When bank interest is earned on your Client/Trust Account, you have three options for recording it accurately in Re-Leased. Consider setting up a dedicated Chart of Account for bank interest transactions before you begin.
Option 1: Distribute Interest Across Multiple Ledgers
Use this approach when interest needs to be allocated to different ledgers:
Raise an Income Invoice in Re-Leased.
Add separate line items detailing the split across the required ledgers.
Ensure the total matches the amount received in the bank account.
Option 2: Create a Dedicated Bank Interest Ledger
Use this approach to pool interest in one place for later allocation:
Create a ledger named Bank Interest.
When interest is earned, raise an Income Invoice for the total amount and credit it to this ledger.
You may want to set up a contact under your banking provider's name for use when creating the invoice. The balance can grow over time or be managed later.
Option 3: Post to the Suspense Ledger for Immediate Transfer Out
Use this approach when interest is not intended to remain in the Client/Trust Account:
Post the interest income to the Suspense Ledger via an Income Invoice.
When the funds are transferred out, record the payment in the Suspense Ledger as well.
Resolve both transactions against each other to reflect the movement of funds.
In Asia-Pacific, "Trust Account" is standard; European customers use "Client Account". Client/Trust Accounting does not apply to North American customers. For more information, see our Glossary of Regional Terminology.