When I produce a check with a matter nickname, G/L account 5210 is assigned automatically. What is this account and how is it used?
G/L account 5210 is the Client Disbursement Clearing account which is used automatically whenever a matter nickname is specified on a general check. When the check is saved, two debit/credit transactions are made: 1. For the general check portion of the transaction, PCLaw: Debits the account specified Credits the general bank account 2. For the expense recovery portion of the check, PCLaw: Debits 1210 Client Disbursement Recoverable (accrual/modified cash) Debits 5010 Client Disbursement Expense (cash) Credits the account specified Notice how the net effect on the account specified, in this case 5210 Client Disbursement Clearing, is zero. Even if you use a different G/L account, the net effect will still be zero. The reason we use 5210 is to keep all the clearing transactions in one account. In general, you can follow these rules: If Client Disbursement Clearing (5210) is used by default, you should accept that G/L account nickname. If Client Disbursement Clearing (5210) is not used by
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