Cash Accounting. Month End Routines and Accounting Procedures. Lawware.co.uk. Lawware Ltd

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1 Cash Accounting Month End Routines and Accounting Procedures Lawware Ltd Lawware.co.uk

2 Contents Introduction... 3 Posting Introduction... 3 Daybook Date... 3 Toolbar... 3 Viewing the Case File Main Screen... 3 Viewing the Client Ledger... 4 Searching within the Client Ledger... 4 Posting screen layout and field descriptions... 5 Posting Types... 6 Client Ledger Posting Routines... 8 Client Ledger Payment out of Office Account (Disbursement)... 8 Client Ledger Receipt into Office Account... 8 Payment out of a Client Ledger... 9 Receipt into a Client Ledger Case File Specific Transfer between Firm/Client/Designated/Loan Client to Nominal Movement Nominal to Client Movement Inter Client Transfer between two different Clients Matters Transaction Queue Process the Transaction Queue Corrective Entries To remove an unprocessed posting To remove a processed posting Invoicing Introduction Rendering an Invoice Allocate an Invoice (Mark as Paid) Reversing an Invoice Writing off an Invoice Write off Disbursements on Invoices Credit Notes Invoice Reports Office Posting Routines Payment out of the Office Account Page 1

3 Receipt into Office Account Journal Entry Multi-Sided Posting Nominal Accounts View the Office Nominal Accounts Create a New Nominal Account Edit a Nominal Account Delete a Nominal Account VAT Posting Codes Bank Account Centre Viewing your Bank Accounts Viewing the Account Details Creating a New Bank Account Archiving a Bank Account Viewing Archived Accounts Un-archiving a Bank Account Reconciling a Bank Account Un-reconcile a Transaction Performing the Month End Date Check Performing the VAT End Performing a Year End Productivity Centre The Cashroom View The Notification Centre Page 2

4 Introduction The Lawware Cash Accounting Module allows you to confidently post Client and Office within the English rules and regulations This manual will cover all postings available within Lawware. For information on how to create client s and casefiles please refer to our Creating Client s and Case Files guide. Posting Introduction Each Case File has its own Ledger allowing you to record what monies you hold, disbursements paid and Invoices outstanding for each client. The clients ledger shows the Office balance and the Clients balance. When a posting is made in Lawware the entry will appear in blue on the ledger. This is a ghost posting and can be deleted or changed. All postings are sent to the Transaction Queue and are held there until you process them. (see page 45) Once they are processed they cannot be deleted of changed (see corrective entries page 48) Daybook Date Central to understanding the Lawware accounting system is the Daybook Date shown in the bottom right hand corner of your Lawware Screen. This is the current month that you can post to. You can forward post which will hold the postings in the transaction queue until you reach that posting month, however, you cannot back post. If you have moved on to the next month and missed a posting from a previous month then you have to post it on the month you are in with an explanation in the narrative. If you do not finish all the postings for one month simply close Lawware down and only run the month end when you have finished the posting, we would recommend that you do a bank reconciliation before moving on to the next month so that you can make any amendments and post any transactions that have happened at the bank in the correct month. Toolbar The toolbar is located at the top of the Lawware screen, hover over the icons for a description and click on the icon to invoke the posting screen. If the icon does not appear on your toolbar all postings are available from the Accounts menu. Click on Accounts and select from the drop-down menus. Viewing the Case File Main Screen From the Main LawWare Case File screen you can change your view to the Default English View which will show you your Client and Office CR, DR and Balances on the main screen To Default to this view click on the blue View default in the top right corner and choose English Default You will only need to do this once Page 3

5 Viewing the Client Ledger Within the Case File you will find the Client ledger card, where you will record all monetary transactions for that client. One Client may have many Case Files, therefore several ledgers. Search for the Case File you wish to see the ledger for and click on the Ledger Tab The Ledger Card is displayed You can view the current month/year/specific dates, sort and print the ledger. Double click on any transaction to see the narrative and more detail To Add Narrative to a posting highlight the posting then click on the ledger, a dialog box will appear, type in the required narrative and click OK. Add narrative button at the top of the client s At the bottom of the ledger you will find a useful summary showing the totals for each section. Searching within the Client Ledger Click on the Find button The following screen is displayed to search within the client s ledger Page 4

6 Enter the information you are wanting to search for Refine your search working through the drop-down lists Click Search All matching items on the client s ledger will appear in red To clear the search right click in the ledger and select Refresh Ledger Posting screen layout and field descriptions All the Lawware posting screens are very similar in layout the only fields that change depend on whether you are posting a client payment/receipt or an Office payment/receipt See below for an example of a typical posting screen and list of field descriptions The Payment Date is automatically populated with the current 1 st working day of the month Daybook Date, you can forward post by typing in a date in the future. The Branch is automatically populated with the branch associated with the Bank Account, if you have more than one branch then you can select from the drop-down menu From/Paid into Account the default Office/Client account will be selected, click on the drop down to choose a different account. From/To Nominal choose from the drop down the nominal you want to credit/debit From/Paid into Case File choose the Case File that you are looking to credit/debit Page 5

