In Law App, receipting and allocation are separate steps. This mirrors legal accounting rules and ensures clarity in both office and trust accounting.
What Receipting Does
- Receipting is the process of recording money received into the bank.
- When you press Save, the system confirms that funds have been receipted and are available to allocate.
What Allocation Does
- Allocation is the step of applying that receipt to specific invoices.
- Once saved, Law App will display the invoices outstanding on the file.
- You can choose which invoice(s) to allocate the payment against.
If You Do Not Manually Allocate
- If you press Allocate without selecting a specific invoice, Law App will automatically apply the receipt to the oldest outstanding invoices first, in chronological order.
Why This Matters
- Until the Allocate button is pressed, invoices will remain marked as unpaid.
- This separation ensures:
- A clear audit trail of when money was received vs when it was applied.
- Flexibility to manage payments across multiple invoices.
- Compliance with accounting and legal practice requirements.
Best Practice
Always press Allocate after receipting money. This ensures invoices are updated correctly and debtor statements remain accurate.
