LAWS/Pro 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 tutorial will review the process of automatically applying Trust Funds as payment against generated invoices.

 

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.

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!

You can also view a short demonstration tutorial of this process by clicking here.