7 Narrative builder Narrative to/from type in the required text who the payment is to/from Narrative re type in the required text what the payment/receipt is for The narrative box will populate with what you have typed you can add to this if required The blue disk at the end of these fields allows you to save the text as standard posting narrative so that the next time you have this type of posting begin typing in the narrative Lawware will predict what you are about to type The Funds Option doesn t apply to Payments out only receipts in you can select here when for instance the cheque will be cleared and acts as a reminder and note to all staff that a payment out should not be made before this date Important: This needs to be checked on your actual bank account as the bank may have bounced the cheque this would not show in Lawware Select a Posting Type from the drop down eg CHQ, BACS etc Click on the settings link to add any posting type, (see posting types on the following page) Enter a Reference No this is generally the Cheque number or go with the Lawware suggested reference number Batch Posting Tick the Hold Reference Number Box to use the same reference for multiple postings for the one cheque and tick the Block Posting box if you want to make a series of the same postings for different Case Files, the same posting screen will keep appearing, change the case file number enter amount then click ok/queue until you are finished then click finish If applicable, Select the VAT type if the correct one has not already been selected, Be careful with VAT codes Enter the Gross Value (you do not need the sign) The Fee Status field is generally set to Exclude from Fee. This means that the transaction will not be included when an invoice is raised on the system. If you do wish to track your outlays on your invoices then change the Fee Status to Fee on this Fee. If you choose leave Next Fee this amount will not be added to the Current Invoice but will be included on the next Cheque Printing If you have this module the area will be available to click into In the Cheque Printing field choose Add to Queue if you want to print the cheque later Type in the Payee Name as you would want to appear on the printed cheque. High Priority tick this option to flag as a High Priority in the Transaction Queue to be processed as soon as possible Click OK/Queue, you will be presented with a Summary window for your posting, check the details and click Yes to proceed or No to go back and make changes to your posting Note: The additional posting slips area is for when your firm wishes to use Electronic posting slips, see our separate guide for more information Posting Types All Lawware Posting Screens have a Posting Types drop-down where you would select whether it s a Payin, Cheque etc When posting, Lawware will choose a type for you depending upon the type of posting which you can change by clicking on the drop-down, below is a list of the most common types Page 6

8 Payin CHQ CHAPS BACS S/O D/D CHRG INT PDQ If you have a Payin Book to bank multiple Cheques or cash you would enter the Payin Reference number and tick hold reference after each posting so that they are grouped together in the bank statement, Fund Option can be selected to show as cleared immediately up to 10 working days Used for Payments being sent out by Cheque on Client or Firm Account. Enter the Cheque number in the Reference number and if one cheque is for multiple client ledgers, tick hold reference after each posting so that they are grouped together in the bank statement Same day electronic transfer used for payments and receipts, Lawware automatic numbering in Reference no. 3 Day electronic transfer used for payments and receipts, Lawware automatic numbering in Reference no. Standing Order used if it s a payment from the bank account Direct Debit for payments coming off the bank account generally used for outgoing payments only ie Insurance, Rates etc.. Use for posting Bank Charges debited to the bank account Use for posting Credit or Debit Interest to bank accounts Credit Card receipts into the client or firms bank accounts it can also be used for payments out of the firms account be way of credit card Some Posting types will automatically be entered for you, for instance when you are posting to the Interest Nominal the default is INT, Journal Entries JN and Memo entries Memo. To add a New Posting Type click on the settings button next to the posting Types drop-down and click add Type the description eg Faster Payment Short Type Prefix eg FP Funds Default eg Mark as cleared immediately Click OK The posting type will not be available until the next posting screen is displayed The following chapters are going to explain each posting and when you would use them. Client Ledger Posting Routines Invoicing Office Posting Routines Bank Account Centre Month End and Accounting Procedures Page 7

