How to Reconcile your PCLaw Accounts Receivable with your client’s Accounts Payable

 
If you have clients that pay by invoice number, they may also occasionally pay their invoices out of chronological order. You may both have the same total balance owing, but show different amounts on different invoices. This is because, by default, PCLaw applies payments received using the Matter or Client boxes to the oldest invoices first.
 
To reconcile with your client, first obtain a printout of their Accounts Payable ledger.


Compare your Accounts Receivable ledger with their A/P ledger, and determine which invoices you show as having been paid, but your client still shows outstanding.


Use the Register to locate these payments, and Void them as of today’s date.


Then do Receive Payment (see 1 below) to pay the invoices your client shows as paid.


The voided receipts and the new payments received will cancel each other for the bank reconciliation. Your A/R report should now match your client’s A/P report.


To avoid this happening in the future:

1. On the Receive Payment entry, fill in the invoice box number, rather than the matter or the client box; OR 
2. Turn off “Auto Allocate Payments to Invoices” in System Settings – Data Entry – Payment Rules.

As always, I invite your comments and suggestions for future post topics. Next week – How to post a car purchase in PCLaw.

Do you have a question? Feel free to ask.

Clyde