Understanding the GL Reconciliation Report...Billing (Fees) Journal Receivables By Client 2012 PCLaw User Conference 31 Client Ledger & Billing Fee Journal •The Client Ledger and

Understanding the GL Reconciliation Report Calgary PCLaw Users Conference

November 13, 2012

1 2012 PCLaw User Conference

Chris Young

Worked for Alumni Computer Group from 1996. Worked for 2 years in support Was the Training Manager for PCLaw until 2006 when Alumni was acquired be LexisNexis Work at LexisNexis from 2004 until 2007. Opened TTLC Consulting Ltd in Toronto. Contact: TTLC Consulting Ltd. Chris Young [email protected] 416-262-6528

mailto:[email protected]


Accounting and the GL Reconciliation Report


Common questions

“How does information flow in PCLaw?”

“Why is my GL Reconciliation report not balanced? ”

“How do I fix some of these balance issues?


System Setup

It is important to know which accounting method PCLaw is set to.


Accounting Methods

Accrual

• Income is recognized at the time of billing

• Unbilled Disbursements are held as Assets

Modified Cash

• Income is recognized when payment is received

• Unbilled Disbursements are held as Assets by default

Cash

• Income is recognized when payment is received

• Unbilled Disbursements are held as Expenses

There are 3 types of accounting methods that PCLaw can be set to:

To see what can be compared on the GL reconciliation report VS type of accounting please see Appendix 1


Information Flow

For all 3 methods the information flows as follows.

Data Entry

Reports/Journals

General Ledger

Bank Reconciliation

Gets entries from reports

General Journal Entries

General Bank

HST/GST/VAT

The journals should match the GL control accounts


GL Reconciliation Report

• The GL Reconciliation Report shows if GL control accounts, client reports and journals are matching


General/Trust Balance Data Corruptions


Common Questions

“Why is my bank balance incorrect?”

“My opening and closing balances do not match.”

“My journal balance does not match with my GL.”

“Where is my coffee?”


Types of General/Trust Balance Issues

3 scenarios that we will cover

1. GL Reconciliation Report shows differences Trust and General

2. Opening/Closing balance issues on the bank journal

3. Tools – Bank Balance


1. GL Reconciliation Report shows differences - Trust

The trust area compares the following: Client

Summary

Trust Bank

Journal

General

Ledger

3 Scenarios can occur:

1) Client Summary doesn’t match the Trust journal

2) Trust journal Doesn’t match the GL

3) Nothing matches

To see what can be compared on the GL reconciliation report VS type of accounting please see Appendix 1


1. GL Reconciliation Report shows differences – Trust Issue #1

Problem: Client Summary doesn’t match the Trust journal

Troubleshooting tips: •Run Reset Matter Balances •Verify Data – Trust Bank •Find the first day that the summary and journal do not match. Print Trust Journal for the day. You will not be able to fix this without the help of support.

For more information on Reset Matter Balances please see Appendix 2



Problem: Trust Journal doesn’t match the GL

Troubleshooting tips: •Look for Journal Entries going to the trust control account •Look for any other entries posted to the control account (GB, CER, AP, WUD) – Change the entries •You can run a Detailed GL for the control account and examine the source



Problem: Trust Journal doesn’t match the GL

Troubleshooting tips continued: •Check opening balances to verify that this did match at some point •Verify Data – Trust Bank •Find the first day that the summary and journal do not match. Print Trust Journal and GL details for the day. You will not be able to fix this without the help of support.


1. GL Reconciliation Report – Trust Issue #3

Problem: Nothing Matches

Troubleshooting tips: •Use the same procedures listed in issues #1 and #2 to attempt to match something.


1. GL Reconciliation Report shows differences - General

The general area compares the following: General

Bank

Journal

General

Ledger

One Issue:

1) General journal doesn’t match the GL


1. GL Reconciliation Report shows differences – General Issue #1

Problem: General Journal doesn’t match the GL

Troubleshooting tips: •Look for Journal Entries going to the general control account •Look for any other entries posted to the control account (CER, AP, WUD) – Change the entries •Check opening balances to verify that this did match at some point •Run the General Bank journal – enter the control GL account to find any entries •Verify Data – General Bank •Narrow the occurrence to the date that it happened – Examine all entries for the day. You most likely will need to call support.


2. Opening Closing balance issues (Trust and General)

Opening/Closing balance issues occur due to partial entries

Troubleshoot Tips:

• Narrow down the date the balance corruption occurs.

• Compare the Closing balance for one day with the Opening Balance for the next day – This normally occurs (but not always) at the end/beginning of a month.

• For further assistance, please contact an Engineer.


3. Tools – Bank Balance Issue (Trust and General)

Bank Balance = Closing balance on the bank journal


3. Tools – Bank Balance Issue (Trust and General) cont’d

Troubleshooting Steps:

• Run Verify Data Integrity on the appropriate bank

• OR call support to run Reset Bank Balances utility.


GL Reconciliation Report - AR

The general area compares the following: Billing/Fee

Journal General

Ledger

3 Issues:

1) Client doesn’t match the journals

2) Client doesn’t match the GL (Accrual only)

3) Journals do not match the GL (Accrual only)

Client

Summary


GL Reconciliation Report – AR Issue #1

Problem: Client Summary doesn’t match the Billings Fees Journal

Troubleshooting tips: •Run both reports to Dec 31, 2199 to see if they match at this point. •Run Verify Data Integrity •Narrow the occurrence to the date that it happened – Examine all entries for the day.