9 Client Ledger Posting Routines The following postings are applicable to the client ledger, there are 2 types of posting depending on whether you are operating an Office bank account only or a Client and Office bank account. The description at the start of each posting describes when you would use it.. All office and client Lawware posting screens have a standard layout When posting a transaction, you can either Highlight the casefile in the main screen then select the appropriate posting icon, for instance if you were posting a disbursement for a specific client From the toolbar click on the icon required then select the nominal or enter the case file number when the screen is displayed Client Ledger Payment out of Office Account (Disbursement) This posting is generally used if or if you are operating with just an Office Bank account and you need to pay a disbursement on a client s case file or if the Clients Bank account does not have the funds to cover the disbursement It will debit the clients ledger and Credit (DR) the firms bank. Search and open the required Case File and click on the Ledger Tab Click on the Client Ledger Payment out of Firms account The standard posting screen is displayed On the toolbar Ensure you are focussed on the correct Case File and select the Fee Status field if required, it is generally set to Exclude from Fee. This means that the transaction will not be included when an invoice is raised on the system. If you do wish to track your disbursements on your invoices the change the Fee Status to Fee on this Fee. If you choose leave Next Fee this amount will not be added to the current Invoice but will be included on the next Client Ledger Receipt into Office Account If a Client has paid money into the Office account, to pay an invoice for instance, you would use the client ledger receipt into Office account icon to Credit the Clients ledger and Debit (CR) the Office bank account Page 8

10 Search and open the required Case File and click on the Ledger Tab Click on the Client Ledger Receipt into Firms account The standard posting screen is displayed On the toolbar Payment out of a Client Ledger This posting is generally used if you are operating a Clients Bank account and you want to pay a disbursement debiting the Clients side of the ledger and Credit (DR) the Clients Bank account Click on the Payment out of a Client Ledger button on the toolbar The Standard posting screen is displayed Ensure you are focussed on the correct Case File and select the Fee Status field if required, it is generally set to Exclude from Fee. This means that the transaction will not be included when an invoice is raised on the system. If you do wish to track your disbursements on your invoices the change the Fee Status to Fee on this Fee. If you choose leave Next Fee this amount will not be added to the current Invoice but will be included on the next Page 9

11 Receipt into a Client Ledger A Receipt into the Clients Ledger will Credit the Clients Ledger and Debit (CR) the Bank. Use this if you are operating a Clients bank account and you have received money from a client to pay an invoice into your Clients Bank Account Click on the Receipt into a Client Ledger button on the toolbar The Standard posting screen is displayed Case File Specific Transfer between Firm/Client/Designated/Loan This posting is used to transfer money from the Clients Bank account to the Firms Bank account e.g. If a client has paid you money and it is sitting in the clients side of the ledger use this icon when you physically take the money from your clients bank account and pay it into the office bank account Search and open the required Case File and click on the Ledger Tab Click on the Case File Specific Transfer between Firm/Client/Designated/Loan The Standard posting screen is displayed From Account will show the default Client Bank account and the To Account will show the default firms account the Case File will show the Case File number for the client who has paid the invoice Page 10

12 From the clients ledger you will see the money has moved from the Clients side to the Office side. You can now allocate the money to an outstanding Invoice if required. (see the invoice section page 15) Client to Nominal Movement This facility enables you to Debit the Client Ledger and Credit a Nominal account, this posting does not affect the bank account. This could be used to debit a client ledger with a disbursement which has not been paid out of the bank account or It could be used for writing off a small balance on a client ledger to the Write off nominal It is a very useful facility but must be used with caution. Search and open the required Case File and click on the Ledger Tab Click on the Client to Nominal Movement The standard posting screen is displayed On the toolbar Nominal to Client Movement This facility enables you to Debit a Nominal Account and Credit the Client Ledger, this posting does not affect the bank account. e.g. If you have outstanding outlays on a client ledger that you want to close you would use this transaction and choose the outlays write off a/c It is a very useful facility but must be used with caution. Search and open the required Case File and click on the Ledger Tab Click on the Nominal to Client Movement The standard posting screen is displayed On the toolbar Page 11

13 Inter Client Transfer between two different Clients Matters Inter Client Transfers are used for moving monies between different Client ledgers. This option will Debit the ledger you are moving money from and Credit the ledger you are moving money to, always select the client you are debiting first. For example if you had one client with 2 case files a Sale and Purchase and you wanted to move the Sale proceeds to the Purchase case file Click on the Inter Client Transfer between two different Clients Matters button on the toolbar The Standard posting screen is displayed Leave the posting type as TXFR this is a Lawware code indicating a transfer. Transaction Queue The Transaction Queue within LawWare holds all unprocessed transactions. When you enter a posting, it is placed in the queue before it is permanently posted to the ledgers. From the queue you can view all unprocessed postings (in blue on the ledgers) and amend or delete postings. The queue allows those with relevant permissions to permanently post transactions to the ledger. All transactions for the month (as per the daybook date) must be posted before the month end process can be run. Page 12

