If you've noticed that revenue or income totals in LeanLaw don’t exactly match what you see in QuickBooks Online for a partially paid invoice, you're not alone. This is a common point of confusion — and it comes down to how each system allocates partial payments across the line items on the invoice.
Below, we’ll explain how each system handles this and why the totals still match.
The Core Difference: Allocation Logic
Platform | Allocation Method | Payment Order |
QuickBooks Online | Proportional | Payments are applied evenly by % across all line items |
LeanLaw | Priority-based | Payments are applied in order: Taxes → Expenses → Services/Fee work |
A Simplified Example
Let’s say your invoice total is $1,000, made up of:
Services: $800
Expenses: $200
You receive two payments:
$600
$400
Here’s how each system allocates those payments:
LeanLaw Allocation
Payment # | Total Paid | Expenses Paid | Services Paid | Notes |
Payment 1 | $600 | $200 | $400 | Expenses paid in full first |
Payment 2 | $400 | $0 | $400 | Remaining balance applied to services |
Total | $1,000 | $200 | $800 | Matches full invoice |
QuickBooks Allocation
QuickBooks calculates the percentage of the invoice paid with each payment and applies that percentage to each line item.
Payment 1 ($600 of $1,000 = 60%)
Line Item | Total Amount | % Paid | Amount Applied |
Services | $800 | 60% | $480 |
Expenses | $200 | 60% | $120 |
Payment 2 ($400 of $1,000 = 40%)
Line Item | Total Amount | % Paid | Amount Applied |
Services | $800 | 40% | $320 |
Expenses | $200 | 40% | $80 |
Total QuickBooks Allocation
Line Item | Total Collected |
Services | $480 + $320 = $800 |
Expenses | $120 + $80 = $200 |
Why This Matters
Even though the totals are the same, the line-by-line breakdown differs. This can cause discrepancies when comparing reports or allocations by service type, matter, or attorney between LeanLaw and QuickBooks.
Do you have feedback?
If you have feedback on how this is allocated, please reach out to our Product team here: Submit a Request
Summary
System | Allocation Method | Outcome |
LeanLaw | Priority-based | Prioritizes Expenses, then allocates to Services |
QuickBooks | Proportional | Applies % of payment to each line item equally |
If you’d like help interpreting a specific invoice or have questions about your reporting, our Support team is here to help.