Problem: Client Summary doesn’t match the GL – Accrual Only

Troubleshooting tips: •Run both reports to Dec 31, 2199 to see if they match at this point. •Look for Journal Entries and others into the Control account •Check that Opening GL balances match closing GL balances over the month (reopen month if they do not match). •Look for Firm Receipts posted to the Control account •Run Reset Matter Balances •Run Verify Data Integrity •Narrow the occurrence to the date that it happened – Examine all entries for the day.



Problem: Billings Fees Journal do not match the GL – Accrual Only

Troubleshooting tips: •Run both reports to Dec 31, 2199 to see if they match at this point. •Run Verify Data Integrity •Check that Opening GL balances match closing GL balances over the month (reopen month if they do not match). •Narrow the occurrence to the date that it happened – Examine all entries for the day.


GL Reconciliation Report

All other areas of the report (Client Disbursements, Account payables, Taxes) are in appendix 3


Billing Data Corruption


Common questions

“How come there’s an AR balance, but I can’t write it off?”

“Why is the bill amount incorrect?”

“Where is the invoice number?”


AR Mismatches

AR Mismatches occur because there is a difference between the

Client Ledger and Billing Fee Journal reports

The reports could be off by:

• Fees

• Disbursements

• Receipts

• Everything


Reports

Client Summary

• Lists balances for fees, disbursements, Accounts Receivable, trust, and other matter information.

Client Ledger

• Lists transactions by matter, including opening balances, disbursements, time and fees, billing, and payments.

Billing Fee Journal

• Lists invoices by A/R date for matters.

Receivable By Client

• Lists aged receivables (invoices) by client for the purpose of collection follow-up.


Billing Fee Journal & Receivable By Client

• The billing fee journal and receivable by client report should always match with each other

• Both reports must be on the same time period.

Billing (Fees) Journal Receivables By Client


Client Ledger & Billing Fee Journal

• The Client Ledger and Billing Fee Journal report should match.

Tip: Leave the start date as 1/1/1982 on both reports

Paste the screenshot of

Client Ledger Billing Fee Journal


Client Ledger and Client Summary

• The Client Ledger and Client Summary should always match.

Client Ledger Client Summary


Accounts Receivable Balance

CS = CL = BFJ = RBC


AR Mismatch – Issue #1

Problem: The client summary does not match with the Client

Ledger.

Ledger.


AR Mismatch Issue #1 – Cont’d

Troubleshooting Tips:

• Perform a Reset Matter Balances for the matter.

• If Reset Matter Balances does not work, contact an engineer for further assistance



Problem: There is an invoice number appearing on the client

ledger report but not on the billing fee journal.


AR Mismatch – Issue #2 cont’d

Troubleshooting tips:

1. Find the missing invoice number.

2. Create a bill

3. Place the missing invoice number in the Invoice Number field.

4. On the Billing Information Window, click on ‘Cancel’.

5. If you are not able to perform this procedure or if there are other issues please contact an Engineer for further assistance.



Problem: Client Ledger report does not match the Billing Fee

Journal report.

CL = BFJ


Troubleshooting Tips

Finding the problem:

1. Narrow the date the outage occurs

2. Ensure that all the invoice numbers that appear on the Client Ledger also appears on the Billing Fee Journal.

3. Contact an engineer to discuss about your findings.


The END


Appendix


Appendix 1 – GL Reconcilation Report

GL Reconciliation Report:

Trust Bank (All types of accounting)

Client Summary = Trust Bank Journal = GL Trust Control (assets)

Trust Funds Owed (liability) = sum of all Trust Bank Accounts

General Bank (All types of accounting)

General Bank Journal = GL General Control

Accounts Receivables

Client Summary = Billings Fess Journal = GL AR Control (Accrual)

Client Summary = Billings Fees Journal (Modified Cash/Cash)


Appendix 1 – GL Reconcilation Report

GL Reconciliation Report:

Accounts Payable (Accrual)

Payable Listing = GL Payables Control (2000)

HST/GST (Accrual)

HST/GST/VAT Journal = GL HST/GST/VAT Control (2400)


Appendix 2 – Reset Matter Balances

RESET MATTER BALANCES

Client Ledger & Client Summary

• Client summary uses the client ledger for information

• Both reports pull information from the same file

Summary

Client Ledger


RESET MATTER BALANCES

• If the client summary does not match the client ledger

− Perform a Reset Matter Balance

Appendix 2 – Reset Matter Balances


Appendix 3

GL Reconciliation Report Other Items

1210 – Client Disb Recov (Accrual)

Unbilled disbursements – General Retainers = 1210

Troubleshooting tips:

•Run Reset Matter Balances

•Check for Journal Entries and other entries into the 1210 account

•Check opening and closing balances matching on the GL (end of month) Reopen as required.

•Bank entries (without matters) going into the 1210 account

•Verify data – Matters; General Bank and GL account balances

•Narrow down – call support.


Appendix 3 continued


2000 – Accounts payables (Accrual)

Payables listing (with receipts to the same end date) = 2000

Trouble shooting tips:

•Run to Dec 31, 2199 to see if matching



•Verify Data for Receivables and GL



Appendix 3 continued


2400 – GST/HST/VAT Payables (Accrual)

GST Journal General Reconciliation balance = 2400

Trouble shooting tips:

•Did it ever match?



•Verify Data for bank and GL


Documents

Understanding the GL Reconciliation Report...Billing (Fees) Journal Receivables By Client 2012 PCLaw User Conference 31 Client Ledger & Billing Fee Journal •The Client Ledger and