It may be that the disbursement was paid directly by you from your office account. It may be that the Client had already paid monies in to your client account to cover such disbursements so you make the payment straight from there. You may want to record a disbursement that has not yet been paid, but that you know or anticipate will need to be paid out in the future. These are just some of the scenarios that are covered by the Insight Legal disbursement posting screens.
Below is some further information on the different disbursement postings that we cover:
Disbursements paid directly from office account These are shown on both the office side of the client ledger and also the chosen office bank account
Disbursements paid from petty cash These are shown on both the office side of the client ledger and also on the petty cash account
Disbursements paid from monies held on client account A specific client disbursement posting type which is shown on both the client side of the client ledger and also the client bank
Disbursements paid from a nominal ledger When you want to show the disbursement as having been incurred, but the other side of the posting sits on a nominal ledger until you are ready to pay it
Disbursements paid from a purchase ledger When the invoice for a disbursement has been received but has not yet been paid, the disbursement will be shown on both the office side of the client ledger and also against the relevant purchase ledger supplier
Anticipated disbursements Anticipated disbursements are memo entries. They are a way of recording something that you anticipate having to pay out in the future
Prebilled disbursements A prebilled disbursement is one that you have included in a bill to your client, but not paid out yourself yet.
For use with all of the above posting routines, Insight Legal has a customisable list of disbursement types, which not only enable firms to set default VAT rates and reporting categories, but also to control and report on Third Party Returns.