At times you may receive overpayments from your clients that you need to track. There are a few workflow options to choose from to record and track the overpayments.
When the overpayment is applied to the bill, the overage amount will be added to the Operating account, allocated to the client's Matter. The best practice for handling any overpayment of funds is to transfer them to your trust account, to be held in the client’s name. We recommend that you show the Client Account Payment information on bills so that your clients' can see the overpayment amounts you are holding on their behalf.
Go inside the bill and click "Record Payment":
Next, keep the "Source" account to "Direct Payment" and change the "Payment" amount to reflect the overpayment, and click on "Record Payment".
Please note that Clio will only accept overpayments if they are entered in the "Payment", not the "Payment Amount" field.
In this case I added an extra $190.00 to the payment. Clio will record two payments, one for the amount due, and one for the overpayment amount.
The overpayment amount will also be included in the Operating Account Balance section near the bottom of the bill. In this case, the Operating account is holding the $190 overpayment for the client.
Once the overpayment is applied, it will add the overage to the Firm's Operating account and allocate it to the Matter to be used on future bills. You can track the funds from inside the Matter's Transactions tab.
In this workflow, you would record the amount received in the Matter's Transaction tab first, then you would apply the payment to the bill. This is helpful if you need to have the funds added to a specific account such as a Trust account, and also if you have received the client payment before you are ready to work on your bills. When applying the funds to the bills, the specific "Source Account" that is holding the funds will need be selected instead of using the default "Direct Payment" option. Using the same example as above, let's create a transaction to reflect the full payment of $1,000 which includes the $190 overpayment.
Go to the Matter's Transactions tab, select the account from the Ledger of where the funds need to be recorded and click "New Transaction":
Complete the New Transaction form to provide the details of the amount received and add an optional Description which can be quite useful for tracking purposes. Click "Record Transaction".
Once saved, the transactions page will show the new "Funds in" transaction and the current balance.
Next go to the Bill, and click "Record Payment" as demonstrated previously.
Then from the "Source" field, click the drop-down and select the account where the funds were previously recorded. In this case the funds are in "IOLTA trust (Matter)", and once selected I can see the "Funds Available in IOLTA Trust" section at the top right side of this window displays how much is in this Matter's IOLTA balance:
To complete the payment, enter the payment amount into the "Payment" field and click on "Record Payment": In this example, I am recording the payment of $810. The bill now shows that the payment of $810 was applied and that the balance owing is zero. In the Client Account section, the $190.00 overpayment is reflected as a balance in the IOLTA Trust.
In this workflow, you would simply pay the bill normally using the Direct Payment default or other Source account. Then once applied, you would go to the Matter's Transactions tab and record the overpayment amount to the account of your choice.
Once inside the Bill, click on "Record Payment" and leave the "Source" account to "Direct Payment" and the payment can remain as displayed. You can also add an additional note in the "Description" field:
The bill will be paid and any notes added regarding the payment will be visible in the Client Account section (if showing Account Details).
Next, record a Transaction in the Matter to the account of your choice to allocate the overpayment. In our example this will be $190.00:
The newly added transaction will now be allocated to the client's Matter Transactions subtab and will be available to draw from on any future bills.
You can also generate Client Ledger or Trust Ledger/Listing reports via the Reports tab to track the funds as needed.
Regardless of the workflow option you choose to track the overpayment, you will want to ensure that your Bill Theme is showing the Client Account information so that the overpayments are visible to your clients.
To access the Bill Themes section, first go to the Clio settings menu by clicking the gear icon in the top right corner. Then click "Billing" and then "Bill Themes".
Then, select the Bill Theme and go to "Statement of Accounts > Client Account. In the third window you can select Account Summary to show a balance in your Trust account, Account Details to show the individual transactions, and if you would also like to show Operating account information you can select Include Operating Account History.