Transfer Operating Retainer Funds to Trust Account

Under certain circumstances, you may move client funds from your operating account to your trust account. To track this transfer for accounting purposes, you must record it in your application.

Step 1. Create Credit Memo for Operating Funds Transfer

Create a credit memo to record your operating retainer funds transfer to your trust account.

To create the credit memo:

1. From the left navigation panel, click Matters.
2. On the Matters screen, double-click the matter.
3. From the tabs atop the Matters Summary section, click Banking.
4. From the tabs atop the Banking screen, click Transactions.
5. From the toolbar atop the Transactions screen, click Action > Credit Memo.
6. On the Credit Memo screen, from the bank field’s drop-down select the operating bank or business account where the funds are held now.
7. From the Date field’s drop-down, click the credit memo date.
8. In the Amount field, enter the amount.
9. In the Pay To field, enter your firm’s name. This will record the credit to your trust account.
10. The Type field will default to Withdrawal, but can change if needed.
11. In the Method field, use the drop-down to choose the payment method.
12. Enter a Ref # if desired.
13. In the Memo field, we recommend you enter a memo describing the transaction’s purpose. For example, Transfer to [Client’s Name] trust account.
14. In the upper right corner, click Save.
    The system updates the operating retainer balance.

Step 2: Deposit Retainer Funds into Trust

After recording the removal of your client’s funds from the operating retainer, you need to record the deposit to your matter’s trust ledger.

To deposit the retainer funds into trust:

1. Take one of these actions:
   • Matter Details screen
     1.  From the toolbar, click Trust Transactions > Deposit.
        
   • Matters screen
     1. Single-click the matter to highlight it.
     2. Click on the three dots at the end of the row and from the drop-down, click Trust Transaction Deposit.
        

The Matter’s Trust Deposit screen opens.

1. The Client Matter field populates with the matter name.
2. From the Bank field’s drop-down, click the appropriate bank.
3. From the Date field’s drop-down, click the credit memo date.
4. In the Amount field, enter the credit memo amount.
5. In the Payor field, enter your firm’s name.
6. The Type field will default to Deposit, but can change if needed.
7. In the Method field, use the drop-down to choose the payment method.
8. In the Memo field, we recommend you enter a memo describing the transaction’s purpose. For example, Transfer from [Client’s Name] operating account.
9. In the upper right corner, click Save.
   The system updates the trust retainer balance.