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Issue Credit Memos or Client Refunds

Introduction

If you ever need to return money back to your client, you will need to issue a Credit Memo or Trust Withdrawal to correctly track it in your books. These are some examples of situations that may require the use of a credit memo:
 
  • Received an invoice payment higher than the invoice amount, and wish to return the money from the Operating Retainer
  • Crediting unused money from trust accounts
Follow the instructions below for each example.

Credit from Operating

1. From the Matters Tab, select the appropriate matter and click  Details, or double-click the matter

2. Click Banking > Transactions
 
 
3. Click  Action > Credit Memo
 
 

Credit Memo Screen

4. Review the Credit Memo screen. This screen is essentially a transaction screen that allows you to record the amount you will be returning back to the client. You will want to review all details, but pay close attention to the following items:

  • Amount: Make sure the amount matches the available credit, and your intended credit amount
  • Type and Method: Choose the intended type and method of the credit. If you’re using CosmoLex to print checks, you can use this to cut a check directly from the program
  • Bank: Ensure the selected bank is correct, or else the available credit will not appear to prevent you from making an error
  • Memo: Use this to enter a note for your records. Memo 1 will show on a printed check if you will be printing your checks from CosmoLex. Memo 2 is an internal only note.

5. When ready, click Save

Once saved, a transaction of the credit will appear in the respective matter’s transactions tab for your records. If ‘To be Printed’ was selected, the check will be ready to print from the Operating Bank used. Learn how to print checks. 

Credit from Trust

 

To issue a refund from a client’s trust funds, create a trust withdrawal.

Tip

Type an appropriate note in the Memo field, so that you may be able to refer back to it later (i.e. ‘Credit back to client’)

Learn how to create a trust withdrawal

Updated on September 6, 2018

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