When using client funds to automatically apply to current work, any previous accounts receivable balances will not be paid from client funds. However, most manual Payments to Firm from the Client Funds entry program will apply to previous balances after applying to any current work. Additionally, a manual Payment to Firm with a Fund Application of WIP Payment will create a linked Payment transaction, which will apply to previous balances before current work, and can optionally be allocated manually to apply to specific balances.

  To add a client funds WIP Payment to Firm to pay off a previous balance

  1. From the File menu, point to Data Entry and then select Client Funds.
  2. Click the Client button and select the desired client.
  3. Click on the toolbar.
  4. Specify the transaction Type of Payment to Firm.
  5. Specify the Fund Application of WIP Payment.
  6. Enter the remaining information for the client funds transaction.
  7. Click on the toolbar to save the new Client Funds entry. A linked payment will be displayed.
  8. Enter the remaining information for the payment transaction. Optionally, click the button to edit payment allocation.
  9. Click on the toolbar to save the new Payment entry. This payment will be applied immediately to previous balances, and you will have the option to retain any excess payment to apply to new balances.

Note: Alternatively, you can pay off previous balances by creating a Client Funds transaction with a Type of Payment to Firm and a Fund Application of Apply to All. The Amount of this transaction must equal the current amount due plus any accounts receivable balance. When a final statement is generated and updated for the client, this payment will be applied first to current work, and then to previous balances.

See also:   Adding a Client Funds Transaction