Interest on Receivables to be charged to the Responsible Member

QUESTION: Is there any way to have late payment interest charges allocated by responsible lawyer?

RESPONSE: As the interest charged is not an accounting transaction until it is paid nor is it associated to an invoice, there is no direct functionality that could attribute its value to the responsible member for the affected matter.

However, our implementation team shared that some firms charge interest on receivables older than ???? to the responsible member at the end of each month using the same interest rate applied to clients. In this case, they execute the Aged AR by responsible member using the required aging exclusions in summary format. This is exported to excel to facilitate the calculation of the interest which is then journalized to the members GL account created for this purpose using a reversing journal entry. The reversing journal entry captures the net difference due to potential retroactive changes. Some firms upload this journal entry, others use a template.