Accounts Payable Overview - Accrual

In accrual basis systems, General Ledger transactions are created when vouchers are posted/voided and when checks are written/voided.  When the voucher is posted, the Accounts Payable account is credited and the account or accounts listed in the distribution of the voucher are debited.  When the voucher is paid, the Accounts Payable account is debited and the appropriate cash account credited. 

If a “CA” or “EX” code is used in the voucher distribution, a client advance or expense transaction is created in the Billing and Accounts Receivable modules for the Client-Matter associated with the code as soon as the voucher is posted.  If this voucher is voided, the system deletes the Client Advance or expense transaction from the Billing and Accounts Receivable modules if it has not yet been billed to the client, and the appropriate General Ledger transactions are created.  If the transaction is a client advance (CA code) and it has already been billed, a Retainer Deposit (RDP) is created in the Accounts Receivable module.  This RDP is flagged in such a way that it will not impact your Daily Deposit Report nor will it be eligible for inclusion in Deposit Processing.  It also cannot be deleted by the user.  A General Ledger transaction is created that debits unbilled client advances and credits unapplied retainers.  No RDP transaction is created if the transaction is an expense (EX code).