14 You can process the queue at any time throughout the month. You will not be allowed to close off your month if you still have unprocessed items in the queue for that month. Click on View Transaction Queue On the toolbar The Following screen is displayed at the top of your screen Towards the bottom left of this screen you will see options where you can view transactions posted by you only or all users You can also choose the dates of the transactions you want to see You can double click any of the transactions to view them and make any changes Click the Options button for the following menu or right click the screen Process the Transaction Queue This will process all ticked transactions (same as the Process button) Tick all Transactions Enables you to tick all transactions in the queue ready for processing Untick all transactions Enables you to untick all transactions in the queue Edit transaction Opens the transaction dialogue box, you can modify any of the transaction details Transaction Scheduler apply specific transactions to a schedule ideal for reoccurring DD Delete Transactions Removes the transaction entirely Refresh Transaction Queue This will refresh the queue displayed Process the Transaction Queue Click on View Transaction Queue On the toolbar Tick the transactions you wish to process or right click and Tick all Transactions Click the Process Button or right click and Process the Transaction queue A Prompt will appear asking if you are sure you want to process the queue. Click Yes Once the queue has been processed a message will appear Processed Successfully. Click OK The items will be removed from your queue and will appear as permanent entries on the ledgers Click Close to exit the Transaction Queue Page 13

15 Corrective Entries If you find that a transaction has been posted in error and has not been processed in the transaction queue, these items can be deleted from the system as they are still showing as a Ghost entry in blue. However, if the posting has been processed in the transaction queue, you won t be able to delete it but you can reverse it off the clients ledger. To remove an unprocessed posting Search and open the required Case File and click on the Ledger Tab Highlight the posting you want to remove Right click on your mouse Select Delete Transaction You will be asked to confirm Yes or No To remove a processed posting Search and open the required Case File and click on the Ledger Tab Highlight the incorrect transaction Right click on your mouse Select Reverse posting A dialog box appears asking you to confirm that you want to reverse this posting click Yes A corrective posting is automatically posted to the ledger in blue Once the item has been processed through the transaction queue it will be committed to the ledger and appear black Invoicing Introduction LawWare refers to Invoices as Fee Notes and Disbursements as Outlays When you are using Time Recording or working with Disbursements you can prepare the items on the Invoice in advance of rendering the Invoice. Search and open the required Case File, click on the Activities tab, click on the Options button and choose Prepare Fee Note The screen displayed is a summary screen detailing total disbursements and activities. Both Unbilled Outlays (disbursements) and Unbilled Activities work in the same way and there is a tab to access each of these: To amend the Unbilled Outlays (disbursements) or activities on the Fee Note, click on the item you want to change, select the status at the top of the window and click the Change button: Page 14

16 The status codes are as follows: Leave Next Fee Fee on this Fee Not Chargeable Has Been Feed Written Off Never Fee To leave until the next fee note created (after the current fee note has been raised) Appear on the Fee note Will not appear on Fee note Will not appear on fee note and will show as already Fee d Write off note this does not affect any nominal accounts Will not fee If you are working with a number of items that you want to change, you can click the Multiple Select check box and use Shift + Click to select adjacent items or Ctrl + click for non-adjacent items. There is also an option to view the items that will be Fee d on the next Fee Note Rendering an Invoice The following transaction will raise an Invoice on the Clients ledger and if configured create the Invoice in Word Search and open the required Case File and click on the Ledger Tab Click on the Render a Fee Note The Following screen is displayed On the toolbar Enter the required Invoice number, If you want to Post receipt to on the ledger at the same time select this option and choose the bank, it will add another transaction to the ledger to show the money being paid in. If you also tick Allocate in Full it will show the invoice as being recovered, only use this option if you have the funds and they have cleared the bank The client and matter details will be displayed automatically as well as the fee narrative. Enter the Net Invoice amount, if you Page 15

17 have Tracked Outlays (disbursements) for any tracked Payments out of the Clients /office Ledger if they are not showing check the clients ledger and post these first IMPORTANT If you enter a figure in the Other Outlays field you then need to create a payment out of the client s ledger or payment out of the office ledger (disbursement) for it to show on the client s ledger You then have a choice of what kind of Invoice you want to raise Note: The Invoice Styles need to be uploaded to your system, see your system administrator You then have a choice of what kind of Invoice you want to raise choose normal When you click the OK/Queue button the Invoice will open in Word and allow you to make any changes, print the Invoice if required and click on the Back to LawWare button to save changes in the top right corner of Word to close the Invoice and return back to LawWare If you are not using LawWare to create your Invoices just click OK/Queue A dialogue box will appear asking you to confirm all the details are correct before posting to the ledger. Click Yes to continue or No to go back to the posting screen to make changes or cancel the posting. The Invoice now shows as a blue ghost entry on the client ledger and is sent to the transaction queue for processing. When the client pays the Invoice and the money is credited to the ledger you then need to Allocate the invoice. Allocate an Invoice (Mark as Paid) In LawWare marking the Invoice as paid is known as Allocating the Invoice on the clients ledger. You can part allocate if for instance a client is paying up over several months or you can allocate in full. You need to have done the following 2 steps first 1. Go to the Clients Ledger and show the money being paid in see Receipt into Clients Ledger if money has been paid into the Clients bank and Client Ledger Receipt into firms account if only operating an Office account. 2. Next (only if you are operating a client s account) you need to move the money over to the office side of the ledger by using the Case File Specific Transfer between Firm/Client/Designated/Loan icon You will also need to transfer the money online/at the bank to the office account) You can then mark the Invoice as paid, once you have received the funds and the payment has cleared in the bank. To do this - Right click the Invoice on the Clients ledger Select Credit Control Select Allocate Funds Page 16

