Incorrectly Writing Down Client Advance Created By Voucher Adjustment - On a Paid In Full Invoice

At the time you adjusted the Voucher, Orion created an RDP transaction for $18,000 equal to the original Client Advance that had been billed onto the Client-Matter ledger. This represents the amount not owed by the Client now on the file. It is a special transaction and does not affect deposit processing or your cash account. Orion also created an unbilled Client Advance transaction in the amount of $8,000.00 out there in WIP to reflect the proper amount of the Client Advance that should be billed.  Orion takes care of all the appropriate GL entries for you.

In this case, you would normally simply bill the $8,000.00 Client Advance on through the system on a separate invoice and apply an $8,000.00 RAP transaction against it.  When you apply the RAP, this would reduce your Unapplied Retainers account and reduce your  AR Client Advances Account. The remaining $10,000 would be left in your unapplied retainer account under retainers on the Client-Matter ledger and could be disbursed via check back to the Client using an RDS code in Accounts Payable or held for payment of future invoices. Since the Client paid the invoice in full this amount is rightfully the Client's funds.

Since in this particular question, the User improperly wrote down the Client Advance created from the adjustment, you would have to unpost/void the zero value invoice with this particular Client Advance, then generate an invoice separately for just the Client Advance.  Post it, and then apply the RAP to this particular invoice with the CA on it. 

This method keeps the proper accounting for both the Client-Matter retainer ledger and the proper entries affecting your Client Advances Written Off account and AR Client Advances account. If you properly handle voucher adjustments of billed Client Advances, your reports that present the written down or written off Client Advances will be correct.

Keep in mind in Bill Prep when you improperly write down Client Advances created from voucher adjustments, the result is an increase of your Client Advances Written Off account which incorrectly increases your expenses and thus decreases  your net income presentation on the income statement. This will present an incorrect/distorted figure and should be avoided.