This article describes the Disbursements module and explains how to process a Business Creditor Disbursement in GhostPractice®. 

Disbursement Overview 

A Disbursement is a cost incurred by the Legal Practice on behalf of the Client. There are four types of Disbursements:

1. A cost from a Business Creditor (such as an Advocate or a Sheriff) for work done on behalf of a Client, i.e., for work that the third party has done for the Client at the request of the Legal Practice. If the invoice is in the name of the Client, the contract is between the Business Creditor and the Client (with the practice acting as a ‘conduit’), and there is no VAT involved for the practice (although the practice is traditionally still liable for the charge from the Business Creditor). Generally, the invoice is in the name of the practice, and the practice can claim the VAT In (Other) and charge VAT Out to the client (when converted from a pending disbursement to an Invoice–disbursement).
2. Photocopying and telephone calls are sometimes called disbursements, but should be referred to as ‘Cost Recovery’. VAT Out should be charged if applicable.
3. Disbursements from Instructed Correspondents, which are treated in the same way as a fee, except that with other fees, no third allowance applies.

A Disbursement is recorded in the System as a Pending Disbursement (unbilled disbursement) until such time as it is included in an invoice, when it is converted into a Disbursement.

To open the Disbursements module, click Disbursements on the navigation bar. Fill in the details for a Business Creditor Disbursement.

How to Process a Business Creditor Disbursement 

To process a Disbursement for a Business Creditor:

1. Click Disbursements on the navigation bar to open the Disbursements module.
2. Enter the Business Creditor Number in the Business Creditor Number field.
3. The Business Creditor name will automatically be displayed. 
4. Enter the relevant Account and Invoice information.
5. Click Save Entry when you have entered all the information.
7. To edit or delete an entry, select the one you want and click Edit Invoice Entry or Delete Invoice Entry on the right.

8.  Click Process on the module toolbar when you are ready to process the Disbursement.  

   The disbursement will only be accepted if the total amount entered is equal to the sum of the amounts in the detail transactions.

9. You will be prompted to confirm the details of the transaction: click OK to continue.

Please see Disbursement Fields article for reference.