Accruals reconciliation in the legal industry ensures that the amounts billed by outside counsels align with their clients' internal financial records for legal services. This practice benefits outside counsels by
- ensuring timely payments,
- building trust with clients through financial transparency,
- aiding in accurate budgeting and forecasting and
- ultimately improving client relationships by aligning financial processes and expectations.
This article provides a comprehensive overview of how the accruals can be generated so your outside counsels can match them with their numbers.
Setting Accruals for Reconciliation
Accruals reconciliation can generate accrual invoice line items from the actual invoice line items for the accrual period. You only need to simply update your accrual by importing or refreshing the accrual data.
Accrual Details
AdvoLogix offers a few fields to allow easy matching of the accuracy of your outside counsel's submitted accrual data.
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Amount - This field reflects the total amount estimated or unbilled for the submitted accrual.
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Sum of Accrual Invoice Line Items - The total sum of the amount for your accrual invoice line items under your current accrual.
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Difference - This field indicates the difference between the accrual amount entered and the sum of the accrual invoice line items that have been imported from your invoices within the accrual period.
- Variance - This field indicates the difference between the amount and sum of accrual invoice line items in percentage.
Accrual Invoice Line Items Related List
The Accrual Invoice Line Items related list offers three action buttons that allow you to manually enter an adjustment to an accrual, import invoice line items within the accrual period as accrual invoice line items, or refresh accrual invoice line items data from the invoice line items within the accrual period.
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New - Add an adjustment to your accrual to reconcile accurately. Adding a manual accrual invoice line item automatically checks the Manual Adjustment checkbox for the new entry.
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Import - Find all of the invoice line items within the period of your accrual.
- Refresh - Re-import all invoice line items within your accrual period. This action will delete your existing accrual invoice line items (that were not identified as Manually Adjusted) and re-import the fresh data as the accrual invoice line items.