Paying Part X Fees based upon fee limits
Paying Part X fees and applying fee limits is all done through the practice accounts payable register. In the practice, from the Transactions toolbar, choose the Accounts Payable button option.
Selecting Part X fee invoices for payment based upon fee limits allows a different formula to be used. Ordinarily, invoices are selected for payment based upon the available funds in the job or trust bank accounts. Part X fee payments with fee limits use a different formula depending on the job type:
All Part X job types other than Controlling Trustee:
Total realisations less realisations charge less controlling trustee fees less provisions for costs multiplied by percentage of funds applicable to fees (50%) = Funds available for fees.
Controlling Trustee job type
Total realisations less realisations charge less provisions for costs = Funds available for fees.
Paying Part X Fees (Non-Controlling Trustee Fees)
To apply the fee limits, In the practice Accounts Payable Register:
- Using the drop down next to the supplier combo, change the option to "All billing practice suppliers". This will restrict the suppliers to all billing practice suppliers.
- Ensure that the apply fee limits option is ticked.
- Make sure that the job type selector is set to "All job types"
- Enter the "due to" date. This is the "as at" date for calculating the realisations, realisations charge and controlling trustee fees and provisions. If you do not enter a date here, the date entered into the date field above the pay now button will be used as the "as at" date.
- Click the "Select Invoices for payment based upon Available funds" button.
This will select for payment any invoices that are due for payment and for which funds are available based upon all Part X job types calculation formula detailed above.
The invoices will be selected in due date order and for trust account payments the formula will also take into account the balance of funds held on trust for the job. Invoices will not be selected if there are insufficient funds available.
Note that this may result in part payment of invoices due to insufficient funds being available for payment in full. If you do not want this to happen, untick the "Allow part payments" option above the "Apply fee limits" option.
Note that if there are controlling trustee fee invoice(s) listed in the grid, these will not be selected for payment and you will receive a green warning. This is because that job type uses a different formula (also detailed above).
Once invoices are selected for payment, click the "Pay now" button to generate the payment entries.
Paying Part X Controlling Trustee Fees
In the accounts payable register, select the Part X - Controlling Trustee job type from the Job type drop down.
Also enter the "due to" date. This is the "as at" date for calculating the realisations, realisations charge and provisions. If you do not enter a date here, the date entered into the date field above the pay now button will be used as the "as at" date.
This will then list all the Controlling trustee invoices that are payable.
Ensure that the "Apply fee limits" option is ticked and then click the "Select Invoices for payment based upon Available funds" button.
How do I know that you will avoid over drawing the debtor's funds balance as a component of the trust account?
This will select for payment any invoices that are due for payment and for which funds are available based upon the all Part X Controlling Trustee calculation formula detailed above.
The invoices will be selected in due date order and for trust account payments the formula will also take into account the balance of funds held on trust for the job. Invoices will not be selected if there are insufficient funds available.
Note
- Restricting the "To pay" amounts may result in part payment of invoices due to insufficient funds being available for payment in full. If you do not want this to happen, untick the "Allow part payments" option above the "Apply fee limits" option.
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