Creating Operating Out Transactions

In this article:

• Accessing the Operating Out Screen
• Issuing a Client Disbursement
• Paying an Accounts Payable from Operating Out
• Creating a Firm Expense or Non-Client Related Cheques
• GST, HST or PST Remittance for Canadian Books
• Working with 'Cheque Mgt' Options

The Operating Bank (General Bank) is where the day-to-day receipts and cheques are generated, Operating Out allows you to issue cheques going out of the firm.

Accessing the Operating Out Screen

To do this: 

1. Go to Add Entry menu and click Operating Outtab. There are two sections within the Operating Out screen:
   • The Cheque Entry area is where you will enter the information about the funds going out of the firm.
   • The Cheque Allocation section indicates where the entry will be allocated or posted.

Issuing a Client Disbursement

Writing a cheque as a client advance is common, it is used to pay goods or services that the firm spends on behalf of clients and related reimbursements.

To do this:

1. Go to Add Entry > Operating Out.
2. Fill in the details for the cheque entry.
   NOTE:  On Canadian books, you'll see a GST/HST field. This field lets you choose if your firm wants to pay the GST/HST on a cost right away. Later, you can get that money back as an Input Tax Credit (ITC). This ITC will reduce the amount of tax you owe the government when it's time to pay (remittance period). 
3. Select the payee under the Contact field to auto-populate the Payee field.
   NOTE:  By default, only Vendors will show on the list of contacts to be displayed, if the payee is a saved contact but not a vendor, you have to manually type the full contact number. If the payee is not a saved contact, manually enter the name under Payee field.
4. Enter any notes in the Memo field. 
5. Search and select the file that the advance applies under File field located in the cheque allocation section.
6. (For Canadian books only) Review and change the Tax Status if needed.
   NOTE:  If a client disbursement needs a tax status different from the file's default, you must change the disbursement's tax status directly in the entry. Changing the tax status at the top of the cheque entry won't automatically change the disbursement's tax status.
   
   For example, if a firm is writing a cheque for two different files, and one file is tax-exempt, you need to change that specific disbursement's tax status to "exempt." This ensures that when the file is billed, no taxes are calculated or applied to that disbursement. 
7. Fill in the Act Code or Explanation as needed.
   NOTE:  Regardless if the Act Code used has a GL attached to it, the GL Acct will auto-populate, this is expected because specific entries automatically posted to it's reserved GL account.
8. Review and change the Cheque Mgt as needed. See Working with 'Cheque Mgt' Options (below) for more information.
9. Click Save.

Paying an Accounts Payable from Operating Out

You can also use the Operating Out to process Accounts Payable.

To do this:

1. Go to Add Entry menu then Operating Out.
2. Fill in the details for the cheque entry. 
3. Select the vendor under the Contact field to auto-populate the Payee field.
4. Select the payable or payables you want to pay to from the Select Payable to Pay pop-up screen and click Ok or click Auto Allocate to pay the oldest payable first.
   NOTE: If you need to re-select the invoices, click the Payables button to the right.
5. Review and edit the auto-populated Memo if needed.
6. Fill in the Act Code or Explanation as needed.
   NOTE:  Regardless if the Act Code used has a GL attached to it, the GL Acct will auto-populate, this is expected because specific entries automatically posted to it's reserved GL account.
7. Review and change the Cheque Mgt as needed. See Working with 'Cheque Mgt' Options (below) for more information.
8. Click Save.

Creating a Firm Expense or Non-Client Related Cheques

There are times you need to write a cheque that is not associated with any client or file, Legal Accounting allows you to enter them as firm expense. 

To do this:

1. Go to Add Entry then Operating Out.
2. Fill in the details for the cheque entry. 
3. Select the vendor under the Contact field to auto-populate the Payee field, or manually type the Payee field.
4. Fill in the Act Code or Explanation as needed. If there's a GL account assigned to the Act Code, it will auto-populate under the GL Acct, or manually enter the GL.
   
5. Review and change the Cheque Mgt as needed. See Working with 'Cheque Mgt' Options (below) for more information.
6. Click Save.

GST, HST or PST Remittance for Canadian Books

To do this:

1. Go to Add Entry then Operating Out.
2. Fill in the details for the cheque entry.
3. Set the tax status to GST/HST Remittance or PST Remittance.
   NOTE:  For PST remittance, please add the commission amount.
4. Select the vendor under the Contact field to auto-populate the Payee field, or manually type the Payee field.
5. Review and change the Cheque Mgt as needed. See Working with 'Cheque Mgt' Options (below) for more information.
6. 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 but save the entry so it can be printed in a batch at a later time.
• Release/Never Print: Choose this option to process the cheque but not create the image to be printed.