Creditor

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.