Orion’s General Ledger is simply the program that collects transactions from each of the other modules for reporting purposes. No transactions are automatically transferred to the General Ledger. The transactions are created and stored in the individual modules until you actually transfer them to the General Ledger. Even then, they are brought in as unposted transactions. This gives you one more opportunity to edit them before posting. The transfer can occur at any time and as often as you wish. The frequency should be determined by your internal accounting procedures. If you run financials frequently throughout the month, you should transfer the transactions several times in the month, maybe even daily. Most firms wait until the end of the month and transfer them all at once. You should evaluate your internal procedures and determine the frequency required to meet your internal procedures.
In addition to the General Ledger transactions created in each module, the Accounts Payable module feeds information into the Billing and Accounts Receivable module. Specifically, any time a Voucher is posted which includes charges that have been distributed to a Client-Matter and entered with a “CA” code, the Client-Matter file is updated with these expenses for billing.
Additionally, trust and retainer transactions can be created in Voucher Entry, and these transactions also update the Client-Matter’s ledger file. Below is a more detailed explanation of these transactions as well as others. Understanding the path each transaction takes will help you maintain accurate balances and ensure you can make adjustments when necessary.
Sample General Ledger Table
For purposes of this explanation, let’s assume your G/L Default Table looks like this:
| Account Name | Account Number |
| Cash in Bank | 1010 |
| Accounts Receivable Fees | 1030 |
| Accounts Receivable Expenses | 1060 |
| A/R Client Advances | 1065 |
| Sales Tax Receivable | 1070 |
| Client Advances Unbilled | 1050 |
| Fees Uncollected | 2100 |
| Expenses Uncollected | 2110 |
| Client Advances Written Off | 4030 |
| Sales Tax Liability Offset | 2115 |
| Default Client Trust Account | 9000 |
| Trust Liability Account | 9001 |
| Unapplied Retainers | 2090 |
| Account Name | Account Number |
| Default Income – Fees | 3000 |
| Income – Expense | 3100 |
| Income – Interest | 3200 |
| Accounts Payable | 2050 |
The remainder of this chapter provides examples that should help you understand how the accounts defined in the General Ledger Table under System Setup are affected by various functions performed in Orion and how the different Orion modules interrelate.
Orion Billing
Each time an invoice is posted or unposted or any type of payment, credit, etc. is posted in the Billing and Accounts Receivable module, a General Ledger transaction is created. Trust and retainer transactions also create General Ledger transactions. Trust and retainer deposits and disbursements (TDP, RDP, TDS and RDS) do not have to be posted. TAP and RAP transactions must be posted before General Ledger transactions are created.
Invoicing
When an invoice for fees ($1,200.00), expenses ($5.00) and client advances ($150.00) is created and posted, the following transactions are created:
| Acct # | Invoice 12345 | Debit | Credit |
| 1030 | A/R FEES | $1,200.00 | |
| 2100 | UNCOLLECTED FEES | $1,200.00 | |
| 1060 | A/R EXPENSES | 5.00 | |
| 2110 | UNCOLLECTED EXPENSES | 5.00 | |
| 1065 | A/R CLIENT ADVANCES | 150.00 | |
| 1050 | UNBILLED CLIENT ADVANCES | 150.00 | |
| TOTAL | $1,355.00 | $1,355.00 |
These transactions will print on the AR to GL Transfer Report and the date of the transaction will be the date of the invoice.
Payments, Credits, Write Offs, Etc.
