Pay an Invoice from Trust Funds

Learn how to use Smokeball to pay an invoice with trust funds so you can stay on top of your trust accounting.

Applying a trust payment when drafting the invoice

1. Draft an invoice.
2. After reviewing the invoice, select the Final tab, then click on the Pay From Trust option in the right-hand column.
   
3. Enter the amount to pay from trust.
4. Finalise the invoice once it’s ready. Upon finalising the invoice, the trust payment is processed as well as being reflected on the invoice.

Applying a trust payment to a finalised invoice

1. Open the matter, then select the Invoices tab.
2. Click on the invoice.
   
3. On the right-hand panel, select Pay now under the Trust amount.
   
4. Add the trust payment.

• Good to know

  Once you have added a payment to an invoice, you cannot delete the payment, but you can reverse it.

Applying a trust payment to multiple invoices

1. Open the matter, then select the Invoices tab.
2. Click on Add Payment.
   
3. Select the matter and/or client as required.
4. Enter the amount to be paid in the Amount field.
5. In the Type dropdown menu, select the trust account.
   
6. There will be a list of invoices you can apply the trust payment to. Next to each invoice, enter the amount for the invoice for which you are making the payment.
   • You can pay multiple invoices for the matter or client (depending on your selection in Step 3).
     
   • The trust payment amount must be equal to the total of the invoices selected.
7. Type in the Reason (required).
8. Click Process to apply the trust payment to the selected invoices.

You can also add a payment from the Invoices section on the left menu.

View unpaid invoices with available trust funds

1. Select Invoices from the left menu.
2. Select the Trust To Office tab.
   

The page displays a list of matters with the amount due, and trust balance available.

Learn more about using Trust to Office for invoice payments.

Handling overpayments for Trust to Office Transfers

In case you need to record an overpayment for a trust to office transfer to match what's on your bank account/bank statement, you can consider adding the overpayment as a credit in the matter so it can be applied to future invoices for the same client.

Note: You would not be able to record the full amount of the overpayment onto the invoice (see the error message example below).

To make sure your trust ledger matches your bank, please complete the following steps:

1. Record a payment to match the full amount of the invoice.
2. Create a credit note in the matter for funds received that exceed the full invoice amount.
3. Create a trust payment in the matter for the amount exceeding the full amount of the invoice.
   Note: When processing this trust payment, put your firm as the contact in the “Paid To” field and add a note including the invoice number into the “Reason” field.