Those located in Asia-Pacific will use the term Trust Account, where customers located in Europe will use the term Client Account. For the purpose of this article, we will refer to it as a Trust Account. For more information on regional terminology, refer to this article or contact support.
It may be that invoices are raised in Re-Leased to Tenants for rent, or other items, and occasionally these are paid directly to the client and the funds never go through the Trust Account on Re-Leased.
It would be advisable to create a chart of account called ‘Paid Direct’, this should be a revenue type code.
Below is a procedure for how to process these invoices:
- Raise the income invoice as usual
Once you have notification that the client has received the payment direct:
- Raise an income credit note for the amount paid direct to the client
- Code the invoice to a chart of account code ‘Paid Direct’, this should be a revenue type code. Ensure the credit note is coded to the same ledger as the invoice that has been paid direct.
- Allocate the credit note to the invoice
This will mark the invoice as paid (allocated), but will not affect the bank account.
It will be possible to run the Invoice Details and Payments Report, put into Excel and filter by Chart of account to get a list of all items paid direct to the client.