Managing Accounts Payable

Introduction

In Cosmolex, you can keep track of office bills and mark them paid when ready.

There are various situations that may come up when keeping track of your bills. Your firm may have recurring bills (like rent), may pay bills as they become due or when approved, or may attribute certain bills to matters and require payment of invoices before paying the bills.

Whatever your firm’s needs are, CosmoLex makes it easy to record, track, and pay your bills.

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Add New Bill

When you add a new bill, you’ll have options like putting it on hold or posting it to a matter. You will also be able to post it to its corresponding General Ledger account, making it easy for you later when applying payment. To add a new bill, follow these instructions:

1. Click the Accounting Tab

2. Click on Accounts Payable

3. Click  Add to add a new bill

4. Complete the Add New Bill window

  • Bill Date: Date of when you receive the bill
  • Due Date: Date of when the bill is due.
  • Pay To: Enter the payee name
  • Amount*: Enter the bill amount
  • Ref#: Enter a reference # for the bill, if necessary. This number can be from the bill or internal.
  • Memo: Write a memo note about the bill. This memo note could be noted in reports.
  • Memo2: Write a second memo note, if necessary. This is an internal note.
  • Account: Choose a Chart of Account for the bill. This account will be selected automatically when you post payment on the bill.

  • Options: There are three flags that can be set when recording a bill for keeping track of specifics on certain bills:

  • Notes Tab: You can enter notes about the bill that you can view internally.

5. When ready, click Save.

Recurring Bills

In Cosmolex, routine fixed amount bills such as rent, lease payments, mortgage, etc., can be set as “recurring bills”. These bills will be generated automatically at the selected frequency and shown in the pending bills section. At this point, you will be reminded to add those to the rest of your Accounts Payable bills.

Available options include weekly, monthly, quarterly, and yearly. 

To mark a bill “recurring” follow these instructions:

1.From the Accounts Payable section, select the desired bill and click  Edit. You can also select this option while adding a new bill.

2. Check the Recurring box and select desired frequency.

3. When ready, click Save

All set! You have added a new recurring bill.

Locate Recurring Bills

You may want to see bills you have designated as recurring. To do so, follow these instructions:

1. From the Accounts Payable section, click  Recurring Bills. Here, you can see all recurring bills you’ve created.

2. From this screen, you can Add, Edit, Delete, or Export a list of your bills

Approving Recurring Bills

Each time there is a new cycle for your recurring bills, you will see a notification for pending bills to be added.

1. Click on the pending bills message.

2. In the Pending Bills window, select the bill(s) you want to approve and click  Add.

3. You will be asked to confirm, click Yes.

The selected bills will be added to your Accounts Payable section as unpaid.

Accounts Payable Shortcut

Keep track of all bills, by clicking on the Accounts Payable shortcut. There you’ll be notified of overdue bills as well as pending (recurring) bills coming up for the next billing date.

Hold Status on a Bill

There may be times when your firm needs to put a bill on hold until it is approved to be paid. To put a bill on hold, follow these instructions:

1. Click the Accounting Tab

2. Click on Accounts Payable

3. Select the desired bill and click  Edit. This can also be done when you add a new bill.

4. In the Edit Bill window, check the box for Hold Bill Payment

5. When ready, click Save

All set! Your bill is now on hold. Make sure to remove the hold off the bill, when ready to pay the bill. If you do not remove it, you will see a warning message when attempting to pay the bill.

Pay a Vendor Bill

To pay the bill, follow these instructions:

1. Click the Accounting tab

2. Click on Accounts Payable

3. Select the desired bill and click  Pay

4. Complete the Pay Bills window:

  • Date: Payment Date
  • Amount: Amount of payment you are recording
  • Type: Select type, i.e. Check
  • Method: Payment Method
  • Pay To: Enter the payee name
  • Bank: Choose the bank you want the funds to come from
  • Memo: Enter a payment memo. This can appear in reports or, if you are printing a check, it can be printed on the check. 
  • Memo2: You may enter a second memo for internal record keeping.
  • Account: The account here will automatically be populated from the bill when it was created. 

5. When ready, Click Save

The bill’s status will change from Unpaid to Paid.

Since CosmoLex records all of your transactions for proper accounting records, you will also see the transaction shown under your operating bank account.

Post Bills to Matters

To post a bill to a matter, follow these instructions:

1. From the Accounts Payable section, select the desired bill and click  Edit. You can also select this option when adding a new bill.

2. Click Post as Matter Expense

3. Complete the matter information

4. When ready, click Save.

Allocate Vendor Cost to Multiple Matters

In Cosmolex, you can allocate vendor cost to multiple matters. For example, a single vendor bill can be split to multiple matters and paid as a single disbursement from your operating account.

To manage payment for such bills, follow these instructions:

1. From the Accounts Payable tab, add a separate bill for the cost of each matter.

2. After bills have been entered for each matter, check the box for each bill you want to pay (all the matter costs that make up the larger bill), and click  Pay

4. Complete the Pay Bills window

  • Complete the payment information as shown above. The Account field will automatically be shown as “split” since it will be split among the matter costs selected.
  • At the bottom of the screen, you will see the selected matter cost bills and how will the disbursement will be applied.
  • When ready, click Pay

All set! The bills’ statuses will be changed from Unpaid to Paid. 

Updated on September 3, 2018

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