1. Payments (PMT)
When a payment ($1,355.00 for Invoice 12345 as shown above) is received, entered, applied and posted, the following transactions are created:
| Acct # | Payment of Invoice 12345 | Debit Credit | |
| 1030 | A/R FEES | $1,200.00 | |
| 2100 | UNCOLLECTED FEES | $1,200.00 | |
| 1060 | A/R EXPENSES | 5.00 | |
| 2110 | UNCOLLECTED EXPENSES | 5.00 | |
| 1065 | A/R CLIENT ADVANCES | 150.00 | |
| 3000 | FEE INCOME | 1,200.00 | |
| 3100 | EXPENSE INCOME | 5.00 | |
| 1010 | OPERATING ACCOUNT | 1,355.00 | |
| TOTAL | $2,560.00 | $2,560.00 | |
2. Retainer Applied as Payment (RAP)
When paying an invoice from available “Retainer” funds, a Retainer Applied as Payment (RAP) is entered through the AR Entry Program and the client Trust/Retainer account is automatically updated. The updated amount is immediately reflected in all Client-Matter screens and reports in the Billing and Accounts Receivable module. The applicable General Ledger transactions, however, are not created until the RAP is applied to the outstanding invoice and posted. Once applied and posted, the following transactions are created:
| Acct # | Retainer Applied as Payment | Debit Credit | |
| 1030 | A/R FEES | $1,200.00 | |
| 2100 | UNCOLLECTED FEES | $1,200.00 | |
| 1060 | A/R EXPENSES | 5.00 | |
| 2110 | UNCOLLECTED EXPENSES | 5.00 | |
| 1065 | A/R CLIENT ADVANCES | 150.00 | |
| 3000 | FEE INCOME | 1,200.00 | |
| 3100 | EXPENSE INCOME | 5.00 | |
| 2050 | UNAPPLIED RETAINERS | 1,355.00 | |
| TOTAL | $2,560.00 | $2,560.00 | |
Note: If the TAP was created through the Accounts Payable module, the transactions hitting the Client Trust Liability and Trust Bank Account are not created upon posting the TAP. Instead, they are created by the Accounts Payable Module.
3. Trust Applied as Payment (TAP)
When paying an invoice from available “Trust” funds, a Trust Applied as Payment (TAP) is entered through the AR Entry Program and the client Trust/Retainer account is automatically updated. The updated amount is immediately reflected in all Client-Matter screens and reports in the Billing and Accounts Receivable module. The applicable General Ledger transactions, however, are not created until the TAP is applied to the outstanding invoice and posted. Once applied and posted, the following transactions are created:
| Acct # | Trust Applied as Payment |
Debit |
Credit |
| 9001 | CLIENT TRUST LIABILITY | $1,355.00 | |
| 9000 | TRUST BANK ACCOUNT | $1,355.00 | |
| 1030 | A/R FEES | $1,200.00 | |
| 2100 | UNCOLLECTED FEES | $1,200.00 | |
| 1060 | A/R EXPENSES |
5.00 |
|
| 2110 | UNCOLLECTED EXPENSES | 5.00 | |
| 1065 | A/R CLIENT ADVANCES | 150.00 | |
| 3000 | FEE INCOME | 1,200.00 |
| Acct # | Trust Applied as Payment | Debit | Credit |
| 3100 | EXPENSE INCOME |
5.00 |
|
| 1010 | OPERATING ACCOUNT | 1,355.00 | |
| TOTAL | $3,915.00 | $3,915.00 |
4. Credits (CR) and Write Offs (WO)
Occasionally, an attorney will decide to credit or write off a client’s outstanding accounts receivable balance. Credit and Write Off entries are made through the AR Entry Program using a CR (credit) or WO (write off) code. (For information purposes, we will credit all of Invoice 12345). Credit and Write Off transactions are treated in the same manner as payment (PMT) transactions, RAPs and TAPs. When a Credit or Write Off is entered, applied and posted, the following transactions are created:
| Acct # | Credit Invoice 12345 | Debit Credit | |
| 1030 | A/R FEES | $1,200.00 | |
| 2100 | UNCOLLECTED FEES | $1,200.00 | |
| 1060 | A/R EXPENSES | 5.00 | |
| 2110 | UNCOLLECTED EXPENSES | 5.00 | |
| 1065 | A/R CLIENT ADVANCES | 150.00 | |
| 4030 | CLIENT ADVANCES WRITTEN OFF | 150.00 | |
| TOTAL | $1,355.00 | $1,355.00 | |
Retainer Deposit (RDP)
Most firms consider a “Retainer” to be an advance payment for services rendered. In other words, the “Retainer” is deposited directly into the operating account as income to the firm. Some firms consider this as a non-refundable deposit while others agree to bill against it. Occasionally, a client will overpay an invoice or may pay the same invoice twice. This would be treated as a “Retainer Deposit”.
