A disbursement refers to the process of a company or organization paying out funds. These payments can be made to various parties, including:
- Suppliers
- Employees (expense reimbursements)
- Other entities for goods or services
Automatic Disbursement Generation:
When you utilize the “Pay” function within Vouchers, a disbursement is automatically created to reflect the payment.
Creating Manual Disbursements:
- Navigate: Access the LawAccounting homepage and click the “Disbursements” tab.
- New Disbursement: Click the “New” button to initiate the creation of a manual disbursement.
Disbursement Field Breakdown:
- Payee: The individual or organization receiving the payment.
- Amount: The total sum being disbursed.
- Disbursement Date: This defaults to the current date but can be modified to reflect the actual disbursement date.
- Matter (Optional): Link the disbursement to a specific legal case (if applicable).
- Type: Choose the transaction type (Electronic or Check).
- Status: Defaults to “Approved” but can be changed to “In-Process” if needed.
- Payment Status: Currently fixed at “Paid.”
- Description: Provide any relevant details about the disbursement.
- Source: Reflects “Manual” for manually created disbursements or “Voucher” for disbursements generated from vouchers.
- Check Number (Optional): Enter the check number for printing purposes (applicable to checks).
- Reference: Include any pertinent information such as a customer transaction number or check number.
- Bank Account: Specify the bank account from which funds will be disbursed.
- Debit GL Account: This field automatically defaults to the “Prepaid Expense GL Account” configured in the “Default GL Accounts” screen if left blank. However, you can manually select the appropriate debit general ledger account.
- Bank Transaction Date: Shows the date the disbursement was cleared during the associated bank reconciliation process (if applicable).
- Accounting Class (Optional): Categorize and report disbursements based on departments, offices, or practice areas (up to 4 classes can be added).
