Please complete "Getting Started Guide"" steps 1-3 prior to handling any migration tasks or adjustments.

 
  1. Migration Customers - If you were not using CosmoLex for business accounting OR using CosmoLex just for Trust Accounting.:
    1. If you were not using CosmoLex for your business accounting, then there should not be many changes for you.
    2. If you were using CosmoLex only for Trust Accounting, then also there should not be many changes for you. All of the earlier trust transactions are now attached to account "2300: Client Trust Funds".
    3. Should you plan to start using CosmoLex for business accounting, you would need to follow the process as outlined in "Migrating Data from third-party software" to ensure giving CosmoLex system a clean accounting start.
  2. Migration Customers - If you were using CosmoLex for business accounting or wish to understand how your data was migrated: This section provides general guidelines about how transactions were migrated into the new system. It requires your thorough understanding and review to ensure that you can successfully start using full featured legal accounting that's now available. Since matter cost transactions were not linked to expense cards in the previous version, please review these tasks to update your accounting in CosmoLex. It is strongly recommended that you work with your accountant or a third party consultant to ensure your accounting is now set correctly.
  1. System migrated earlier transaction categories to accounts based on following migration table:
"Old" Categories
"Chart of Accounts"
ALL Trust Transaction (irrespective of which categories were used)
2300:Client Trust Funds
ALL Operating Retainer Balances
2320: Client General Retainer (Operating)
Court Reporter
6610:Reimbursable Client Costs
Deposition Fee
6610:Reimbursable Client Costs
Expert Fee
6610:Reimbursable Client Costs
Filing Fee
6610:Reimbursable Client Costs
Mediation
6610:Reimbursable Client Costs
Medical Records
6610:Reimbursable Client Costs
Medical Research
6610:Reimbursable Client Costs
Process Service
6610:Reimbursable Client Costs
Skip Trace
6610:Reimbursable Client Costs
Subpoena
6610:Reimbursable Client Costs
Videographer
6610:Reimbursable Client Costs
ii Disk
6610:Reimbursable Client Costs
Postage
6500:Postage and Delivery
Telephone
6675:Telephone/Communications
Lodging
6703:Travel
Taxi/Limo
6703:Travel
Travel
6703:Travel
Gas & Electric Bill
6725:Utilities
"Anything Else" (i.e. User Created Categories)
10000's: Other Income (user category as GL account)
"Anything Else" (i.e. User Created Categories)
15000's: Other Expense (user category as GL account)
  1. If you do not agree with any of the migration logic applied, you will be able to migrate balances from one account to another using journal entries
  2. Temporary accounts, identified with the category name, captured any of your categories the system didn’t recognize. You will find these as either “other income” or “other expense”. This will help you identify and classify transactions to the appropriate general ledger account. Please note: if a user category has a predominance of negative transactions, an “other Income” account will be created.
    1. Please review the items and, using journal entries, move them to either 6610: Reimbursable Client Costs or 1700: Advanced Client Costs; 6620:Non-Reimbursable Client Costs; or to 4100: Fee Income (or sub-account, if created); 4200: Reimbursed Client Expense.
    2. If the transactions are part of overhead, you may leave them in the account for 2015. If you are aware of the expense account and have entered the account balances for the year, please contact your accountant or CosmoLex support for a referral to one of our certified consultant.
  3. Details for Users who were entering matter cost checks in CL and then creating matter expense cards:
    1. All of the matter cost categories recognized by the system have been moved to 6610:Reimbursable Client Costs as per the migration table above.
      1. If you do not agree with the migration logic applied, using journal entries, migrate balances from one account to another.
    2. The corresponding income (i.e. expense cards reimbursed by customer) is posted to 4250:Inhouse Reimbursed Client Costs (Indirect)
      1. Please review these accounts and make adjustments using journal entries.
    3. You may link matter cost transactions to expense cards retroactively (provided expense cards have not been paid yet and are of same amount and date). Please see support FAQ.
    4. At the time of migration, invoice payments received get allocated to accounts as per a systematic invoice payments allocation logic. In general allocation happens in this order:
Invoice Payments
"Chart of Accounts"
Tax amount (if any)
2200-Sales Tax (Other Current Liability)
Expense cards + Overhead amount
4250:Inhouse Reimbursed Client Costs (Indirect) (Income)
Late fee, finance charges
4150: Other Business Income (Income)
Time cards total OR Fixed Fee Amount or Contingency Fee Amount
4100: Fee Income (Income)
Applied Discounts (if any) [Gets posted as negative amount]
4125: Discounts (Income)
Any excess funds
2320: Client General Retainer (Operating) (Current Liability)
  1. Please review and make journal entries to move income to any Practice Area sub-Accounts you may have setup.
  2. Carefully review your Balance Sheet and Profit & Loss Statements.
  1. Details for Users who were entering matter cost checks in a third-party software and ONLY creating matter expense cards:
    1. Since no transactions have been made in CosmoLex, there are not expense postings.
    2. At the time of migration, invoice payments received get allocated to accounts as per a systematic invoice payments allocation logic. In general, allocation happens in this order (see invoice payment allocation table above)
    3. Note: you will not be able to produce reliable Profit and Loss statements because no offsetting expenses exist in the system. If you want to move your accounting to CosmoLex, please contact our Support Team to learn your options.
  1. Migrating data from third-party Software -- since CosmoLex uses cash basis reporting, run all reports on a cash basis. Below are general instructions and not designed to cover your unique situation. Please confer with your accountant to ensure balances are correct:
    1. Balance Sheet:
      1. Create “Trial Balance” with the “as of date” being the end date before converting to CosmoLex, e.g. CosmoLex start date: July 1; Trial Balance date: June 30
      2. Using the Journal Entry feature in CosmoLex, enter balances for Assets, Liabilities, and Equity.
    2. How do I enter Balance Sheet opening balances
      1. Bank
        1. Accounting => Banking => choose Bank => Details => Transactions
        2. Enter transaction and choose Deposit
        3. From Dropdown, choose 3100: Opening Balance Equity
      2. Other Balance Sheet accounts
        1. Accounting => Journal Entries => Add
        2. Select Account => put $$ amount as Debit or Credit depending on Account Type
        3. Select 3100: Opening Balance Equity to balance entry
    3. Profit and Loss
      1. Using the “Trial Balance”, as above, enter account Balances
      2. Select Account => put $$ amount as Debit or Credit depending on Account Type
      3. Select 3100: Opening Balance Equity to balance entry
      4. Enter uncleared transactions (see below)
    4. Uncleared Transactions.
      1. Run report, using “as of date” as described above to determine
        1. Unpaid invoices; be sure to note matter costs
        2. Reconciliation report for uncleared checks/deposits
      2. Manually enter transactions
        1. Invoices -- follow instructions for entering matter-linked expenses in CosmoLex
        2. Cross reference uncleared checks with matter costs on invoices, as noted in #1
        3. Uncleared deposits should be posted to fee income, cost reimbursement income on Trial balance; cross-reference to confirm.