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Can I Apply a Payment to the Interest on a Bill First?

Objective:

  • To select the order of payment on a Bill.
  • To make partial payments on a Bill that pay interest first.

Environment:

  • Clio Manage

Additional Information:

  • For more information on recording direct payments please click here.
  • For more information on recording payments from Trust please click here.
  • A request to make this feature has been submitted to our development team for future consideration.
  • If you would like to add your vote towards getting this feature implemented in Clio, please contact Clio Support.

Answer:

Not at this time. As far as Clio is concerned, it will apply a payment to a Bill toward the total outstanding balance and it will pay the Principal amount first before the interest.

For reporting purposes (i.e. Revenue Report), the payment will be applied proportionally across all parts of the Invoice. For example, if Time Entries accounted for 90% of your invoice, and interest accounted for 10% of that invoice, a payment made on that invoice would be applied 90% to the Time, and 10% to the interest (on the Revenue Report).

In terms of syncing to accounting software (i.e. QuickBooks Online), the Principal will be recorded as being paid first.

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