You must review your accounting settings prior to using CosmoLex to ensure your accounting entries are made appropriately as you conduct your normal business activities in CosmoLex.
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Set Your Chart of Accounts Defaults
To set your chart of accounts defaults:
- From the left navigation panel, click Setup.
- Atop the Setup left navigation, click Firm Settings.
- From the tabs atop the Firm Settings screen, click Accounting.
The Accounting screen opens.
Default Accounts for Client Costs Posted to Matters Section
- From the Hourly Matters field’s drop-down, click either 1700 or 6610, if applicable.
- From the Fixed Fee Matters field’s drop-down, click either 1700 or 6610, if applicable.
- From the Contingency Matters field’s drop-down, click either 1700 or 6610, if applicable.
- From the Default Legal Fee Income Chart of Account field’s drop-down, click the default account for your fee income. Firms often use this to track income per practice area.
- From the Default Trust Transaction Account field’s drop-down, click either 2300 or 2310.
Account Books Settings Section
- From the Reporting Method field’s drop-down, click Accrual Basis or Cash Basis as applicable.
- From the 1st Month of Fiscal Year field’s drop-down, click the month within which your fiscal year begins.
- From the 1st Month of Income Tax Year field’s drop-down, click the month within which your income tax year begins.
- From the Dates through which books are closed field’s drop-down, click the applicable date.
Vendor Tax Account Section
- In the Vendor Tax Enabled field, check or uncheck the box to enable or disable vendor taxes.
- From the Vendor Charged GST account field’s drop-down, click either None, 1700, 1701, or 1702.
- From the Vendor Charged Sales Tax 2 account field’s drop-down, click either None, 1700, 1701, or 1702.
Default Accounts for Sales & Service Taxes Section
- From the Firm Collected GST field’s drop-down, click either None, 2200, 2201, or 2202.
- From the Firm Collected Sales Tax 2 field’s drop-down, click either None,1700, 1701, or 1702.
- From the Firm Paid GST account field’s drop-down, click either None or the appropriate account.
- From the Firm Paid Sales Tax 2 field’s drop-down, click either None or the appropriate account.
Note
Because cost of goods sold (COGS) is intended for use with goods purchased for resale, CosmoLex does not allow its use to track matter related costs.