How to reconcile in IRIS Time & Fees

Introduction

Reconciliation takes place at regular intervals, typically once a month. This is to check that all information has been entered correctly into the Time and Fees ledgers. The aim is to draw a line across the ledger and check all the figures. Once happy with the figures they can then be frozen in the ledger up to that point. In some cases it is possible to start posting into the next time frame during the reconciliation procedure. If in doubt, check.

The time frames that the ledger is split into are referred to as periods. Postings belong to periods and affect the figures for that period. Once a period is reconciled it is marked as closed and no more postings can be made to it.  Reports for that period can now be safely run off and filed.

An important part of the reconciliation process is comparing various reports to verify the accuracy of each. This starts with the reconciliation report which shows totals for all posting types. The other reports show the same information broken down at various different levels in order to prove the figures are correct.

This topic outlines the recommended reports for reconciliation. These reports should all be run to cover the period or periods in reconciliation. Once the reports have been identified to provide a suitable reconciliation procedure for the business they should be memorised. This will enable them to be run with ease month by month.

Time Reports

Time Reconciliation report

• IRIS Time | Reports | Reconciliation report

This report allows you to see at a glance, the amount brought forward, time and expenses posted, the value written out, written off and a carried forward balance for the next period. Details of non-charge postings are also displayed.

Information is displayed as one line per posting type, so that a list of posting types can be displayed with a total chargeable WIP recorded. For example, to show £2000 of Timesheet entry was posted for the selected month.

The following details can be reconciled: Brought Forward (from the previous period), Gross WIP (time), Gross WIP (expenses), Gross WIP (total), Interims (credits from interim invoices), Write Back (debits from credit notes), Write Out (credits from invoices), Write Off (credits from write offs), Net Movement, Carry Forward (into the next period).

Client WIP Movements

• IRIS Time | Reports | Client reports | WIP Movements

This is a Time Ledger report that displays WIP movements at client level. Information can be displayed as one line per client.

The following details can be reconciled: Brought Forward (Clients WIP Balance from the previous period), Gross WIP (time), Gross WIP (expenses), Gross WIP (total), Interims, Write Back, Write Out, Write Off, Net Movement, Carry Forward (Clients WIP Balance into the next period).

It is possible to select a single column to see an amalgamation of the Write Back, Write Out and Write off.

Staff WIP Movements

• IRIS Time | Reports | Staff reports | WIP Movements

This is a Time Ledger report that displays WIP movements at staff level. Information can be displayed as one line per staff member. Any postings which are not associated to a staff member will appear in a separate row.

The following details can be reconciled: Gross WIP (time), Gross WIP (expenses), Gross WIP (total), Interims, Write Back, Write Out, Write Off, Net Movement.

Non-charge Movements

• IRIS Time | Reports | Non-charge reports | Movements

This is a Time Ledger report that displays WIP movements at non-charge level. Information can be displayed as one line per non-charge activity. Non-charge activities are items such as: general administration, annual leave, sick leave and so on.

The following details can be reconciled: Non-charge WIP(time), Non-charge WIP (expenses), Gross Non-charge WIP(total)

Instructions report

• IRIS Time | Reports | General reports | Instructions

This is a Time Ledger report which can be used to reconcile the amount invoiced/billed in the Time ledger, compared to the amount invoiced in the Fees ledger. It is important to note that when reconciling the invoiced amount between the two ledgers, discrepancies can occur for legitimate reasons. These include postings into different periods, reversals in different periods and Fees only invoices (invoices posted to the Fees ledger which do not affect the Time ledger).

The following details can be reconciled: Billed (including invoices and credit notes):

Fees Reports

Fees Reconciliation report

• IRIS Fees | Reports | Reconciliation report

This report allows you to see at a glance the amount brought forward, Invoices, Receipts, Credit notes, Refunds and adjustments posted, and a carried forward debtor’s balance for the next period.

Information is displayed as one line per posting type, so that a list of posting types can be displayed with a total amount recorded. For example, to show that £12,000 has been invoiced in the selected month.

The following details can be reconciled: Brought forward (from the previous period), Invoices, Credit Notes, Receipts, Refunds, Write offs, Others (Miscellaneous adjustments), Carry forward (into the next period).

Fees Postings list

• IRIS Fees | Reports | Postings list

This report allows you to see a list of items posted to the Fees ledger. Postings can include Invoices, Receipts, Credit notes, Refunds and adjustments. When reporting on invoices alone, the report is often called ‘Sales Daybook’.

Postings can be shown inclusive or exclusive of VAT.

The following details can be reconciled: Posting Amount (inc VAT), Posting Amount (ex VAT), VAT Amount.

Debtor Movements

• IRIS Fees | Reports | Debtor Movements

This is a Fees ledger report that displays Fees movements at client level. Information can be displayed as one line per client. Figures are shown inclusive of VAT, therefore it is not suitable for VAT reconciliation.

The following details can be reconciled: Brought forward (Clients balance from the previous period), Invoices, Credit Notes, Receipts, Refunds, Write offs, Others (Miscellaneous adjustments), Carry forward (Clients balance into the next period).

Comparing the reports

Below are two charts, one for Time and one for Fees, showing how figures from different reports can be compared with one another. This starts with the reconciliation report which shows totals for all posting types. The other reports show the same information broken down at various different levels in order to prove the figures are correct.

WIP comparison chart

Fees comparison chart