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Office side Accounting entries recorded in LEAP are also exported to Xero. The entries are held in a queue in LEAP so that you can evaluate them before you export them to Xero.
To review the entries ready for export in LEAP click the LEAP Menu > Accounting > under Office Accounting > Nominal Ledger Link (you may need to scroll down on the menu to locate it.)
The standard view shows all the items ready to be exported. The export status drop-down allows you to view other entries such as those previously exported and items that have been put on hold.
Hold items: If you have a transaction on the list which you do not want to be exported to Xero you can select the entry by ticking the box on the left hand side then click “Change Status” to “On hold”.
If you decide later to export the entry to Xero you will need to change the status back. This is useful for situations where you are unsure about a particular entry.
Below we examine the entries that are exported to Xero, how these journals look, and which ledger cards are used in Xero.
Office Payment (Disbursement)
In LEAP this entry is created on a matter file by posting an Office Payment which is available on the Office Accounting tab. It is used when a disbursement is paid out of the Office Bank for the Matter.
What is exported to Xero:
The entry reduces the amount of money in the Office Bank and Credits Leap Office Payments.
Pay Anticipated Payments
Anticipated payments are not exported to Xero when they are recorded in LEAP in themselves. However they are accounted for in Xero when these are actually paid and there is an entry for them when they are billed to the client.
To pay the supplier of the Anticipated Disbursement choose “Pay Anticipated” under the Anticipated Payments section of the Office Accounting tab.
The entry reduces the amount of money in the Office Bank and Credits Leap Office Payments.
As far as the entries in Xero go this is identical to the Office Payment.
Invoice Client (Accruals based VAT only)
When we Finalise an invoice to the client a number of entries to the Xero ledgers can be exported at once. One line for each fee and disbursement:
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Debit 102: Leap Debtors (Assets)
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Credit 400: Leap Client Fees (Income from Fees/Profit Costs)
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Credit 401: Leap Cost Recoveries (Other income in respect of Cost Recoveries)
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Credit 402: Leap Payments Received (Other income in respect of Disbursements)
Invoices to client are only exported to Xero on systems using Accruals based VAT (Standard scheme) If using Cash accounting only the Office Receipt (below) will be exported to Xero.
Office Receipt (Deposited)
Next we look at what is exported when the above bill is paid. In LEAP this can be recorded via “Office Receipt” or “Client to Office Transfer.
This transaction has reduced the debtors balance and increased the amount of money in the Bank.
This particular Office Receipt is deposited (the money has gone straight to the bank) the payment type used in this case was an Electronic Funds Transfer. If payment is by Cash or Cheque, then the Receipt does not go straight to the bank it will go to undeposited funds
Invoice Adjustment (Discount above fee on the invoice by £100)
Once the invoice has been finalised, we can apply a discount by right clicking on the invoice line on the ledger and selecting “adjust invoice”
To reduce the invoice amount enter a negative value such as -100.
So, applying a discount will reduce the asset value of debtors and increase expenses/costs of sales.
It is possible to adjust an invoice and actually increase the cost of it. Please note that if you do this it has the opposite journal effect so (reduces discounts expenses and increases Debtors).
Such an entry may be suitable if a discount is being removed but may not be suitable for other case.
Reverse Invoice (Credit Note)
The reverse invoice option can be accessed by right clicking on the invoice line on the Office ledger. Then click on “Reverse”.
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Credit 102: Leap Debtors (Asset – debtors are reduced)
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Debit 400: Leap Client Fees (Cost of sales reduced)
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Debit 401: Leap Cost Recoveries (Cost of sales reduced)
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Debit 402: Leap Payments Received (Cost of sales reduced)
Note that this is the mirror image of the invoice – it reverses each line. Here we are posting a credit note rather than writing off the bill.
Write Off Invoice (Write off entire invoice)
If the bill will not be paid and you wish to write it off you may do so by right clicking on the invoice line on the ledger, choosing adjust invoice and then choose Write off.
There is one line each for the Fee and Each of the disbursements on the bill
This is moving this money to Write offs so balances will net off on the Trial Balance, but the balance will remain on Client Fees, Cost Recoveries and Payments Received.
Total reported income at the year-end should consider write offs so that income is not over-stated.
Write Off Disbursement
When an Office Payment (disbursement) has been paid, but not billed and you do not expect the client to pay it then you may write it off.
On the Office Accounting Ledger right click on the Office Payment and choose “Write Off”.
With this entry we are simply moving an expense from Office Payments (Disbursements to written off disbursements.
If the disbursement was billed prior to being written off as part of the bill the write off amount would sit in the Leap Debtor writeoffs and not in this Leap Payments write offs.
Credit Receipt
A Credit receipt can be posted to the matter by choosing “Credit Receipt” under the Office accounting tab.
This records an office credit. Normally, you would only do this if you had an outstanding invoice as the SRA rules do not allow credit balances on the Office side of the ledger. Nevertheless, you can post them and if you raise an invoice later you can apply the credit to that invoice.
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