Client Disbursements - Xero

Client Disbursements

Option one:

This option is to keep track of which disbursement belongs to which client 

1. Receive invoice

2. Put copy on client file

3. Click ‘reconcile’ on the dashboard

4. Click on the create tab, select ‘add details’.

5. Record who the payment is being made to

6. In the reference box: type in your firm’s client reference code as the reference.  Ensure the reference reflects the matter you are making payment for e.g. JI-MEATE-02.   NOTE: It is important to record client reference as this is how you will keep track of disbursements.

7. If the payment is related to more than one client, record each client in the Reference section, separating them out with a (,).  E.g. JI-MEATE-02, JO-BLOGG-03, SA-WALKE-01.

8. Write a full description of the transaction, including the client’s full name and what the payment is in regards to e.g. Jo Bloggs, Title search fees for 91 High street

9. If there is more than one person a payment relates to: Click the next line and write in the description section, the full name and particulars of the allocated amount, as reflected on the invoice. E.g. Jo Bloggs, title search fees - 91 High Street, Lower Hutt.  Select ‘disbursements’ as the account, record in the amount.  Check the tax amounts reflect what is in the invoice. 

10. Select account: “Disbursements”

11. Check tax amount reflects what is on the invoice payment relates to

 12. Save transaction

To produce reports on disbursements

Go back to dashboard:

1. Click Reports

2. Click 'New Reports'

3. Click Account Transactions

4. Select ‘disbursements’ (accounts option)

5. Select date range

6. Click update

7. A report will be produced of all client disbursements within that time period

8. Click ‘reference’.  The report will sort by ‘clients’ you have entered in the reference

9. You can export the report to excel by clicking ‘export’, ‘excel’ at the bottom of the screen (if you need to extract data in the report). Or check client disbursements are included in client bill

Option 2:

This option is to keep track of disbursements which have been billed to the client/not

1. When you receive a new invoice, save to client file (hardcopy) 

2. On the dashboard, click the tab ‘accounts’, click ‘purchases’

3. Click 'new', click bill

4. Type who the bill is from

5. Select the date and due date (if needed)

6.  Enter same details as mentioned above (reference: client code. Enter total amount in invoice. Enter in particulars in relation to each client and allocated amount to client).

7. Click approve

8. When you are ready to bill a new client, click ‘adviser’ on the dashboard

9. Click ‘Find and recode’

10. Click ‘find and recode’ button 

11. Click ‘add a condition’. Click account 

12. Select the account dropdown box, click on - ‘disbursements to bill’ 

13. Click on ‘invoice reference’

14. Tick/select the invoices that apply to the client

15. Click ‘next’ at the bottom of the screen

16. Enter amounts into your client bill

17. Once you have completed and sent out client bill - On the dashboard click the ‘Advisor’ tab.  Click find and recode.   

18. Click ‘add a condition’.  

19. Click ‘Account’

20. Select ‘disbursements to bill’

21. Click on the invoices you have billed to the client

22. Click ‘recode’

23. Click on the ‘Account’ dropdown and select ‘disbursements billed’, click review