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Disbursements in Nojumi

Disbursements represent out-of-pocket expenses that you incur from your law firm's account on behalf of a client. Disbursements are added to matters as Entries to ensure you get reimbursed for these types of expenses.

When you incur an expense on behalf of a client from your general account or your credit card, you may wish to get reimbursed, depending on the nature of the retainer agreement between you and the client. 

Dibursements are a type of entry that are added to the matter to ensure you get reimbursed. When you issue an invoice on a matter that has disbursements added to it, the disbursements will end up on your invoice. 

To properly record an an expense incurred on behalf of a client therefore you would have to take the following steps:

  1. Record the payment as an expense or a supplier bill. This results in increasing the expense section of your income statement.
  2. Record the payment as a disbursement on the matter. This results in increasing the revenue section of your income statement.

Steps 1 and 2 will therefore will cancel each other out and will result in net profit on the income statement remaining the same, which is the desired outcome, as a disbursement for which you are reimbursed should not impact your firm's financial position.