Creditor: Difference between revisions

Revision as of 09:08, 19 September 2024

A creditor is an entity or business that the law firm owes money to for services or goods received.

Managing Creditors in ContactsLaw:

Identifying Creditors:
- ContactsLaw does not yet have a dedicated creditors list, but you can create a creditor by adding a contact.
- If the contact already exists, you can reuse it rather than creating a new entry.
Setting Up Financial Details:
- Once the contact is created, you can set up financial preferences such as:
  - Payment method: e.g., Bpay.
  - Expense account: Allocate where the invoice will be recorded (e.g., phone expenses).
Recording a Creditor Invoice:
- Go to General Accounting → Credit Invoice Journal.
- Enter invoice details (e.g., $500 for the monthly phone bill).
- You can attach the invoice document to the journal entry.
- Once recorded, the system automatically marks the contact as a creditor.
Viewing Creditor Information:
- A creditor’s account history (creditor ledger) shows transactions with that creditor.
- You can also view a list of invoices, including:
  - Date issued, date due, total amount, payments made, and balance outstanding.
- Ageing details categorise unpaid invoices:
  - Current: Less than 14 days.
  - 14 to 30 days.
  - 30 to 60 days.
  - 60+ days.
Paying a Creditor Invoice:
- When ready to pay an invoice:
  - Pre-filled payment details are recalled, including the preferred method (e.g., Bpay).
  - The system can automatically allocate payments to the correct invoices.
  - Partial payments or disputed amounts can be adjusted using the Allocations tab.
- Payments are processed, and balances updated accordingly.
Ongoing Management:
- Once marked as a creditor, the contact will always be treated as such.
- The contact will only appear on the aged creditors list if they have outstanding invoices.

Summary:

ContactsLaw offers a straightforward way to manage creditors and their invoices.
You can track invoice details, make payments, and view outstanding balances, helping law firms stay organised with their financial obligations.

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-A '''creditor''' is a contact from whom you receive invoices/statements on a regular (or semi-regular) basis.
+A creditor is an entity or business that the law firm owes money to for services or goods received.
+== Managing Creditors in ContactsLaw: ==
-A contact becomes a creditor on the first occasion that they are used in that capacity; i.e. the posting of a disbursement journal or creditor journal. There are no special data requirements for a contact to become a creditor. They remain a creditor even if their use is suspended.
+# '''Identifying Creditors:'''
+#* ContactsLaw does not yet have a dedicated creditors list, but you can create a creditor by adding a contact.
+#* If the contact already exists, you can reuse it rather than creating a new entry.
+# '''Setting Up Financial Details:'''
+#* Once the contact is created, you can set up financial preferences such as:
+#** '''Payment method''': e.g., Bpay.
+#** '''Expense account''': Allocate where the invoice will be recorded (e.g., phone expenses).
+# '''Recording a Creditor Invoice:'''
+#* Go to ''General Accounting'' → ''Credit Invoice Journal''.
+#* Enter invoice details (e.g., $500 for the monthly phone bill).
+#* You can attach the invoice document to the journal entry.
+#* Once recorded, the system automatically marks the contact as a creditor.
+# '''Viewing Creditor Information:'''
+#* A creditor’s account history (creditor ledger) shows transactions with that creditor.
+#* You can also view a list of invoices, including:
+#** Date issued, date due, total amount, payments made, and balance outstanding.
+#* Ageing details categorise unpaid invoices:
+#** '''Current''': Less than 14 days.
+#** '''14 to 30 days'''.
+#** '''30 to 60 days'''.
+#** '''60+ days'''.
+# '''Paying a Creditor Invoice:'''
+#* When ready to pay an invoice:
+#** Pre-filled payment details are recalled, including the preferred method (e.g., Bpay).
+#** The system can automatically allocate payments to the correct invoices.
+#** Partial payments or disputed amounts can be adjusted using the ''Allocations'' tab.
+#* Payments are processed, and balances updated accordingly.
+# '''Ongoing Management:'''
+#* Once marked as a creditor, the contact will always be treated as such.
+#* The contact will only appear on the aged creditors list if they have outstanding invoices.
+==== Summary: ====
-In the contact's financial details editor, the '''credit/payment terms''' tab becomes available, and can be used to store details to aid in the automation of creditor transactions and reconciliations:
+* ContactsLaw offers a straightforward way to manage creditors and their invoices.
+* You can track invoice details, make payments, and view outstanding balances, helping law firms stay organised with their financial obligations.
-* '''Preferred payment method''' - Determines the practice policy on how to pay invoices/statements from the creditor. Shortcuts to reconcile and pay invoices will launch the appropriate payment activity instead of prompting.
-* '''Expense account''' - Determines the default general account to suggest when posting a creditor journal. Despite the name of the field, other account types (such as income) are permissible too.
-* '''Credit arrangement''' - Specifies whether to operate on a "pay on statement" or "pay on invoice" arrangement. If the creditor is marked as "pay on statement", attempts to pay invoices directly will be accompanied by a warning. If "pay on invoice", all creditor journals will be automatically marked as payable as they are posted.
-* '''Credit terms''' - The number of days for which the credit arrangement applies.
-* '''Allow purchase orders''' - Specifies whether purchase orders may be requested for this creditor.
-*