Law App gives you three ways to record a cost on a file: a disbursement journal, a supplier invoice or a payment. Each one covers a different stage of the disbursement workflow. This article explains what each option does and, in particular, when to use a supplier invoice vs payment so costs are recorded straight away and never missed at billing.
What’s the difference between a disbursement journal, a supplier invoice and a payment?
The right option depends on whether the cost has already been paid, and whether money is actually leaving your office account.
Disbursement journal
A disbursement journal moves a cost the firm has already paid, such as postage, onto a specific file. No financial transaction is recorded, so no money moves. It simply allocates the cost to the file so it can be billed to the client.
Supplier invoice
A supplier invoice records a bill you’ve received from a third party, such as a barrister or search provider, that you haven’t paid yet. Because the cost is on the file as soon as you enter it, you can bill the client before you pay the supplier.
Payment
A payment records money actually leaving your office (operating) account. You can link it to a supplier invoice you’ve already entered, or record it on its own without one.
When should I use a supplier invoice vs payment?
Use a supplier invoice when:
- you’ve received the invoice but haven’t paid it yet
- you want the cost recorded against the file straight away
- you want to make sure the cost isn’t missed when you bill the client.
Example: You receive a $1,600 barrister’s invoice dated today and due in 14 days. Enter it as a supplier invoice now and you can bill it to the client today, rather than waiting until you’ve paid the barrister.
If the money has already gone out and there’s no bill to track, record a payment instead. If the cost was already paid by the firm and you just need to put it on a file, use a disbursement journal.
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