The only things that “live” in LeanLaw are time entries, fixed fees and client/matter info. Once an invoice has been “created” in LeanLaw, it is actually created in QBO. LeanLaw then mirrors balances in QBO - a/r, trust balances (in bank and liability accounts).
Here is what happens behind the scenes in QBO as an invoice is billed and paid from trust.
Invoice #1103 for ABC company has been billed. In LeanLaw it reflects the invoice in QBO including the invoice number that QBO assigned.
Upon billing the following accounts are affected:
Debit: Accounts Receivable 323.67 (increased)
Credit: income acct 323.67 (increased)
Paying invoice through LL via a trust payment triggers the following entries in Quickbooks:
Debit: Funds Held in Trust ABC company 323.67 (because it is a sub acct it will auto decrease the main liability) (decreased)
Credit: Bank trust account: 323.67 (decreased)
If you have the LL account set to put funds into “undeposited funds” then the following also happens:
Debit: Undeposited Funds 323.67 (increased)
Credit: Accounts Receivable 323.67 (a/r for that client is now zero) (decreased)
When you make the deposit from undeposited funds the following accounts are affected
Debit: Operating/main bank account 323.67 (increased)
Credit: Undeposited funds: 323.67 (undep funds now cleared) (decreased)
For more information on trust accounting click here: