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.

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.

Cash Accounting System

When we Finalise an invoice to the client on a payments method there is no export of this invoice to Xero.  The information is only exported when the bill is marked as paid. 

This allows Xero to calculate the GST on fees paid only and not on the unpaid bills.

Deposited

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

• Debit 080: Bank (Assets Increases money in the Office Bank)

• Credit 210: Leap Client Fees (The fee/profit cost is paid and turnover increases)

• Credit 220: Leap Cost Recoveries (The Cost recovery ledger is credited in Xero)

• Credit 230: Leap Payments Received (In respect of previous Office payment of $200)

• Credit 230: Leap Payments Received (In respect of previous payment of anticipated Disb of $120)

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.

When the bill is paid the final (the discounted amount) will be sent to Xero.

• Step 1: Reversing the receipt

• • Credit 110: Bank (Reduces money that is in the bank)

  • Debit 210: LEAP Client Fees (Reduces the LEAP Profit costs/turnover)

  • Debit 220: Cost Recoveries – The cost recovery is unpaid 

  • Debit 230: Leap Payments Received (Reduces balance of payments received for disbursements)

  • Debit 230: Leap Payments Received (Reduces balance of payments received for disbursements, the first entry was for our office payment and the second for our Anticipated payment)

• Step 2: You may then reverse the invoice in LEAP – this will not affect Xero as the raising of the bill in the first place would not have affected Xero.

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 > Write off.

As we are using a Cash Accounting system and the bill itself has not been exported to Xero, we can Write off the invoice in LEAP and no information is sent to Xero relating to this. 

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/Cost of sales is decreased)

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

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

This records an office credit. 

• Debit 080: Bank (Increases money in the Office Bank)

• Credit 240: LEAP Client Credits (This adds to the amount of money that we have as Client credit – which is something the firm should not have)

If you have a client credit (which firms should not have) we can apply that to an invoice.

Under the Office Accounting tab, select Credits Ledger > Apply to Invoices.

The unallocated client credit can be applied to an invoice, or even multiple invoices. The act of doing this is effectively paying a bill and this needs to be exported to Xero:

• Debit 240: Leap Client Credits (reduces funds held in client credits ledger)

• Credit 210: Leap Client Fees (Increases client fees – turnover)