18 The Allocate Funds Screen will appear Enter the amount you wish to allocate (mark as paid) in the Allocate Amount field if you only enter part of the total outstanding the remainder will show as an outstanding balance still to be paid. Click OK/Queue, Process through the Transaction Queue as normal Reversing an Invoice If an Invoice has not been processed in the Queue, it can be deleted. The exception to this is where you have allocated the Invoice (marked as paid) as in this case there are additional postings that will first have to be deleted. Right click the Invoice you want to delete and click Delete Transaction. If the Invoice has been allocated, the following message will be displayed: You will have to delete the allocated transactions in the ledger; right click on the entry that says Fees allocated and choose Delete transaction: You will now be able to delete the Invoice. If the Invoice has been processed in the Queue, you cannot delete; you must Reverse the posting: Right click on the Invoice and choose Reverse Posting. The Invoice will be reversed removing entries from Fees Rendered and VAT accounts. You will then be presented with the following screen and 3 options: YES, NO or CANCEL. Page 17

19 Choose Yes, if you wish to reinstate any activities (WIP) and outlays that may have been on the Invoice, this will allow you to include them in the Next Invoice Choose No if you do not want to recharge any WIP or outlays. If you do not want to reverse the Invoice until you determine which option to take, click Cancel. Writing off an Invoice You can write off an Invoice, or part of an Invoice and update the Fees Written off account and the relevant VAT account (suspense or vat output account) To write off an Invoice, right click on the Invoice in the ledger and click Credit Control, Write Off. Enter the amount of the Invoice you want to write off and click OK/Queue. The written off Invoice is displayed with a tick beside it and the write off entry shows the invoice amount written off in the credit column with ^ symbol beside it. The Invoice is automatically written off to a nominal called *Outlays Written Off and Non-Recoverable Expenses. The VAT element will automatically adjust removing the VAT from VAT Output. Write off Disbursements on Invoices When you write off an invoice, the disbursement recorded will remain on the ledger. If you need to write off a disbursement, then you should use a nominal to client transaction type and choose the Outlays written off account; this will allow you to Credit the client ledger and Debit the Outlays written off account. See Nominal to Client Transaction on page 11 Credit Notes A credit note will credit the clients account, you can raise a credit note in one of 2 ways depending on whether you have marked the invoice as paid or if it is outstanding. The outstanding invoice amount is reduced. The credit note amount is displayed in the credit column with a ^ symbol beside it When the Invoice is Outstanding If you have raised an invoice, but the invoice has not yet been paid (allocated), you can right click on the invoice, choose Credit Control and choose Issue Credit Note: Enter the Net invoice amount to credit and LawWare will update the VAT amount. This will update the Fees Rendered Account and VAT account with the credit Page 18

20 When the Invoice has been Paid If you have already allocated the invoice, you can choose to Reverse the posting (see Error! Reference source not found.), note t hat this option will credit the full amount of the Invoice. Note: If you want to credit only part of the Invoice, you should render an invoice and enter a negative amount: This will show as a corrective posting in the client ledger, the Fees Rendered and the VAT account. When you enter an invoice with a negative amount, you do not need to allocate; the transaction will immediately affect the ledger (once processed in the queue). Invoice Reports You can view the details and total amounts of Invoices (Fees) Rendered and Invoices (Fees) Recovered in a report which allows you to view Invoices by Partner, Fee Earner and Work Type. Invoices Raised will show in the Fees Rendered Report and once Invoices are marked as paid, the report will show updated figures in the Fees Recovered Report, i.e. the amounts will no longer appear on the Fees Rendered Report. To access the Reports section, choose Centres from the Menu bar and Report Centre: Expand the Feeing and Credit control section and expand the Feeing Analysis section to view all the available reports: You can choose to view the Fees Rendered and Recovered in a full listing or in a summary format, there is also a report for aged debtors and a list of fees outstanding. Click once on each of the reports to access the format options Click View Report Choose to Preview to the Screen Page 19

