Entering Accounting Transactions in Orion

There are three steps involved with entering accounting transactions.

1.  Enter the transaction.

2.  Apply the transaction against an open Invoice.

3.  Save/post the transaction. Note that the recommended way to do this in AR Manager is to click on Save first and then go to Action > Payment Application Posting so you can select all the payments at once that you would like to post and so you can control the GL period to which the transactions are posted.

When a client sends a check, whether it is for the payment of an outstanding invoice or for a retainer or trust deposit, you use the Accounts Receivable Entry program to enter the transaction.

To make adjustments to transactions that have not yet been invoiced, you use the following programs:

• Bill Preparation - Fees
• Bill Preparation - Cost/Expenses

Typical Process

Typically, law firms enter payments on a daily basis; however, if you do not enter payments on a daily basis, make sure they are entered prior to printing Invoices since payments entered with dates on or prior to the invoice date are generally reflected on the Invoice.

When a payment is entered, it is reflected as a payment on the initial Matter Status screen. It does not, however, affect accounts receivable until it has been applied.

Transaction Types

There are nine types of transactions that can be entered through the Accounts Receivable Entry program. These are shown below with the corresponding Code that you enter when you enter an AR transaction:

• PMT  Payments
• CR    Credits      
• WO   Write Offs  
• RDP  Retainer Deposits
• RDS  Retainer Disbursements
• RAP  Retainers Applied as Payments
• TDP  Trust Deposits
• TDS  Trust Disbursements
• TAP  Trusts Applied as Payments

In most cases, RDSs, TAPs, and TDSs are NOT entered directly into AR Manager but are done through AP Manager when a Voucher is created. The transactions merely flow over to AR Manager from AP where you can see them. TAP's must be then applied to appropriate Client-Matters. TDS and RDS transactions are automatically saved in the system as posted transactions in AR Manager and the appropriate Client-Matter ledgers are updated (the corresponding GL transactions are created when the check is cut when on cash basis - and these GL transactions still have to be approved and posted).

It is important to be careful of creating RDS transaction codes in AR Manager unless it is appropriate to correct a mistake as this affects your cash/operating account. If you do use the Code, you need to be aware that you do not have a "check" trail in that situation and in most cases you may want one as an audit trail rather than just the AR Ledger reports. In order to create a check trail you would need have to enter RDS code via AP when you create a Voucher.

Overpayments

If a PMT is saved and posted against a Client-Matter with no existing AR, the system will prompt you with a message that says "partially applied," automatically change the PMT code into a RDP code and place the overpayment into the Retainer Account for Unapplied Retainers on that Client-Matter. The funds can be refunded to the client using a RDS code on the Voucher in AP Manager or applied against the next outstanding Invoice using a RAP.

Daily Processing

These tasks can be accomplished by one person or by several people. In addition to these transactions, you should also enter payments throughout the month.

As with other Orion programs, this task is not limited to one person; however, as a rule of good bookkeeping practices, it is a good idea to have one person in charge of receivables to ensure accurate application and credit, as well as guard against double entry.

Following are the steps you perform every day:

 1.  Enter transactions into the system.

 2.  Apply transactions to Invoices.

 3.  Post transactions.

 4.  Reverse transactions, if necessary.

Monthly Processing

Once the Invoices are posted, you will need to go back and apply and post the RAP, TAP, and CR (credit) transactions that appeared on the Invoices. Once all RAP, TAP, CR, PMT, and WO transactions have been posted, you are ready to print your month-end reports.

Orion allows for automatic applying of RAP, TAP and CR transactions if the auto apply option is chosen in Bill Prep.  If auto apply is turned on in Bill Preparation > Action > Auto Apply the transaction will automatically be applied and posted when the Invoice is posted.

 Process

 Following are the steps you perform at the end of every month:

1.  Apply RAP, TAP, and CR (credit) transactions. 

2.  Post the RAP, TAP, and CR (credit) transactions.

3.  Print month-end reports.