When funds are received that are considered to be a “Retainer”, the transaction is first entered as a Retainer Deposit (RDP) through the AR Entry Program. The Client-Matter Retainer account is automatically updated. The updated amount is immediately reflected on all Client- Matter screens and reports in the Billing and Accounts Receivable module. The applicable General Ledger transactions are immediately created as follows:
| Acct # | Retainer Deposit ($300.00) |
Debit |
Credit |
| 1010 | OPERATING ACCOUNT | $300.00 | |
| 2090 | UNAPPLIED RETAINERS | $300.00 | |
| TOTAL | $300.00 | $300.00 |
Trust Account Deposit (TDP)
When a new Client-Matter is set up the system asks for a Trust Account number. This is so the system will know what account to use when trust transactions are entered. When funds are received that are to be deposited into a Trust account, the transaction is first entered as a Trust Deposit (TDP) through the AR Entry Program. The Client-Matter Trust account is automatically updated. The updated amount is immediately reflected on all Client-Matter screens and reports in the Billing and Accounts Receivable module. The applicable General Ledger transactions are immediately created as follows:
| Acct # | Trust Deposit ($5,000.00) |
Debit |
Credit |
| 9000 | TRUST BANK ACCOUNT | $5,000.00 | |
| 9001 | CLIENT TRUST LIABILITY | $5,000.00 | |
| TOTAL | $5,000.00 | $5,000.00 |
Trust Account Disbursement (TDS)
When trust account disbursements (if you pay something on behalf of the client out of the trust account) are made, the Client Trust account is automatically updated. The updated amount is immediately reflected in all Client-Matter screens and reports in the Billing and Accounts Receivable module. The applicable General Ledger transactions are immediately created as follows:
| Acct # | Trust Disbursement ($100.00) | Debit | Credit |
| 9001 | CLIENT TRUST LIABILITY | $100.00 | |
| 9000 | TRUST BANK ACCOUNT | $100.00 | |
| TOTAL | $100.00 | $100.00 |
Retainer Disbursement (RDS)
When retainer account disbursements are made, the Client Retainer account is automatically updated. The updated amount is immediately reflected in all Client-Matter screens and reports in the Billing and Accounts Receivable module. The applicable General Ledger transactions are immediately created as follows:
| Acct # | Retainer Disbursement ($300.00) | Debit | Credit |
| 1010 | OPERATING ACCOUNT | $300.00 | |
| 2090 | UNAPPLIED RETAINERS | $300.00 | |
| TOTAL | $300.00 | $300.00 |
You should be careful when creating Retainer Disbursements because your cash account will be affected. If you are transferring a retainer amount from one Client-Matter to another, it is a good idea to fully describe the transaction when you enter the Retainer Disbursement. Since ORION does not have a way to create a “Retainer Transfer,” you must first enter a Retainer Disbursement (RDS) and then a Retainer Deposit (RDP). A retainer transfer will basically be a “wash” in the General Ledger accounts. For example, if Client 145 – Matter 1 has a retainer balance of $500.00 and you wish to transfer $250.00 to Client 145 – Matter 2, the following General Ledger transactions will be created:
RDS CLIENT 145 – MATTER 1
| Acct # | Retainer Disbursement ($250.00) | Debit | Credit |
| 1010 | OPERATING ACCOUNT | $250.00 | |
| 2090 | UNAPPLIED RETAINERS | $250.00 | |
| TOTAL | $250.00 | $250.00 |
RDP CLIENT 145 – MATTER 2
| Acct # | Retainer Deposit ($250.00) |
Debit |
Credit |
| 1010 | OPERATING ACCOUNT | $250.00 | |
| 2090 | UNAPPLIED RETAINERS | $250.00 | |
| TOTAL | $250.00 | $250.00 |
As you can see with the above transactions, the $250.00 is taken out of the Operating Account with the RDS and immediately put back in with the RDP.
Accounts Payable – Cash Basis
In cash basis systems, no General Ledger transactions are created until a check is written. At that time, cash is credited and the account or accounts listed in the distribution of the Voucher are debited. If the check is voided and the transactions created for the original check have been transferred to the General Ledger, reversing General Ledger transactions are created. If the original transactions have not yet been transferred to the General Ledger, they are just deleted.
If a “CA” code is used in the Voucher’s distribution, a Client Advance transaction is created in the Billing and Accounts Receivable module for the Client-Matter associated with the code as soon as the Voucher is posted. If this Voucher is voided, the system deletes the Client Advance transaction from the Billing and Accounts Receivable module if it has not yet been billed to the Client. If it has already been billed, a credit (CR) transaction is created in the Billing and Accounts Receivable module which must then be applied and posted to an outstanding invoice.
Trust and retainer transactions can also be entered through the Voucher Entry program. The following details the transactions created for each type of entry.
