If a client overpays, it is recommended that those funds are placed in the firm's trust account, although the funds may be refunded (see below for how to refund) or applied to prepaid, if desired. Refunding the money or placing it in a trust account are recommended to avoid the ethical dilemma posed by commingling unearned client funds with firm funds.
What if I apply the cash to the wrong Client or Matter?
If the cash was deposited in the same firm bank account: Open a new batch and enter a negative cash receipt to remove the funds from the improperly credited Client or Matter, then enter a positive amount and apply it to the correct Client or Matter. The batch total should be equal to zero, so the bank balance will be unaffected.
If the cash was deposited in different firm bank accounts: You will have to cut a check from one account and then deposit it into the other account in order to assure that the funds are in the correct account.
What if a client's payment check or trust deposit check bounces?
Enter a negative cash receipt for the amount of the returned check and apply it to the appropriate bank account. A negative cash receipt is entered exactly the same as a normal cash receipt - except that the amounts are negative. Use the minus sign (-) to indicate the amount is negative when entering the amount values.
How do I refund prepaid funds to a client?
Create a cash receipt. Enter a negative dollar amount under the PPD tab for the amount of the refund and a positive amount under the Other tab (the total check amount will be zero.) Create a check to the client and make the g/l distribution on that check PPD liability, or whatever account you chose for the ‘Other’ cash receipt when creating the cash receipts batch. See Reverse a prepaid amount and refund the client for detailed instructions.
How do I refund trust funds to a client?
Write a check to the client from the trust account where their funds reside. See Refund a trust deposit for detailed instructions.
If I have an open prebill for a client matter I just applied a cash receipt to, do I have to reselect the prebill?
No, when you print the final bill it picks up the new transaction.
How do I view the check number in a CM inquiry?
Insert the check number at the beginning of the Payor field.