21 Print Preview Screen and Saving Your Report If you have chosen to display your report in Preview, from here you can choose to print, save or export the data into Word or Excel. The buttons at the foot of the print preview screen will move you through the pages:. The print preview toolbar should appear at the left side of the screen and will allow you to print, save and export the file into Word or Excel. Page Setup Print use this to set margins and orientation send to printer Word export your data to Microsoft Word (this can often be the best export option) Excel export your data to Microsoft Excel Notepad export to Notepad Export and save on your computer or network For more information on Reports please see our separate Reporting guide Office Posting Routines In this section we are going to look at the Office Posting Routines such as, how to pay a bill from the office account, view and create nominal accounts and some advanced accounting procedures. When posting an Office transaction, click on the required icon on the toolbar or from the Accounts menu select the posting via the drop-down menus. Page 20

22 Payment out of the Office Account Used to Pay Office Invoices eg Rent, Electricity, Telephone Bill Click on the Payment out of the Firms Account The standard posting screen is displayed On the toolbar Select the nominal and enter the details of who the payment was to and what it was for ensuring if you are VAT registered that you choose the appropriate VAT rate Receipt into Office Account This Posting would typically be used when Interest or Commission is received (Click on the Paid into drop-down to choose the bank account the interest was paid into) Click on the Receipt into the Firms Account The standard posting screen is displayed On the toolbar Page 21

23 Journal Entry JOURNAL ENTRIES SHOULD BE USED WITH EXTREME CAUTION AND ONLY BY QUALIFIED PERSONNEL Journals are used in the event when you need to make adjustments to the nominal ledgers, either as corrections or more commonly at the Year End to indicate depreciation or movement of profit loss to partner s accounts. The journal entry debits one account and credits another, recording the entry in the nominals effected. Click Accounts on the menu bar Select Accounting procedures Select Post Journal Entry The following screen is displayed Multi-Sided Posting MULTI-SIDED POSTINGS SHOULD BE USED WITH EXTREME CAUTION AND ONLY BY QUALIFIED PERSONNEL A multi sided posting is used to create a transaction that will affect more than 2 accounts, including a bank account, a case file or a nominal account. Using the other posting types within Lawware only allows for 2 accounts to be affected. You may use a multi sided posting for example when you are posting Salaries and require the Wages account, the PAYE account and the bank account to be affected in one transaction. Click Accounts on the menu bar Select Accounting procedures Select Multi-Sided Postings The following screen is displayed Page 22

24 A Wizard function will appear to guide you through the posting, Click Next Click Add Transaction Select the Type of Transaction i.e. Debit or Credit Select the Item Nominal, Bank Account, Case File Enter a Reference and Narrative Enter the Amount and click OK You will see your Transaction in the window Page 23

25 The next step is to click Add Transaction and complete the entry as described above, the process should be continued until all transactions have been added and the batch balance is zero. The corresponding entries must equal zero or the entry cannot be processed you can add as many transactions as required. Click Next then Finish You will see a confirmation screen click OK Nominal Accounts The Office nominal accounts are split into different categories; Income, Expenses, Assets, Liabilities and Capital Reserves etc. At the yearend Income and Expense nominals are cleared down to the Profit/Loss report and the others go to the Balance Sheet report. Each nominal can be set to a specific VAT type from the following options: Standard VAT 20% Non Standard VAT This can be set to a specified amount VAT Exempt/Zero Rated This does not include VAT but does include the figure in the sales or purchases total Outwith the Scope of VAT This does not include VAT and does not include the figure in the sales and purchases total View the Office Nominal Accounts Click on the Nominal Ledger Accounts On the toolbar Page 24

26 The Following screen is displayed Click the plus sign beside any group heading This expands the group and displays the nominal accounts inside that group. The blue * accounts are Lawware system nominals. Double click on any nominal to open the ledger By default the transactions for the current month will be displayed, you can choose to view the current year or specify between periods. You can also print the ledger. Click Close to return the Nominal Account Dialogue box Create a New Nominal Account Click on the Nominal Ledger Accounts On the toolbar You will see a list of the Nominal Group Headings, Highlight the Nominal Account heading you want to create a new code under and right click, select New Nominal Code Enter the Account Name Select the Account type from the list e.g. Expenses Select the Member of from the list if it is part of a group heading Page 25