Trust Disbursement (TDS)
If a trust disbursement is made through the Accounts Payable module you must use the Trust Account Bank Code in the Voucher Entry Program. You must also enter the Client-Matter number and choose the TDS code rather than a CA code. Upon posting the Voucher, the Client-Matter Trust account balance is reduced by the amount of the TDS. The Trust ledger will display an entry showing the date, Voucher number and the amount of the Voucher. When the check is written, the following transactions are created:
| Acct # | Trust Check ($100.00) |
Debit |
Credit |
| 9001 | TRUST BANK ACCOUNT | $100.00 | |
| 9000 | CLIENT TRUST LIABILITY | $100.00 | |
| TOTAL | $100.00 | $100.00 |
Trust Applied as Payment (TAP)
You enter a TAP code in the Voucher distribution if the check is written to the firm to pay off its invoice. This entry will reduce the Client’s trust account in the Billing and Accounts Receivable module, reduce the amount in the trust cash account and increase cash in the operating account. For example, if a Voucher is created to pay off Invoice 12345 described in Paragraph I.A. above, the following General Ledger transactions will be created at the time the check is written:
| Acct # | TAP Created in AP ($1,355.00) | Debit | Credit |
| 9001 | TRUST BANK ACCOUNT | $1,355.00 | |
| 9000 | CLIENT TRUST LIABILITY | $1,355.00 | |
| TOTAL | $1,355.00 | $1,355.00 |
When the TAP is applied against the invoice in the Billing and Accounts Receivable module the following transactions will be created:
| Acct # | TAP Applied in Billing ($1,355.00) | Debit Credit | |
| 1030 | A/R FEES | $1,200.00 | |
| 2100 | UNCOLLECTED FEES | $1,200.00 | |
| 1060 | A/R EXPENSES | 5.00 | |
| 2110 | UNCOLLECTED EXPENSES | 5.00 | |
| 1065 | A/R CLIENT ADVANCES | 150.00 | |
| 3000 | FEE INCOME | 1,200.00 | |
| 3100 | EXPENSE INCOME | 5.00 | |
| 1010 | OPERATING ACCOUNT | 1,355.00 | |
| TOTAL | $2,560.00 | $2,560.00 | |
Payment of a Voucher
Entry of a Voucher in the Accounts Payable module has no effect on the General Ledger until the Voucher is actually paid. However, as soon as a Voucher is entered and posted, the appropriate Client-Matter file in the Billing and Accounts Receivable module is updated. Payment of any Voucher in Accounts Payable creates a transaction debiting the proper expense accounts and crediting the proper cash account. If you pay a Voucher for $500.00 from your main operating account, the following transactions are created:
| Acct # | Check #1234 ($500.00) | Debit | Credit |
| 7000 | RENT | $500.00 | |
| 1010 | OPERATING ACCOUNT | $500.00 | |
| TOTAL | $500.00 | $500.00 |
Once checks are written and verified as okay, they are automatically updated and posted in the Accounts Payable module. Writing checks or voiding them does not affect the Billing and Accounts Receivable module. In order for the Billing and Accounts Receivable module to be affected, the Voucher must be posted.
Voiding a Check
Voiding a check for $500.00 creates the following transactions:
| Acct # | Void Check #1234 ($500.00) |
Debit |
Credit |
| 7000 | RENT | $500.00 | |
| 1010 | OPERATING ACCOUNT | $500.00 | |
| TOTAL | $500.00 | $500.00 |
When you void a check, the Voucher is reset to an unpaid (open) status. You may also void the Voucher when you void the check if you do not plan to pay it. See the previous sections for the effect of voiding a Voucher.
Adjustment of a Paid Voucher
ORION allows you to adjust the distribution of a Voucher after it has been paid. You may adjust the General Ledger accounts or Client-Matters to which the Voucher was distributed but you may not adjust the amount of the Voucher. If Voucher 1010 is paid and then adjusted to be distributed to a Client-Matter rather than rent, the following transactions are created:
| Acct # | Voucher 1010 ($500.00) | Debit | Credit |
| 7000 | RENT | $500.00 | |
| 1050 | UNBILLED CLIENT ADVANCES | $500.00 | |
| TOTAL | $500.00 | $500.00 |
At the time this Voucher is adjusted and posted, a Client Advance transaction is created in the appropriate Client-Matter file in the Billing and Accounts Receivable module.
Adjustment of Unpaid Client Advance Vouchers
When a Voucher containing a Client Advance is adjusted, the amount of the adjustment is reflected in the appropriate Client-Matter file in the Billing and Accounts Receivable module. If the Client Advance has not yet been invoiced to the Client, the Client Advance will be adjusted by amount or deleted. If the Client Advance has already been invoiced to the Client, ORION creates a credit (CR) transaction.
