LAWS/Pro: Review of how Invoices are Automatically Paid from Trust
allows retainer funds received from clients to be stored in a Trust Account.
It also offers the option of automatically applying these funds against invoices.
The Client Trust Account is physically separate from the firm's General Cash Account, and the money must be consciously transferred from
one account to the other. LAWS/Pro creates all the necessary transactions, but the actual transference must
be completed by the user.
This message will review the process of automatically applying Trust
Funds as payment against generated invoices.
Automatically apply Trust Funds against Client Invoices as follows:
1) Enter the funds to be deposited into the Client Trust through the LAWS/Pro
Cash Receipt function. The receipt should be classified as a "Non-AR Trust Receipt". Make sure the "Retainer" option
is set to "Yes".
2) The billing option "Retainer" specifies whether retainers should be automatically applied or not. Make sure that
the invoice's "Retainer" option is set to "Yes". This option may be set as a default within either "Firm" or
"Attorney". If different from the default, it may be specifically set per each "Client".
3) Generate the invoice as normal. You will notice that the "Total Amount Due This Matter" will be reduced by the available
Trust Retainer balance.
4) When the invoice is posted, LAWS/Pro automatically creates
two transactions; a "Trust Disbursement" transaction, payable to the firm, and a "Cash Receipt" transaction
depositing these funds into the General Account.
Please Note: LAWS/Pro
creates these transactions as a reminder to the firm that the funds must be physically transferred. It does NOT post these transactions. The transactions
should be posted by the user as the funds are being physically transferred.
5) Open the LAWS/Pro Cash Disbursement program and process the system generated
Trust Disbursement Check transaction. Either have LAWS/Pro print an actual Trust Check, enter in the check number of a
manually written check, or identify the transaction as an electronic transfer. Post this transaction to confirm that the funds were physically
deducted from the Trust Account.
6) Open the LAWS/Pro Cash Receipt program and process the system generated
receipt transaction. Post this transaction to confirm that the funds were physically deposited into the firm's General Account. (Make sure this
money is actually deposited!)
This completes the process!
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