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


# '''Identifying Creditors:'''
== '''Set Up Financial Details:''' ==
#* ContactsLaw does not yet have a dedicated creditors list, but you can create a creditor by adding a contact.
# Once the contact is created, you can set up financial preferences, including:
#* If the contact already exists, you can reuse it rather than creating a new entry.
* '''Payment method''': Cheque, Bank cheque, Loan/petty cash, Escrow, Electronic funds transfer, Credit card, Direct debit, Bpay, PayID/Osko, International transfer, Debit card/EFTPOS.
# '''Setting Up Financial Details:'''
* '''Expense account''': Allocate where the invoice will be recorded (None, Debt written off, Disbursements written off, Discounts, Merchant fees).
#* 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: ====
== '''Recording a Creditor Invoice:''' ==
# Under the ribbon tab, go to Home then ''General Accounting'' . Under Journals, choose ''Create'' ''Credit Invoice Journal''.
# Fill in the following details:
#* '''DR Account'''
#* '''Invoice Number'''
#* '''Invoice Date'''
#* '''Due Date'''
#* '''Description'''
# Attach the invoice document to the journal entry.
# Process the transaction.
# The system automatically marks the contact as a creditor.


* ContactsLaw offers a straightforward way to manage creditors and their invoices.
== '''Viewing Creditor's Information:''' ==
* You can track invoice details, make payments, and view outstanding balances, helping law firms stay organised with their financial obligations.
'''Creditor Ledger''': Shows the account history with that creditor, limited to transactions.
 
# Under the C''ontact'' tab, go to L''edgers'', then C''reditors''.
 
* '''Creditor Invoices''': View a list of invoices including:
** Date Issued
** Date Due
** Total Amount
** Payments Made
** Balance Outstanding
 
== Aged Creditors ==
 
# Under ''DSH Legal'', go to ''General Accounting'' and choose ''Aged Creditors''.
# This view categorises unpaid invoices:
#* Current: Less than 14 days
#* 14 to 30 days
#* 30 to 60 days
#* 60+ days
 
Periodically, the firm’s bookkeeper or accountant reviews this list to determine which invoices to pay.
 
== '''Paying a Creditor Invoice:''' ==
#Under the ribbon tab, go to Home then ''General Accounting'' . Under Payment, choose ''Create'' ''Creditor Payment''
#Pre-filled payment details will be recalled. If not:
#*Enter Account Name
#* Account Number
#* Bank Narration (appears on payee's bank statement)
#* Related Document (add a document)
#* Reference (for reconciliation purposes)
#The system can automatically allocate payments to the correct invoices.
# For partial payments or disputed amounts, use the '''Allocations''' tab to manually adjust how much to pay. Now most of the time the system will be able to allocate payments to outstanding invoices automatically for you.
# If you have two bills but one is in dispute and you only want to pay the other:
## Go to the '''Allocations''' tab.
## You will see a list of all outstanding invoices for that creditor.
## Manually allocate the amount you wish to pay for the invoice you are settling.
## This allocation thing's important because it controls the amount of tax sales tax, GST that gets allocated to this transaction.
 
 
6. Authorise the payment, allowing others in the organisation to process it.
 
 
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. 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.

Revision as of 01:56, 24 September 2024

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

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.

Set Up Financial Details:

  1. Once the contact is created, you can set up financial preferences, including:
  • Payment method: Cheque, Bank cheque, Loan/petty cash, Escrow, Electronic funds transfer, Credit card, Direct debit, Bpay, PayID/Osko, International transfer, Debit card/EFTPOS.
  • Expense account: Allocate where the invoice will be recorded (None, Debt written off, Disbursements written off, Discounts, Merchant fees).

Recording a Creditor Invoice:

  1. Under the ribbon tab, go to Home then General Accounting . Under Journals, choose Create Credit Invoice Journal.
  2. Fill in the following details:
    • DR Account
    • Invoice Number
    • Invoice Date
    • Due Date
    • Description
  3. Attach the invoice document to the journal entry.
  4. Process the transaction.
  5. The system automatically marks the contact as a creditor.

Viewing Creditor's Information:

Creditor Ledger: Shows the account history with that creditor, limited to transactions.

  1. Under the Contact tab, go to Ledgers, then Creditors.
  • Creditor Invoices: View a list of invoices including:
    • Date Issued
    • Date Due
    • Total Amount
    • Payments Made
    • Balance Outstanding

Aged Creditors

  1. Under DSH Legal, go to General Accounting and choose Aged Creditors.
  2. This view categorises unpaid invoices:
    • Current: Less than 14 days
    • 14 to 30 days
    • 30 to 60 days
    • 60+ days

Periodically, the firm’s bookkeeper or accountant reviews this list to determine which invoices to pay.

Paying a Creditor Invoice:

  1. Under the ribbon tab, go to Home then General Accounting . Under Payment, choose Create Creditor Payment
  2. Pre-filled payment details will be recalled. If not:
    • Enter Account Name
    • Account Number
    • Bank Narration (appears on payee's bank statement)
    • Related Document (add a document)
    • Reference (for reconciliation purposes)
  3. The system can automatically allocate payments to the correct invoices.
  4. For partial payments or disputed amounts, use the Allocations tab to manually adjust how much to pay. Now most of the time the system will be able to allocate payments to outstanding invoices automatically for you.
  5. If you have two bills but one is in dispute and you only want to pay the other:
    1. Go to the Allocations tab.
    2. You will see a list of all outstanding invoices for that creditor.
    3. Manually allocate the amount you wish to pay for the invoice you are settling.
    4. This allocation thing's important because it controls the amount of tax sales tax, GST that gets allocated to this transaction.


6. Authorise the payment, allowing others in the organisation to process it.


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. 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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