Note: It is important that credit (CR) transactions created by the Accounts Payable module be applied against Client Advances accounts receivable. If they are not, you will experience an out-of-balance situation with your Client Advance accounts.
Accounts Payable – Accrual Basis
In accrual basis systems, General Ledger transactions are created when new Vouchers are posted and when checks are written. If a “CA” code is used in the Voucher distribution, a Client Advance transaction is created in the Billing and Accounts Receivable module for the Client-Matter associated with the code at posting of the Voucher. If this Voucher is voided, the system deletes the Client Advance transaction from the Billing and Accounts Receivable module if it has not yet been billed. If the transaction has already been billed, a credit is created in the Billing and Accounts Receivable module which must then be applied and posted to an outstanding invoice.
The following illustrates the General Ledger transactions created for each type of Accounts Payable task.
Entering Vouchers
As soon as a Voucher is entered and posted in Accounts Payable, ORION creates a General Ledger transaction. If a firm expense is entered, the program creates the following transactions:
| Acct # | Voucher 1010 ($500.00) | Debit | Credit |
| 7000 | RENT | $500.00 | |
| 2050 | ACCOUNTS PAYABLE | $500.00 | |
| TOTAL | $500.00 | $500.00 |
If a Client Advance (CA) code is used in the distribution of a Voucher, ORION creates the following transactions:
| Acct # | Voucher 1011 ($200.00) | Debit | Credit |
| 1050 | UNBILLED CLIENT ADVANCES | $200.00 | |
| 2050 | ACCOUNTS PAYABLE | $200.00 | |
| TOTAL | $200.00 | $200.00 |
An entry in the appropriate Client-Matter file in the Billing and Accounts Receivable module is automatically created when the Voucher is posted. Entries in the Billing and Accounts Receivable module that have been created by the Accounts Payable module cannot be deleted.
Payment of a Voucher
Payment of any Voucher in Accounts Payable creates a General Ledger transaction that debits the accounts payable account and credits the appropriate cash account. If you pay a Voucher for $500.00 from your main operating account, the following transactions are created:
| Acct # | Check #1234 ($500.00) |
Debit |
Credit |
| 2050 | ACCOUNTS PAYABLE | $500.00 | |
| 1010 | OPERATING ACCOUNT | $500.00 | |
| TOTAL | $500.00 | $500.00 |
Once checks are written and verified as okay, they are automatically updated and posted in the Accounts Payable module. Writing or voiding checks does not affect the Billing and Accounts Receivable module.
Adjustment of an Unpaid Firm Expense Voucher
Adjustments can be made to any open Voucher. This includes voiding the Voucher completely. A reduction (decrease in amount) of an unpaid Voucher by $300.00 creates the following transactions:
| Acct # | Voucher 1010 ($300.00) | Debit | Credit |
|---|---|---|---|
| 7000 | RENT | $300.00 | |
| 2050 | ACCOUNTS PAYABLE | $300.00 | |
| TOTAL | $300.00 | $300.00 |
An increase of an unpaid Voucher by $150.00 creates the following transactions:
| Acct # | Voucher 1010 ($150.00) | Debit | Credit |
| 7000 | RENT | $150.00 | |
| 2050 | ACCOUNTS PAYABLE | $150.00 | |
| TOTAL |
Voiding an unpaid Voucher (Voucher 1010 for $500.00) creates the following transactions:
| Acct # | Voucher 1010 ($500.00) | Debit | Credit |
| 7000 | RENT | $500.00 | |
| 2050 | ACCOUNTS PAYABLE | $500.00 | |
| TOTAL | $500.00 | $500.00 |
Adjustment of Unpaid Client Advance Vouchers
When a Voucher containing a Client Advance is adjusted, the amount of the adjustment is reflected in the appropriate Client-Matter file in the Billing and Accounts Receivable module. If the Client Advance has not yet been invoiced to the Client, the Client Advance will be adjusted by the amount or deleted. If the Client Advance has already been invoiced to the Client, ORION creates a credit (CR) transaction.
Voiding an unpaid Client Advance Voucher creates the following transactions:
| Acct # | Voucher 1011 ($200.00) | Debit | Credit |
| 2050 | ACCOUNTS PAYABLE | $200.00 | |
| 1050 | UNBILLED CLIENT ADVANCES | $200.00 | |
| TOTAL | $200.00 | $200.00 |
Note: It is important that credit (CR) transactions created by the Accounts Payable module be applied against Client Advances accounts receivable. If they are not, you will experience an out-of-balance situation with your Client Advance accounts.
