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:
 

• Credit 110: Bank (Assets)

• Debit 510: Leap Office Payment (Expense/Cost of sales)

The entry reduces the amount of money in the Office Bank and Debits 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.
 

• Credit 110: Bank (Assets)

• Debit 510: Leap Office Payments (Expenses/cost of Sales)

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 on a Cash VAT based system there is no export of this invoice to Xero.  The information is only exported when the bill is marked as paid. 

This allows Xero to calculate the VAT on fees paid only and not on the unpaid bills.

Office Receipt (Deposited)

Next we look at what is exported when a bill is marked paid. In LEAP this can be recorded via “Office Receipt” or “Client to Office Transfer”.
 

• Debit 110: Bank (Assets Increases money in the Office Bank)

• Credit 410: Leap Client Fees (The fee/profit cost is paid and turnover increases)

• Credit 420: Leap Cost Recoveries (The Cost recovery ledger is credited in Xero)

• Credit 430: Leap Payments Received (In respect of previous Office payment of £240)

• Credit 430: Leap Payments Received (In respect of previous payment of anticipated Disb of £120)

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”

When the bill is paid the final (discounted amount) will be sent to Xero.

STEP 1 – Reversing the receipt
 

• Credit 110: Bank (Reduces money that is in the bank)

• Debit 410: LEAP Client Fees (Reduces the LEAP Profit costs/turnover)

• Debit 420: Cost Recoveries – The cost recovery is unpaid 

• Debit 430: Leap Payments Received (Reduces balance of payments received for disbursements)

• Debit 430: Leap Payments Received (Reduces balance of payments received for disbursements, the first entry was for our office payment and the second for our Anticipated payment)

You may then reverse the invoice in LEAP – this will not affect Xero as the raising of the bill in the first place would not have affected Xero.

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. 

As we are using a Cash Accounting system and the bill itself has not been exported to Xero, we can Write off the invoice in LEAP and no information is sent to Xero relating to this. 

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”
 

• Debit 614: Leap Payments Write Offs (Expense is increased)

• Credit 510: Leap Office Payments (Expense/Cost of sales is decreased)

With this entry we are simply moving an expense from Office Payments (Disbursements to written off disbursements.

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.
 

• Debit 110: Bank (Increases money in the Office Bank)

• Credit 440: LEAP Client Credits (This adds to the amount of money that we have as Client credit – which is something the firm should not have)

Apply Credit Receipt to Invoice

If we had a client credit (which we should not) we can apply that to an invoice. Under the credits ledger option in the Office Accounting tab choose “Apply to invoices” 

The unallocated client credit can be applied to an invoice, or even multiple invoices.

The act of doing this is effectively paying a bill and this needs to be exported to Xero:
 

• Debit 440: Leap Client Credits (reduces funds held in client credits ledger)

• Credit 410: Leap Client Fees (Increases client fees – turnover)