This article explains what "unallocated" funds are, how to receipt funds into unallocated funds and how to refund these funds back to clients.
Processing Unallocated funds
When you are processing a client receipt. There are three options that will determine if funds will be "unallocated".
1. This is the amount deposited into the bank account.
2. This amount will be paid against the invoice (you cannot apply more than what is outstanding on the invoice).
3. The blue box indicates whether there are unallocated funds and gives you the option to leave these as unallocated funds.
Where to find unallocated funds
To see unallocated funds go to Billing > Payments and then scroll across to the unallocated heading this will show you all the unallocated funds.
Tip: You can click on the header unallocated funds and this will sort it by highest amount first.
Please note you are not able to view unallocated funds from the matter billing screen.
How to apply unallocated funds to invoices
You can apply unallocated funds to invoices dated on the same date as the receipt date or before. You can do this by finding the original client receipt with the overpayment and clicking on it and then applying the overpayment to any additional invoices that are listed.
You do this by going to Billing > Payments and clicking on the receipt that has the overpayment. You will then see the unallocated payment that you can apply to the additional invoice(s).
You cannot apply unallocated funds to future dated invoices. We suggest refunding the unallocated payment back to your client OR refunding funds back to your operating account to pay for a future dated invoice.
How to refund unallocated funds
To refund allocated funds back to a client go to the green global create button and click on Client Refund.
You will then be presented with a screen to make a client refund make sure to choose the contact which has unallocated funds and the unallocated funds will appear ready to be refunded.
Process the refund and then physically refund the money back to the client.
|WARNING: Please note that you are not able to process a client refund if you have an accounting integration enabled.|
If you have unallocated funds that you are unable to apply to a past invoice and you have a Xero/Quickbooks integration you can proceed with a client refund however you will need to turn off your accounting integration and manually re-produce the refund in Xero/QB separately.
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