Transfer from Trust & Owed to Operating (OTO) – MONESQ

The following table illustrates actions taken in MONE$Q related to trust deposit invoices and transfers from trust - including MONE$Q’s exclusive Owed to Operating feature. The table describes the action taken in MONE$Q and the effect it has in MONE$Q and QuickBooks Online.

Action in MONE$Q	Effect in MONE$Q	Effect in QBO	Comments
Generate an Invoice to Trust Account.	Creates Invoice due (payable to Trust Account) NOTE: See “Billing/Invoices”	Increases A/R Increases Client Deposit Liability Account
Receive a payment to trust account.	Invoice status is Paid Increases the trust balance for that Contact level or Matter level trust (individual trust ledger) Increases overall trust balance Appears in Trust Deposit ledger and Trust Transaction ledger	The invoice shows as “Paid” Reduces A/R and increases Undeposited Funds	The Undeposited Funds account in QBO is a temporary account that QBO uses to hold payments from invoices before you deposit them in the bank. QBO does not allow this account to be deleted. MONE$Q automates QBO entries for Transfers from Trust used to pay law firm invoices (and checks written to clear Owed to Operating balances) so that the QBO Undeposited Funds entries for these items are made automatically.
An invoice for earned fees is paid with a Transfer from Trust (MONE$Q Receive Payment Function).	Reduces that Contact (or Matter, if applicable) trust balance Creates an amount Owed to Operating (OTO)	MONE$Q automatically pushes a Journal Entry to QBO to effect the following: Reduce Client Deposit Liabilities Reduce the trust account balance Reduce Undeposited Funds Increase Owed to Operating	OTO is created in QBO as a “bank” type account that is automatically inserted in QBO during the MONE$Q/QBO integration setup. The Owed to Operating “bank” account must be cleared before trust reconciliations. Owed to Operating represents the amount that can be transferred from the Trust Account to the Operating Account at any given point in time.
A check is written in MONE$Q to transfer the funds from the Trust Account to the Operating Account.	The check reduces Owed to Operating by the same amount.	A Journal Entry is automatically pushed from MONE$Q to QBO to reduce Owed to Operating and increase the Operating Account, in each case by the amount of the check.
The check created in MONE$Q to clear OTO is deposited in the Bank (Operating Account)		User deposits check by either: Remote Deposit Capture using mobile phone or a check reader (RDC) or A handwritten Deposit Slip.	User should use either RDC or a handwritten deposit slip. DO NOT print a deposit slip from QBO for checks written to clear OTO because the entry to clear Undeposited Funds has already been pushed from MONE$Q to QBO -- a deposit slip printed from QBO would cause a duplicate of the deposit and overstate the bank balance in QBO.

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