Adjustment of a Paid Voucher
ORION allows you to adjust the distribution of a Voucher after it has been paid. You may adjust the General Ledger accounts or Client-Matters to which the Voucher was distributed but you may not adjust the amount of the Voucher. If Voucher 1010 is paid and then adjusted to be distributed to a Client-Matter rather than rent, the following transactions are created:
| Acct # | Voucher 1010 ($500.00) | Debit | Credit |
| 7000 | RENT | $500.00 | |
| 1050 | UNBILLED CLIENT ADVANCES | $500.00 | |
| TOTAL | $500.00 | $500.00 |
At the time this Voucher is adjusted and posted, a Client Advance transaction is created in the appropriate Client-Matter file in the Billing and Accounts Receivable module.
Voiding a Check
Voiding a check for $500 creates the following transactions:
| Acct # | Check #1234 ($500.00) | Debit | Credit |
| 1010 | OPERATING ACCOUNT | $500.00 | |
| 2050 | ACCOUNTS PAYABLE | $500.00 | |
| TOTAL | $500.00 | $500.00 |
When you void a check, the Voucher is reset to an unpaid (open) status. You may also void the Voucher when you void the check if you do not plan to pay it. See the previous sections for the affect of voiding a Voucher.
Trust and Retainer Transactions
Trust and Retainer transactions can also be created in the Voucher Entry program. The following details the transactions created for each of these entries.
1. Trust Disbursement (TDS)
If a trust disbursement is made through the Accounts Payable module you must use the Trust Account Bank Code in the Voucher Entry Program. You must also enter the Client-Matter number and choose the TDS code rather than a CA code. Upon posting the Voucher, the Client-Matter trust account balance in the Billing and Accounts Receivable module is reduced by the amount of the TDS. The Trust ledger will display an entry showing the date, Voucher number and the amount of the Voucher. When the Voucher is posted, the following transactions will be created:
| Acct # | Voucher 1012 ($100.00) |
Debit |
Credit |
| 2050 | ACCOUNTS PAYABLE | $100.00 | |
| 9001 | CLIENT TRUST LIABILITY | $100.00 | |
| TOTAL | $100.00 | $100.00 |
2. Trust Applied as Payment (TAP)
A TAP code is used in the Voucher distribution if the check is being written to the Firm to pay off its invoice. This entry will reduce the Client’s Trust account in the Billing and Accounts Receivable module, credit the Trust Cash account and debit the operating account. For example, if a Voucher is created to pay off Invoice 12345 described in Paragraph I.A., above, the following General Ledger transactions will be created:
| Acct # | Voucher 1013 ($1,355.00) |
Debit |
Credit |
| 2050 | ACCOUNTS PAYABLE | $1,355.00 | |
| 9001 | CLIENT TRUST LIABILITY | $1,355.00 | |
| TOTAL | $1,355.00 | $1,355.00 |
When the check is written for either of the two previous Vouchers (1012 and 1013), the following transactions are created:
| Acct # | Check for Voucher 1012 ($100.00) | Debit | Credit |
| 2050 | ACCOUNTS PAYABLE | $100.00 | |
| 9000 | TRUST CASH ACCOUNT | $100.00 | |
| TOTAL | $100.00 | $100.00 |
| Acct # | Check for Voucher 1013 ($1,355.00) | Debit | Credit |
| 2050 | ACCOUNTS PAYABLE | $1,355.00 | |
| 9000 | TRUST CASH ACCOUNT | $1,355.00 | |
| TOTAL | $1,355.00 | $1,355.00 |
The Client Trust account used is determined by the General Ledger account defined in the Matter file.
3. TAP Application
When a TAP created in the Accounts Payable module is applied in the Billing and Accounts Receivable module, the following transactions are created:
| Acct # | TAP Applied in Billing ($1,355.00) | Debit Credit | |
| 1030 | A/R FEES | $1,200.00 | |
| 2100 | UNCOLLECTED FEES | $1,200.00 | |
| 1060 | A/R EXPENSES | 5.00 | |
| 2110 | UNCOLLECTED EXPENSES | 5.00 | |
| 1065 | A/R CLIENT ADVANCES | 150.00 | |
| 3000 | FEE INCOME | 1,200.00 | |
| 3100 | EXPENSE INCOME | 5.00 | |
| 1010 | OPERATING ACCOUNT | 1,355.00 | |
| TOTAL | $2,560.00 | $2,560.00 | |