How do Vendor Bills show on my General Ledger?
Vendor Bills are a great way of tracking what the firm owes to vendors. These Vendor Bills can be entered as firm expenses to be paid later, and can be assigned to matters for the purpose of creating billable expenses.
Vendor Bills hit multiple accounts on the General Ledger. Depending on if you are looking at it on a Cash or Accrual basis will impact the activity you see.
Vendor Bill Activity on the GL (Accrual Basis)
- Creating the Vendor Bill creates a Debit to the account the line item is assigned to, and a Credit to Accounts Payable.
The "Vendor Bill Detail" is the billable item that gets assigned to the client invoice. This will contain the line item details.
If there are multiple line items on the same vendor bill, it will create 2 entries for those line items and one total under Accounts Payable.
- When the Vendor Bill gets paid, the payment will cancel out the liability in accounts payable that the firm owes to the Vendor.
- Generating the Invoice to the client with those expenses will Credit the account the Vendor Bill line items are assigned to and debit Accounts Receivable.
- When the client pays the invoice (reimbursing the expense) that payment will Credit Accounts Receivable (lowering the client’s AR balance) and Debit the Operating Account
Vendor Bill Activity on the GL (Cash Basis)
You will not see the Vendor Bill on the GL on a Cash basis until money is actually exchanged.
- Paying the Vendor bill will Credit the Operating account and Debit the account(s) the line items are assigned to (red)
- When the client pays the invoice, their payment Debits the Operating account and Credits the line item account (blue).
How Can I Add a Vendor Credit Memo?
In the event that an outside vendor issues your firm a credit for future invoices, that credit can be applied to our Vendor Bills module as a Vendor Credit Memo. To record a Vendor Credit Memo, go to Vendor Bills and click on the plus sign on the ...
How Do I Enter And Pay Accounts Payable/Vendor Invoices?
When receiving a bill from a firm provider, make sure to add it to Zola Suite's Vendor and Bills section. Doing so will increase Accounts Payable on Accrual. This will give you the ability to report on how much the firm owes from bills that are ...
How Do I Know When to Use a Debit or a Credit
Double Entry Bookkeeping requires that all transactions be recorded in 2 accounts. Some of your activities in Zola can be done without choosing a debit or a credit. For example, creating a new trust retainer will automatically debit the trust account ...
How Do I Attach Receipts to Expenses?
When making payments to expenses in Zola Suite you may want to store specific attachment records to the expense like a receipt and or a credit memo. Attach On the bottom of the check, expense or vendor bill detail/edit pages you will have the ability ...
How Do I Bill A Client For an Expense?
When you pay a vendor or case-related fee, you have the option to note that the payment is an expense directly on the check as a hard cost or as a soft cost. Hard Cost A new check (hard-cost) can be created from two places: Create a new check ...
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