27 e.g. Telephone may be the group heading and Orange Mobiles may be the account name. This would be a member of the Telephone group Select the default VAT type from the drop-down list This can be overwritten when you make a posting to the nominal as there may be exceptions to this VAT rate. Select the default branch if required and click OK Edit a Nominal Account Highlight the Nominal Account Right Click and choose Edit Nominal Account Make Changes and Click OK to Save Delete a Nominal Account Highlight the Nominal Account Right click and choose Delete Nominal Code A prompt will appear confirming you want to Delete the Nominal Click YES Note: The nominal code will now be deleted. If there is a balance on the account then the system will not allow you to delete the code. VAT Posting Codes You need to mindful when posting Firms transactions and check that you are using the correct VAT code and VAT rate so that the correct amount of VAT is claimed back. Outwith the Scope Zero Rated/Exempt STD VAT Non-Standard VAT Salaries, Drawings to Partners, HMRC payments, PAYE Commission, Bank Interest, Insurance, Postage, travel Costs,Tea, Coffee, Milk or any other invoice with no VAT receipt (except anything marked Outwith the Scope) Any invoice where it shows the vat rate as 20%. You may have to amend the amount of VAT being claimed if there is something on the invoice that is non-vatable you can split the posting into 2 different postings Any Invoice that shows reduced rate VAT 5% often used on small use Gas or electricity invoices If in any doubt check the HMRC website for up to date and more detailed information Page 26

28 Bank Account Centre The Bank Account Centre contains all bank accounts, displays the bank account ledgers and lets you perform bank reconciliations. Viewing your Bank Accounts To Access the Bank Account Centre click the Bank Account Centre button The Lawware Bank Account Centre page is displayed on the toolbar Select the Account type you would like to view Firm/Office Accounts or Client Accounts Double click on a Bank Account in the list to view the entries and the ledger is displayed The default option is to view the current month s transactions. You can choose to view the Current year, Entire year or specify between months You can change the order of the statement to display Ascending or Descending. You also have the option to sort by date or reference. To close this tab click on the Close button Viewing the Account Details To Access the Bank Account Centre click the Bank Account Centre button Select the Account Type Firm/Office Accounts or Client Account Highlight the bank account details you want to view/edit and right click Select Account Details The Bank Account Details window is displayed on the toolbar Page 27

29 View the information and amend any details Click OK to save and close the window Creating a New Bank Account If you want to open another Bank Account eg. for Petty Cash To Access the Bank Account Centre click the Bank Account Centre button on the toolbar Right Click the Window and Select New Account then choose the type of account you want to create You will be presented with a blank Account Details Window, fill in the appropriate information and click OK to Save and Close Archiving a Bank Account To Access the Bank Account Centre click the Bank Account Centre button on the toolbar Select the Account Type Firm/Office Accounts or Client Accounts Highlight the bank account details you want to Archive and right click, Select Archive Account Page 28

30 You will be prompted to confirm that you want to archive the account, Click yes and the Account will be removed from the Current Accounts View Viewing Archived Accounts To Access the Bank Account Centre click the Bank Account Centre button on the toolbar Select the Account Type Change the Show Banks with Status from Live Accounts to Archived Accounts in the drop-down list Double click on any Archived Account to see the history Un-archiving a Bank Account To Access the Bank Account Centre click the Bank Account Centre button on the toolbar Select the Account Type Change the Show Banks with Status from Live Accounts to Archived Accounts in the drop-down list Highlight the Account you wish to un-archive and right click and choose Account Details From the Cashbook Status drop-down choose Live and click OK Reconciling a Bank Account Reconciliations are exactly the same for both the Office and Clients accounts. It is recommended that you do a Bank Reconciliation at the end of every month before you move to the next month, so that you can post any corrections for the month. When you are ready to reconcile an account you must have received your bank statement. You will work through your statement matching up items that have been entered into LawWare. LawWare provides an easy to use ticking facility so that you can quickly check through and reconcile items. Click the Bank Account Centre button Select either Firm, Client or Designated Accounts Right click the Account you wish to Reconcile and select Reconcile Account The Bank Reconciliation window is displayed Page 29

31 Enter the Date of reconciliation; this is the date on your bank Statement Enter the Statement Bank balance and Click OK The Bank Reconciliation Screen is displayed, As you reconcile each item in LawWare, mark the checkbox at the left of the transaction There is a useful summary at the foot of the reconciliation window showing: Total of unreconciled Dr and Cr. Statement amount that you entered and are reconciling to. Rec Balance is the total amount you have marked as reconciled this amount will eventually reduce to zero. Difference shows the difference between what you have reconciled and your statement balance once all items have been reconciled, this will be zero. Pre LawWare Balance is also shown if you have unreconciled items from your old system Page 30

