Working with Accounts Payable

In this article:

• Creating an Accounts Payable (AP)
• Processing or Paying Payables
• Working with Cheque Mgt Options

Legal Accounting makes it easy to manage your firm's cash flow by helping you create and track payments to vendors. 

Creating an Accounts Payable (AP)

1. Go to Add Entry > Payable tab.
2. Fill in the details under the payable entry section:
   • Payable Date: Date that vendor invoice was created.
   • Due Date: Date the payment is due, which will appear on the vendor invoice. This needs to be entered manually.
   • Reminder:Choose when the system should remind you to pay the invoice.
     NOTE:  To see the list, please go to Dashboard > Transaction Reminders tab. The system does not have an option to send automatic reminders or alerts.
   • Amount $: The total amount of the vendor's invoice.
   • (For Canadian books) Tax Status & GST/HST Amount: Sets whether the payable is subject to tax and how much taxes the firm want to pay for it as an Input Tax Credit (ITC).
   • Reference: A required field for tracking and reporting (e.g., the vendor's invoice number).
   • Contact: Assigns a vendor to the payable. Search by typing the vendor number or name. You can also click the plus sign to add a new vendor
     NOTE:  If you need to make a cheque to another saved contact and not a vendor, you have to manually type in their contact number on the field and once you saved that cheque, that contact will automatically become a Vendor as well.
   • Payee: Automatically shows the name of the contact you selected.
   • (Optional) Memo: Add notes about the payable. These notes will appear on reports or client invoices if charged to a file.
     
     
3. (Optional) Upload vendor's invoice. Attach a digital copy of the vendor invoice. You can click the PDF Invoice box to select a file or drag and drop it. 
4. Under the payable allocation section, set the following: 
   • File: If the payable is for a specific client file, select the file, or leave blank if it's a firm expense.
   • (Optional) Linked Entry: If the payable needs to be linked to an existing expense recovery. Enter the entry number from the Client Ledger report. 
     
   • Act Code: The activity code associated with the entry. The explanation field will show the description for this code.
     NOTE:  For payables to the firm (not linked to a client file), the GL Acct field will automatically fill with the general ledger account for the activity code or vendor unless nothing is assigned to the Act Code.
   • (For Canadian books) Tax Status: If the payable is for a file/s, you need set the tax status each line so client will be charged applicable taxes upon billing.
   • Explanation: Contains information from the Memo field and the activity description. You can add or adjust notes here. This information will appear on reports and invoices.
   • Amount: The dollar amount you want to apply to a file or the firm.
   • GL Acct: The general ledger account for the entry. This field won't be available for payables linked to a contact's file or an existing payable.
     
     
5. Click Save. The entry will be stored, and the Payables screen will clear.

Processing or Paying Payables

There are two ways to process or pay an account payable:

• Operating Out - for single vendor
• Batch Pay Payables - for single and multiple vendors.

To pay a payable from Operating Out:

See Paying an Accounts Payable from Operating Out.

To pay payables from Batch Pay Payable:

1. Go to Add Entry > Batch Pay Payable, the screen will display all outstanding payables by vendor.
2. (Optional) If you wish to edit the payable double-click the entry, see Editing or Deleting Payable Entries.
3. Select the payables you wish to process by clicking the checkmark on each entry.
4. Review the payment details. You may change the Discount and Pay values if needed, click on the box to highlight then type the amount.
   
   
5. Enter a Memo if needed.
6. Review and change Cheque Mgt as needed (see Working with Cheque Mgt Options).
7. Click Save.

Working with Cheque Mgt Options

When viewing the Cheque Mgt options, you have several choices for cheque management. Which ones appear for you may be different based on your system configuration. They are:

• Request: Choose this option to submit the cheque for release.
• Request/Print Request: Choose this option to submit the cheque for release and print the request.
• Release/Print: Choose this option to process the cheque and print it. When prompted for a cheque number, make sure it corresponds with the next available preprinted check.
• Release/Print Later (Batch Cheque): Choose this option to process the cheque immediately and save the entry to reflect on the bank balances but to be printed in a batch at a later time.
  1. Please go to Bank Admin > Batch Cheque Print.
  2. Select the Bank Account the "cheque" was written from.
  3. Checkmark the entry or entries you wish to print.
  4. Click Print Now.
     NOTE:  If you don't need to physically print the cheque, it is highly recommended to still choose Print Now instead of Never Print so the image of the cheque is saved in the system. You may simply print it off a blank or spare paper.
• Release/Never Print: Choose this option to process the cheque but not create the image to be printed.