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Enter a Single Trust Transaction across Multiple Matters

Introduction

In Trust Accounting it is critically important to keep ALL transactions (deposits, checks, etc) belonging to a particular matter, separate from other matters. In other words, all trust bank transactions must be associated to its corresponding matter. This provides for easier implementation of compliance measures, and makes the trust balance at a matter level readily available, making reporting more flexible.

With this in mind, there can also be many special situations when a single trust credit (deposit) received needs to be credited to multiple matters and a single trust account debit (withdrawal) needs to be debited from multiple matters.

This article aims to provide a tip on how to correctly record this in your CosmoLex account.

Important

This process is not intended to record invoice payments. Learn how to apply invoice payments from trust.

Before Getting Started

Before completing the steps below, you’ll want to create a ‘Transfer Matter’. This matter will be used as a bridge between your debit or credit and the matters you wish to distribute the funds to.

Create a new matter called “Internal Funds Transfers”. This will be your ‘Transfer Matter’. Ensure that you add all trust banks that you will need to deposit or withdraw from onto this matter.

Don’t know how to add a matter? Learn more here.

Don’t know how to add trust transactions? Learn more here.

Allocate a Trust Credit (Deposit) to Multiple Matters

If a single Credit (Deposit) is received and is to be credited among multiple matters:

  1. From the Matters Tab > Select the “Internal Funds Transfers” matter you created
  2. Enter a Trust Transaction Deposit for the amount received. The “Internal Funds Transfers” matter will now show a balance reflecting the received funds.
  3. Enter a Matter to Matter Trust Funds Transfer – and transfer each desired amount from the “Internal Funds Transfers” matter to the appropriate matter

Enter a Trust Debit (Withdrawal) from Multiple Matters

If a single check is to be issued out of the trust account from multiple matters:

  1. Enter a Matter to Matter Trust Funds Transfer – and transfer each desired amount from each matter to the “Internal Funds Transfers” matter you created.
  2. Issue a single check out from the “Internal Funds Transfers” matter to the Payee. Ideally, at this time, the trust balance on the “Internal Funds Transfers” matter should have become zero.

Learn More

Matter to Matter Internal Trust Funds Transfer

Updated on June 6, 2019

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