32 Once you have marked all your items and if you reconcile the following message will appear If the above message does not appear you can still perform the reconciliation Click on the options button and choose Clear all reconciled Transactions You will be prompted to take a print of the ledger, which you should do. If there are any unreconciled transactions, you should indicate these and the reason for the difference on the statement. Once you have printed the Reconciliation Statement and are happy to clear all the reconiled transactions Cick Options and choose Clear all Reconciled Transactions This time click No when prompted to take a print of the ledger The next Window will ask you to confirm that you want to clear all reconciled transactions, click Yes Confirmation Screen willl appear Items cleared Successfully! and the reconciled items will dissapear from the screen Un-reconcile a Transaction If you have incorrectly marked an item as reconciled, you can un-reconcile the transaction. Open the bank account (Double click on the account from the bank account centre), locate the transaction you want to work with and double click to open it: Click on the blue Unreconcile link Page 31

33 Performing the Month End When you are ready to close off the current month and move on to the next, click on Run Day, Month, Year and VAT Period Ends icon on the tool bar. We recommend that you do your Bank reconciliation first to ensure all postings have been made into the current month before closing. (See Bank reconciliation page 29) If the VAT end or Year End are also due these will feature in the left side of the window Click on Run Day, Month, Year and VAT Period Ends The Following screen is displayed On the toolbar The icons on the left indicate the procedures due to be run e.g. Day end, Month End, VAT End and Year End depending which is due. In the example above it is showing that we need to run all. Click the Month End icon, the following screen displays Step 1 shows all the reports that will run for that particular period end Step 2 If you haven t already done your Bank Reconciliation click on the View Bank accounts button. It is advisable to do a Bank Reconciliation before running your month end in case you need to make any additional postings Click Ok The Period end will run and the Daybook date will change accordingly, you can now start posting in that month. Page 32

34 Note: If this is the first Month End you are about to run in LawWare click on the Options icon on the left Tick the box Store all reports to electronic PDF Files this will store an electronic copy. If you ever need to re print any of the MONTH, YEAR or VAT end reports click on the blue link to view the folder where the reports are stored Date Check The Date Check button allows you to check when your next month end, Vat end and year end is due. It is vital that these dates are correct as Lawware will automatically run the period ends when indicated You can also set your posting date from this screen Click on the Date check The following screen is displayed On the toolbar Click the Close button to close the window Performing the VAT End Click on Run Day, Month, Year and VAT Period Ends The Following screen is displayed On the toolbar Page 33

35 Click the VAT end button to run your VAT period end The following screen is displayed Step 1 Checks and advises re outstanding fee notes Step 2 Lets you view the VAT Ledgers, click on each to view Step 3 VAT adjustments and Clear Down Click on the Make VAT Adjustment button to make any manual adjustments eg fuel scale charges, by clicking the button it will take you to the Journal entry posting screen Click Ok The Period end will run Performing a Year End Click on Run Day, Month, Year and VAT Period Ends On the toolbar The Following screen is displayed, Click the Year end button to run your Year period end Page 34

36 The following screen is displayed Running your yearend will automatically clear down your Income and Expense Nominal to your Profit and Loss Account Productivity Centre The Lawware Productivity Centre is displayed on your main screen as a panel on the right-hand side. It has many functions and two in particular to help with the cashroom day to day functionality, the Cashroom View and the Notification Centre. The Cashroom View allows you to see the entries that are being posted and the Notification Centre allows you to see a snapshot of the financials for the whole system To Open the Productivity Centre The productivity centre will automatically open when you launch Lawware. If however you have closed the productivity centre click on the icon in the bottom left corner Page 35

37 The Cashroom View To view the Cashroom click on the View dropdown in the top right of the Productivity centre and choose Cashroom By default it will display the most recent 25 items posted by you. Double click any posting to view the individual posting screen. You can choose to view Yesterday, This Week, Last 7 Days, Last 30 Days, Other Posted by - Specific Cashier or choose Anyone to see all Type Can choose specific type of transaction The Notification Centre The Notification Centre will give you a snapshot of the current position of your Cashroom. If the Productivity Centre is not already open click on the icon in the bottom left corner. Click on View and select Notification Centre If you have never configured your notification centre you will see the window below Click on the blue link Click here to configure your personal notifications If you have already been configuring the notification centre click on the Configure Notifications blue link at the bottom right of the screen Page 36

38 Working your way down the list ticking the notifications you wish to view. For Example Client only credit balances over 500 Client only debit balances over 0.00 Office only credit balances over 500 Office only debit balances over 0.00 Net Invoices (Fees) Recovered this month Net Invoices (Fees) Rendered this month As you tick each notification you will be presented with the screen below, depending on your permissions some options may be greyed out, make your selection then click Close Once you have made your selection click on the Finish Configuration link at the bottom of the screen The screen will reconfigure itself to show you the options you have ticked. At any point during the day click on the refresh link at the bottom of the screen to refresh your data By double clicking any of your notifications a screen will show on the left the information e.g. If you double click the Debit Balances over 0.01 it will show the 2 case files on the left. The Notification centre will become invaluable to you keeping you up-to-date with your current position in the cashroom. Page 37