Based on FilePro Version 16.2 - Copyright 2013-2017
Overpayments to the General Account
Sometimes a client will accidentally pay money into the General account rather than Trust or just overpay an account. You will then either refund the client or transfer the funds to Trust.
In our opinion the most efficient way to represent this is by allocating the original Receipt to the Disbursement ledger on the file. You do this by adding your Receipt and selecting the type ‘DIS’ rather than ‘DEB’ or ‘GEN’. The entry will look something like this:
If your client simply overpaid their account then you can add two lines to the receipt; one for the amount of the debtor balance allocated to the invoice/s as per usual (with the type ‘DEB’), the other as a ‘DIS’ line. Like this:
The ‘DIS’ entry avoids having unallocated amounts sitting in your debtor ledger and will simply create a credit in the Disbursement ledger on the file. In your descriptionyou can add that it was an overpayment.
If a client has simply put money into general instead of trust you will treat it the same as above, in this instance you will just have the one line with the Type DIS in your receipt.
When you then pay the funds out of your General bank account (either to refund the client or to put the money back into the Trust account) you allocate this withdrawal to the file as a disbursement as well. This will be GST free. The debit created will then cancel out the credit from the previous entry.
You then create the receipt within the Trust ledger on the clients file, bringing the $40 back in.
If you now go to the clients file and to the Disbursement ledger you will see the two entries you have created. You can either choose to bill those and create a $0 invoice or pick them up in your next billing run. You will see that they cancel each other out.
