements.

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If the disbursement was billed prior to being written off as part of the bill, the write off amount would sit in the Leap Debtor write offs and not in the Leap Payments write offs.

Credit Receipt

A Credit receipt can be posted to the matter by selecting “New Receipt” and “New Credit Line” under the Office Accounting tab.

This records an office credit.

Debit 080: Bank (Increases money in the Office Bank)
Credit 630: LEAP Debtors (Reduces the amount in the debtors ledger)

Last Modified Date

14/02/2024 10:36 am

Title

Xero Journal Exports (Accruals)

URL Name

Xero-Journal-Exports-Accruals-AU

Resolution