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How Can I Record a Payment on a Bill from the Client/Trust Fund to a Third Party?

Objective:

  • To record a payment on a bill for a Disbursement directly from the Client/Trust Fund to a Third Party
  • The payment needs to be on a bill but does not go to the Firm Office/Operating Account

Environment:

  • Clio Manage

Additional Information:

Procedure:

There is not currently an option in Clio to record a payment for a Disbursement on a Bill from the Client/Trust Funds to a 3rd Party. 

A workaround for this is to create a second Operating account to record these Transactions instead, usually named Purchase Account

Create a second account:

  1. Go to the Accounts tab and click New.
  2. Account Type: Choose the Account Type Operating.
  3. Account Name: Name your account Purchase Account so that you can identify it in a list.
  4. Optional account information: The bank account information is not required
  5. Opening Balance: You should leave the opening balance at $0.00
  6. Default Account: Leave this unchecked as we want our Office or Client/Trust Account to remain the Default
  7. Select Create New Bank Account

Next, you will need to create a Disbursements only Bill for Expenses that need to be paid in this manner

Then, Record a Payment on the Bill:

  1. When the Bill has been approved Click Record Payment
  2. Select a Source: You will select the Client/Trust Funds
  3. Select a Destination: Here you will select the Purchase Account we created earlier
  4. Enter the Payment Amount
  5. Click Record Payment

 

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